Being a guarantor!

madmonkey01

I think it was probably part of the legally binding contract, she would of signed.

if it is, then yes it is a legal requirement.

lawrie28

I wouldn't.

And if they insist, then have her open a basic bank account with £1, and give them the debit card details to that to keep them quiet.

Legally, the responcibility of the loan is her friends, and she is only responcible if her friend defaults. So you need to make sure thatdoesn't happen and have a contingency if it does.

Bamb0ozle

ok thanks all, I'll have a word with her :-)

Tixy

lawrie28 wrote: »

And if they insist, then have her open a basic bank account with £1, and give them the debit card details to that to keep them quiet.

Thats certainly an idea - but I would certainly make sure there is at least one months payment in the balance she leaves in there (possibly more as if friend defaults they could try to collect the payment and a late payment charge).
If she only leaves a £1 in then the payment would bounce and she'll end up with a missed payment on her credit file, which presumably she wants to avoid. Also if she does this she needs to keep a close eye on that account, checking it at least monthly.

Apples2

Bamb0ozle wrote: »

Send her a letter asking for payment? Phone her and ask for payment? It just means they can't automatically take money off her,

Send her a letter..... really?? :rotfl:

You don't say who the loan is with but see this bit from FLM (one of the most popular)

If I miss a payment will you take it straight from my guarantor?

We only ever attempt to take the payment from the guarantor as a last resort. If an applicant’s direct debit bounces back we will attempt to take the payment from the applicants debit card. Once all payment options have failed for the applicant we will then have to take the payment from the guarantors debit card, as agreed with all parties when the loan is paid out.

The reason we do this is for the benefit of all customers. You won't get any late payments charges or negative impact on your credit file and it won't effect your guarantors credit history. Also, as a community lender we lend out what we receive back from monthly repayments, by collecting the payment on time we're not preventing a new customer from getting the financial help they need from us. The same as you did when we paid out your loan.

You and your guarantor need to ensure that all of your bank and card details are up to date and correct. If for example either of your cards have expired we will not be able to take that payment.

Will you contact the guarantor before taking the payment?

We will normally text both yourself and your guarantor to let you both know that the payment is late and that we will be shortly attempting to collect a payment from your guarantor.

Note from the above, the payment is not optional. You cannot simply deny them the very money your GF promised to give them.

mustang1

As I see it, the current situation is that the loan company has your girlfriend's current debit card details. You GF's friend hasn't defaulted so your GF hasn't paid anything yet.

Nothing is going to change if your GF gives the loan company her new debit card details, unless you think there is a real risk that your GF's friend is about to default. Even if that is going to be the case, your GF is still responsible so why try and make a big mess of it all by not giving up to date details? Hand over the new details (as the loan agreement probably provides for) and start a savings stash in case there is a default so you are prepared to cover the loss if need be (or have a nice pot to play with if there isn't!)

RichGold

Bamb0ozle wrote: »

there isn't any kind of problem with her friend

For the meantime yes.......

iluvmarmite

Why does every one assume someones friend would P**s them about after they have helped them out? The girl obviously trusts her friend or she wouldnt have acted as guarentor, this post was just asking if they legaly had to give out the details of their new debit card, which by they way they legaly dont, in other words the law wont come knocking at their door if they refuse to do so.

If and I mean if the friend does default then the company can then ask for the new card details, but at the moment as everthing is going as it should then they have no right demanding new card details and they do not have to be given.

Bamb0ozle

Thank you so much iluvmarmite, you've totally understood what I was asking, the loan has been running for 2 years with no problems, there is no reason to expect there to be any future problems, I simply wanted to know if she had to disclose her card details, thank you

RichGold

iluvmarmite wrote: »

If and I mean if the friend does default then the company can then ask for the new card details

After slapping late fee's and charges on there too. If she wasn't happy with how the loan was to be handled, I suggest that she shouldn't have got involved in the first place.

It seems perfectly reasonable to me that the loan company want her card details as they fully expect her mate to default, hence the need for a guarantor in the first place.

It seems to me like this whole thread is about nothing.