acted as guarantor for family member - who has missed two payments - being threatened with debt collectors by loan company - don't they have to try debt collecting from the person with the loan first? all they have done is phoned them once ad sent them one letter!! anyone know the legal position on this?
2007-03-08 05:30:14 · 8 answers · asked by bealings48 2 in Business & Finance ➔ Credit
Unfortunately you are just as liable as your family member. That is what the loan papers said that you signed. You agreed to cover the payment if you family member did not. That is why I will never co-sign a loan application. Not everyone is as Honourable as we would hope. I'm sorry. Maybe a lawyer could give you advice. Good luck.
2007-03-08 05:48:34 · answer #1 · answered by Bookworm4124 3 · 0⤊ 0⤋
The loan company will pursue the person with the money. If that's you I'm afraid you'll have to pay. however, you can pursue the borrower separately, through the courts if necessary. It may be cheaper for you to settle the debt outright than to pay by instalments (most companies give a rebate for early settlement) before you go after your family member.
2007-03-08 05:55:34 · answer #2 · answered by Duffer 6 · 0⤊ 0⤋
The legal position is as follows; You did not state if you are a co-signer or a co-maker, if you are a co-maker you are jointly responsible for the debt. If you are a co-signer you are responsible only if the primary buyer defaults on the loan.
This is why you should never, never, never co-sign for anyone unless you are ready, able and willing to make the payments yourself.
2007-03-08 06:38:28 · answer #3 · answered by ? 7 · 1⤊ 0⤋
Any sensible Bank will go after the person who is MOST LIKELY TO PAY.
Why chase some-one with poor Credit Rating (who hardly cares about another default) when they can chase some-one with a higher rating and thus a LOT MORE TO LOOSE ?
2007-03-08 09:53:35 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
It's name & same time. A family gathering is called for & the defaulter confronted.
2007-03-11 09:31:47 · answer #5 · answered by cafcnil 3 · 0⤊ 0⤋
Happened to me too. You are legally liable for the debt.
2007-03-08 05:34:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
They are hunting the easy target, you! Get advice from the citizens advice bureau.
2007-03-08 23:14:33 · answer #7 · answered by brian t 5 · 0⤊ 0⤋
You are possibly in the muck, see the citizens advice bureau urgently!
2007-03-08 07:20:52 · answer #8 · answered by esmerelda v 5 · 1⤊ 0⤋