FLM - Are their actions legal?

skintandscared_2

Is this a temporary reason causing your friend problems with the repayments, or is it likely to be ongoing? If it's a temporary thing, and seeing as I would end up having to pay it anyway, if I were the mother I think I might step in and help with the payments until the friend was able to continue to pay in full again (hopefully very soon!) If the loan isn't paid, both credit ratings are trashed. If the mother has to pay the instalments anyway, she might as well preserve as much of her own credit rating as possible. It may be that the friend can pay some of the instalments and the mother just needs to top them up? If neither can afford to pay, why was the loan ever taken/guaranteed in the first place?!

Apples2

skintandscared wrote: »

If neither can afford to pay, why was the loan ever taken/guaranteed in the first place?!

There is a simplistic answer to that.
Someone who could not afford to repay a loan was desperate for a loan so took advantage of friends/family to do so.

KingElvis

Apples2 wrote: »

There is a simplistic answer to that.
Someone who could not afford to repay a loan was desperate for a loan so took advantage of friends/family to do so.

And wasted it on rubbish that's since also been sold no doubt.

If she needed a someone to stand for her, she'll already have proved herself to be a finacial miscreant.

The majority of these loans are frittered away on second hand banger cars, phones, laptops and sometimes even "nights out"

Shudder.

Apples2

You missed Holidays and Weddings...

RobertoMoir

jonnyd281 wrote: »

Great so following your advice, they will trash her mothers credit rating as well, as Guarantor she is liable for the loan if her daughter doesn't pay. This is the downside of being a Guarantor.

Its not a downside of being a guarantor, its exactly what being a guarantor means. When you agree to that, you agree to pay the debt in the event that the borrower fails to do so.

limitation

Another example of why you should never ever guarantor a loan for anyone ! If they can't get a loan them selves then its because they obviously either can't afford it, or their credit history is bad, If a multi million business says it can't lend someone money, then why on earth would a normal human being guarantor a loan ?

Of course FLM can take what ever money is owed to them, tell the person in question to stop ripping off loan companies and even more important to stop screwing over their own family !

jonnyd281

RobertoMoir wrote: »

Its not a downside of being a guarantor, its exactly what being a guarantor means. When you agree to that, you agree to pay the debt in the event that the borrower fails to do so.

Absolutely agree, perhaps downside was the wrong choice of words, however I was replying to someone advocating the Guarentor abdicating their responsibility by closing their bank account so the loan company couldn't take the money, which I personally think is wrong.

Poosmate

Will somebody please think of the children!!!!


Aww I bet they had a lovely Christmas.

Loans, unlike turkeys, are not just for Christmas!

I guess the father of her two small children will have to put his hand in his pocket!

Poo

fatbelly

mylittlepumpkin wrote: »

All payments fine until December when she couldn't pay the full amount. She tried to speak with them but got nowhere. She cancelled her bank card (debit) but they managed to take the funds (in instalments) and when she questioned her Bank she was told that as it was a "recurring payment" they did not need to be in possession of a valid debit card but could still claim the money from the account. Personally I've never heard of this.

Martin's article:

Recurring Payments