Amigo loan... I'm so horrid

muckypaws

Hi guys just want to see if I'm alone in making this decision.

My husbands daughter (24) asked us for a large loan to bail her out once again from cash flow issues. I put my foot down and said no way, as she never pays us back and is constantly spending above her means.

Hubby then decided against my better judgement to guarantee a loan for her for £2000, stating she won't let us down, she's promised. Of course next thing is she didn't pay it and has totally disappeared from our lives. Putting aside the hurt and pain she has caused us... Left us with a £3000 debt. Now we are financially stable and have savings so no problem paying this off and my first plan was to just take it on the chin and pay it all off.

But after speaking to amigo loans, we found out if we paid it all off She would get a pat on the back for being a good payer .... So here's where I turned into the wicked stepmother..... For 6 months I've let it default ..... Yes it's horrid and will not help her situation but I just couldn't sit by and let her get away with it .... So would you do the same ? Am I truly horrid ?

muckypaws

Ps it's not affected our credit rating as it is paid each month but by leaving it and letting them take it out of our acc it registers a default against her.

[Deleted User]

I'd clear it and save myself a bucket load of interest.

If she has to use Amigo, I'm not sure a worsening credit file will be of much concern.

muckypaws

It's being cleared after this next payment.

Vkz

I would have done the same, you're doing what a guarantor should do but I why should she feel the benefit of it being paid off in full, also why should you see your savings go in one big lump when it can be paid monthly?

Hopefully one day she will change her ways.

x

dresdendave

Vkz wrote: »

Hopefully one day she will change her ways.

x

Unlikely whilst she has relatives willing to finance her lifestyle.

vanilla_twist

Could you not take her to the small claims court for not repaying the loan and leaving it to the guarantor?
Might make her realise you are not a push over

V x

Pixie5740

Are you absolutely positive that she receives a default on her credit file every time the guarantor makes a payment and not her? I wouldn't have thought it matters who makes the repayments as long as it's made.

You could pursue her through small claims court for the money. Then if she doesn't pay you could enforce the judgement and potentially have a CCJ awarded against her. However, I suspect that if she's had to resort to using a lender like Amigo then her credit file is already shot-to-!!!! with defaults and possibly CCJ too.

foxy-stoat

You have helped her more by defaulting on the loan.

Now instruct your other half not to bail her out again, as this will not help the situation.

Good lucks

Herzlos

Vkz wrote: »

why should you see your savings go in one big lump when it can be paid monthly?

Because of the brutal interest rate. That said, it'd be pretty trivial to get another loan at a decent rate and pay it off, as you'll drop from something like 49% APR to 4.9%,

muckypaws

Thanks guys.... Don't you worry she won't be getting another penny .... I've spoke to hubby he's changing his will also

I did consider taking her to the small claims court but hubby is against it... The only good thing is at least now she won't be tapping us up every 5 mins .... I've told hubby no matter what she is no longer welcome in our home again .... Thank you for all your replies.... I feel less of a wicked step mum and more happy with my decision. I can't say it doesn't hurt how she's treated us, but again, her loss of her dad and I for any future problems will hurt her more ... She can't keep living like she is and now has no where to turn for help xx hugs all round