Guarantor problems

JEL

I became guarantor for a friend and there have been occasions where they haven't paid and I have had to. This money has been repaid to me. However I am now in a worrying situation....

Two payments have been missed and the money not repaid to me. First of all there were lots of false promises via texts that it would be returned however over 5 months later I am still out of pocket to the tune of £500 with my messages now being ignored.

I know I have to continue paying the loan if they don't and have had to accept that but any advice on getting monies back they owe me??

suicidebob

https://www.gov.uk/make-money-claim-online

thebritishbloke

First and foremost, unfortunately you've had to learn the hard way to NEVER be a guarantor for anyone. Ever.

As SuicideBob has posted, you can make a claim through small claims court. I'm not sure how the law works with it being a guarantor loan, because you've agreed to pay the money if they fail to, I'm not sure if technically they're now in debt to you.

FireWyrm

I dont think taking them to court will work sadly. You are a guarantor and are obligated to pay the debt if they cannot or will not. They however are under no such obligation to pay your back for your kindness.

Be prepared to be stuck with the whole debt forever.

Once you get yourself out of this mess....never ever consider doing it again and if you do, slap yourself round the face a couple of times.

antrobus

FireWyrm wrote: »

I dont think taking them to court will work sadly. You are a guarantor and are obligated to pay the debt if they cannot or will not. They however are under no such obligation to pay your back for your kindness.

Be prepared to be stuck with the whole debt forever.

Once you get yourself out of this mess....never ever consider doing it again and if you do, slap yourself round the face a couple of times.

On the contrary, taking them to court will work. As a matter of law, a guarantor has the right to an indemnity from the principal. Or to put it another way; they (the principal) are under an obligation to pay your back for your kindness.

Pixie5740

I'd take this d**khead to small claims court. It's bad enough not making repayments but to ignore you as well is completely off.

Are there many more repayments to make?

It's quite a good business model these guarantor loans companies have got. Lending money at sub-prime rates with guarantors who aren't sub-prime borrowers for when the borrower stops repaying.

27col

The mind boggles at why anyone would ever consider being a guarantor. Especially at the high interest rates concerned.
I would think that anyone who has ever read the guarantor posts on this forum would keep well clear. But, unfortunately the persons stuck with the consequences of guaranteeing someone's loan have signed up without ever actually realising the implications of being a guarantor.
They seem to ignore the fact that the mere requirement of someone needing a guarantor would indicate that the borrower is a bad risk and therefore, likely to default.

somethingcorporate

Even if you win in small claims if they don't have any money or assets it will be throwing good money after bad so weight up the possibility of getting anything out of them.

Gaz83

antrobus wrote: »

On the contrary, taking them to court will work. As a matter of law, a guarantor has the right to an indemnity from the principal. Or to put it another way; they (the principal) are under an obligation to pay your back for your kindness.

And if the principal doesn't have any assets?

A court can't force a debtor to pay what they don't have.

Pixie5740

Just because the borrower has stopped paying doesn't mean they don't have any money. I'd send a letter before action and then take them to small claims.

Marktheshark

antrobus wrote: »

On the contrary, taking them to court will work. As a matter of law, a guarantor has the right to an indemnity from the principal. Or to put it another way; they (the principal) are under an obligation to pay your back for your kindness.

No they don't, the Guarantor is the principle signatory, it is a deed, not a contract.
You sign, you pay, all of it if necessary.

Lenders of money have systems to search a persons track record, if they have a poor track record, they will request the loan is guarantor bonded.
You have my sympathy, but start preparing to pay the whole loan back.