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This is an interesting one. A good friend of mine agreed to guarantee a loan for a friend of theirs. The monthly payments, apart from the odd one or two, have not been made so the lender is asking the guarantor for the money, not surprisingly. So, I though I would try and help my friend out as she has been 'dropped in it' by their friend. My friend's friend has turned out to be totally untrustworthy but has agreed to co-operate with me in trying to sort this one out.
On looking at the loan it was originally for £1500. £500 fees were added and then interest which brought the total amount up to a whopping £2895. Loan sharks or what?
Anyway, it transpires that the money was paid into the guarantor's a/c not the borrowers a/c. The guarantor (my friend) did then give the £1500 advance to the borrower.
In trying to help my friend I have these questions that I hope someone can answer definitively.
1. Since the money was not paid into the borrowers a/c, legally they have not had the money from the lender therefore does the loan actually exist. If this is the case then it begs the question is the loan valid at all (I know the lender would then have to chase the guarantor as they had the money in error but that's another issue).
2. Would they be best sending an 'I know nothing of this debt' letter( bear in mind that one or two payments have been made by the borrower which may constitute admitting the borrowing) or CCA request for a valid agreement?
Thanks in advance.
Jumbo
On looking at the loan it was originally for £1500. £500 fees were added and then interest which brought the total amount up to a whopping £2895. Loan sharks or what?
Anyway, it transpires that the money was paid into the guarantor's a/c not the borrowers a/c. The guarantor (my friend) did then give the £1500 advance to the borrower.
In trying to help my friend I have these questions that I hope someone can answer definitively.
1. Since the money was not paid into the borrowers a/c, legally they have not had the money from the lender therefore does the loan actually exist. If this is the case then it begs the question is the loan valid at all (I know the lender would then have to chase the guarantor as they had the money in error but that's another issue).
2. Would they be best sending an 'I know nothing of this debt' letter( bear in mind that one or two payments have been made by the borrower which may constitute admitting the borrowing) or CCA request for a valid agreement?
Thanks in advance.
Jumbo
