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Loan Guarantor - what can we do?

(4 Posts)
BigBabyBoots Wed 06-Jul-11 18:56:40

My partner agreed to be a guarantor so his brother could get a loan. Now, as predicted, the brother hasn't made a repayment and the money has come out of DP's account, putting him overdrawn... Brother says he contacted the loan company to change the payment date this month but when DP contacted the company they said they hadn't heard from him. Now brother wont answer his phone...

This is the first payment I believe, I'm so stressed as I knew this would happen and we really can't afford to pay the loan off for him, as well as bank charges for being overdrawn and with my mat leave looming when money was going to be tight anyway!!!

Do we have any rights in this situation? I'm thinking not as DP agreed to be guarantor sad

Collaborate Wed 06-Jul-11 20:14:22

DP will have to pay up, but they might have to get a court order first. Check the small print.

He'll have a right of action against his brother to recover it.

lalalonglegs Wed 06-Jul-11 21:07:46

I hate stories like these - they seem to happen a lot on MN. I've no idea what you can do, just wanted to send you my sympathy.

GeneralissimoVonBobbington Wed 06-Jul-11 21:15:52

Not much you can do I am afraid. I would go round and sit there with the brother while he makes the call about payment dates.

If the finance company decides that your DP is a better bet for the money, it's most likely that the loan agreement says that they don't have to go to the brother first, they can come to your DP.

You need to get this sorted out PDQ.

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