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Is this a consumer loan agreement please?
Did the borrower pass away insolvent or does their estate have any assets?
Yes it is a consumer loan agreement from a pay day loans company that the deceased used where in replace of full credit score a friend guarantees it. The borrower wasn't insolvent and with no assets.
Thank you. Just for the avoidance of doubt - your last sentence - do I understand correctly that the deceased has assets in their name when they passed away?
How long ago was the guarantee signed?
Do you know who acts as their executor?
Have you been called upon to make any payments to date under the guarantee?
I think her assets were in her husbands name I will double check and he did not know about this loan she had taken out. Guarantee signed for a year. The loan company have already taken out this months payment of £387 and are saying that they will continue this for a year. On the agreement (1 page) all it says is 'You my need to make the repayments if debtor fails' no clause in the event of a death unless that's implied.
Thanks. The guarantee does not fail on death and in this respect the loan company is correct. If the loan guarantee was not witnessed then it is enforceable by the loan company against you for up to 6 years.
However you have a claim against the estate for any monies you have paid are are required to pay
The executor of the deceaseds estate will need to ensure that you are repaid along with any other debts from the estate before any beneficiaries get any money or assets
Do you know who the executor is? Or failing which a next of kin?
Is it worth fighting this on the basis that the contract is vague? Or is it a case of becoming a guarantor means a guarantor regardless of circumstance?
The guarantee does not ave to refer to death in order to be enforceable. Providing the guarantee is clear as to the amount being guaranteed and the obligations of the borrower you are guaranteeing it is likely to be enforceable. However as above it is not your debt so any money you are called upon to pay must be repaid from the estate (fund permitting). You have a straightforward claim against the executor or administrator of the estate if they refuse to do so.
Would it make a difference if it wasn't a consumer loan agreement?
Yes and no. A guarantee is perfectly valid for things other than consumer loans. Consumer loans are regulated more heavily than some other areas but the guarantee itself subject as above can be enforced readily in respect of other obligations too.
I have been made aware that she lived in a part owned house with husband and therefore that's why she was relying on these other types of loan. As a radiographer for a private company I think she is entitled to life insurance through them so may be able to reclaim it that way.
So, in short I need to reclaim this money from her estate fund permitting? Until then these repayments will have to be made.
The only real concern from your point of view is whether the estate has sufficient assets to repay you. Providing it has then you have a straightforward claim against the executor of the estate. For now notify the executor of your claim in respect of a debt and ask to be kept informed with regards XXXXX XXXXX estate accounts and in particular the estates ability to repay you.
Your last post is an accurate summary if the guarantee is clear as to what you are guaranteeing and you accept it was signed by you.
If you dispute that the guarantee is clear as to the guarantee you made then you may consdier referring the matter to the Financial Ombudsman for a determination.
Is there anything above I can clarify for you?
No that's been most helpful thankyou very much
If I can assist any further as the situation develops please do no hesitate to let me know.
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Of course, thanks again