Lending money to friends & family

fermi

dandelion66 wrote: »

Help....

Seven years ago a member of my family gave me over £5000 as a gift. They stated at the time that they wanted to see their family enjoy the money and that was the reason for the gift.

Moved to a separate thread --> https://forums.moneysavingexpert.com/discussion/4731311

HaSBeenConsolidated

Old Saying: "Never a lender nor borrower be." - is still good advice for all of us today.

noelsvixon

Im hoping someone could help me with some advice. My dad stood guarentor for my sister from amigo loans and she never pays so they take it out of my dads account every month, aswell as all the other money that they have to pay for her on their credit cards. It totals up to around 400 a month. Is there anything they can do as in stop being a garentor or can they write off the devt in anyway. Its breaking my mum and dad and they are struggling to pay their own bills and can barely afford to eat. My sister gives them empty promises of paying them back but she always comes up with excuses. Its stressing me out as my mum wont let me say anything to my sister. Is there anything that can be done to help. Please please help me!

John_Pierpoint

"Good old fashioned Amigo loans only 49% APR"

Words fail me.

http://en.wikipedia.org/wiki/Usury

http://en.wikipedia.org/wiki/Jack_and_the_Beanstalk

Soleil_lune

noelsvixon wrote: »

Im hoping someone could help me with some advice. My dad stood guarentor for my sister from amigo loans and she never pays so they take it out of my dads account every month, aswell as all the other money that they have to pay for her on their credit cards. It totals up to around 400 a month. Is there anything they can do as in stop being a garentor or can they write off the devt in anyway. Its breaking my mum and dad and they are struggling to pay their own bills and can barely afford to eat. My sister gives them empty promises of paying them back but she always comes up with excuses. Its stressing me out as my mum wont let me say anything to my sister. Is there anything that can be done to help. Please please help me!

Oh blimey noel, that is V. bad. I wish I could give some advice, but I don't know the answer.. I just didn't want to read it and ignore you. There is always a risk in being a guarantor but you wouldn't think there would be a risk with it being your child! What about seeing the C.A.B

ejc81

noelsvixon wrote: »

Im hoping someone could help me with some advice. My dad stood guarentor for my sister from amigo loans and she never pays so they take it out of my dads account every month, aswell as all the other money that they have to pay for her on their credit cards. It totals up to around 400 a month. Is there anything they can do as in stop being a garentor or can they write off the devt in anyway. Its breaking my mum and dad and they are struggling to pay their own bills and can barely afford to eat. My sister gives them empty promises of paying them back but she always comes up with excuses. Its stressing me out as my mum wont let me say anything to my sister. Is there anything that can be done to help. Please please help me!

Not a chance in the world would I stand by and say nothing to my sister, I've been in your shoes & the simple solution is to get her told! Under no circumstances do you stand by & watch your parents being taking for a ride...end of story!

denikay

ejc81 wrote: »

Not a chance in the world would I stand by and say nothing to my sister, I've been in your shoes & the simple solution is to get her told! Under no circumstances do you stand by & watch your parents being taking for a ride...end of story!

I stood guarantor for a friend and she got into difficulty with amigo loans whom then came looking for me.
Due to their lack of originally declining to take the money back before the 14 day cooling off period and their solicitor not turning up on time the judge threw it out. Amigo decided this was biased and had the case re-opened, with a different judge they ruled that the money be paid back. I stated I wanted another hearing due to the facts as the transcripts were not the original which the judge asked for however the judge stated it would be very hard for me to win this case and with his personal experience I should get it over with. There is something not right about the case as letters were never received which we sent. I had to ring for the time of the court case as no letters were sent from the court. I feel my evidence was not looked at and this judge was really biased, he asked me not to mention the harassment we received by amigo loans. If they can re-open the case then so can I but they are the worst form of lyres I have ever met.. There should be more protection for guarantors and what comes around defo goes around. Hope your dad has better luck than me

BitterAndTwisted

What sort of "protection" would you have in mind? Any lender who asked for a guarantor is very obviously not prepared to lend without security. That security is a guarantor. For the whole amount for the entire time the loan is outstanding. Anything else wouldn't be a guarantee, it would be an "OK, I'll guarantee that loan until I change my mind. I expect that time to be the very moment when I'm asked to pay".

The only protection a guarantor should have, once they have actually understood the real liability they are taking on, is the ability to say "Actually, no I won't guarantee your loan. Ask someone else or do without it. Toodleoo".

PipPip

Interesting thread. I loaned my brother £1000 to pay council tax and electricity arrears a couple of years ago. I could afford to gift it and since he works hard as a chef but is very badly paid and poor with money I really did not expect it back. However, he proved to me that has principles and I was very impressed that he paid it all back at £80 per month by standing order over a year. During my lifetime I am certain that I will have to bail him out again and I will do it.

Sinhanada

I've had to borrow money off my Mum before which she has taken from a bank on my behalf. I've always made sure it's paid back and usually overpay slightly. She has an excellent credit rating and gets much better rates than me (I'd have to go down the Amigo route right now) so this works.

Similarly, I've lent money to friends who've never paid it back but I don't bank on this money. It's a difficult situation and one I think any true friend would not ask to be put in