# Can someone be removed as guarantor from car finance



## Query (28 Dec 2009)

Hi there,
I really hope someone can help me. 

My sister-in-law has gotten herself and the rest of her family into serious financial trouble. She is living the high life and denying everything. She keeps telling her family that her money was embesseled and that she took the company to court and won and is waiting for the bank to pay out.

She convinced both her parents to purchase a new car and a new jeep as she would be paying for them. She also went and treated herself to a new jeep which she had to get her father to go guarantor for until the money came through (that being a year and a half ago).

Since she bought her jeep she has not put one cent into it and her parents are struggling to pay for the 3 vehicles. They have asked her on several occasions for help towards paying for her car and she doesn't have the money so her parents wind up paying for it as it will just fall back on them anyway. 

I have sat and listened to them crying on several occasions and its heart breaking as her father is only a year from retirement. 

Just wondering if there is anyway of getting out of being guarantor in this case before the poor man has a break down.

Any advise you have would be very gratefully appriciated.


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## ontour (28 Dec 2009)

2 or 3 of the vehicles should be sold to reduce the outstanding debt.  Even though this is unlikely to cover the loans if the vehicles were heavily financed, most cars are depreciating assets and will be worth even less in a year.  

Unfortunately I do not know of a way of removing a guarantor unless a replacement can be found or the loan is repaid from other savings or loans.  Get the parents to ask their daughter for documentation that there is a claim outstanding to see if the car finance will defer some payments until this comes through.  They should explain to their daughter that this is causing them stress and hardship.


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## Query (28 Dec 2009)

Thanks for getting back to me. Unfortunately their daughter isn't the most approchable. She knows what she is doing and knows what she has done. It seems she doesn't care now that she has gotten what she wanted. Any time the subject is brought up she runs away and wont talk. 

She is good at what she does. (scam everyone related to her)


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## mercman (28 Dec 2009)

If she won the case, what is the reason as to why the Bank will not pay ? Was there a case in the first instance ?? 

If there was, she will be entitled to 8% Interest on the award  (by order of the court). Now if the case story is real, the parents should get the award signed over to them legally, to compensate them for the debt that has already occurred. Basically they will get the first pick of the money before it is spent foolishly.


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## Query (28 Dec 2009)

With the way things are going and with all the delays going on we are nearly certain that there was no case at all. It has been nothing but lies and everytime she is due to go to collect 'the money' she is either sick or her kid has to go to the doctor or that she forgot to sign something in bank and 'the money' is delayed for another few days.

Really don't think there is money so wondering about getting out of being guarantor but it's not looking too good for her dad.


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## roro123 (28 Dec 2009)

Sue her. If she hasn't even made one payment then she hasn't a leg to stand on. Parents should stop paying and have the cars repossesed. Your parents may have a headache with smaller debts for a time , but if a daughter of mine behaved as selfishly and recklessly like that, she wouldn't be getting the soft touch. Throw the full repercussions at her.


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## Complainer (29 Dec 2009)

roro123 said:


> Parents should stop paying and have the cars repossesed.


This is the only sensible option. It will hit their credit history, but they can address that over time.

I would be sorely tempted to take her keys of her jeep on her next visit and bring the car back to the garage myself.


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## Brendan Burgess (30 Dec 2009)

This is a very odd story indeed. I would suspect that there are two sides to it. 

If it was as simple as a girl asking her parents to guarantee her car loan, I might be more inclined to believe it. This happens. 

But the parents know their daughter. This doesn't sound like the first time she did it? There is no way that the bank should carry the can for the behaviour of the daughter and the parents. I am surprised that Complainer is suggesting that they don't meet their legal obligations to repay their debts. 

But the parents bought cars for themselves as well!  We  have all made stupid purchases in a moment of madness. They have to carry the can and enjoy driving around in their jeeps. Again, the bank should not have to take responsibility. 

Having said all that, if they were purchased on HP, I think that they have  a right to return the cars at a particular point without paying anything further. Though I don't think it's common practice to guarantee HP. 

If the parents are in some way emotionally incompetent in dealing with their daughter, perhaps they could assign attorney to someone else to manage their affairs? 

Brendan


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## MandaC (30 Dec 2009)

I agree with Brendan in that it is a very odd story.

Surely the parents know their own daughter by now?   And three cars?   Why would someone finance two cars and a jeep on the never never.  If the embezzlement money or whatever was coming, why did they not wait for the money to arrive before shelling out on cars.  Parents have their own responsibility too - they are driving around in new cars after all and were quite happy to take the cars when they thought they were Free.  I dont buy into the she convinced her parents to get a new car routine either.  

Time for parents to cut apron strings and just ask for the money for her own jeep.  And either pay for their own or give them back.

As long as the parents keep paying she is just going to keep fluffing the stories.  Can you drop the money around please. You owe me XXX and I need it now please.  It will lead to a big row, probably, but otherwise they are just going to have to keep paying.

Or, return the vehicles under the half rule as Brendan says.  My sister financed a car years ago, she was only in her very early 20's and living at home and the Bank wanted a guarantor (house owner)  for the car loan, which my mum had no problem doing for her.  Loan is long since paid.   So I do not think that asking for a guarantor is odd in itself, but 3 cars?

Sounds like the daughter is waiting on King Who-Flung-Dung from Nigeria to deposit the dollars in her Bank Account.

I actually do not agree that people if they have given their permission as guarantor can just remove themselves from the loan.  It is the whole idea of going guarantor.  Parents guaranteed the money if she did not pay, and unfortunately for them, she is not


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## Complainer (31 Dec 2009)

Perhaps I was in such a rush to teach the young lady a lesson that I didn't thing through the implications for the banks. 

The first very practical question is whether the cars can be repossesed, and if so, what debt (if any) would be left outstanding. This is very dependant on whether it is a straight loan, a secured loan, a lease or a HP agreement. 

The second related question would be to confirm the ownership of the vehicles.


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