daughter became guarantor

dicrainie

Help! really need some advice,my 21 old daughter very stupidly became a guarantor for her friend on a loan,hell knows why,and how because hasn't got a permanent job with the agency mostly,but the thing is her so called friend has defaulted on payments and now its left to my daughter to pay. which she clearly hasn't got the money,i'm just really worried that if the bailiffs come knocking at our door because she lives with us are we responsible for her paying it or worst still will they take things from our house to to recoup the debt?????really need some advice.

MallyGirl

Don't open the door - then they can't take anyone's things. Make sure you don't leave windows open.
She needs to get some advice - was she honest on the forms she had to sign?

Exodi

For the cold hard truth, as a guarantor she is 100% liable for the debt should the original debtor default. This sadly means that she needs to start making provisions to pay it (this can be by way of arranging a payment plan with the creditor/DCA).

I must iterate the importance of proactively dealing with this, burying her head in the sand WILL lead to increases in fees, court proceedings, bailiffs, CCJ's, etc (naturally it depends on the value of the debt as to how far they will go).

Is the friend completely out the question now to assist with this?

Also, as your post seems to allude to it - if your daughter did in fact lie on the application, you would not have a defense for 'mis-selling'.

atrixblue.-MFR-.

Against what surety did they approve the guarantor for in order to approve this? I know this was an unsecured loan but what surety made the lender feel confident the guarantors financial position was more stable than the applicant?
What if anything did she state on the application.




With Enforcement Agents just turn your phone on record on only speak to them from a windown, even if you open the doors they cannot force their way past they cannot force entry, open door and then step outside and shut the door and stand infont of the door. If there is a clamp on your car tell him to remove it straight away its your car. The most likely scenario after they're aware she live at home with parents, is that they will target her car for repossession if she owns it, if its on finance or lease they cant take or clamp it if they clamp it demanding money for the debt in order remove it demanding money by menaces they cant do that. Don't bother threatening call police to them if they start acting like a spoiled kid who cant get their way, if you call them they police will side with the enforcement agent and may even try to enforce the debt illegally against you it shouldn't happen but if it does read this: minal LIability

Abuse of police powers:

Section 26 (1)-(4) of the Criminal Justice and Courts Act 2015 states;

26 Corrupt or other improper exercise of police powers and privileges
(1)A police constable listed in subsection (3) commits an offence if he or she—

(a)exercises the powers and privileges of a constable improperly, and
(b)knows or ought to know that the exercise is improper.

(2)A police constable guilty of an offence under this section is liable, on conviction on indictment, to imprisonment for a term not exceeding 14 years or a fine (or both).
...
(4)For the purposes of this section, a police constable exercises the powers and privileges of a constable improperly if—

(a)he or she exercises a power or privilege of a constable for the purpose of achieving—

(i)a benefit for himself or herself, or
(ii)a benefit or a detriment for another person, and

(b)a reasonable person would not expect the power or privilege to be exercised for the purpose of achieving that benefit or detriment.

Failure to use a police power
Section 26 (1)-(4) of the Criminal Justice and Courts Act 2015 states;

(5)For the purposes of this section, a police constable is to be treated as exercising the powers and privileges of a constable improperly in the cases described in subsections (6) and (7).
(6)The first case is where—

(a)the police constable fails to exercise a power or privilege of a constable,
(b)the purpose of the failure is to achieve a benefit or detriment described in subsection (4)(a), and
(c)a reasonable person would not expect a constable to fail to exercise the power or privilege for the purpose of achieving that benefit or detriment.

(7)The second case is where—

(a)the police constable threatens to exercise, or not to exercise, a power or privilege of a constable,
(b)the threat is made for the purpose of achieving a benefit or detriment described in subsection (4)(a), and
(c)a reasonable person would not expect a constable to threaten to exercise, or not to exercise, the power or privilege for the purpose of achieving that benefit or detriment.

(8)An offence is committed under this section if the act or omission in question takes place in the United Kingdom or in United Kingdom waters.
(9)In this section—

“benefit” and “detriment” mean any benefit or detriment, whether or not in money or other property and whether temporary or permanent;

“United Kingdom waters” means the sea and other waters within the seaward limits of the United Kingdom’s territorial sea.

(10)References in this section to exercising, or not exercising, the powers and privileges of a constable include performing, or not performing, the duties of a constable.

AnotherJoe

dicrainie wrote: »

Help! really need some advice,my 21 old daughter very stupidly became a guarantor for her friend on a loan,hell knows why,and how because hasn't got a permanent job with the agency mostly,but the thing is her so called friend has defaulted on payments and now its left to my daughter to pay. which she clearly hasn't got the money,i'm just really worried that if the bailiffs come knocking at our door because she lives with us are we responsible for her paying it or worst still will they take things from our house to to recoup the debt?????really need some advice.

You are not responsible for your stupid daughters loans whether she lives with you or not.

sourcrates

Hi,

Only the debtor and the guarantor are liable for the debt, no one else.

Despite what some other contributors have said, the police have nothing to do with this, bailiffs usually act under authority of a warrant, they cannot break in, force entry, or climb through a window.

They can however make peaceful entry through an unlocked door, so make sure if it comes down to bailiff enforcement, your doors are all locked, and your car is no where to be seen.

If she has no money or assets then the loan company cannot do much to be honest, if she works, an attachment of earnings would probably be applied for.

But, before ANY of this can happen, they have to take legal action, and succeed in obtaining judgement against her, if she loses, but agrees to pay what ever she can afford towards the debt, be it only £1 a month, (backed up by a copy of her budget) and sticks to it, then no further enforcement action can be taken against her.

foxy-stoat

Find out how much she now owes and see if she can get cheaper credit, as the interest rate she is now having to pay will probably be 49.9% or some other high figure.

Has she got other debts?

flowrypot

Is there any way she could get a credit union loan ? Many years ago we got a loan at a good rate to clear my sons credit card debts that were spiralling . He had to pay us back all be it slower than the loan rate . But it stopped the constant letters and phone calls that were making me ill .

Caz3121

dicrainie wrote: »

her so called friend has defaulted on payments and now its left to my daughter to pay.

what is the 'friend' saying about it? do they have any plans to make payments or are they just going to leave the whole debt for your daughter to pay?

MEM62

Caz3121 wrote: »

what is the 'friend' saying about it? do they have any plans to make payments or are they just going to leave the whole debt for your daughter to pay?

The latter I would imagine.

Blackpool_Saver

How much is it and how much is the interest rate?