Being a guarantor!

Bamb0ozle

A bit of info needed please if there are any wise people out there..

My girlfriend has acted as guarantor for a friend of hers, so far there has been no defaults on the account and everything has been hunky dory, but when she signed as guarantor they used her debit card details as a means to claim money if the account holder defaulted.

Her debit card is about to expire and the loan company are hassling her for her new card details, she's not too keen on handing them over, there are reasons for this, but I will be typing war and peace if I explain!

So the question is, does she legally have to disclose her new card details to them, or can she ignore the messages she is getting from the loan company?

Thanks in advance

Malky

Bamb0ozle wrote: »

So the question is, does she legally have to disclose her new card details to them

Of course she does. The loan essentially belongs to your GF. If her friend defaults, how is the loan company supposed to get their money?

RichGold

Why did she sign for someone else?? Judge Judy would be turning blue you know.....

If she signed as guarantor then whether the loan company have the means to take the money, they will still pursue your GF for it if her mate defaults. Witholding card details just wont do it.

She signed for her mate, there is no way out of that at all.

The only way out of it is to pay off the loan yourselves and have her friend owe you the money. Which in all honesty would have been a better thing to do in the first place.

That's it.

madmonkey01

as a guarantor, she has more responsibility on the loan than her friend, it probably doesn't even show on the friends credit profile, and she is effectively borrowing the money from your partner on faith alone.

vax2002

Been A guarantor means you agree to pay the loan and the money goes to someone else and if the person who gets the money feels up to it they will pay the payments, if they dont you do , no arguments.

Apples2

If your GF is obstinate and refuses to give the new details over, you can guess what will happen once her friend defaults.
Your GF is the one who will be royally humped and end up owing thousands along with a smashed credit rating to boot.

The lender already knew her friend was likely to default hence the guarantor requirement, there is no other reason.

People agreeing to become a guarantor have gone completely haywire between the ears.

Tixy

If she doesn't give them her card details then if her mate stops paying and they don't have her details she will likely start racking up extra charges & interest and very likely to mean her credit file would be affected before she has chance to sort things out and start up the payments for the loan. And of course if she doesn't make payments then they might very likely go for a CCJ against your girlfriend.

She is sadly tied to being a guarantor until this loan is repaid in full.

Bamb0ozle

Malky wrote: »

If her friend defaults, how is the loan company supposed to get their money?

Send her a letter asking for payment? Phone her and ask for payment? It just means they can't automatically take money off her, and I just want to know if it's a legal right for the loan company to demand her card details, I don't want to get into moral issues about whether it's right or wrong!

RichGold wrote: »

Why did she sign for someone else?? Judge Judy would be turning blue you know......

Trying to help a friend out, there isn't any kind of problem with her friend, all payments have been made on time in the past.

RichGold wrote: »

If she signed as guarantor then whether the loan company have the means to take the money, they will still pursue your GF for it if her mate defaults. Witholding card details just wont do it.

RichGold wrote: »

She signed for her mate, there is no way out of that at all.

Nobody is attempting to get out of anything.

So the question remains, is it a legal requirement for her to hand over her card details?

Bamb0ozle

Please guys, you are all misunderstanding, she realises she'll have to pay if the account defaults, she just wants to know if she legally has to hand over her card details

Alter_ego

Bamb0ozle wrote: »

So the question remains, is it a legal requirement for her to hand over her card details?

Perhaps it's in the agreement she signed?

BoGoF

Does the loan agreement say anything about this?