Amigo Loan

redpete

Paul_Downward wrote: »

An ex friend has an amigo loan, and I have foolishly acted as a guarantor, She is now threatening to not repay this loan, which will fall on my shoulders, Is there anything I can do like issue a notice of disassociation?

Does she realise what she is actually doing? Not paying money to Amigo will have little effect on them but it will have a massive effect on you. She is either making you pay the loan or ensuring that your credit record will be trashed.

Foxy-Stoat_3

Wonder why she did not ask her Husband to be the guarator.....or why you are even involved in the finances of someone else.

It would be cheaper for you to find out the settlement figure now, apply for another loan and keep it in a savings account until she defaults on the Amigo loan. You can then settle the Amigo loan and repayment the balance at a sensible interest and right off the money as a bad mistake

Send a recorded delivery letter to her and her husband telling them the balance request that this is paid in a given time frame or you will go through the Small Claims Track and obtain a CCJ on her, which may or may not impact her husband's ability to get credit in the future. May shock them into paying or may not but at least you would be able to stain her credit history a little.

Good luck!

andyfromotley

hi paul, yes you are kinda stuffed,

keep abreast of whether she is making the repayments, as soon as she doesn't, get a settlement figure and take out a loan at a normal rate and repay it.

Sadly i think realistically if she stops paying you will never see the money off her again. Oh the irony of this company calling itself Amigo Loans!

somethingcorporate

This is the whole point of a guarantor. If the person borrowing doesn't pay the money then it falls to the guarantor.

Unfortunately for you you signed up to be this individual. If a professional organisation that lends and collects money cannot get her to pay there are not going to be many legitimate means open to you forcing her to pay.

Chalk this one up and take it as a lesson.

I would also be really interested in understanding what led you to guarantee a loan for a married woman but hey ho, I am sure I will never find out!

iolanthe07

Never, ever, sign up as a guarantor unless you are able and prepared to lose your money. Lenders ask for guarantors when they know that the chances of repayment are low.

stator

Let her know that you will be taking her to court and eventually if she doesn't pay you back she will be getting a CCJ which will reuin her credit for another 6 years.

tomtontom

stator wrote: »

Let her know that you will be taking her to court and eventually if she doesn't pay you back she will be getting a CCJ which will reuin her credit for another 6 years.

If she needed a guarantor loan I'd bet her credit file is already trashed and one more CCJ won't make a bit of difference

OP, what does her husband know/ say about this?

WillyWonga

I wish guarantors would read the Amigo site before they sign up to be one.

Basically the loan is set up after the guarantor is credit checked, the loan is paid out to the guarantor and the bank details taken for the guarantor in case of non payment. They are onto a winner as in case the payment fails from the "borrower" they will go to the guarantor and threaten to trash their credit rating rating if don't pay.

So the guarantor could apply for a loan him/herself at a better interest rate and hand the money to the friend and hope they pay it back - same principle really - just that if all goes pear shaped its at a lower rate to pay back!!!!

Foxy-Stoat_3

iolanthe07 wrote: »

Never, ever, sign up as a guarantor unless you are able and prepared to lose your money. Lenders ask for guarantors when they know that the chances of repayment are low.

Bit late for that !

stator

Indeed, the gloating / I told you so, isn't helping the OP, so why bother?