Being a guarantor!

mustang1

iluvmarmite wrote: »

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.

The law depends on what the loan agreement says. If the agreement that the OP's girlfriend signed says that she must give current card details, then that is the law which needs to be complied with.

jamesd

There's no general requirement for guarantors to give card details and it is not wise to do so because it's hard to very hard to stop payments from being taken even if they are wrong. Much safer to make bank transfer, standing order or direct debit payments instead. Having methods that require the loan company to contact her first gives her the chance to arrange her finances so she'll be able to pay the money instead of having to keep an unknown amount available at all times just in case something happens.

Guarantor doesn't mean that one glitch to a payment means guarantor immediately gets charged. It means that ultimately the loan company can ask the guarantor to repay. Day to day things are between the loan company and the borrower and the loan company shouldn't be expecting the guarantor to get involved.

She should tell them to get in touch with her if the borrower ever defaults and she'll be happy to honour her responsibility as guarantor. Default meaning on the credit record of the borrower as a default, which would normally require at least three missed payments and no arrangement to pay in place. Any lender who expects a guarantor to do more than this is playing games with what a guarantor normally means.

This company may be trying to use her as more than just a guarantor in case of default.

Apples2

It'll be interesting to follow this thread (if it is updated) as the saga pans out.

I think it is a given that if the guarantor suggested, at the time of application, "No, you can't have my bank details, here is my mobile number, give me a ring if the borrower ever defaults and I'll be happy to honour my responsibility as guarantor".

The application would be thrown out in a nano second.

To suggest that whilst acting as guarantor, you are only prepared to conduct a bank transfer, standing order or direct debit payment, the application would also see the rejection bin.

If the repayment is late, even by a single day, it will be registered as such and incur the appropriate fees and charges.
The whole point of the guarantor is to avoid this happening.

If you don't trust the company to take the correct amount, don't do business with them....period.

I honestly can't see the problem, they had the old card number so why not the new one?
For sure I see a MASSIVE problem with someone acting as guarantor in the first place but each to their own.

As an aside, isn't it feasible that the guarantor has signed a Continuous Payment Authority anyway so although the new card details would be of benefit, it may not prevent a withdrawal should the lender attempt it?

LovelyLeeds

Apples2 wrote: »

It'll be interesting to follow this thread (if it is updated) as the saga pans out.

I doubt we will, and as another poster said, this seems to be a thread about nothing!

redpete

Bamb0ozle wrote: »

I simply wanted to know if she had to disclose her card details, thank you

If she signed a contract like the one that Apples2 quoted from then she probably does, you haven't said whether or not the same or a similar condition is in that contract.

Bamb0ozle

LovelyLeeds wrote: »

I doubt we will, and as another poster said, this seems to be a thread about nothing!

I don't have a problem updating this when I know more, as for a thread about nothing, you found it interesting enough to post on, I find comments like yours a bit bizzarre, I have no knowledge of these situations, and neither does my GF, it's a simple enough question, can the loan company legally enforce her to hand over her card details, answer appears to be no, that's all I wanted to know.

redpete wrote: »

If she signed a contract like the one that Apples2 quoted from then she probably does, you haven't said whether or not the same or a similar condition is in that contract.

Yes she has, Aplles has copied from the exact same contract she signed, but it doesn't specifically say she must hand over her card details, anyway she's going to ignore there attempts to get her to hand over her details and see what happens

JaymesKenin_2

Bamb0ozle wrote: »

anyway she's going to ignore there attempts to get her to hand over her details and see what happens

Errr, what part of "You and your guarantor need to ensure that all of your bank and card details are up to date and correct." in the agreement did you not understand?

The loan company are well within their rights to make sure they have up to date details on file so they can take promt payment if your OH's friend misses a payment.

JasX

Bamb0ozle wrote: »

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

Very short answer:

No it's not a legal requirement.

However in not doing so she'll need to be aware/happy to pay extra administrative costs tracking her down to take a payment on top of what she would have had deducted anyway.

jamesd

JaymesKenin wrote: »

Errr, what part of "You and your guarantor need to ensure that all of your bank and card details are up to date and correct." in the agreement did you not understand?

Why a term that is not part of the guarantor agreement is material to the legal obligations set out between the parties to the agreement. The guarantor agreement does not require that the guarantor make their card details available or keep them up to date.

I'm sure it's convenient for the lender to have the details so they can use them before a default can be registered (normally at least three months overdue) but that doesn't make it a legally or contractually binding part of the credit or guarantor agreement.

LovelyLeeds

Bamb0ozle wrote: »

I don't have a problem updating this when I know more, as for a thread about nothing, you found it interesting enough to post on, I find comments like yours a bit bizzarre, I have no knowledge of these situations, and neither does my GF, it's a simple enough question, can the loan company legally enforce her to hand over her card details, answer appears to be no, that's all I wanted to know.

Fair enough, my apologies. It looks like your question has been answered now by other posters.