County Court Claim form as Rental Guarantor

Walter_White_4

Hi,

hope someone can help with this as I've just received a County Court Claim Form. The story goes like this:

Back in 2009 I helped a friend get into a rental property by lending her the first month's rent and signing a guarantor form for a six month rental term.

She's been in the house since October 2009 and has had her rent paid in full each month by way of housing benefit, apart from one month where she got a job but couldn't afford to make the payment so ended up one month in arrears. Since that one month she left her job and her rent has been paid in full each month since by housing benefits.

Over the past 18 months or so I've not been in touch with this friend. Anyway, yesterday I received a County Court claim form with my friend and I listed as defendants. The claim form is from the Property Management company who are saying I am liable for rent arrears accrued after the initial 6 month term. Receiving the claim form was the first I had heard about my friend slipping into arrears and now the Lease company want £918 plus £45 per day plus 8% annual interest on one month's arrears which is £360.

I have now been round to see my friend and she admits she is a month in arrears and is happy to make the payment to clear the arrears but the additional £500 odd pounds on top seems excessive.

When I received the claim form I rang the Lease company (SMPG aka Link Property Management) immediately to try and clarify the situation but they refused to talk to me which, in my opinion, shows the £45 daily charge is engineered to increase profits.

Can anybody offer me any advice? I only signed a 6 month guarantor agreement which was part of the 6 month rental agreement my friend signed - no subsequent rental agreement has been signed or any further guarantor agreements. Unfortunately I don't have a copy of the guarantor agreement I signed (they didn't give me a copy) so I have sent a letter to SMPG requesting a copy of the guarantor agreement I signed.

Please help! Thanks!

BitterAndTwisted

Did you sign a deed when you agreed to become a guarantor? Unfortunately if you did sign you were signing as guarantor for the entire duration for the tenancy not just the first six months.

The £45 a day in punitive charges is clearly made up and could very well be considered unenforceable once it reaches court.

clutton_2

you must stay in communication with the court.. if you do not defend this you will lose by default and you will end up with a county court judgement.

Walter_White_4

BitterAndTwisted wrote: »

Did you sign a deed when you agreed to become a guarantor? Unfortunately if you did sign you were signing as guarantor for the entire duration for the tenancy not just the first six months.

The £45 a day in punitive charges is clearly made up and could very well be considered unenforceable once it reaches court.

Thanks ever so much for replying.

As I said I wasn't given a copy of what I signed but I have since seen the "Assured Shorthold Tenancy Agreement" my friend signed which states 6 months and the guarantor agreement was enclosed in the tenancy agreement. Unfortunately the guarantor pages are missing so I don't know any of the detail but I sent a letter to the lease company on Friday requesting a copy of what I signed. I was also of the opinion that the daily charge was a profit generating scam and said as much in my letter.

Thanks again!

Walter_White_4

clutton wrote: »

you must stay in communication with the court.. if you do not defend this you will lose by default and you will end up with a county court judgement.

Thanks. Am planning on sending back the claim form stating I am disputing the whole claim. The very last thing I need is a CCJ for a debt I didn't run up after doing a friend a favour.

clutton_2

is the £45 per day charge listed in the AST ? You could research the Foxtons case, in which various clauses in various types of lettings agreement were the subject of legal proceedings. If clauses of this type were included in their case, you could then argue an Unenforcability clause.

I doubt a judge will be impressed with the fact that the agent did not give you a copy of what you signed. Does the guarantor part of the AST say it is a Deed anywhere ?

BitterAndTwisted

Walter_White wrote: »

Thanks. Am planning on sending back the claim form stating I am disputing the whole claim. The very last thing I need is a CCJ for a debt I didn't run up after doing a friend a favour.

You NEED TO KNOW whether you signed a deed or not. Many, many agents get this wrong. If you did sign one, you are standing as guarantor for the entire duration of the tenancy. You cannot limit your responsibility to only the first six months.

Please, please be very careful or you really could end up with a CCJ. If you absolutely want to avoid one pay the whole of the outstanding rent yourself. Don't pay those penalty charges.

Walter_White_4

clutton wrote: »

is the £45 per day charge listed in the AST ? You could research the Foxtons case, in which various clauses in various types of lettings agreement were the subject of legal proceedings. If clauses of this type were included in their case, you could then argue an Unenforcability clause.

I doubt a judge will be impressed with the fact that the agent did not give you a copy of what you signed. Does the guarantor part of the AST say it is a Deed anywhere ?

No - from what my friend has left of the AST there is no mention of a £45 daily charge. The 8% interest is mentioned but I understand that and feel 8% is reasonable. I'm afraid I don't have the guarantor part of the AST but I have requested a copy of this from Link Property Management.

One other thing worth mentioning is that the Consumer Unit in the property caught fire around 12 months ago. When the Fire brigade attended they said that the fire had been caused by faulty wiring and she has a report from them stating this. Whilst remedial cosmetic repairs were carried out by the Letting agents my friend spent two weeks sleeping on her sister's sofa with her three year old son. No compensation was offered for this or were any rent discounts given for the two weeks when she couldn't live in the property. Recently she called in an Electrician to fit a ceiling fan and he refused to touch the wiring in the house saying that it was in a dangerous state and was still a fire hazard.

My friend accepts she's in arrears but I do think there are mitigating circumstances which need to be included on the Claim Form reply. Also, because my friend is a single parent she is entitled to Legal Aid so I advised her to engage a solicitor and she has an appointment to see someone on Monday.

Thanks again for your response.

Walter_White_4

BitterAndTwisted wrote: »

You NEED TO KNOW whether you signed a deed or not. Many, many agents get this wrong. If you did sign one, you are standing as guarantor for the entire duration of the tenancy. You cannot limit your responsibility to only the first six months.

Please, please be very careful or you really could end up with a CCJ. If you absolutely want to avoid one pay the whole of the outstanding rent yourself. Don't pay those penalty charges.

Agree. As I say I wasn't given a copy and have requested this from the letting agents. Would you suggest waiting to send back the Claim Form until I have a copy of what I signed?

clutton_2

Are these £45 per day charges levied by a Debt Collecting company employed by the Landlord ? If your friend is anywhere near Bath i know a fiercesome legal woman whose sole work is for tenants and who is a veritable Rottweiller..... or in South London i know another great guy who champions the tenants cause.

Whilst there are procedures for tenants to withold rent in order ot make repairs not undertaken by the LL, your friend probably has not gone throught these properly, but a good legal rep could argue a good case for you.

clutton_2

you need only fill in the form that asks if you wish to defend it. Write a very brief note saying that you are awaiting evidential documents to arrive and will forward those at a later date. The defendant can also ask that the court case be heard in their local court if the LL lives elsewhere.