Guarentor problems

sprite1508

Hi i hope you can help. last yr i stupidly went guarentor for a friends loan as she was currently selling her house and in rented, she assured me (verbally) that she would pay the loan off once the house was completed. She has defaulted on the loan either paying late or incomplete since january and is now not paying at all. it now appears her house was actualy being repossesed so i feel as though i was also tricked into this.
i have also found out from the loan company that she contacted them in October to change my contact details - i can only assume this was to prevent me finding out that she wasnt paying.:mad:

i have paid the last two months to prevent court action, my question is if i were to pay this loan off quicker therefore reducing hundreds in interest am i then able to take the borrowers (my friend no longer) to the small claims court to recover the money paid (£2700).
i have sent two recorded letters each giving 14 days notice asking them to contact myself or the loan company with their intention of paying, iv had no response to either letter.

i understand it was a silly move to make, is there any way or would any court attemp to recover this money for me via an attachment or earnings order, ccj, or bailiffs?
Thankyou in advance im hoping someone out there may have the answers for me
Amanda

chalkie99

As you say the agreement was verbal then she will, presumably, say it was a gift or whatever, it certainly doesn't sound as though she feels morally obliged to pay it back.

If her house was re-possessed then she will probably claim she has nothing of value anyway so even if you won a county court judgement (not that likely) then it will be like getting blood out of a stone.

Not what you want to hear but probably best to write it off as cheaply as you can for the sake of your blood pressure.

Then spread the word never to be a guarantor for anybody as many people do not fully understand what it actually means.

CH27

Pay it off ASAP to save the interest.
I would say you would be wasting your time taking them to the small claims court as you cannot force them to pay up.

sprite1508

Do you not think that they would put an attachment of earnings on her? she is a nurse so earns decent money..... she might not own her own home but has a nice car and a house full of expensive things.
I have reported her to the police for pretending to be me (when changing the details ie-my address, mob number) and they are going to speak to her and let her know she is under investigation. the police say that they cant actually procecute as its difficult to prove it her her etc but they wanted to go round anyway .... they were really helpful.

thanks

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I have no debts, no credit cards (have had but paid them off) no car loans, nothing - which is why i cant believe i was so stupid! however i thought 10 yrs of friendship wouldnt lead to this, how can friends do this??

skintandscared_2

chalkie99 wrote: »

As you say the agreement was verbal then she will, presumably, say it was a gift or whatever, it certainly doesn't sound as though she feels morally obliged to pay it back.

But she couldn't in this case, because the OP didn't actually take the loan out on their behalf - the loan is in the friend's own name but the OP is guarantor? Surely the OP doesn't need any further proof that the loan isn't some sort of gift?!

My partner was asked to be a guarantor for his son for rent and he refused, thank god. The son has since split up with his girlfriend, moved out and disappeared. We would clearly now be paying his girlfriend's rent if we'd said yes... I would NEVER be a guarantor for anyone - friends or family. I don't dislike any of my family enough to fall out with them over it all

sprite1508

Hi skintandscared, yes the loan is primerily in her name and im down as the guarentor so i can prove that its her loan - i have every bit of paperwork needed to prove that, but i dont know how the courts work - iv been told i can put an application in for a hearing (£95) but wondered if anyone knew how the judges feel about these things - do you think theyd be sympathetic and try get it me back or just say tough-deal with it! :eek:

Amanda

dealer_wins

Being a guarantor is basically the same as if you had actually taken out the loan. NEVER do it for anyone, even best friends/family.

skintandscared_2

On another thread, someone recommended moneyclaim online, as they had documented evidence of the debt (which you also have). I haven't used this or even properly looked into it though.

What you have to think about is whether they have the money to pay you or not. My OH has a personal injury judgment awarded to him for £21k but the defendant then went bankrupt. We know he has the money, but gets paid cash/puts stuff in his wife's name, etc. So the chances of ever getting it out of him are pretty much nil. Imagine how gutted my OH is!! A debt is only worth pursuing if they have funds to pay it...

sprite1508

yes indeed, massive lesson learnt but i casnt just sit back and do nothing, iv got to try something - even if i try and fail least i know i tried ...... so annoyed and hurt more than anything!! im a good person and help people everyday (im a paramedic and def have helped and saved many people) i try to live life and treat others how i wish to be treat, grrrrr but she makes me so angry... and im affriad bacause of all this ill never help anyone reg money again! and thats sad...

skintandscared_2

I agree and you don't deserve to lose this money. Is all the loan paid off now? Have a look at moneyclaim online. Or it might be worth seeing if you can get a free half hour with a CAB lawyer who can give you some advice on the best route to go down. Just don't end up spending loads and throwing good money after bad. Wish you the best of luck and shame on your so-called "friend".

sprite1508

ah thats great, ill take a look into that! its got to be worth a try hasnt it :-)

and yes shame on her - i really cant belive she would do this but still actually thinks im out of order for being annoyed at her!!! unbelievable!! grrrrr. the loan isnt paid off yet, but the longer it goes on the more interest is added - im a bit scared to pay it off coz once thsts done she`ll just walk away wont she...........