Rights and Options as Guarantor

Theguy04

Hi guys,
I am guarantor of someone who I am not having good agreements lately. Plus he have been very late in his repayments and few months ago they attempt to collect money from my account. I feel that I dont want to be involve in this anymore. I wonder if I close my bank account (which is default in the loan) and just use one of my others bank account, they will be able to take anything from my other bank accounts if he miss a repayment?

Craig1981

Morning
they wont be able to take money without an instruction, so they wont be able to take money from your other bank account

HOWEVER, you have signed as guarantor, which makes you liable if they do not pay. debt collection, defaults on credit file etc will go down against you as well. this will have an adverse affect on your future lending power

Pixie5740

Theguy04 wrote: »

Hi guys,
I am guarantor of someone who I am not having good agreements lately. Plus he have been very late in his repayments and few months ago they attempt to collect money from my account. I feel that I dont want to be involve in this anymore. I wonder if I close my bank account (which is default in the loan) and just use one of my others bank account, they will be able to take anything from my other bank accounts if he miss a repayment?

Nice try but that won't remove your legal liability as the guarantor. The lender (Amigo?) knew this person is crap and borrowing money and paying it back hence why a guarantor was required.

If you close down your bank account the lender will chase you through court instead because legally you are liable when the borrower doesn't pay. You can't simply decide you no longer want to be a guarantor otherwise what would be the point of having a guarantor? All guarantors would simply throw in the towel the minute the borrower stopped making payments.

macman

You agreed to be a guarantor for the duration of the loan, and you will have to abide by that contract, which makes you jointly and severally liable.

Years_of_debt

What’s the total debt you’re friend owes?

foxy-stoat

If you dont want to be a guarantor anymore then get a settlement figure off the lender, take out a cheaper loan and pay it off. It will save you money in the long run when they stop paying (which they will).

Good lucks

Theguy04

He still owes around £10500 (and he was lend 10,000), he suppost to owe less by now but because sometimes he pays late, the montlhy interest sometimes comes higher or similar to the value of his month repayments (which is around £300 or £400)

Theguy04

What happen when I move out of UK now that Brexit is happening? The lender will be able to chase me in another country?

[Deleted User]

If the sum is worth it, yes. They'll prefer payment in pounds, but I am sure will also accept euros, yen, dollars or your currency of choice.

It will be much cheaper to pay it now.

oldhand

Theguy04 wrote: »

What happen when I move out of UK now that Brexit is happening? The lender will be able to chase me in another country?

Is this another "schools out" fairy tale??..🙄

forgotmyname

oldhand wrote: »

Is this another "schools out" fairy tale??..🙄

From the spelling its probably a teacher