Shafted on guarantor loan

somethingcorporate

meer53 wrote: »

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.

Even if they do the paperwork would likely supersede it.

cajef

You were not 'shafted' by the loan companies maybe by your relations, you agreed to let them use you as a guarantor despite admitting you knew the pitfalls, you now know from experience what happens when they default, you agreed to the T & C's and the chances of getting out of the agreement are slim, you are clutching at straws unless you can actually prove both companies misled you which I think you will have difficulty doing.

dealer_wins

Another case of a guarantor being shafted, or is it another case of a guarantor loan working as it should?

Amigo are pretty thorough, and make sure the guarantor understands that the loan will be their responsibility if the borrower fails to repay it.

As for mis-selling, dont waste your e-ink on that, there is no mis-selling here.

Use it as a hard, expensive lesson, move on, and have NOTHING to do with everyone involved ever again unless they repay you in full.

Apples2

lhbmb wrote: »

She would never have agreed if she knew that would happen.

If it were that easy for her to say no, I'm sure she would have done well before this happening.

We can all sympathise, but there is a reason a Guarantor was required, they already knew they were no good for the payments.

This is one of the reasons they deposited the money into your Partners account, so she knew it was her loan and her responsibility.

It's an impossible situation. Your Partner has been shafted and any attempts to extract a payment makes the both of you look like the unreasonable vultures they will surely tell everyone you are.

People asking for guarantors have no morals and couldn't give a hoot so have nothing to lose. They always appear to be the victors...sadly.

PeacefulWaters

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

I wouldn't waste your time.

bargainbetty

You have the option of offering to refinance the loan directly for the original borrowers. Tell them that you know they are struggling, and that you will take out a better rate in their name if they agree to a strict repayment schedule. Get it all in writing, with signatures etc. Get it refinanced so that you pay less and are in control of it, then sue them when they inevitably do not pay, and make sure the entire family knows what they did so that no one else lends to them again.

You can sue them now, but getting the loan on better terms will probably save you money in the long run, if you can do it.

Make sure all the family know about it though - make sure everyone knows that you were trying to help them and they screwed you over. Get in first on that, don't be shy about it, or private.

Herzlos

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!.

You probably don't have any better option; with guarantor paying up the loan companies have no need to chase the borrower. You'll save a lot of money refinancing with a normal loan since your credit is obviously good enough (Amigo advertise a 49.9% APR, your bank will likely refinance for about 5-10%). You've got as much chance of getting the money back that way than sticking with the existing loans, who won't bother pursuing your relatives for the money. When they inevitably stop paying, you'll save a huge amount in interest.

Make it clear to them though that you've refinanced because you can't afford it, and will expect them to stick to the original arrangement via you or you'll have nothing more to do with them.

stator

Herzlos wrote: »

You probably don't have any better option; with guarantor paying up the loan companies have no need to chase the borrower. You'll save a lot of money refinancing with a normal loan since your credit is obviously good enough (Amigo advertise a 49.9% APR, your bank will likely refinance for about 5-10%). You've got as much chance of getting the money back that way than sticking with the existing loans, who won't bother pursuing your relatives for the money. When they inevitably stop paying, you'll save a huge amount in interest.

Make it clear to them though that you've refinanced because you can't afford it, and will expect them to stick to the original arrangement via you or you'll have nothing more to do with them.

I can't see the original borrower signing up to this. They've got what they want, they are more likely to just ignore the guarantor completely

suicidebob

Herzlos wrote: »

Make it clear to them though that you've refinanced because you can't afford it, and will expect them to stick to the original arrangement via you or you'll have nothing more to do with them.

They're not sticking to the original agreement. That horse has bolted.

Herzlos

Exactly. The OP is unlikely to get the money back now, so they may as well cut their losses and reduce the amount they're stuck paying out.