Loan gurantor

katy_30

Hello

I am not sure if this is the right place to post but I am hoping for some help.

My mum agreed to be a gurantor for my sister in law but now she is not paying the debt and my mum is being chased for it.

My question is should she of been allowed to be a garuantor in the first place. She is retired with no income and receives pensions credits and housing support. Is there anyway we could appeal this?

Thank you

sourcrates

katy_30 wrote: »

Hello

I am not sure if this is the right place to post but I am hoping for some help.

My mum agreed to be a gurantor for my sister in law but now she is not paying the debt and my mum is being chased for it.

My question is should she of been allowed to be a garuantor in the first place. She is retired with no income and receives pensions credits and housing support. Is there anyway we could appeal this?

Thank you

Hi,


Guarantor loans criteria :


Your guarantor must:

• Be between the ages of 21 - 75.
• Be a tenant or own their own home. ...
• Be financially stable, this may require a credit score to be carried out on the guarantor. ...
• Be able to afford the repayments, if for any reason the loan applicant cannot do so.

Did your mother fit these criteria at the time she signed the loan agreement ?

HappyMJ

katy_30 wrote: »

Hello

I am not sure if this is the right place to post but I am hoping for some help.

My mum agreed to be a gurantor for my sister in law but now she is not paying the debt and my mum is being chased for it.

My question is should she of been allowed to be a garuantor in the first place. She is retired with no income and receives pensions credits and housing support. Is there anyway we could appeal this?

Thank you

She must have some sort of income even if that is benefit income.

She's not an ideal guarantor at all. No assets and low fixed income which a court won't be able to access if the court has been asked to enforce a court order.

Any court action by the creditor would be futile. She might get a CCJ against her but it can't be enforced so what's the point.

An unpaid CCJ would prevent her from getting credit for the next 6 years but as she is on a low income and securely housed then I don't think she's going to want to buy a property with a mortgage any time soon.

I'd write a letter stating her income and expenses ensuring that she shows no surplus. That should be enough to make them give up.

katy_30

Hello
She fits in to the age bracket and she is a tenant in sheltered housing but that is paid for through housing benefit. She is not financially stable and is on debt repayments plan so I would be surprised if she passed a credit check. She also can't afford the repayments.

I will suggest she writes to the creditor with a statement of earnings. However I got the impression the money left her bank account after my sister in law missed a payment - although I would need to check this.

sourcrates

katy_30 wrote: »

Hello
She fits in to the age bracket and she is a tenant in sheltered housing but that is paid for through housing benefit. She is not financially stable and is on debt repayments plan so I would be surprised if she passed a credit check. She also can't afford the repayments.

I will suggest she writes to the creditor with a statement of earnings. However I got the impression the money left her bank account after my sister in law missed a payment - although I would need to check this.

When you say "the money" do you mean the one missed payment ?

I think you need to take steps to ensure the loan company can't take money from her bank account again.

That would involve either cancelling the constant payment authority on her bank card, in writing, with the bank, and/or direct debt on your mothers bank account, dependant on which method they used to take the money.

Reporting the bank card lost/stolen will ensure they won't be able to do this again.

I would then follow Happy MJ's advice above.

katy_30

Thank you for the advice. I will get clarity tomorrow on what has happened and look at the paperwork.