Nan in trouble (as a guarantor)

System

I'm so sorry you've all had to deal with this. Maybe I'm naive, but I just can't imagine how someone could be willing to do that to their (already vulnerable) mother! I would second Apples2's advice, and suggest you all put in what you can afford and get rid of the debt for your nan. Chasing your aunt is probably a non-starter, if she's been happy so far to let your nan pay. There might be other routes (debt charities, trading standards etc.) that could get the job done, but paying it off directly (if your family can afford it) is probably the most stress-free way to get it sorted. Then I'd refuse to speak to the aunt unless she apologised profusely, paid everyone back, and promised never to do that kind of thing again.

Lizzieb151

Oh I know it's terrible, Nan doesn't want any one to know to about and it's pretty discusting but unfortunately a few members do take advantage of her.

I have just spoken to my Uncle who has found out that it is actually a loan from a company called FLM Loans but Nan doesn't meet the criteria for a guarantor??
The guarantor's must have a monthly income of at least £800 whereas she only has £450 max, must a homeowner and no older than 70 by the time the loan ends.

She has no savings, assets and is currently £320 in arrears on her rent due to paying this loan off.
FLM have actually been chasing Nan as my auntie isn't paying and not responding to their phone calls.

Surely with this info there must be something I can do for Nan.

The family have helped out my Auntie so many times in the past financially and never get any back or so much as a thanks that they have now all washed their hands off her and refuse to help anymore so approaching anyone for money is a no go! And I know feelings aside that it's Nan but they haven't got the money anymore to help either.

She's now thinking of giving up her flat as she can't see a way of paying everything back.

ILW

To my knowledge there are no legal criteria for being a guarantor, it is down to the individual lender and they can change it whenever they wish.
If at all possible, get the loan paid off, they may take a partial settlement in the circumstances.
Also warn off the auntie to stop her coming back for another go.

whitewing

Phone Age UK and see if they can offer any advice. They must have come across this type of situation before.

somethingcorporate

I agree with ILW, my understanding is those guarantor criteria are to protect the lender and they can choose to apply them or not. If your Nan was willing to sign to be a guarantor unless she was of unsound mind, she is getting exactly what she agreed to.

Unfortunately providers of guarantor loans know exactly what is going to happen (as do most of the regulars on these forums).

I'd have a whip round, get it paid off and learn a lesson. Not much else you can do unfortunately.

Apples2

Lizzieb151 wrote: »

The family have helped out my Auntie so many times in the past financially and never get any back or so much as a thanks that they have now all washed their hands off her and refuse to help anymore so approaching anyone for money is a no go! And I know feelings aside that it's Nan but they haven't got the money anymore to help either.
.

You have everyones sympathy (so far), here but it sounds like there is a few of you.

The loan is for a pitiful £500 but you are all going to stand by and watch this poor woman lose her home for the sake of spiting the Auntie.

Put that woman aside for now and focus on your Nan, she is struggling under this pressure and may lose her home!

Have a Call to Arms with the remainder of the family, run a family Car Boot Sale or get ebaying, make it a competition of it helps.

I simply couldn't sit back and stubbornly refuse to help whilst my Nan was being put through this.

Then give you Aunt a good 'ole family shoeing...

tell_it_how_it_is

Lizzieb151 wrote: »

I have just spoken to my Uncle who has found out that it is actually a loan from a company called FLM Loans but Nan doesn't meet the criteria for a guarantor??
The guarantor's must have a monthly income of at least £800 whereas she only has £450 max, must a homeowner and no older than 70 by the time the loan ends.

Interestingly, on FLM's questions page on their website (which it might be worth printing out), it does clearly state all the criteria you mention, and does clearly state they won't accept a guarantor who fails to meet those criteria (quote: "IMPORTANT - We cannot be flexible with any of these points. If you send in your application and your guarantor doesn't fit into one of these areas, we wont accept your application and you will have to start all over again."). I think I'm correcting in reading you Nan 'fails' on each of income, home and age?

Therefore, I think it has at least got to be worth a call to them to ask what they are going to do about it, or perhaps arrange a visit to CAB to ask their opinion or act on your behalf.

I'm certainly no expert, and can't vouch for any outcome, but if common sense was to be applied, surely one of the following would be possible:
- your Nan is refunded all of her money, with some compo;
- your Nan is refunded all of her money, or;
- FLM at least remove your nan as guarantor, so she has nothing further to pay and they revert back to chasing your aunt.

Surely worth a go? Good luck!

Lizzieb151

Thanks for all the replies. I don't think that I can do anything for her - the loan was through FLM Quick loans and the criteria for that is a lot less so Nan would have eligible as a guarantor.
It's taking such a long time to try and find out details as she is being extremely evasive but knows that she has done a stupid thing.

I think that we will just have to write to FLM and ask for lower payments like a DMP and see what happens. My Auntie is due some money soon so I am going to work on getting the loan repaid from that and also getting Nan repaid for what she has paid so far so that she can repay her rent and then hopefully it will be alright.

Just can't believe what some people will do to get their hands on some cash and please be assured I will do everything I can to relieve the pressure from Nan.

skintandscared_2

okay, my thoughts are (a) your auntie should be damned ashamed of herself and (b) the rest of the family need to pull together to end the stress for your poor nan, who really doesn't need this at her time of life. But it has to be a one-time NO MORE deal, where nobody in your family ever stands guarantor for your auntie again. And she should be made to feel thoroughly ashamed of herself for putting your nan in this position!!!!

CLAPTON

with no assets and little income your nan should just stop paying

the loan company can of course go to court but no court will make an order for some-one on state pension only