unpaid bank loan that I am guarantor for

tulpen

Many years ago I acted as guarantor for my then fiancee so that she could take out a loan. At the time she had bad credit and this was the only way for her to get a loan. When we separated it was agreed that she would continue paying the loan, however four years later the loan has still not been payed, the direct debit has been cancelled and the account has run into arrears. The bank have written to her but she is not responding to their correspondence and the bank is now hassling me. The bank say that I am as accountable for the loan as is she. Is this right? Can the bank take me to court to settle the account?. It seems grossly unjust that after giving her a lump sum, her unpaid debt should now bounce back for me to pay.:mad:

Doozergirl

That's exactly what a guarantor is - you provide a guarantee In the event that the person defaults on the loan, it can be called in from the guarantor. That's what they're doing now.

Emmzi

Doozergirl is right.

If you can find her, you can then persue her through the courts for what she owes you.

Is the guarantee limited or unlimited? If unlimited they may whack on all the charges etc... ask for a copy!