Amigo Loans - death of Guarantor

cockneysean

sinizterguy wrote: »

Why is this wrong ?

Whether the individual is dead or not, if he has outstanding debt on credit cards, for example, it will come out of the estate.

In this case, it's a potential for an outstanding debt. Once it becomes as outstanding debt, if the borrower defaults, it is treated the same as any other outstanding debt.

If the borrower had borrowed the money without a guarantor and owed the company money, it would come out of their estate. Nobody posts 'FGS, the man is dead and the company wants their money back.'

No outrage is necessary if you think about it.

Of course, it is your personal choice whether you want to be a guarantor or not.

This is absolutely correct. Again, not to be cold hearted but if you die, there is no real justification for having your debts simply written off. On the flip side, companies can still exercise some sensitivity when it comes to staking their claim as there are instances where they have been known to be a bit on the insensitive side. I don't think that this is done intentionally though. Unfortunately it's a side effect of the modern age that we live in. Letters are no longer penned by a human being with feelings. They are simply reeled off by a computer using a mail merge program and more often than not it is all too late by the time that the problem is noticed by a saddened and offended relative. There are numerous cases to refer to. On that note though, at least you know that any offence isn't intentional and that the fault lies with the computer which doesn't know any better!

jonesMUFCforever

Bedsit_Bob wrote: »

Actually, debts are part way down the list.

First to be paid is the funeral, followed by any tax liabilities (eg. HMRC, Council Tax), followed by secured debts (eg. Mortgage), and finally unsecured debts, which would include the Amigo loan.

By the time you get to the unsecured debts, it's quite possible there'd be nothing left, meaning Amigo would get nothing.

They are all debts, Amigo have a guarantor who is alive and kicking.

System

cockneysean wrote: »

Bob, do you have a link where this information can be found? I would be very interested to have a read.

http://www.wandsworth.gov.uk/info/200361/pay_a_bill/382/pay_your_bill_to_the_income_collection_service/6

jonesMUFCforever

InsideInsurance wrote: »

Whilst £300 per hour may equate to £5 a minute most solicitors do not bill by the minute and unless part of a larger engagement then they also typically have a minimum fee

I agree but most also offer a free 15 minute consultation before both parties agree to proceed or walk away.

ffacoffipawb

jonesMUFCforever wrote: »

They are all debts, Amigo have a guarantor who is alive and kicking.

But the guarantor has died???


OP Title - "Amigo Loans - death of Guarantor"

patman99

But what would have happened if the op had found the info about the Amigo loan and having realised the potential issues, destroyed it and told no-one ?.

Thrugelmir

patman99 wrote: »

But what would have happened if the op had found the info about the Amigo loan and having realised the potential issues, destroyed it and told no-one ?.

Executors carry personal liability for their actions.

If default occurs then there's no protection.

Thrugelmir

cockneysean wrote: »

On the flip side, companies can still exercise some sensitivity when it comes to staking their claim as there are instances where they have been known to be a bit on the insensitive side.

I've seen far less sensitivity from the remaining family squabbling over what they believe to be their entitlement from the estate.

SuperAllyB

Thanks again for all the replies. We had no intention of trying to avoid any liabilities or debts, but I couldn't see how there was a debt until after the borrower missed a payment until it was explained.

jonesMUFCforever

ffacoffipawb wrote: »

But the guarantor has died???


OP Title - "Amigo Loans - death of Guarantor"

Sorry meant to type Executor not guarantor.