Daughter stuck paying someone else's loan... any advice?

Hey everyone, my daughter agreed to be a guarantor for a £5k loan from Amigo Loans. She got £600 for doing it, but now the main borrower isn’t paying up and won’t respond to Amigo. She’s ended up paying £70 a month to cover it. We know where this person lives, but is there anything we can do to fix this mess?

Ugh, that’s rough. Unfortunately, as a guarantor, your daughter is legally on the hook if the main borrower doesn’t pay. She might want to talk to a legal advisor to see if there’s any way out.

Hollis said:
Ugh, that’s rough. Unfortunately, as a guarantor, your daughter is legally on the hook if the main borrower doesn’t pay. She might want to talk to a legal advisor to see if there’s any way out.

Yeah, it’s been a nightmare. We’ll definitely look into getting some legal advice. Thanks for the suggestion.

Wait, what’s a guarantor? :thinking:

Sidney said:
Wait, what’s a guarantor? :thinking:

A guarantor is someone who agrees to pay back a loan if the main borrower doesn’t. Basically, they’re like a backup payer.

Sidney said:

Sidney said:
Wait, what’s a guarantor? :thinking:

A guarantor is someone who agrees to pay back a loan if the main borrower doesn’t. Basically, they’re like a backup payer.

Got it, thanks for explaining!

Maybe she can take legal action against the main borrower? If you know where they live, it might be worth pursuing.

Shai said:
Maybe she can take legal action against the main borrower? If you know where they live, it might be worth pursuing.

That’s a thought. Not sure how effective it would be, but we’ll consider it. Thanks!

This is why I always tell people to avoid being a guarantor unless they’re 100% sure about the borrower. It’s a risky move.

Paxton said:
This is why I always tell people to avoid being a guarantor unless they’re 100% sure about the borrower. It’s a risky move.

Totally agree. It’s a big responsibility and can lead to situations like this.

Has she tried negotiating with Amigo Loans? Sometimes lenders can offer alternative payment plans or solutions.

Freddie said:
Has she tried negotiating with Amigo Loans? Sometimes lenders can offer alternative payment plans or solutions.

She’s been in touch with them and agreed to the £70 monthly payments. Not sure if they’ll offer anything else, but it’s worth asking.