Hi

You guys were great giving me information a couple of years ago and i hope you can help my friend.

He stupidly went as a guarantoor for his friend for a glo loan and it was supposed to be repaid in full the next month as his friend promised the money in the bank would be realeased to him and he would then pay the loan off in full.

As you have probably guessed the friends money in the bank was non existant, the firend then defaulted and the guarantor who is on a DAS (like myself) didn't know he couldn't be a guarantor until he spoke to his advisor who has now told him if Glo take him to court the Accountants in bankruptcy will make him bankrupt and his home is at risk.

He is totally devastated, i feel so sorry for him as i didn't know either that you couldn't be a guarantor but shouldn't this has showed up on the credit checks which their webiste says 'after they have carried out check' glo would get back to them.

He has spoken to the police about the lies told by the friend but they say it is a civil matter and he has no money to pursue this. The person who took out the loan as i've since found out owes money to everyone from council tax to tv licence but they have a house which the mother left to them when she died and there is no mortgage on this.

Can anyone suggest anything as i am getting really worried about my firends mental state as he has tried so hard to repay his debt and keep his house, hence the DAS arrangement and now may lose it afterall. It wouldn't help his house being sold as Glo would still not get their money as it would probably pay his own creditors.

Any advice would be fantastic

Afternoon there.

Please get your friend to come onto the forum and advise us of what the full situation is.

Its best for them, you and us so we can give good information.

Thread also moved to Debt forums

the creditor should have carried out due diligence upon allowing him to be a guarantor

they'll lose handsdown if they try and enforce this.

that accountant wants shooting and should know this already

instead of trying to frighten the be-jesus out of the poor bloke

tell him to forget about it.

let them take it to court if they are brave enough..

I think not!!

and I bet if he reads the letters PROPERLY

it doesn't say WILL anything.

Interestingly, not much on the interwebs for Glo... Although I have heard of them.

DX is probably right, i suspect naff all will happen, but do keep an eye out for your friend.

How much is owing?

Thank you all for responding,

the due diligence comment gave him some hope

here is the whole situation,

i'm being secretary as he is not great with computers.

In September he was approached by a mutual friend, we'll call her E

she had just got a new job but was needing money and had the chance of a loan

but needed a home owner,

she was waiting for the bank to pay out on something her mothers lawyer had set up when her mother died but it couldn't be released until docs were signed.

He agreed as she had promised to repay it in full 8 weeks later.

He gave her an income and expenditure and Glo phoned him to ask what type of person E was

and as she had always been okay, he agreed she would pay the loan back no problem

and signed a form saying he was guarantor (he doesn't have a copy of this).

She got the loan in the September and Glo were continually phoning him to keep him up to date, which he got fed up with as they were saying one thing and she said something else.

When he started getting default notices he pulled her up and she explained she had lost the new job and was having to set up a new repayment plan, even phoned him to say she was sitting waiting for them to call her back to go over the income and expenditure. (Very plausible)

She told him that she paid the new amount at the beginning of the month and that is why he was getting automatated texts as they had started sending email.

He then appraoched his money advisor who set him up on the DAS Scheme and was then informed that under no circumstances should he have passed a credit check and he couldn't add another debt to the DAS.

He was told that if Glo did take him to court he could be made bankrupt by the Accountants in Bankruptcy for taking on more credit.

This would mean losing his home.

He then had a statement for the year and E hasn't actually paid anything apart from the 1st interest payment.

The company appears to be the trading name of Provident Personal Credit ltd and as you know Provident's interest is high. The debt now stands at £1769.13.

His money advisor said it might be worth him writing to them explaining even if taken to court he has no money to pay her loan AND if made bankrupt they still wouldn't get any money but she has a house that is worth between 70 and 90k and there is no mortgage on it as her mother paid it off years ago.

It is the continually circles of texts, phone calls and dreading the postman arriving that is making life unbearable and he cannot see an end to this unless Glo release him as a guarantor.

Anyone think he has any chance of getting Glo to do this.

ps all the letters he has do not have will in them and funnily enough apart from one issued that was threatening court action and had both of them named on it.

He hasn't heard anything about that since she apparently made a new payment plan with Glow but hasn't even kept to the first payment on that .

-Please take this the right way. From what you say, I believe your friend to be a vulnerable person. I also believe they did not understand the situation nor what they were agreeing to in reality.

I am very curious as to why this loan company kept updating him at the start?

I do NOT think their home is at risk at all. The loan company is effectively lending to two people - the borrow and the guarantor. In the event of the borrower defaulting they are entitled to ask the guarantor to pay and thus they must carry out checks before agreeing to satisfy themselves that the other borrower (ie the guarantor) is in a position to take out the loan and and repay it. From what you have said, one credit check would have stopped this before it started.

It would be thrown out of court.

-Please take this the right way. From what you say, I believe your friend to be a vulnerable person. I also believe they did not understand the situation nor what they were agreeing to in reality.

 

I am very curious as to why this loan company kept updating him at the start?

 

I do NOT think their home is at risk at all. The loan company is effectively lending to two people - the borrow and the guarantor. In the event of the borrower defaulting they are entitled to ask the guarantor to pay and thus they must carry out checks before agreeing to satisfy themselves that the other borrower (ie the guarantor) is in a position to take out the loan and and repay it. From what you have said, one credit check would have stopped this before it started.

 

It would be thrown out of court.

Thank you, he is such a nice person and just thought he was helping a friend out, i think we are all a bit stunned by what she has done to him as none of us seen this coming. However it will never happen again and we'll have to wait and see if a letter to them will help.

Thanks for all your responses