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Amigo Loans - death of guarantor

My father in law passed away recently and my husband is sorting his affairs. There is no property and around £1000 in his bank which needs to clear final bills in his rental property.
We've received a default notice addressed to my father in law from Amigo - apparently he signed as a guarantor for someone who has defaulted on their payments and as my husband closed his Dad's account, they were unable to take payment off his card.
Does anyone know what happens to the debt now?
There is no estate to claim the money from but the person with the loan still haven't told Amigo that he's passed and told us the loan had repaid.
Do we need to do anything or will it go back to the borrower?

Comments

  • You should let Amigo know of the circumstances and that there is no estate.  You don't really want an endless stream of communications.
  • Basically Amigo are stuffed. They have no rights now your father is deceased.
    Write them a short letter enclosing the death certificate stating there are no funds available in the estate.
  • The debt should go back to the borrower as I am a guarantor and was told this by them when I asked what happens if I die or am bankrupt they said the debt should go back to the original borrower
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Wjb92 said:
    The debt should go back to the borrower as I am a guarantor and was told this by them when I asked what happens if I die or am bankrupt they said the debt should go back to the original borrower
    The original borrower was you though, as the loan was paid to you and you paid it to the person who tricked you into being a guarantor.
  • Wjb92 said:
    The debt should go back to the borrower as I am a guarantor and was told this by them when I asked what happens if I die or am bankrupt they said the debt should go back to the original borrower
    The original borrower was you though, as the loan was paid to you and you paid it to the person who tricked you into being a guarantor.
    I think this is incorrect. The loan will always be in the name of the borrower - the guarantor merely passes the funds on. Their only liability is to pay if the borrower fails to do so. If they do not take steps to secure the loan then if the guarantor dies leaving no funds in their estate to which Amigo could put a claim on then they are stuffed. At this stage it becomes a loan without a guarantor.
  • You should let Amigo know of the circumstances and that there is no estate.  You don't really want an endless stream of communications.
    Yes, you should inform them of the death, but also tell them that the estate team is insolvent and that no one is administering the estate.
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