personal loan with FLM and boyfriend is guarantor

[lancydancy]

Hi,

 

My sister in law has a personal loan with FLM and her boyfriend is guarantor for this. She's just recently become unemployed and is claiming JSA. Her boyfriend has also just entered into a DMP with CCCS.

At the moment she is paying all of her creditors £1 per month except for this one.

What happens if she starts paying them one pound a month? Will they be able to go to her boyfriend even though he is in a DMP and also cannot afford the payment?

Please help!

[lancydancy]

Hi,

 

My sister in law has a personal loan with FLM and her boyfriend is guarantor for this. She's just recently become unemployed and is claiming JSA. Her boyfriend has also just entered into a dmp with CCCS.

At the moment she is paying all of her creditors £1 per month except for this one.

What happens if she starts paying them one pound a month? Will they be able to go to her boyfriend even though he is in a dmp and also cannot afford the payment?

Please help!

[harrassed senior]

Its not something that I know too much about, but, at the end of the day, if they can only pay that amount then thats an end to it.

 

The OC and any debt chasers will threaten all kinds of terrible things might/could/ happen but it is their income and priority debts must come first.

[silverfox1961]

I've managed to search this out for you if it helps?

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?250972-being-a-guarantor

[Undercover-Elsa]

Unless he wants a nasty suprise if they proceed to taking payment from his account by direct debit without notice, her boyfriend needs to specifically cancel the direct debit now. Then at least he can take charge of negotiations.

When was the debt taken out?

We could help more if a copy of the agreement could be scanned and posted up, minus identifying details.

kind regards,

Elsa x

[lancydancy]

Hi and thanks for all of the replies. I think they take it off his debit card if she doesn't pay, rather than by DD.

He has recently changed his bank account anyway as his overdraft on the bank he was using is included in his DMP with CCCS. And the card they have for him is for that particular account.

Does this help. I can probably get the agreement scanned in if you need me to.

 

Kind Regards

[Undercover-Elsa]

Hi again

It's good that he's got a new main account with a different card. Not sure how it would affect his old account. To be on safe side so he doesn't incur charges, it might be best for him to write to his former bank and state that he rescinds any prior instructions for debit payments to be made to a/c no xxxx and company name.

It may help for us to see the agreement, to check whether its enforceable. Much depends on year it was taken out..

 

Elsa x

[lancydancy]

It was taken out last year sometime. She cannot find the original documents but we're awaiting the credit agreement so if and when they send it I'll post it up. Thank you!

[Bazooka Boo]

As I understand it, and having been a guarantor previously (Never again!) They will go to the guarantor for payments, however, as he is on a DMP anyway, it will be pretty fruitless IMO, either he adds them to his DMP and pays them the token amount, or she pays them the token payment, either way their not going to get their money any quicker.

 

I am quite astonished that he was ever allowed to be guarantor in the first place, as having a look on their website it states, that guarantors must be UK home owners, earn a minimum of £800 a month, and have a good credit history.