Yes Loans Guarnator

rinefitz

Hi, my husbands friend has asked him to be a guarnator on a loan he is getting from Yes Loans. I have only heard bad things about this company and believe they are a broker not the actual loan company. The only details I have at the moment is that the loan will be for £1000, monthly payments (not sure of period or interest). He has just asked my husband to come round with a copy of his passport, bank statement or payslip. Neither of us are happy with this - so if anyone can give us any information on what a guarnator entails. The problem is my husbands friend signed a loan application form for us, the only difference being it was for a reputable company (Royal Mail employees Loan/Saving scheme) and there was no identification of any description needed - also the £30 repayment/saving comes out of my husbands wages before he even sees it.

Any advice appreciated, will know more when Husband has seen application forms, just sounds a bit too involved to me

Browntoa

basically if your friend does not pay the loan they will come after your husband for the money

personally I would never do it

Poppycat

I wouldn't sign it either if they do a moon light flip your going to have to pay up

CLAPTON

Being a guarentor means that if your friend doesn't make the repayments then your husband will have to...
Only do it if you're prepared to make the repayments yourselves.
Frankly I'ld say dont do it.
If your friend needs a guarentor then its very likely he is in financial trouble.

GirlRacer_2

Yes loans act the same way as Advantage and Wentworth, you have to pay an upfront fee and they guarantee to find you a loan. Usually at an extortionate rate. If your husbands friend can only get a loan from these people its probably because he's defaulted in the past and therefore not credit worthy. Do you really want your husband to be held guarantor for this person. If they default on the loan it will be up to your husband to pay.

UK007BullDog

Don't do it! You will curse the day!

Your friend helped you. Was he a guarantor for you?
Ask him to be totally upfront as a loan like that is very expensive and could cost you your sanity, your house, your lifestyle.

Also you would then be financially linked and if he has a bad record could impact you in the future.

Find some excuse, tell him your credit record is shot and you would be refused as a guarantor, but you were too embarrassed to tell anyone.

iolanthe07

For heaven's sake please, please, please don't guarantee a loan, especially with these people. Interest and fees rachet up quickly and you will be liable if the friend defaults. And you have to ask yourself why he is needing to use a sub-prime lender.

nomoneytoday

If you want to remain friends, don't do it...

gilligansyle

This is probably through FLM loans, they have what looks like a really snazzy website which explains it all.

http://www.flmloans.co.uk/

They say that guarantors should be householders and have a good credit rating. What happens is that they loan would be paid to you, and you pay it to your friend. they need your details in case the friend defaults in which case they take it off your debit card. So in effect you are taking out a loan at about 45% interest.

There are threads about Advantage Loans which explain how they work. People who go to them don't normally have a choice.

If they are such a good friend that you would be prepared to help them out, point them at this site and some decent moneysaving tips.

HeadInSand_2

CLAPTON wrote: »

Being a guarentor means that if your friend doesn't make the repayments then your husband will have to...
Only do it if you're prepared to make the repayments yourselves.
Frankly I'ld say dont do it.
If your friend needs a guarentor then its very likely he is in financial trouble.

(Guarantor)
Friends and money can mix very badly - don't do it.

sammyjammy

Why don't you help your friend in another way by pointing them in the direction of this website? It sounds like if they are taking out a loan for £1000 from these dreadful companies they must be in dire straits, plenty of people to help them sort things out in a better way no matter what the issues are.

Sam