Secured Loan

[Ric.ror]

If someone defaults on their loan will the company take the person who guaranteed to court?

[Jackdaw33]

Yes, ultimately.

[ummmm]

No point asking for a guarantor otherwise.

[Ric.ror]

Ok - someone I know acted as a guarantor for £4K for another friend.
They have defaulted on payments since March and the areas are approx £700
The have contacted my friend (the guarantor) to say they expect a payment by Thursday from her not the initial borrower
What happens if she (guarantor) does not pay?

[bednobs]

they'll tke her to court for the money

[jackthehat]

The finance company will take their money wherever they can find it.
If your friend looks a better bet for getting a Court settlement out of, they'll go for her.

She needs to get the person taking out the loan to step up and pay it.

[EDDIE51]

Yes.

[EDDIE51]

The guarantor is liable for the full amount of the loan if the original applicant does not pay, so yes they will take the guarantor to court. Guarantor will also get a default marked on their credit record.

[Peter Pedant]

she should pay and get the moolah from her "fren'"

she will be liable for the charges, exit charges, charges for letters, excess fee charges default charges, no pyament charge and late payment charge and so on and she needs to limit her liability/exposure by paying up soon

yes they will take her to court for the whole lot

and when she bleats I never thought I would have to step up for the debtor ( who presumably herself is bleating: 'I just dont have the money Euphemia.' ) you can say that she should never have been guarantrix

Euphemia let us call her that is learning the hard way that she is a guarantrix for someone who in fact has a bad credit rating and what this means in the Real World. You may check if Euphemia was let into Plan A ( default ) on the grounds that she never have to pay in which case there are some very hard lessons coming up

[Ric.ror]

Your all heart aren't you Peter

[ummmm]

Ric...I don't know what kind of debt this is but often an reduced settlement amount is offered.

[EDDIE51]

^^ A guarantor normally has to be a homeowner or mortgage payer so they can take his/her house if the loan is not repaid.