Think TFS have breached my guarantor loan contract

chojinfire

Hi guys,

I'll try to keep this short, but there's some background to my problem.

I'm a guarantor on a loan (with TFS Loans) for an ex-friend who has stopped paying the monthly bill. I was a mug when I agreed to it, and would never ever do it again, but that's kind of by the by now.

TFS contacted me by phone to make the repayments after a few were missed. Then all went quiet for a few months.

Last month, I received a letter from a solicitors saying they were acting on behalf of TFS and that payment needed to be made within 28 days or it would go to court for the full amount.

I had not received a single letter from TFS at this point with regards to late or missed payments.

More out of shock than anything, I phoned TFS and paid off the arrears to keep it out of court.

Then last night, TFS ring me to tell me that again a payment has been missed and this time fees have been added to the account for the solicitors costs.

Having done a bit of reading, I challenged the fact that they hadn't sent me any letters at all. The contract states that TFS will send me a copy of any and every letter that they send to the debtor so I'm aware of all activity on the account.
After a 10 minute chat with his manager, he came back saying that they'd wiped the charges off of the account for the solicitor and apologised from not sending me the letters.
Basically they admitted to not sticking to the contract.

Which brings me to my question:
Have they breached their contract with me sufficiently for me to take action?
If so, what should I do?

Any help would be greatly appreciated!

Thanks in advance!

Peelerfart

What kind of action are you thinking of?

chojinfire

@Peelerfart - I'm not sure to be honest, I'm a bit out of my league. But a friend of mine said that I might be able to get them to take me off of the loan agreement if they've breached the contract. It was just a guess, don't think he knows much about these things!

poppasmurf_bewdley

It depends if you've got as much money as the loan company to fight it out in court, and if you have as much determination not to pay as the loan company has to make you pay.

Whichever way it goes, you're going to have to dig into your pocket - either to fight the loan company or pay off the loan for your 'ex-friend'.

chojinfire

poppasmurf_bewdley wrote: »

It depends if you've got as much money as the loan company to fight it out in court, and if you have as much determination not to pay as the loan company has to make you pay.

Whichever way it goes, you're going to have to dig into your pocket - either to fight the loan company or pay off the loan for your 'ex-friend'.

Thanks for the reply. I don't have deep pockets myself, I'm currently trying to pay off my own mountain of debt (which I was doing quite well on until this started up). I can't afford to fight them for it.

I was hoping that TFS could just remove me from the loan and chase the debtor instead.

I never should have signed the agreement, but felt obliged to and have regretted it ever since. An expensive lesson!

geoffky

Being a guarantor guarantees you one thing....you will end up paying at one stage.thats why the loan company told the person to get lost and roped you in..

KingElvis

Bad luck there, you're stuck paying off another shysters loan.

SnowTiger

chojinfire wrote: »

Basically they admitted to not sticking to the contract.

Which brings me to my question:
Have they breached their contract with me sufficiently for me to take action?

Probably not. They've made a mistake, admitted it and put it right. I appreciate you want out of the contract, but I doubt what happened is enough to achieve that.

You may be better off putting your efforts into chasing the person you're guarantor for. But I'd guess they don't have much in the way of assets and now can't afford to pay the loan, so you might not get anywhere with that.

chanz4

They wont remove you, max £50 compo

vax2002

You will be taken to court where a ccj will be issued for the full amount of the loan and costs, bailiffs will then be instructed to collect it by selling your goods.
Thats life !


It is not your "mates" loan, it is YOUR loan, they just paid the mate the cash.

vulcan1964

Well done for your small victory.

But the wars not over, If I was TFS I would ensure that you now receive every letter, and charge you £30 or whatever is in the contract, for the priviledge.

You need to come to some arrangement with TFS before they persue the debt and trash your credit rating.