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Guarantor on personal loan

  • 26-05-2015 6:52pm
    #1
    RadiantGirl
    Registered Users, Registered Users 2 Posts: 67 ✭✭


    Hi All,

    Really looking for some advice if possible.

    My other half went guarantor for his ex in 2008 on a €2000 loan. We have found out today that she has not paid the loan in 3 years and the balance is now €10,000. Obviously my partner is linked to this however he has never received a letter from the bank advising of non payment at all.

    My question is, is he liable? Will this affect his credit rating and should the bank of notified him?

    I'm thinking we should take this legal but really don't know what to do.

    Thanks you all in advance.

    RG x


Comments

  • #2
    uberwolf
    Registered Users, Registered Users 2 Posts: 7,581 ✭✭✭uberwolf


    certainly worth speaking to legal on it.

    Is he liable, in part? Probably - but I'd be curious about statute of limitation questions as 7 years may have passed since he last acknowledged the liability - I'm not sure of the rules around this.

    Is he liable, in full? I doubt it. For example - arrears interest might have been avoided had the Bank brought the problem to his attention in a reasonable time frame. Last payment might have been 3 years ago, but when did it lapse into arrears initially? Notification obligations may have arisen at that date and might represent a stop clock on the penalties associated with the debt.


  • #3
    RadiantGirl
    Registered Users, Registered Users 2 Posts: 67 ✭✭RadiantGirl


    Hi Uberwolf

    Thank you very much for your reply.

    We are presuming the arrears go back 3 years. My partner doesn't recall signing anything so the bank are locating the original agreement to review and send him a copy.

    We actually got copies of our ICB reports recently and it wasn't on his so hoping it won't go on now.

    Would MABS be able to give advice or is is best to go legal?


  • #4
    uberwolf
    Registered Users, Registered Users 2 Posts: 7,581 ✭✭✭uberwolf


    RadiantGirl wrote: »

    Would MABS be able to give advice or is is best to go legal?

    MABS is free, so they should definitely be given a shout. Just to get an opinion from someone who works in the area.

    "going legal" simply means speaking with a solicitor. Which would probably be worthwhile, but will cost you money and their time adds up quickly enough. Most will have an initial meeting during which they'd appraise you of their expectation of success. MABS may be able to point you in the direction of a solicitor who has expertise in this particular field.

    MABS first anyway.

    In terms of credit rating, if his guarantee is called upon then yes I would think that his credit rating could be impacted if it isn't resolved.

    Get the original agreement and review the facility letter, the general terms and conditions (ask the Bank to provide you with version of their conditions that is relevant to the facility letter) and scour them for references to the guarantee and notice required etc. Your solicitor will want this anyway if it comes to it.


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