Car finance question

faye6174

Long story but hoping someone can advise.

My mum stood as guarantor on a vehicle some years ago. Her partner shafted her and stopped making payments. At this time the car 'disappeared'. Since then she has paid and is still paying for this vehicle. (It was a very high spec car) it went to court for repossession in the absence of the vehicle, she has had to pay for it since.

The vehicle is now back on the road, her ex is using it! She contacted the solicitor involved who aren't interested as long as she keeps paying. She doesn't have this kind of money! Plus that despicable ar*e is driving around in the fancy car which is technically stolen!

Thank you

[Deleted User]

The car isn't stolen, technically or otherwise.

Unfortunately she is now finding out the role of a guarantor, which is to pay the debts of people who can't be trusted.

I can't see she has any options, apart from stopping paying and having her credit file trashed.

dresdendave

faye6174 wrote: »

Long story but hoping someone can advise.

My mum stood as guarantor on a vehicle some years ago. Her partner shafted her and stopped making payments. At this time the car 'disappeared'. Since then she has paid and is still paying for this vehicle. (It was a very high spec car) it went to court for repossession in the absence of the vehicle, she has had to pay for it since.

The vehicle is now back on the road, her ex is using it! She contacted the solicitor involved who aren't interested as long as she keeps paying. She doesn't have this kind of money! Plus that despicable ar*e is driving around in the fancy car which is technically stolen!

Thank you

You've told us a tale of how guarantor scenarios usually end up, what question are you actually asking?

ReadingTim

Your mum has learnt the expensive way why you should never act as a guarantor.

Yes, it's entirely legal, and no, there's nothing she can do about it. Sorry.

BrassicWoman

she can sue him to recover the money, or assets to the value thereof

but it may be pointless if he has nowt

Cornucopia

So... what about if she gets a new loan to pay off the car loan, and then sues for the repossession of the car?

Sparx

Is your mum actually the 'guarantor' or is it a joint finance agreement, in both her ex and own name?
Has he updated the V5 to his current address, or does she know where he lives / keeps the car now?

Do you know how long the finance agreement is (3/4yrs?) and how far through is she currently? Just curious as could possibly look at Voluntary Termination maybe. Then tell the finance co to go find the car, or check the V5 or if you know his address pass it on so they can go collect.

Alderbank

BrassicWoman wrote: »

she can sue him to recover the money, or assets to the value thereof

on what grounds?

BrassicWoman

Alderbank wrote: »

on what grounds?

His not making the loan repayments has caused her actual loss. This is quite a common court claim type.

Herzlos

If you know where the car is, contact the finance company and ask them to recover it towards the debt.

Who is the keeper (who is liable for it) and who's name is the finance in (i.e. who actually owns it)?

If she's the keeper on the V5, then you need to be worried about parking invoices/fine, speeding fines, and so on coming to her. If she's the legal owner (paperwork points to her buying it) then she can potentially try to reclaim the car but I'm not sure how that'd work and he'd likely deny it.

How much interest is she paying? Can she take out a cheaper loan to bring the cost down?

System

BrassicWoman wrote: »

His not making the loan repayments has caused her actual loss. This is quite a common court claim type.

She agreed to and signed up to a financial arrangement where she knew this could be the case though. You're not going to get far in a court trying to say you shouldn't have to pay for a loan you agreed to pay if the borrower defaulted.