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Guarantor in a pickle due to non-payment George Banco (aka Everyday Lending Limited)


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Hi all, 

 

I hope I am in the right place. It's been years since I've needed advice on here so very out of practice.

 

I am hoping to gain some help for my sister.

 

Against her better judgement, she acted as guarantor for her daughter on a loan from Geroge Banco. Seems her instinct was right because daughter has stopped paying the loan so, as guarantor, my sister is now being hammered.

 

I do not have a copy of the original loan document but have attached the guarantee and indemnity agreement, having removed identifying names etc.

 

Please, can anyone help out here or direct me to the right place?

 

Personally I do not think the loan should have been granted as my niece is on benefits and clearly couldn't afford the repayments. 

 

Many thanks all. 

G.Banco Credit Agreement.pdf

Edited by dx100uk
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As  guarantor  she can request a copy (she should have a copy anyway at the time of signing the Guarantee) of the loan agreement pursuant to section 77 of the consumer credit act 1974.

 

Quote

Note: Following signature of this guarantee and indemnity, the Guarantor will be provided with a copy of the Agreement within seven working days. Throughout the term of the Agreement, the Creditor shall, within 12 working days of receiving a written request from the Guarantor and upon payment of a fee of £1, give to the Guarantor: • a copy of the executed Agreement; • a copy of the Guarantee; and • a statement signed by or on behalf of the Creditor showing, according to the information to which it is practicable for the Creditor to refer:

(i) the total sum paid under the Agreement by the Debtor; (ii) the total sum which has become payable under the Agreement by the Debtor but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due, and (iii) the total sum which is to become payable under the Agreement by the Debtor, and the various amounts comprised in that total sum, with the date when each becomes due.

That would be my first step and see if they can comply.

 

https://www.consumeractiongroup.co.uk/topic/332502-cca-request-consumer-credit-act-1974-updated-january-2015/?tab=comments#comment-4654384

 

Andy

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My sister has just received this via email, any advice as to the best way to respond please, thanks in advance:

 

Quote

 

"Thank you for your letter, I just wanted to let you know we have received this. I'd also like to thank you for the cheque you have sent along with your letter but we do not charge for the documentation you have requested, so I have returned this cheque to yourself. 

 
To ensure this is passed to the correct department would you be able to advise me on the nature and reason as to why you'd like this documentation? 
 
Please also confirm if you would like these documents sent via post or email? As email will be a quicker response for yourself as post will take 3-5 working days to arrive. 
 
 
Kind regards"

 

 
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Playing for time response...they know exactly why you have requested it or should if they understand the Credit Consumer Act.

Your choice how you wish to receive it but the clocks ticking from the date you requested it...12 + 2 days then they are in default.

 

Andy

We could do with some help from you.

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Thanks Andy, that's what I thought, they know exactly what they are doing, but I didn't know how to respond. As for knowing which department to pass it to hmmmm. Do we have to give a reason as to why we've requested it? My gut feeling is no. So just respond saying whether email or post? 

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Attach a copy of the following to your response.

 

WWW.LEGISLATION.GOV.UK

An Act to establish for the protection of consumers a new system, administered by the Director General of Fair Trading, of licensing and other...

 

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Put your cheque back in with the response...if you don't offer/make payment the statutory request is not legally valid.....don't want to give them a further delay option.

We could do with some help from you.

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  • 3 weeks later...
Posted (edited)

Hi there,

 

well my sister finally heard back from George Banco, they were within the 12+2 day time period. They returned the £1 postal order (again) so no payment accepted.

 

I'll attach the files below, so grateful if you could caste an eye over them and fingers crossed something is wrong with them.

 

My poor sister is in full blown anxiety about being left with this awful debt. She also said the figures stated in the credit file bear no resemblance to what she earns, how long she's worked etc, she doesn't remember filling any figures out or being asked for salary details, benefits etc. 

 

Many thanks in advance. 

 

docs1.pdf

Edited by dx100uk
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Documents appear to be okay at fist glance and contain all the prescribed terms required to comply with the CCA1974.....lets move on what about default notices ?

We could do with some help from you.

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They would find that difficult without first issuing a court claim...getting a CCJ...threatogram. You cant execute a judgment until you have one.

We could do with some help from you.

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i would suspect one has already been sent?

 

get her to check her credit file please

 

as for bailiffs read the letter properly , it doesn't say will anything.

and any dca are not bailiffs  they are powerless muppets.

 

whilst on the subject of her credit file

when she took this loan out was her files shot with lots of other loans/cards/debts? with late/ no payments and defaults?

 

if she could not afford the loan from the get go, they should not of loaned to her and there could well be a god case for raising an irresponsible lending complaint that could wipe it out totally or dent whats owed by a good 50%

 

tell use a bit more of its history.

 

 

 

  

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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I'm pretty confident that the Guarantor must also be served a Default Notice pursuant to the CCA1974 sec 87/88 before legal proceedings can commence.

 

 

.

We could do with some help from you.

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Thanks for the replies guys. I've just passed them to my sis, she's hunting for a default notice. Will be back when I have more info. 

 

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Definitely no default notice served as yet. My sister has just checked her credit file and the score for the period when she became guarantor was 437 (out of a possible 700), no defaults or late payments at that time.

 

The following month she went into default with an MBNA credit card, that was the only other credit she had, apart from a phone contract.

 

The original loan was in her daughter’s name. Her daughter is on benefits and had a terrible credit history which is why she needed a guarantor.

 


My sis received an email from George Banco

 

Quote

Hi xxx,
Arrears £194.92
I hope you are well.

We have been trying to contact you regarding the arrears on your account. Please can you update us on your current circumstances? 

We may have options available to help you.  In order to identify the best solution for you please contact us as soon as possible. I would be happy to deal with the account over email or over the phone. 

Thanks,

 

 

Any suggestions gratefully received. Many thanks in advance.

 

P.S. my sister clearly cannot afford the repayments either, she is on her bones. She said no one asked for her financial details at the time and the figures on the paperwork bear no relation to her salary or benefits. Is this a possible path to go down? 

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And no default marker placed on credit file from Everyday Lending Ltd ? I would suggest the lender is in a pickle rather than your Sister :-)

 

Quote

The FCA has stated that a lender should not expect disciplinary action to be taken solely on the basis that it has taken payment from a guarantor without issuing a default notice to both a borrower and a guarantor, where the lender had taken this action during the period from 28 September 2015 to 19 February 2016.

 

However, if a lender has taken payment from a guarantor without issuing a default notice after this period, disciplinary action may be taken by the FCA.

 

It is advised that firms amend their working practices and adopt the revised view held by the FCA in the Guidance. A default notice should be served on a guarantor before a payment is demanded or taken from the guarantor. Failure to do so could risk enforcement action by the FCA.

 

https://www.walkermorris.co.uk/publications/revised-fca-guidance-requires-lenders-serve-default-notices-guarantors/

 

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

If you want advice on your Topic please PM me a link to your thread

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On 07/10/2021 at 13:54, dx100uk said:

if she could not afford the loan from the get go, they should not of loaned to her and there could well be a god case for raising an irresponsible lending complaint that could wipe it out totally or dent whats owed by a good 50%

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks for your responses guys. So what should she do now going forward? Should she write to them mentioning no default notice or do something else? Sorry to sound thick

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No....why would you wish to tip them off ?..;.do nothing ignore unless a Letter of Claim arrives.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

If you want advice on your Topic please PM me a link to your thread

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