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  • FIRST POST
    • SJMBWOODS
    • By SJMBWOODS 18th Jun 19, 1:43 PM
    • 9Posts
    • 0Thanks
    SJMBWOODS
    Amigo Loan
    • #1
    • 18th Jun 19, 1:43 PM
    Amigo Loan 18th Jun 19 at 1:43 PM
    Hi,
    I have today found out that my step father has signed as a guarantor for an Amigo loan.
    He is a pensioner and is not in good health. He suffers from Cirrhosis of the liver and has regular bouts of confusion. Indeed he has been hospitalized with this condition a number of times over the passed 4 years..
    I do look after his finances such as ensuring his bills are paid etc although nothing legal has been drawn up.
    I am wondering if there is any way that i can get him removed as a guarantor for the loan on medical ground as i do not feel he could have signed up being of sound mind. Had i have been consulted at the time i certainly wouldn't of allowed it to happen.
    I am just looking for any advice before i call them.
    I have a feeling that this is going to be tough so any help is appreciated. Thanks in advance.
Page 1
    • zx81
    • By zx81 18th Jun 19, 1:44 PM
    • 22,917 Posts
    • 25,315 Thanks
    zx81
    • #2
    • 18th Jun 19, 1:44 PM
    • #2
    • 18th Jun 19, 1:44 PM
    Unlikely, unless he told them of his condition and impaired decision making at the time.
    • Candyapple
    • By Candyapple 18th Jun 19, 1:45 PM
    • 3,283 Posts
    • 2,754 Thanks
    Candyapple
    • #3
    • 18th Jun 19, 1:45 PM
    • #3
    • 18th Jun 19, 1:45 PM
    Who did he become a guarantor for?

    The money would have gone into your step-dad’s bank account – is it still there?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • SJMBWOODS
    • By SJMBWOODS 18th Jun 19, 1:50 PM
    • 9 Posts
    • 0 Thanks
    SJMBWOODS
    • #4
    • 18th Jun 19, 1:50 PM
    • #4
    • 18th Jun 19, 1:50 PM
    The money was for a so called friend! It was done a few months ago without my knowledge. I have only just found out as i have seen a letter stating that a payment has been missed.
    I am sure that the "friend" must have sorted all of the paperwork as my dad wouldn't be able to.
    Sadly i expect he has signed a form consenting to it all.
    • zx81
    • By zx81 18th Jun 19, 1:53 PM
    • 22,917 Posts
    • 25,315 Thanks
    zx81
    • #5
    • 18th Jun 19, 1:53 PM
    • #5
    • 18th Jun 19, 1:53 PM
    If it looks like he needs to now pay it, try to do it as cheaply as possible - is not letting the interest rack up.
    • normanna
    • By normanna 18th Jun 19, 2:07 PM
    • 79 Posts
    • 59 Thanks
    normanna
    • #6
    • 18th Jun 19, 2:07 PM
    • #6
    • 18th Jun 19, 2:07 PM
    The friend couldn't have sorted it all as the money goes into the guarantor's bank account first.
    • SJMBWOODS
    • By SJMBWOODS 18th Jun 19, 2:14 PM
    • 9 Posts
    • 0 Thanks
    SJMBWOODS
    • #7
    • 18th Jun 19, 2:14 PM
    • #7
    • 18th Jun 19, 2:14 PM
    Yes i am sure that has happened and the money has been handed over. I am sure everything has been done through the right channels. I think my dad just thought he was just helping a friend out without understanding exactly what he was signing up to. Obviously i am unhappy with said friend and i feel that i will probably have to take the issue up with him instead, as i probably won't get anywhere with Amigo.
    • MallyGirl
    • By MallyGirl 18th Jun 19, 2:57 PM
    • 3,800 Posts
    • 9,228 Thanks
    MallyGirl
    • #8
    • 18th Jun 19, 2:57 PM
    • #8
    • 18th Jun 19, 2:57 PM
    He is a pensioner and is not in good health. He suffers from Cirrhosis of the liver and has regular bouts of confusion. Indeed he has been hospitalized with this condition a number of times over the passed 4 years..
    I do look after his finances such as ensuring his bills are paid etc although nothing legal has been drawn up.
    Originally posted by SJMBWOODS
    I would look to setting up Lasting Power of Attorney (LPA) while he still has the ability to consent to it. Things will get quite tricky in the future if he loses capacity and there is nothing formal in place.
    • gary83
    • By gary83 18th Jun 19, 3:35 PM
    • 77 Posts
    • 85 Thanks
    gary83
    • #9
    • 18th Jun 19, 3:35 PM
    • #9
    • 18th Jun 19, 3:35 PM
    Oh god, second time today Iíve sort of defended amigo, itís a crappy situation to find your father in, Ive got a lot of sympathy, Iíd hate to be in that situation but i think you have no chance of getting him removed. If anyone has taken advantage of your father, itís his ďfriendĒ who would have been aware of his condition & the confusion he suffers with, not the loan company that werenít. Realistically all financial providers canít be expected to get all potential customers to prove theyíre in sound mind & capable of making decisions. Amigos entire business model is guarantor loans if they let one guarantor off as a goodwill or sympathetic gesture then everyone would be ringing up claiming diminished responsibility.

