guarantor loans

[Deleted User]

mistersmurf wrote: »

I genuinely don't understand how anyone that is agreeing to be a guarantor doesn't know that they have to repay if the person they're guarantor for doesn't?

Because hardly anyone ever reads what they're sent. They they happily tick the box that says 'have you read the terms of what you're signing?', scrawl their name on the bottom and then wonder why they're living on the street 12 months later.

And then come on here and say 'how could they do this to me? No one told me about this.'

malkyh

It's a mortgage, not a loan so I believe it's slightly different as their is a house to sell if the worst comes to the worst.

barbarawright

malkyh wrote: »

I can't answer that question I'm afraid. I am unable to understand it either but it happens and there are the posts on here to prove it.

It may be they just don't consider that the person they are signing up for would ever not pay. The realisation kicks in of what they have done when the other party defaults and the money starts coming out of the guarantor's pocket.

See here. https://forums.moneysavingexpert.com/discussion/4149645

I thought of that thread too - though there are dozens similar.

IIRC when I was a student, in order to set up household bills or possibly a phone line, we either had to have one of our parents as a guarantor or pay a deposit. I guess the utilities companies had experience of students disappearing after a year without paying up. Anyway, all our parents just fell about laughing at the idea of guaranteeing us (which of course would have meant one of them relying on the honesty of 3 strangers as well as their own sprog) so we had to raise a deposit and then argue about it a year later ('I wasn't here over Christmas' 'But you have the heating on in your room all night')

mistersmurf

That thread says what I'm kind of assuming is the only way this can happen.

There's no way I'm buying that the guy that thread is talking about didn't realise he was being a guarantor.

You don't either. Your post in the thread says that you believe he stood guarantor to get some loving. I'd probably agree with you. Nothing in there makes me think someone was gurantor without knowing.

Still, that's a really weird situation if our thoughts are right. The person came onto a forum to say her bf has been stitched up, when really, it's prob not that at all?

Thanks for everyone's help though. I swear on my life that big daddy H (aka my dad) will understand the full situation

malkyh

mistersmurf wrote: »

You don't either. Your post in the thread says that you believe he stood guarantor to get some loving. I'd probably agree with you. Nothing in there makes me think someone was gurantor without knowing.

t'is true, I did state that. He stood guarantor to release his little swimmers into the lake of love, overlooking the fact that he would be responsible for the payments if there was an issue. That thread is maybe not the best example as it's a bit more complicated since the cash was paid into his account with the payments also coming out his account.

tell_it_how_it_is

I guess the crazy peeps who blindly agree and don't realise what they are potentially getting themselves into possibly assume that they are only verifying the identity of the borrower and confirming they know them personally, sort of like being a witness on a passport application. That would very often change soon enough though!

peterclarke

Chrisblue1962 wrote: »

Guarantor Loans

Rearrange the words below into a well-known phrase...

Barge Touch Pole A Don't With !

...in case you're not sure...Don't Touch With A Barge Pole !

The only thing "guaranteed" about Guarantor Loans is that companies like FLM Quick are guaranteed to make a fortune whilst the person who "guarantees" the loan is the one likely to pay it.

My OH acted as guarantor for a now ex-friend who lied to us and FLM quick about being employed when she appiled for the loan (she wasn't) and was waiting for her first month's salary.

We had no legal comeback WHATSOEVER and ended up paying about £800.00 in total to FLM Quick.

A quick recap - Don't Touch With A Barge Pole !...Ever.

If you're still keen to get a guarantor loan then I suggest you are not in control of your own marbles and should seek professional mental health advice. :rotfl:

I can't believe a friend would do that to someone. Although the problem with this mentality is that you are implying everyone is out to screw someone over. In my experience (luckily) this is not always the case! .

Chrisblue1962

peterclarke wrote: »

I can't believe a friend would do that to someone. Although the problem with this mentality is that you are implying everyone is out to screw someone over. In my experience (luckily) this is not always the case! .

Sadly, it is true, she did it to my OH even though we'd previously took her in for three months to escape an abusive boyfriend.

What I was trying to advise was that payday loans can sometimes have disasterous consequences for the guarantor..

alen27

It amaze me how these loan company's always come up with a different loan lending system such as this. The whole system is designed to target those the so called Guarantor into debt.

The best thing is to ask you friend or family to take out the loan for you by shopping around for the best deal at low interest rate then you can setup a direct debt to make the payment direct to the lender.