Amigo Loan Guarantors - Taking your sister to court

CKhalvashi

Voyager2002 wrote: »

As I posted just now, if she has a regular income then you can obtain a "garnishing order" so that the employer or whoever makes payments directly to you. If there is valuable "stuff" in her home then you can pay for bailiffs to visit her.

The problem then comes if she refuses to let them in......

It may be worth speaking to her to see if it’s good going to be possible to come to a revised arrangement, possibly with yourselves fronting the money for her to return to you at a later date, as it seems you are able to do this. It’s a lot more likely that she will pay this way than through the court system.

If this is refused, you have to ask yourselves first if there is any point taking someone with no money to court. I suspect the answer is generally not (unless she has significant house equity or similar to target further down the line).

(‘You’ doesn’t mean you Voyager, rather the OP)

CumbrianWolf

Thanks

We expect we will have to pay it off unless when she does get work (now the little one has free childcare hours) she starts to do the decent and pass money our way. I don’t think she will have capacity to pay off the loan in full each month which is around £400 a month. We feel because she can’t this is why she hadn’t really been trying to each month.

Her ex-partner, whether he knows he has no liability or not, has said he will be paying it from next month onwards now he is back on his feet financially. We fear this is lip service as generally speaking we wouldn’t call him trustworthy but we could be surprised


It’s probably needs to ride out a couple more months maximum, with threats of court etc. before we commit to a route but we want to be clear of what is to come.



I wasn’t aware that we would be able to enlist a bailiff. Would we have to evidence to the bailiff that monies were owed, evidence of court rulings etc. for them to act for us?

CumbrianWolf

I think the real hope out of this is that there would be a repayment schedule that she would be bound to.

Whilst we may be able to agree a repayment schedule between us we fear she would shirk away from repaying us and we’ve little to enforce it. Where not as big and scary as courts and bailiffs are.

I’m guessing setup our own repayment schedule we would still have within 6 years of us paying off the loan to take her to small claims court if she wasn’t playing ball. Afterwards it would be statute barred. Is that correct.

Thanks again all for all your comments so far.


Just to add details, she is renting presently, and has no house, equity to her name.

foxy-stoat

Get all the paperwork from the loan company and go down the small claims track, get your judgement and employ baliffs, you may get some money you may not.

In the meantime get yourself some money transfer and balance transfer credit cards and get as much debt onto 0% or lower interest as you can to minimize your losses.

If you have living parents, probably a good idea to bring them up to speed just incase there is an inheritance in years to come. What goes around will come around.

Good luck

-taff

You are still paying the loan, it's not going to be statute barred. As the guarantor, Amigo will come to you if it's not paid, not her, because you guranteed it. If you stop paying the loan, they'll take you to court not her. Statute barred doesn't come into this at all.

Pixie5740

CumbrianWolf wrote: »

I think the real hope out of this is that there would be a repayment schedule that she would be bound to.

Whilst we may be able to agree a repayment schedule between us we fear she would shirk away from repaying us and we’ve little to enforce it. Where not as big and scary as courts and bailiffs are.

I’m guessing setup our own repayment schedule we would still have within 6 years of us paying off the loan to take her to small claims court if she wasn’t playing ball. Afterwards it would be statute barred. Is that correct.

Thanks again all for all your comments so far.


Just to add details, she is renting presently, and has no house, equity to her name.

At best she will be ordered to repay £5 a week or some other piddly amount because she lives of benefits. Winning the judgement is one thing, enforcing it is another. What happens if she doesn't pay the £5 a week, well it's back to court for a CCJ. Will she care, probably not. Her credit files are already shot to !!!!!! which is why Amigo were the only lender willing to give her a loan and that's only because they knew when she wouldn't pay there was some other sucker on the hook. If you get bailiffs involved do you think she has anywhere near £10k of goods they can seize?

It's unlikely your SIL would have gone to prison and that her child would have been placed into care so you should have let the Grinch face the consequences when she stole people's Christmas money because she sure as hell isn't going to be facing much in the way of consequences now.

Are you sure you have calculated the interest correctly because £2k to £4K sounds quite low for a 49.9% APR loan?

I think the upper limit for small claims court is £10k so you'd either need to reduce your claim or look at a different court.

CumbrianWolf

foxy-stoat wrote: »

In the meantime get yourself some money transfer and balance transfer credit cards and get as much debt onto 0% or lower interest as you can to minimize your losses.

If you have living parents, probably a good idea to bring them up to speed just incase there is an inheritance in years to come. What goes around will come around.

Good luck

Her parents arent much better financially. Neither have pensions thought within 10 years of retirement, and have taken equity out of their house. If anything they will leave their 6 siblings with debt and not inheritance. They have poor credit hence why they weren’t approached for the Amigos loan guarantor.

We are currently managing our own ‘debts’ on 0% (i.e. we’ve just moved house and have a period where we need to spend on it, still some balance for our family car which we covered on 0% cards than car finance etc.) to a level we are comfortable with.
Taking on the full value of the loan is possible but will reduce out flexibility when existing 0% deals end.

I can get 10k money/balance transfer at 2.7% fee with 0% for 12-18 months on my Barclaycard.
Or myself and wife could cover of similarly across both our virgin cards for 3.5-4% fee I think.

Need to check if paying amigos would be classed as a balance transfer and they can be paid by such card.

foxy-stoat

-taff wrote: »

You are still paying the loan, it's not going to be statute barred. As the guarantor, Amigo will come to you if it's not paid, not her, because you guranteed it. If you stop paying the loan, they'll take you to court not her. Statute barred doesn't come into this at all.

I think the OP meant the sister paying off what she owed to the OP rather than the OP's debt to Amigo.

Pixie5740

No the debt won't become statute barred after 6 years. You have got hold of the wrong end of the stick, in fact it might not even be a stick you are holding.

CumbrianWolf

-taff wrote: »

You are still paying the loan, it's not going to be statute barred. As the guarantor, Amigo will come to you if it's not paid, not her, because you guranteed it. If you stop paying the loan, they'll take you to court not her. Statute barred doesn't come into this at all.

I was meaning if we paid of Amigos. Our sister in law would be in debt to us. Does that not mean we have 6 years to sort with her.