Guarantor Loans

macman

Your home is where you live with your partner then. You may have no security of tenure there, but it's still the place at which you are resident for tax purposes.

trex227

If you/someone else gets POA for your sister to deal with financial matters you could look into putting a note on her credit file or even CIFAS’ protective service. Both are more aimed at fraud but I guess can be used for this purpose?

Hectors_House

Just a quick update for all you good folk who gave me advise.

Letters of Complaint were sent to both lenders back in early December. Amigo Loans acknowledged receipt (after asking my sister to give them permission to speak to me and her Father) and are looking into the complaint. 

Guarentormyloan bombarded my sister with phone calls and text messages trying to get her to talk to them about sorting out her issues with being able to pay. We told them it was harassment as we were seeing the effect it was having. Their solicitor told us that the borrower (who had defaulted) had agreed a payment plan up to March to catch up. My sister received a letter this morning letting her know their response (ten pages long to the Letter of Complaint) and telling her they had decided to release her from the contract as guarantor.

One down, one to go.

Considering this second loan was in default I was surprised they didn’t dig their heels in and we are thankful they didn’t.

I’ve told my sister to ignore any attempts by the Mother and daughter she stood guarantor for to contact her and to pass anything they send her onto me so I can deal with them.

From what I understand the loan reverts to an ordinary loan with a much better interest rate for the borrower if they loose their guarantor. To be honest I couldn’t give a monkeys if they face demands to pay it all back immediately   - especially the daughter who told my sister she didn’t need to worry cus she would never miss a payment and that the house wasn’t at risk if it defaulted to her to pay. My sis even has a text from this woman telling her her outgoings are £600 more than she earns each month so she couldn’t afford the loan even when she took it on.

Hectors_House

I’ve got to read the letter from one of the lenders and, very worryingly my sister has stood guarantor five times for the one borrower since 2017.

She lied to the lender on the application for the final loan (the one that defaulted) when they finally started to ask her if she was currently guarantor for any other loans she didn’t tell them about the Mother's loan with Amigo.

🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

Not sure what to do. We are waiting for Amigo to get back with their decision and I just hope she hasn’t stood guarantor for multiple loans for the Mother too.

[Deleted User]

Hectors_House said:

I’ve got to read the letter from one of the lenders and, very worryingly my sister has stood guarantor five times for the one borrower since 2017.

She lied to the lender on the application for the final loan (the one that defaulted) when they finally started to ask her if she was currently guarantor for any other loans she didn’t tell them about the Mother's loan with Amigo.

🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

Not sure what to do. We are waiting for Amigo to get back with their decision and I just hope she hasn’t stood guarantor for multiple loans for the Mother too.

Your sister has been guarantor multiple times. Have all those loans gone unpaid or just the current ones? If it’s just the current ones then you don’t need to worry about what has been before. 

As for what to do, you can start as many threads as you like across a number of boards in the forum but I’m not sure anyone will agree that trying to take your vulnerable sister’s share of her property off her is a good idea.  Does your sister require a POA or some kind of guardianship? Would she agree to Protective Registration with CIFAS? Amigo are signed up to the CIFAS community so that should raise a red flag if your sister is involved in any further applications with Amigo. 

https://www.cifas.org.uk/services/identity-protection/protective-registration

elsien

Power of attorney isn’t a magic bullet. Sister would have to freely agree to it, decide who she wants to act for her,  decide when it can be used and have capacity to make it. 

She can also choose (while she has capacity to do so) to revoke it at any point.
And it wouldn’t prevent her from continuing to sign any further contracts if she understood what she was doing. 
Someone being vulnerable
and suggestible doesn’t mean they lack capacity. It could just mean they have made a poor decision to prioritise their friends. 

OP needs to be very careful because while wanting to protect their sister, they also want to protect their own assets. Always good to be aware of any potential conflict between different people’s interests in these circumstances. 

Hectors_House

Lover_of_Lycra said:

Hectors_House said:

I’ve got to read the letter from one of the lenders and, very worryingly my sister has stood guarantor five times for the one borrower since 2017.

She lied to the lender on the application for the final loan (the one that defaulted) when they finally started to ask her if she was currently guarantor for any other loans she didn’t tell them about the Mother's loan with Amigo.

🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

Not sure what to do. We are waiting for Amigo to get back with their decision and I just hope she hasn’t stood guarantor for multiple loans for the Mother too.

Your sister has been guarantor multiple times. Have all those loans gone unpaid or just the current ones? If it’s just the current ones then you don’t need to worry about what has been before. 

As for what to do, you can start as many threads as you like across a number of boards in the forum but I’m not sure anyone will agree that trying to take your vulnerable sister’s share of her property off her is a good idea.  Does your sister require a POA or some kind of guardianship? Would she agree to Protective Registration with CIFAS? Amigo are signed up to the CIFAS community so that should raise a red flag if your sister is involved in any further applications with Amigo. 

https://www.cifas.org.uk/services/identity-protection/protective-registration

Thanks for the link Lover_of_Lycra, that’s the sort of advise I’ve been looking for.

out of the six only one has defaulted and thankfully that happened whilst I was back at the house in November so the letter got opened (my sister ignored her mail).

I got the Letter of Complaint written and sent in to both companies in case the borrower of the larger amount decided to start defaulting too.

We will be talking to her, going forward to try and find out what has been going on and I’ll take a look at the link you kindly provided.

Yahoo_Mail

Hectors_House said:

From what I understand the loan reverts to an ordinary loan with a much better interest rate for the borrower if they loose their guarantor. To be honest I couldn’t give a monkeys if they face demands to pay it all back immediately   - especially the daughter who told my sister she didn’t need to worry cus she would never miss a payment and that the house wasn’t at risk if it defaulted to her to pay. My sis even has a text from this woman telling her her outgoings are £600 more than she earns each month so she couldn’t afford the loan even when she took it on.

What makes you think that?  That would certainly be a very odd way to operate, especially when the risk to the lender increases without the guarantor rather than decreases, as rates are based on the risk of default.

Hectors_House

What makes you think that?  That would certainly be a very odd way to operate, especially when the risk to the lender increases without the guarantor rather than decreases, as rates are based on the risk of default.

I think I read it somewhere Yahoo_Mail.

Not that it matters to me. My only concern is getting my sister off the loans as guarantor.

These two women and their ability to pay these loans back is of no interest to me.

Pollycat

Lover_of_Lycra said:

Would she agree to Protective Registration with CIFAS? Amigo are signed up to the CIFAS community so that should raise a red flag if your sister is involved in any further applications with Amigo. 

https://www.cifas.org.uk/services/identity-protection/protective-registration

LoL

I've read the link and it seems to refer to fraud.

Are you worried your personal details have been stolen? Have you noticed any unusual account activity? Or do you deal with an organisation that has recently lost or leaked sensitive data? You may be at risk of becoming a victim of identity fraud.

Apply now for Protective Registration

As instances of loss or theft of personal information, and companies and organisations being hacked, continue to grow, Protective Registration offers an easy and affordable way to protect your identity from misuse.  To apply, please complete the Protective Registration application form.

Just curious if it is relevant here.

It seems that the sister is agreeing to be guarantor rather than the people asking fraudulently taking out loans in someone else's name or stealing the OP's sister's identity.