my brother got a payday loan last year when he was working and asked me to be the guarantor with the promise of paying it back, however he lost his job shortly after and struggled to pay it, he told them his situation and said they'll take the minimum payment from him a month, of course being on jsa and the payments being £40 a month he found this difficult so I was at that time paying some of the payments for him. After a while of this we decided to check his balance and found that he was only paying the interest off the loan and nothing else even though the add clearly states that they expect you to pay the interest and at least 1% of the loan amount. So we went to citizens advise about this and explained what was going on, I also spoke to a financial advisor, who said they found it dodgy, and also said that this particular loan company is currently being investigated by watchdog.
The loan company is basically hounding me constantly, after following the CAB by not paying them until they can make some arrangement with them, they have even managed to find my home number although it is in a different name, I get around 2 letters a week at least 7 phone calls and texts a week and emails too. They even kept my other brothers number from brother 1 calling them to explain that he lost his job and have been hounding brother 2 asking for brother 1 ever since. Last month they somehow managed to take £100 of my brothers money out of his account even though he had changed his card. They are also on my brothers case too. He's paid twice the amount of the loan to them but he's not paid a penny of the loan amount, surely this isn't right?
My brother also has mental health problems, and at the minute would sign his life away, he's also dyslexic and didn't quite realise what he was getting into. Me on the other hand I was phoned by them whilst looking after my kids and they did all the details and things over the phone. So I was very distracted and also had my brothers failed promise of paying it back. However I have learned from my mistake and will never guarantor any one ever again, or take out a payday loan.
Any advise would be greatly appreciated.