Just found out my brother has stupidly guaranteed a loan on behalf of what was then his GFs brother, who had split up with his Mrs & lost his job.

This was in October, and since then, my brother has been paying the loan since Amigo phoned him when they couldn’t take the payment off the one man who took it it out. This man has a nice BMW.

What are his options? Im guessing he’s locked in, but my brother lives at home, has no assets, but has a great credit

Honestly if he has been put as a Guarantor - I dont think there is much he can do.

Give us some more info and then maybe we can advise better?

only thing I could see is taking him to court then get a CCJ and up it to hceo and see how much they can get off him for you . One thing is you did not specifiy what the loan amout was for and whether he has any assets you can go after

Thread moved to General Debt Issues forum...please continue to post here to your thread.

Regards

Andy

As guarantor it aint good news.

He'll have to make the payments, or trash his credit file for six years and possibly get a CCJ.

How long is this agreement for? How much? And how much is he paying monthly?

As for what he can do, PLENTY!

He should, in the first instance, contact this chap, IN WRITING, giving him clear instructions as to when (DD/MM/YYYY) and exactly how much he has to repay each week/month, AND failure to contact you by DD/MM/YYYY will result in further action being taken to recover the amount he owes.

IF he continues to ignore, then the next step will be to issue him with a LBA giving him 7 days and a date (DD/MM/YYYY) by which to make a payment, OR set up a repayment plan. Failure to do so will result in you taking legal action.

The legal action you will take will be via the small claims track, any and all costs are added to the money owed.

Keep everything in writing, obviously you have the agreement so know what interest rate and charges are being levied, if any.

only thing I could see is taking him to court then get a CCJ and up it to hceo and see how much they can get off him for you . One thing is you did not specifiy what the loan amout was for and whether he has any assets you can go after

its regulated by the CCA

cant go to an HCEO

someone has nicely pointed this out.

..Guarantor can sue for breach on the third party and use HCEO....Guarantor is not the creditor or owner of the agreement

useful then

If all else fails, he should take out a personal loan at a much better rate and pay the Amigo loan off, he'll save a fortune in interest.