Getting (some) satisfaction after losing money
Discussion
Hi All,
It is not without considerable dismay, that I write this message.
My stepson is at University in Scotland and doing rather well on his degree - thank goodness !.
Last September (at a time when he was in UNI) a letter arrived at our home in Shropshire - addressed to him. The envelope had 'Amigo Loans' on it, so out of concern, we opened it. The letter thanked him for being a guarantor, for a loan that a 'friend' of his had taken out for £4,000 - to be repaid at £200 per month, over 3 years. His 'friend' is not a student, but someone that he met in Edinburgh - which is where the 'friend' lived and worked - though we believe he has now moved to Wales.
As we expected, his friend made the first payment, but has defaulted on the rest. We sent a letter - a kind of 'plea for help', to the 'friend's' parents, to see if they might intercede, following which, they made two monthly payments - but these then stopped. Our son has made three payments, but no further payments have been made since March.
Of course, we've ranted and raged at our son, but this is pretty futile and does nothing constructive to address the situation - ultimately, he is liable as guarantor, for the full amount owed. I've thought long and hard about the situation; we really don't want the lad to have a CCJ against him - that could really jeopardise his prospects of getting a job and home in the future.
I've decided, it would be better for us to pay off the debt in full - asap. The problem being, that the loan is (and will continue) to accrue interest at an extortionate rate - currently, it would cost about £4,000 to pay off the loan - the loan amount is what it was originally, as payments have been missed. If it were paid off over the next three years (or longer), the total of the repayments would be significantly higher than the £4,000 that might be paid now - especially as quite a few payments have been missed.
Although it would be (very) 'painful' to pay off the lot in full, it would clear the debt and hopefully, we (and our son) would be able to put the matter behind us - better than paying off the loan on a monthly basis for the next few years.
Now we are getting to the part where I'd really appreciate your help - if we pay off the loan in full, that will be the matter 'done & dusted'. However, it rather 'narks' me, that his 'friend' will get off, having made only one payment - and his credit history will be unaffected.
Is there any form of action that we (my son) could take against the smug little b@st@rd ? . . . realistically, it'll have to be some form of legal action .
The impression I have (which may well be wrong), is that under Scottish Law, the (Guarantor - my son) who discharges the liability (by paying off the loan), is be entitled to assignment of all securities held by the creditor. Assuming, that is, that they have any assets. That said, we've heard that the scumbag is now living in Wales - so if we were to go after him, which legal body might we use ?
Might there be on scope for action via MoneyClaim (or the Scottish equivalent) ?
Or is the only option, a voodoo doll and a few long pins . . . or is there something else ?
It is not without considerable dismay, that I write this message.
My stepson is at University in Scotland and doing rather well on his degree - thank goodness !.
Last September (at a time when he was in UNI) a letter arrived at our home in Shropshire - addressed to him. The envelope had 'Amigo Loans' on it, so out of concern, we opened it. The letter thanked him for being a guarantor, for a loan that a 'friend' of his had taken out for £4,000 - to be repaid at £200 per month, over 3 years. His 'friend' is not a student, but someone that he met in Edinburgh - which is where the 'friend' lived and worked - though we believe he has now moved to Wales.
As we expected, his friend made the first payment, but has defaulted on the rest. We sent a letter - a kind of 'plea for help', to the 'friend's' parents, to see if they might intercede, following which, they made two monthly payments - but these then stopped. Our son has made three payments, but no further payments have been made since March.
Of course, we've ranted and raged at our son, but this is pretty futile and does nothing constructive to address the situation - ultimately, he is liable as guarantor, for the full amount owed. I've thought long and hard about the situation; we really don't want the lad to have a CCJ against him - that could really jeopardise his prospects of getting a job and home in the future.
I've decided, it would be better for us to pay off the debt in full - asap. The problem being, that the loan is (and will continue) to accrue interest at an extortionate rate - currently, it would cost about £4,000 to pay off the loan - the loan amount is what it was originally, as payments have been missed. If it were paid off over the next three years (or longer), the total of the repayments would be significantly higher than the £4,000 that might be paid now - especially as quite a few payments have been missed.
Although it would be (very) 'painful' to pay off the lot in full, it would clear the debt and hopefully, we (and our son) would be able to put the matter behind us - better than paying off the loan on a monthly basis for the next few years.
Now we are getting to the part where I'd really appreciate your help - if we pay off the loan in full, that will be the matter 'done & dusted'. However, it rather 'narks' me, that his 'friend' will get off, having made only one payment - and his credit history will be unaffected.
Is there any form of action that we (my son) could take against the smug little b@st@rd ? . . . realistically, it'll have to be some form of legal action .
The impression I have (which may well be wrong), is that under Scottish Law, the (Guarantor - my son) who discharges the liability (by paying off the loan), is be entitled to assignment of all securities held by the creditor. Assuming, that is, that they have any assets. That said, we've heard that the scumbag is now living in Wales - so if we were to go after him, which legal body might we use ?
Might there be on scope for action via MoneyClaim (or the Scottish equivalent) ?
Or is the only option, a voodoo doll and a few long pins . . . or is there something else ?
JM said:
As far as I know, there is no Scottish equivalent of MoneyClaim.
But since the both the defaulter and your son have service addresses in England or Wales I doubt it would be a problem to proceed with a MoneyClaim.
IANAL!
Unfortunately, whilst we know that the defaulter has moved to Wales, we don't know his exact address. At the time the loan was taken out, he was living at the family home in Edinburgh.But since the both the defaulter and your son have service addresses in England or Wales I doubt it would be a problem to proceed with a MoneyClaim.
IANAL!
scoey1001 said:
Has the debt been sold on to a debt collector yet? I say this as if it has there is a strong chance you will be able to settle for much less than the full amount.
The debt still lies with my son and Amigo loans.scoey1001 said:
Someone else might be able to tell you whether the defaults would be registered against your son or the other person at present.
As I understand it (open to correction) if my son does n't make any payments, both he AND the loanee will have defaults registered against their names.If my son (us, his parents) pay off the debt, there will be no default against his name OR that of the loanee . . . which leaves the loanee clear to try and find some other sucker to act as guarantor for him.
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