Seeking help for a family member - Amigo Loans

katydo12

Around 18 months ago my mother became guarentor on a loan from Amigo loans.
The payments come out of my mothers joint bank account but she is the only name on the guarentor.

Now the person whos loan it is cannot pay the loan for various reasons. There have been letters an phone calls back and forth between loan company and my mother/the person whos loan it is. Now the loan company are threatening court action as neither party is able to pay the loan.

My question is does anyone know where my mother stands on this being guarentor and having to go to court etc. they will lookinto both parties finances and see that the first party cannot pay but will they look into hers? and if so they wikl find she can probably pay but she is worried about What will happen to her credit score, obviously. and even more about court action.

any help greatly appreciated.

thanks

somethingcorporate

If she can pay why doesn't she pay? this is what she agreed when the signed up as a guarantor.

Ignoring and hoping it will go away will not help her credit score, although it may be too late to do anything about that.

DCFC79

Was your mum aware of what being a guarantor is/whats required/what happens when the 1 who wants the loan can not keep up the payments ?

katydo12

She doesnt want to pay because its not her loan and in order to pay she will have to move a lot of money around. I suppose when she became guarantor she was under the impression the loan would be paid, which it was for about a year, the payments from the first party into her bank account to cover the loan repayments stopped around 6 months ago.

She is not ignoring it which is why I have come here for some advice.

CLAPTON

if it goes to court then she will probably receive a CCj which will trash her credit rating for the next 6 years

she should check her credit files to see if they show missed payments or have been defaulted.

*HalfBaked*

She needs to pay it to avoid a default notice, Amigo tend to send them roughly a week after the second payment falls into arrears. If the account goes further then 3 payments in arrears the account gets passed to Harvery Sturtt who may take legal action. Guarantor would be the first defendant due to their role on the account

ILW

katydo12 wrote: »

She doesnt want to pay because its not her loan and in order to pay she will have to move a lot of money around. I suppose when she became guarantor she was under the impression the loan would be paid, which it was for about a year, the payments from the first party into her bank account to cover the loan repayments stopped around 6 months ago.

She is not ignoring it which is why I have come here for some advice.

It is her loan as far as the repayments go.

katydo12

she understands this ILW but obviously she wants the person whos loan it is to take some flak for this problem and not get off scott free.

thanks everyone for your replies.

DCFC79

katydo12 wrote: »

she understands this ILW but obviously she wants the person whos loan it is to take some flak for this problem and not get off scott free.

thanks everyone for your replies.

Two choices, either your mum talks to the person or she takes them to court over it but that might be pointless if the other party just can not pay. Can the other party pay or not ? did they stop the payments because they couldnt afford too ?

CLAPTON

katydo12 wrote: »

she understands this ILW but obviously she wants the person whos loan it is to take some flak for this problem and not get off scott free.

thanks everyone for your replies.

I'm afraid it doesn't work like that: the other person wouldn't receive any flack but if she doesn't pay then she will receive a CCJ and have her credit rating trashed and maybe have bailiffs visiting too.

OneLife_OneShot

katydo12 wrote: »

She doesnt want to pay because its not her loan.

I'm sorry but is your mothers loan, that is what being a guarantor for a loan is. I was financially foolish when I was younger and asked my dad to be my guarantor for a loan like this. He said no and sat me down and figured out what I owed and I've got through it and I am thankful he said no as its a ridiculous thing to ask anyone to do.

She signed the dotted line and since said person can't repay she will have to, she can bicker against Amigo all she likes but the reality is she signed a legally binding document to make payments to the Amigo should said person not want to/be able to/ can't be found etc etc, they will want their money and it will have to be paid somehow, she hasn't a foot to stand on.

She can refuse to pay it and trash her credit rating.

Sorry if it comes across as blunt but that is the way it is when it comes to being a guarantor.