- Original Poster
- #1
Hi All, thought I would post this in here as not strictly business - also, we WILL be taking professional advice on this but I am trying to calm down a slightly hysterical partner over the weekend!
Long story short (ish), a few years ago my partner was with her then boyfriend, and she agreed to act as a guarantor on a loan for him (we don't need any lectures on how bloody foolish that was, please!). However they were in a situation where she was due some inheritance soon so planned to pay it off - when that came through, she transferred him the money to pay the loan off and that was all done and dusted. There was no written record of that although there is the evidence that she transferred him the funds.
Year or so later, they separate, in messy conditions. As part of the separation she paid him a significant sum of money and a separation agreement duly completed and signed. In it, it declared that both parties had declared in full their financial situation and that on completion of the payment, both parties held no liability for each others financial affairs.
I'm sure you can all guess what's coming now?! Yep, several months later, she is contacted by this loan company saying that as the guarantor she needs to pay up as he has defaulted. Rather baffled, she contacts them and then finds out that in fact, he never paid the loan off when she transferred him the money!! It has gone elsewhere (up his nose) and he has been continuing to pay the monthly payments behind her back, until they separated and then he has decided not to.
So, she took some brief legal advice who advised her she would have to pay the loan if she wanted to protect her credit rating but then she could pursue through the small claims court, which she's done. He has rejected the claim, citing that;
"I have paid everything I believe I owe.
I have made 20 monthly payments of £xxx. I paid my share of the loan. The loan was a joint loan which both parties signed a credit agreement (I have copies)."
SO, I mean it's already a messy situation but what are people views on that response. My own one is that a guarantor loan is NOT a joint loan. It, surely, is a loan purely in his name?? My partners name is there only as a guarantor, she was not directly loaned half of the money herself (it went into his bank account) therefore it's not a joint loan. But that, of course, is my completely unqualified legal opinion!
My opinion is that he has shot himself in the foot by arguing that he has paid what he thinks he owes - he has not claimed that he cannot afford it! So therefore if a judge were to review that, they could simply state that he is wrong and in fact he does owe it, he "believes" incorrectly.
Of course it then comes to a case of whether or not the separation agreement holds up against this and absolves her of the guarantor liability and that would be the next argument (because I suspect possibly not), but my initial response is that a guarantor loan is NOT a joint loan. Would that be a fair enough argument or would you think otherwise?
Phewww....I said I'd keep it brief and then didn't, I apologise! As I say we will be looking at further legal advice but as we mull it over this weekend and as she stews on it all I would be interested to hear some other opinions.
Long story short (ish), a few years ago my partner was with her then boyfriend, and she agreed to act as a guarantor on a loan for him (we don't need any lectures on how bloody foolish that was, please!). However they were in a situation where she was due some inheritance soon so planned to pay it off - when that came through, she transferred him the money to pay the loan off and that was all done and dusted. There was no written record of that although there is the evidence that she transferred him the funds.
Year or so later, they separate, in messy conditions. As part of the separation she paid him a significant sum of money and a separation agreement duly completed and signed. In it, it declared that both parties had declared in full their financial situation and that on completion of the payment, both parties held no liability for each others financial affairs.
I'm sure you can all guess what's coming now?! Yep, several months later, she is contacted by this loan company saying that as the guarantor she needs to pay up as he has defaulted. Rather baffled, she contacts them and then finds out that in fact, he never paid the loan off when she transferred him the money!! It has gone elsewhere (up his nose) and he has been continuing to pay the monthly payments behind her back, until they separated and then he has decided not to.
So, she took some brief legal advice who advised her she would have to pay the loan if she wanted to protect her credit rating but then she could pursue through the small claims court, which she's done. He has rejected the claim, citing that;
"I have paid everything I believe I owe.
I have made 20 monthly payments of £xxx. I paid my share of the loan. The loan was a joint loan which both parties signed a credit agreement (I have copies)."
SO, I mean it's already a messy situation but what are people views on that response. My own one is that a guarantor loan is NOT a joint loan. It, surely, is a loan purely in his name?? My partners name is there only as a guarantor, she was not directly loaned half of the money herself (it went into his bank account) therefore it's not a joint loan. But that, of course, is my completely unqualified legal opinion!
My opinion is that he has shot himself in the foot by arguing that he has paid what he thinks he owes - he has not claimed that he cannot afford it! So therefore if a judge were to review that, they could simply state that he is wrong and in fact he does owe it, he "believes" incorrectly.
Of course it then comes to a case of whether or not the separation agreement holds up against this and absolves her of the guarantor liability and that would be the next argument (because I suspect possibly not), but my initial response is that a guarantor loan is NOT a joint loan. Would that be a fair enough argument or would you think otherwise?
Phewww....I said I'd keep it brief and then didn't, I apologise! As I say we will be looking at further legal advice but as we mull it over this weekend and as she stews on it all I would be interested to hear some other opinions.
