# pensioners as guarantors



## merzie (21 Jun 2007)

my parents who are pentioners, but own their own house were talked into going guarator my very unreliable teenage sister, it was done quickly over the phone by the garage before any of us got to hear about it, my dad is 77 , can this be allowed i thought one had to be employed to go guarantor


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## DrMoriarty (21 Jun 2007)

I don't know about guarantors having to be employed, but if it's a contract for any sort of financial product, I believe there's a mandatory 10-day period for your sister to 'cool off'. Get the hose out!


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## Thrifty (21 Jun 2007)

I'm afraid you'll find there's a box tro tick on the contract to sign away this 10 day cooling off period and most people tick this automatically or are told to just tick there by the garage.


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## Stephenkelly (21 Jun 2007)

They need income over €50k - Would imagine he is to old


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## Stephenkelly (21 Jun 2007)

SOrry I misread the post everyone!! Disregrd my comment!


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## Thrifty1 (21 Jun 2007)

Usually a guarantor has to be a home owner in full time employment. Also the cooling off waiver has to SIGNED seperately not ticked and it must be in a seperate section.

If your Dad acted as guarantor we would have needed to have signed the agreement and received a copy of it, did this happen?

If he has not signed the agrement he will not be bound.


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## merzie (21 Jun 2007)

Thrifty1 said:


> Usually a guarantor has to be a home owner in full time employment. Also the cooling off waiver has to SIGNED seperately not ticked and it must be in a seperate section.
> 
> If your Dad acted as guarantor we would have needed to have signed the agreement and received a copy of it, did this happen?
> 
> If he has not signed the agrement he will not be bound.


 
I rang a finance company there seems to be no rules on who can be a guaranor, he took this on and didn't realise what he was getting into, he is quite dominated by this sister ,i think there should be a law against pensioners going guarantor on their only income (a Pension book) after all he's too old to get finance himself


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## shootingstar (21 Jun 2007)

merzie said:


> I rang a finance company there seems to be no rules on who can be a guaranor, he took this on and didn't realise what he was getting into, he is quite dominated by this sister ,i think there should be a law against pensioners going guarantor on their only income (a Pension book) after all he's too old to get finance himself



Hi Merzie
i didnt think guarantor`s could authorise things like this via telephone??? 
Signed doc`s required i should think.


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## merzie (22 Jun 2007)

shootingstar said:


> Hi Merzie
> i didnt think guarantor`s could authorise things like this via telephone???
> Signed doc`s required i should think.


 
your right i will look into that,


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## Thrifty1 (22 Jun 2007)

There are very definate rules regarding acting as a guarantor, this CANNOT be organised over the phone, your Dad must have signed the finance agreement.
I work in finance and have just completed a Consumer Credit course with the Bankers Institute so believe me this is correct.
These rules are there to protect people like your Dad from being tricked in things like this.
If it came down to it and your sister defaulted leaving your Dad liable he MAY be able to argue undue influence.
In saying that your best bet is to check has he signed the agreement, if he hasnt then common sense dictates they have no proof or paprerwork to rely on.

Did you ring the garage or the bank? I wouldnt rely on what the garage said you will need to speak with the bank who provided the loan.
Even pm me the details and i can probably put you in touch with someone who can help.


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## merzie (22 Jun 2007)

Thanks Trifty1 , he did sign something he said, but it was for the 03 car she purchased 2mnts ago on finance but didnt like it because it wasn't perfect so gave it back to get the odd jobs done and refused to take it back so got the garage to order an 07 one instead upping the finance yet again, i never ever got finance for a car till recently i had to do with reasonably good cars for cash which got me around just as well


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## Thrifty1 (22 Jun 2007)

Did he sign the second agreement? I really feel for you on this one its terrible to see someone taken advantage of, especially when you made your own way and she is using them for 07 cars.
Do you think she will default on the loan?, is the monthly repayment within her budget (if you dont mind me asking)


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## merzie (22 Jun 2007)

its not within her budget , she works ok but very little, i dont know how she's doing it and she intends always having a new car she has the 08 booked already so she says, this girl has to be seen to be believed


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## Thrifty1 (22 Jun 2007)

Oh my God, she will lose so much money on the new car, i bet what she gets for it in 08 wont even cover her settlement on the finance.

Are you sure your Dad signed the second agreement for the higher amount?
I suppose until your parents stand up to her there is very little you can do but im sure its very hard to see this happening.


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## merzie (22 Jun 2007)

Thrifty1 said:


> Oh my God, she will lose so much money on the new car, i bet what she gets for it in 08 wont even cover her settlement on the finance.
> 
> Are you sure your Dad signed the second agreement for the higher amount?
> I suppose until your parents stand up to her there is very little you can do but im sure its very hard to see this happening.


 

i will find out about the second agreement,. this is the hardest thing i ever went through in my life, our family is split over her behavior , I think she has full control of the home and financial situation now,


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