Guarantor

[katykatz]

My nephew acted as guarantor for his girlfriend when she got a loan from Black Horse. They were both in steady, full time jobs at the time. Some time later my nephew's partner became very ill and eventually lost her job, because of this, some re-payments for the loan were missed and then bills and things got more and more on top of them. My nephew and partner finally went to the Law Centre to ask for advice...I do not know exactly how the arrangement was made but it was agreed that his partner would pay £10 each month DD to Blackhorse and she has continued to make them regularly (though she had some problems in first few months).

When my nephew recently asked for a copy of his credit report (He has NEVER had any debt on his own behalf,never bought anything but his cars on HP and never missed or delayed payment) But he has a DEFAULT on his file, which is for the Black Horse Loan that he guaranteed. They have also sent him letters demanding repayment of the loan and interest. Fair enough as a guarantor, he probably is liable -but if Black Horse has made an agreement with his partner via The Law Centre and is accepting, though, grudgingly, the payments made monthly by DD then why does my nephew have to have the Default on his file.or the regular demands from Black Horse to pay for loan (and in full). He works full time in low-paid job, he is funding his college course for Accountancy and has applied to volunteer for Credit Union post-which has been held up because of the DEFAULT on his credit file. His partner has not asked for copy of her credit file, though obviously she would have the same Default notice on hers.

I just do not know how the loan which his partner took out and for which he guaranteed, should show up as Default on my nepwhew's credit file, specially as regular payments are made (which of course, she will increase, once she is back in employment.

Any advice please, as I am totally ignorant of anything "financial".

 

Many thanks in anticipation,

katykatz:???: