Sensitive issue - Amigo Loans

Hectors_House

Hello forum members.

I’ve not been on here is years but came back to see if I can get any advise.

I own a property outright with my sister but don’t live there.

I’ve come back to visit to find the house a complete pigsty with her mail going unopened.

Sadly, I’ve found out she has stood guarantor for a £10k loan for a workfriend thru Amigo Loans.

I knew nothing about this and did not provide my agreement as the co-owner of our property.

Hopefully the borrower will keep up repayments (£400 per month) and they won’t need to get the money from my sister.

Would my sister have had to lie and tell them she owns the house solely as part of Amigo’s checks?

If it does come to a CCJ and charge put against the house will she have committed fraud?

Thanks in advance for any advise anyone can give?

I find it hard to believe my property could have a charge of what would be about £20k and I had no say in it.

BoGoF

Most loan applications just ask your residential status so if she said homeowner she wasn't telling any lies so no fraud.

ToxtethO'Grady

The charge will only go against her share of the equity and will be a restriction not a Charging Order - this is only if the borrower stops paying and your sister is activated as the guarantor. and Amigo get a CCJ.

Hectors_House

Thank you for the responses.

I’m just amazed this can happen.

If it does get as far as a CCJ will that die with her (I’m not thinking of doing her in of course). Lol

jimbo26

Hectors_House wrote: »

Sadly, I’ve found out she has stood guarantor for a £10k loan for a workfriend thru Amigo Loans.

I knew nothing about this and did not provide my agreement as the co-owner of our property.

Why would you, the matter is between your sister and her work colleague.

Hectors_House wrote: »

Hopefully the borrower will keep up repayments (£400 per month) and they won’t need to get the money from my sister.

Your sisters problem, not yours.

Hectors_House wrote: »

Would my sister have had to lie and tell them she owns the house solely as part of Amigo’s checks?

No

Hectors_House wrote: »

If it does come to a CCJ and charge put against the house will she have committed fraud?

No

Hectors_House

Sorry, I guess I should clarify.

She has spoken of us selling the house and moving to live in my part of the country when she retires (the sale of the house would go into buying s property together).

So I don’t understand why she would risk losing so much of her share of our house by doing this.

She’s asked me to move back and I came back this week to interview for a job (didn’t get it) but now she’s done this I feel I don’t know her or trust her.

I know it’s her problem but it is still hanging over our house for the next four years when all is said and done.

jimbo26 wrote: »

Why would you, the matter is between your sister and her work colleague.



Your sisters problem, not yours.



No



No

AnotherJoe

but it is still hanging over our house for the next four years

Assuming you are tenants in common, its hanging over her share of the house and it doesnt affect you at all.
If you are joint tenants i dont know what the implications are of only one signatory, offhand I'd have thought it needed both of you. Is there actually a charge against the house?

Hectors_House

AnotherJoe wrote: »

Assuming you are tenants in common, its hanging over her share of the house and it doesnt affect you at all.
If you are joint tenants i dont know what the implications are of only one signatory, offhand I'd have thought it needed both of you. Is there actually a charge against the house?

Hi AnotherJoe

no, there is no charge against the house as yet.

We went the legal route of setting things up so should one of us die the other automatically gets the house (with no wills needed).

My sister has cancer I’m afraid and I asked my solicitor to find a route that wouldn’t involve me having to ask her to make a will.

Pixie5740

Has the borrower actually defaulted on the loan yet?

Hectors_House

Pixie5740 wrote: »

Has the borrower actually defaulted on the loan yet?

Thankfully no.

Pixie5740

Then there isn't actually a problem at the moment and hopefully there never will be as long as the borrower keeps paying. If the worst does happen and Amigo go after your sister and she does wind up with a CCJ that will be registered against your sister not the property. It takes a long, long time for debts to get as far as a charging order against a property and many defaulted debts don't even result in one.

If you are very worried you could apply for a lower cost loan in your own name, pay off Amigo and then set up an arrangement between you and the borrower but personally I would not do that for a colleague of my sister's and not just because I don't have a sister.