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Should this 10K loan have been granted?
savethecheerleader_2
Posts: 5 Forumite
in Loans
Hi all,
My mohter (who is now 74) was asked by a family member 3 years ago to be a gaurantor for a car loan finance agreement from a car show room. 3 years on and he's stopped paying it and we've since discovered that she isn't the gaurantor at all, she's taken the loan (a car loan) in her name for a car in his name. My mother only receives a small state pension, she's never had a credit card, hire purchase etc etc.
Now my parents are being hounded for the money, they can't get in touch with my cousins son (the family member) to see why he hasn't paid it. My cousin (his mother) throws her hands up and says he's never there and it's nothing to do with her, he's in his 20's and works for Jaguar (permanent f/t position), he's still got the car and is laughing all the way to the bank.
We've requested the credit score from Experian from the time the loan was granted as I think her score would have been nil, we are still waiting for it. My mother has dementia, my father is (73) and he's been landed with this problem. They own their own modest house and are terrified that they'll lose it if they don't pay it.
My question is this surely they shouldn't have granted a 10k loan to a 71 year old lady (who's never driven), doesn't even get enough pension to cover the monthly repayments and would have had a zero credit score.
Once the credit score is back my father is going to visit a solicitor to see if there is a way out of this.
Has anybody else come across this problem? If anyone has any advice I would really appreciate it.
Thanks for any replies
My mohter (who is now 74) was asked by a family member 3 years ago to be a gaurantor for a car loan finance agreement from a car show room. 3 years on and he's stopped paying it and we've since discovered that she isn't the gaurantor at all, she's taken the loan (a car loan) in her name for a car in his name. My mother only receives a small state pension, she's never had a credit card, hire purchase etc etc.
Now my parents are being hounded for the money, they can't get in touch with my cousins son (the family member) to see why he hasn't paid it. My cousin (his mother) throws her hands up and says he's never there and it's nothing to do with her, he's in his 20's and works for Jaguar (permanent f/t position), he's still got the car and is laughing all the way to the bank.
We've requested the credit score from Experian from the time the loan was granted as I think her score would have been nil, we are still waiting for it. My mother has dementia, my father is (73) and he's been landed with this problem. They own their own modest house and are terrified that they'll lose it if they don't pay it.
My question is this surely they shouldn't have granted a 10k loan to a 71 year old lady (who's never driven), doesn't even get enough pension to cover the monthly repayments and would have had a zero credit score.
Once the credit score is back my father is going to visit a solicitor to see if there is a way out of this.
Has anybody else come across this problem? If anyone has any advice I would really appreciate it.
Thanks for any replies
0
Comments
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Even if she was "only" a Guarantor, she would still have ended up repaying the loan. The Lenders knew this clown wasn't going to repay it, hence the requirement for a guarantor.
Accepting a 71 yr old on a state pension is hardly responsible from the lenders point of view but all they want is someone with security to retrieve the money (their house).
They have my sympathies but this story is repeated daily on here by people who also agreed to become guarantors without having a clue what it entails.
Sounds like she didn't read/understand what she was signing at the time but that's a whole new topic...0 -
Even if she was "only" a Guarantor, she would still have ended up repaying the loan. The Lenders knew this clown wasn't going to repay it, hence the requirement for a guarantor.
Accepting a 71 yr old on a state pension is hardly responsible from the lenders point of view but all they want is someone with security to retrieve the money (their house).
They have my sympathies but this story is repeated daily on here by people who also agreed to become guarantors without having a clue what it entails.
Sounds like she didn't read/understand what she was signing at the time but that's a whole new topic...
But she wasn't a guarantor, the loan is in her name.0 -
As you know where he works, have you tried ringing him at Jaguar? And if you speak to him and the conversation goes very badly, perhaps threaten to pop in and let all and sundry know about how he's shafting an OAP from his own family?“In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt0
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Hence the bottom line of my post, she didn't read or understand what she was signing at all.But she wasn't a guarantor, the loan is in her name.
Didn't want to get into that debate. We would be questioning her "sound mind" and trying to remove her ability to make decisions herself.0 -
Did she sign under duress?0
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Hi Chesky369,
No, she didn't sign under duress, she didn't really understand what she was signing for. Too trusting, I suppose. She doesn't even remember signing anything.
When they phone they want to speak to her and wont speak with my dad, that is until they realise they get no sense from her and then they're happy to speak with him.
Don't lenders have to be responsible? If my parent don't pay will they retrieve the car?0 -
I would be chasing the relative before trying to blame the finance company.
You even know where he works !!!!!!.0 -
No need to swear ILW, take a chill pill, please!
I found out about this last weekend and I'm exploring all their options. I'm not sure phoning him would achieve much and as I'm 200 miles away walking into Jaguar is not practial.0 -
Sorry, maybe I don't understand. If the Old lady has the car finance in her name surely the car would be in her name. Done a search on google and I don't think you can get car finance for someone else. So phone the police.
It seems to me the old lady was taken advantage off0 -
Hi Osborn99, I'll pursue that one.
The guy signed a direct debit agreement to pay x a month for x years but he's obviously cancelled that.0
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