Guarantor For A Friend and She Has Now Applied For A IVA

Gaz83

TigerBack wrote: »

My Credit Rating is Ok at this moment in time, with no arrears and no CCJ and I been making up the payments she as missed..
But I'm self employed and I do not know what the future holds, so I'm checking all my options.

Pardon me if I'm mistaken, but it seems like you plan on threatening the lender by pretending to be in a poorer financial position than you are.

Don't do this.

foxy-stoat

Get yourself some credit cards with money and balance transfer and clear the loan as soon as possible....give your "mate" a slap when you next see them and hopefully you have learnt a very expensive lesson.

maisie1234

Some really good responses here but honestly when you agree to becoming a guarantor surely its obvious what will happen if your friend defaults!


There was a thread on another forum asking about a Premier Inn non cancellation price. They didn't want to pay the flexible rate (because it was £200 more!!) but wondered if a relative was ill whether they could get their money back - er, no..... The clue is in the word non cancellation (or guarantor!)

Gaz83

maisie1234 wrote: »

Some really good responses here but honestly when you agree to becoming a guarantor surely its obvious what will happen if your friend defaults!

I firmly believe that there are folk who believe being a guarantor entails no more than giving a reference saying the person is of good character.

foxy-stoat

Gaz83 wrote: »

I firmly believe that there are folk who believe being a guarantor entails no more than giving a reference saying the person is of good character.

If you read the web site terms, and the terms that Amigo will send you I hope your beliefs will change.


Your responsibility
In return for us entering into the Borrower’s agreement (a copy of which you will have seen) with the Borrower, you will:

pay the Borrower the amount they borrowed when you receive it from us;
agree that if the Borrower fails to make any payment under the Borrower’s agreement to us on the agreed payment date, you will on demand immediately make that payment;
guarantee that if we demand you will immediately meet all of the Borrower’s responsibilities under the Borrower’s agreement; and
guarantee that the Borrower will carry out all of their responsibilities due and owing under the Borrower’s agreement.
As well as the points above, and as a separately enforceable responsibility, you will indemnify (protect) us and keep us indemnified against any losses, claims, damages or expenses resulting from or arising out of the Borrower’s agreement or if the Borrower breaks any of their responsibilities. You must immediately pay us any loss if we demand it.

Your responsibilities under the guarantee and indemnity are the same as if you were a Borrower. This means we do not have to make any demand on, or take any steps against, the Borrower or any other person, before seeking payment from you under this guarantee and indemnity.

Gaz83

foxy-stoat wrote: »

If you read the web site terms, and the terms that Amigo will send you I hope your beliefs will change.

I'm not sure what you mean. I fully understand what a guarantor loan entails.

[Deleted User]

TBH, you would've been better off taking out a loan yourself, and then lending the money to your friend, who would make payments to you, which you would then pay to the loan company.

Your credit rating wouldn't be at risk, since you would know the payments were being made on time, and you would've got a far better APR, which would've benefited your friend, by reducing the amount they had to pay.