Signed to Guarantor 12 years ago - now they chase my me - Any Advice?

k4t1e2

Hi there, hopefully someone can provide some help with this as I am unsure were to find assistance as this is from 12 years ago (or if that matters)

My mum signed to be a guarantor for my brother for moped finanace nearly 12 years ago. Long story short but moped was stolen and even tho he had the protection it never got paid out due to some clause (dont know the full details). by the by, over the past 12 years it has become apparant that my brother has paid some monthly installments, then refused to pay them, then just ignored them and here we are 12 years later, the finance still hasnt been paid.

They are now refusing to deal with my brother (the idiot) and want my mum to pay the remainder. I do not have exact figures to hand but it is something in the region of £2k (i dont even think the bike cost that much to start with!)

the people that telephone my mum fropm Black horse are not very helpful and their attitude is disgraceful! To stop this affecting my mums credit and stop it going to court mym mum has agreed to pay them £10 a month. my brother is just rubbish now and there isnt much of a relationship between were my mum can get him to pay her at least as it is now coming out of her pocket.

As this agreement was 12 years ago, is there anything my poor mum can do? Arent debts cleared after 6 years? I have tried to look on this site for advice, on the consumer group site and even googled it but there isnt anything which i think can help as this is from 12 years ago. Has legislation changed since then? were guarantor contracts ok back then? Will my mum just have to pay this?

Any help will be very much appreciated!!!!!! many thanks!

niccatw

It does sound as thought it could be staute barred - but I'm afraid I don't know enough about the ins and outs of that. You would need to find out the last time your brother paid anything at all towards the debt before figuring out whether it would apply or not.

Hopefully some-one will come along with more pertinent advice soon.

HopeAndDriftWood

If it has been over 6 years since your brother acknowledged the debt, it will be statute barred I think. Unless your Mum has already made a payment, in which case the six years will start again.

Ames

The six years don't start again, once it's statute barred it stays statute barred, the clock doesn't restart.

It starts 6 years after the last payment though, so you really know when your brother last made a payment. I'm not sure how you can find that out though without his help, I'm not sure what rights a guarantor has.

Someone with template letters will be along soon I'm sure, it might be worth sending a prove it letter, as they wont be able to enforce this without proof she was guarantor, but I'm not sure about her credit rating.

handyman123_2

Hi, K4t1e2, My OH had the same problem a few years ago, she garantored a loan for her ex, they had been divorced over 10 years and had 5 address changes when this came out of the woodwork. They offered a big reduction for immediate settlement which we couldnt afford. She offered a small monthly payment which they accepted (she would have been over 90 before it was paid). After 3 years she cancelled the standing order and we hav'nt heard anything yet. If I knew whatI know now they wouldnt have got a penny.

Use the CCA request on never-in-doubts unenforcability thread. Then when they cant produce the agreement, which after this time I doubt you should be able to go for statute barred. Check with your brother see if he can remember the last time he paid.

Best wishes handyman123.

DarkConvict

Statute barred letter - http://forums.moneysavingexpert.com/showthread.html?p=11571227#post11571227

Was there a gap of 6 years between your brothers last payment and your mom making payment. If so it is statute barred. Once statute barred always statute barred, so if there was a 7 year gap then she paid it is still statute barred.

If not, it is 6 years from when last payment was made.

You can very likely use the CCA topic to try and fight your side but it will trash your credit file if you fail to pay - http://forums.moneysavingexpert.com/showthread.html?t=2305463

RAS

Hi folks

This may have been secured debt - loan secured on the bike?

Mum needs to know what sort of loan it was and when the last payment was made by brother.

k4t1e2

Thank you all for your advise and your help!

we are unclear of the exact dates of when my brother made payments. The last time my mum was able to speak to my brother about this he was also unsure of when he paid.

my mum has said as far as she is aware he only made a few monthly payments at the begining but the moped was stolen after just a few months. The insurance didnt cover it as he had not had the bike for over so many days before it was stolen so thats when my brother refused to pay (apparently). Then 3-4 years ago they got in touch with him and he may have made a couple of payments but my mum is cannot be definite of this.

since them harrassing my mum she has been paying £10 per month by cheque since november. We are unable to determine whether there was a 6 year gap! my brother is totally out of order adn should not put my mum in this situation, he has just refused point blank to pay it so now my mum is.

am quite sure the loan was finance secured to the moped, does this matter? i do know the company is black horse.

thank you all again!!! i think i will tell my mum to send the SB lettr anyway. Is she also allowed to request a statement of payments previously made and to also include how much charges and interest has been added? :T

DarkConvict

Under OFT Guidelines you are allowed to request information on the debt - http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

e. failing to provide debtors or creditors with information on status
of debts, for example, not providing requested balance statements when
reasonably requested

For actual copies of statements thou if they refuse to send, you have to send a SAR request to the original lender of the money - http://forums.moneysavingexpert.com/showpost.html?p=30356311&postcount=22

It maybe worth asking to see the credit agreement to - http://forums.moneysavingexpert.com/showthread.html?t=2305463