Shafted on guarantor loan

lhbmb

Hi

I appreciate that this story will have been heard a million times before and we should have known better, but:

My partner guaranteed 2 loans for her family. She was put under unbelievable emotional pressure and stress to do this "you are our only hope, we are finished without your help" and so on.

Unsurprisingly the payments have failed to materialise with excuses of I've paid it they are tracing my payment, I need till tomorrow and so on, followed by abuse because we have the nerve to question them and chase them to pay.

I have 1 or 2 questions:

1. When my partner spoke to both companies prior to the loans being set up, she was very specific to ask "you won't take any money from me without contacting me first?" "No we would never take money from you without speaking to you". Both companies have since taken money without her knowing. Are they therefore in breach of contract if we can get the transcripts of the calls and if so does that give us an out? She would never have agreed if she knew that would happen.

2. (Unlikely I know) would a company take a one off payment from us that isn't clearing the loan in full to remove us from the guarantor?

3. I'd be happier making the payments in their absence if the loan company still took them to collections. Again I know technically that is her role as guarantor but figured I would ask the question anyway.

I appreciate she signed up to this knowing the pit falls but she was on the verge of a breakdown from the stress she was being put under to help. I made my feelings clear at the time but at the end of the day it's her family and she had to make the decision. She made the wrong one but you live and you learn.

Any help and advice on offer is greatly received but if we can avoid the "don't do guarantor loans" responses that would be appreciated. We already know that

Thanks in advance

Browntoa

what company is the loan with ?

suspect the terms and conditions will say they can just collect money from her despite what she was told

lhbmb

They are with amigo and oneplusone.

The terms don't specify specifically but I was looking more down the route of mis-selling.

forgotmyname

1. If you can prove they lied and gave you false information then you have a complaint and it may help.

2. Unless the loans paid off in full i doubt they will offer anything. I presume your financially stable enough to be able to pay it or have assets to be worth chasing for the full amount.

3. You need to stop thinking of if as their loan and sadly accept the fact that really its your loan. The family were not deemed a good risk so you offered to pay the loan for them if they couldnt.

It may have affected hers and possibly even your credit file if your financially linked?

Can you get a loan at a cheaper APR and pay it off? Your only other avenue is chase the family through the courts for your money.

Basically they have spent your money.

Browntoa

http://www.amigoloans.co.uk/Terms#gt-card-payment-authority

Card payment authority

During the pre-payout call, you will give us consent to collect the monthly payments from your debit card if the Borrower fails to pay (or the shortfall in the monthly payment if the Borrower fails to pay the full monthly payment). You give us consent to use this (and any other card details you give us) to collect each full monthly payment you owed to us until it is paid. You can cancel this authority at any time by notifying us. If you cancel this authority you will have to arrange an alternative way to pay (such as direct debit). We won't take any payments from you until after your loan has been paid out.
Where the Borrower fails to pay the full monthly payment on the due date we will exercise the rights under the card payment authority on the third day after we become aware that the Borrower has failed to make the payment. If we are unable to collect the monthly payment on that date we will try to collect from you on the next day. If this is unsuccessful we will make reasonable attempts to contact you to understand why the payment has not been made and when you are able to make it. If following reasonable attempts we have not managed to contact you we will exercise the rights under the card payment authority the next day and every third day until the next payment is due.
If we agree a payment plan with you and you fail to make the agreed payment we will exercise the rights under the card payment authority the next day and every third day until the next payment is due. Where more than one payment is due we will exercise the rights under the card payment authority to collect the full arrears outstanding and if that is not successful, one monthly payment.

Browntoa

Your responsibility

In return for us entering into the Borrower’s agreement (a copy of which you will have seen) with the Borrower, you will:

• pay the Borrower the amount they borrowed when you receive it from us;
• agree that if the Borrower fails to make any payment under the Borrower’s agreement to us on the agreed payment date, you will immediately make that payment;
• guarantee that if we demand, you will immediately meet all of the Borrower’s responsibilities under the Borrower’s agreement; and
• guarantee that the Borrower will carry out all of their responsibilities due and owing under the Borrower’s agreement.

lhbmb

That was my thought process. I was/am reluctant to get a cheaper loan whilst they still were at least engaging with us in conversation even if it was unsavoury!

But yes they have taken our money and ran.

I will follow up on the "mis-selling" element before I clear them and see what route we can get from that.

stator

Might be worth suing the borrower, often people default on their loans whilst they still have significant assets that they don't want to sell.

SilverSaloon

i'd be round their house putting their stuff on eBay to recoup my losses.

ReadingTim

The only ones guilty of mis-selling are your partner's family: they're the ones who put your partner under "unbelievable emotional pressure and stress" - not Amigo or Oneplusone.

meer53

lhbmb wrote: »

That was my thought process. I was/am reluctant to get a cheaper loan whilst they still were at least engaging with us in conversation even if it was unsavoury!

But yes they have taken our money and ran.

I will follow up on the "mis-selling" element before I clear them and see what route we can get from that.

There isn't any mis-selling, you agreed to the t & c's as per post no 5. Unless you have a recording of the telephone call.