    I think your best bet might be, if his so called friend canít or wonít repay to pay it off as quickly & cheaply as possible & try to move forward.
    • Mattmoo71
    • By Mattmoo71 18th Jun 19, 4:35 PM
    • 4 Posts
    • 1 Thanks
    Mattmoo71
    In order to give you the best advice to tackle this mess, you need to provide more detail. Please answer concisely and objectively the following questions. Please answer in the numerical order that I've asked.
    1) How much was borrowed?
    2) What is the duration of the loan?
    3) How much is the monthly payment?
    4) What is your father's monthly income?
    5) What is the borrowers monthly income?
    5) Can your father, after his living costs, meet the payments in the event of the borrower defaulting?
    6) Does your father have the funds to pay the current outstanding balance of the loan in full?
    7) Would your father's GP agree with your layman's assessment that he was not of sound mind when the agreement was signed?
    8) How old is your father?
    9) How old is the borrower?
    10) Does your father rent, mortgage or own outright his home?
    • Mattmoo71
    • By Mattmoo71 18th Jun 19, 4:59 PM
    • 4 Posts
    • 1 Thanks
    Mattmoo71
    Also. I advise you immediately create a free Noddle account for your father and check no further applications have been made in his name by his so called friend. You'll also be able to keep an eye on the payment progress of the loan in question.
    • DCFC79
    • By DCFC79 18th Jun 19, 6:24 PM
    • 34,561 Posts
    • 21,866 Thanks
    DCFC79
    Also. I advise you immediately create a free Noddle account for your father and check no further applications have been made in his name by his so called friend. You'll also be able to keep an eye on the payment progress of the loan in question.
    Originally posted by Mattmoo71

    Not just Noddle but Experian/MSE Credit Club and Clearscore too.
    • Mattmoo71
    • By Mattmoo71 18th Jun 19, 6:53 PM
    • 4 Posts
    • 1 Thanks
    Mattmoo71
    In the words of the BBC. Yes, other providers are available.
    • foxy-stoat
    • By foxy-stoat 19th Jun 19, 8:04 AM
    • 4,617 Posts
    • 2,734 Thanks
    foxy-stoat
    Get the settlement balance and clear it with a cheaper interest rate borrowing.

    Find the friend and get them to repay as much as possible back, you can mention you have refinanced the loan to reduce the interest or not. You could work out the difference and tell them nicely that if they can repay sooner then they can have some money knocked off. If you approach them in a nice manor then you have more chance of getting money back as if you go in with both barrels then you are likely going to get told to go away. If you try through the small claims track you may find that they are not liable for the debt.

    Good lucks, you will need all of it.
    • societys child
    • By societys child 23rd Jun 19, 11:34 AM
    • 6,255 Posts
    • 7,289 Thanks
    societys child
    This method of lending should carry a government health warning,
    similar to cigarettes . . .


    WARNING
    Standing as guarantor can
    seriously damage your Wealth


    ~ Not to mention your relationships with friends or family ~


    • sourcrates
    • By sourcrates 23rd Jun 19, 2:27 PM
    • 17,621 Posts
    • 16,602 Thanks
    sourcrates
    When my dear old mum was alive, she suffered from dementia at the time, she would have agreed to anything over the phone, she was quite lucid at times, they would have asked "can you afford the loan repayments if the borrower fails to pay ?" oh yes she would have said, I have a large pension that pays me every week, (she didnt-but she thought she had) the thing is, once they sign on the dotted line, its nigh on impossible to get out of the agreement.


    You havent said how much the loan was for, if it was for a large amount, with no hope of ever paying it back, your dad may want to look at insolvency options, that would depend on circumstance obviously, maybe some more detail would help us gain a better idea of the situation.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views expressed are mine and not the official line of MoneySavingExpert.com.

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