home
in
Search

Moneysupermarket.com » Forums » Money & finance » Loans » Am i liable for extra loan taken from being a guarantor?

Am i liable for extra loan taken from being a guarantor?

Last post Thu, Oct 30 2008, 4:45 PM by conmankiller. 4 replies.
Sort Posts: Previous Next

  •  Thu, Oct 23 2008, 12:46 PM

    Am i liable for extra loan taken from being a guarantor?

    Reply Quote Report Abuse

    Hi can someone help please?

    12 months ago i stood as guarantor for a 4000 pound loan for a friend.I have since found out that he has taken additonal lending of 12000 making total amount 16000, i only gave permission to stand for the 4000, i only found out when i got alerts from eqifax saying my credit rating has dived cos this person has not made payments!!!!

    Am i liable for the extra 12000? should i not of been informed by the loan company of the additional lending?

    I have tried contacting this perason to no avail?

    Please help
    • Post Points: 20

  •  Thu, Oct 23 2008, 2:47 PM

    Re: Am i liable for extra loan taken from being a guarantor?

    Reply Quote Report Abuse

    Hi -- They have no right to extend your position as guarantor on the first initial loan of £4k without your signed consent. You have the right as the guarantor in the first place to write to the loan company requesting their written confirmation, that your initial agreement as guarantor for £4k has not been extended to the extra £12k further extension that your friend has taken out.

    Make it crystal clear that you did not consent to this, neither could you be held liable, and you kindly require their written confirmation, that this has not taken place.!
    • Post Points: 20

  •  Thu, Oct 23 2008, 2:54 PM

    Re: Am i liable for extra loan taken from being a guarantor?

    Reply Quote Report Abuse

    Hi Many thanks for this i will give it a try and keep you informed

    Thanks again
    • Post Points: 5

  •  Thu, Oct 30 2008, 3:52 PM

    Re: Am i liable for extra loan taken from being a guarantor?

    Reply Quote Report Abuse

    ok, i have since found out that, even though i thought my friend had only applied for 4k the loan company have allowed him a 16k limit to which he has used.I am gob smacked as i was not aware of this.Now this so call friend has applied for bankruptsy how will this effect me will they come after me? im frightened they will make me sell my home to pay for it, leaving me and my son out on the streets.

    I can honestly say i did not know the limit was 16k i ve tried to get hold of original papers but getting hold of so called friend is impossible and loan company wont send them to me

    Any help much appreciated
    • Post Points: 20

  •  Thu, Oct 30 2008, 4:45 PM

    Re: Am i liable for extra loan taken from being a guarantor?

    Reply Quote Report Abuse

    Hi -- You always knew when you signed to be the guarantor for the initial £4k loan that if your friend defaulted, then you as the guarantor could be held accountable and therefore liable to re-pay it if your friend didn't, this is still the case.

    However, they cannot hold you responsible for the additional £12k that they have foolishly further advanced without your knowledge and signed consent. As the guarantor you have the right to see a copy of the consumer credit agreement that bears your signature of consent for the initial £4k where you have stood as the security, or indeed any other agreement that may bear your signature.

    They cannot enforce any action on you whatsoever for the further advance of £12k that they have extended to your fiend, if you have not signed your consent to stand as the guarantor for this extension, this is down to their own foolish irresponsibility.
    • Post Points: 5