Advice needed on guarantor issues!!

[Frenzal]

Hi guys,

 

I'm seeking your expertise advice on the following issues that my friend is having. He's a gurantor for his friend's bike and the guy stopped paying the installments. I'm not a bike user so i dont really know of the implications and the rights my friend have as a guarantor. Basically we all know that the guarantor is liable for the installment amount if the borrower decides to go MIA. Is there any way to go about doing it? Is it possible to request for the bike to be repossessed and let say sell it or find someone to COI as the guarantor? Is it possible to reason with the shop owner to find some solution since the borrower decides to go MIA? Is there any other legal services or help i can turn to for advices? Its kinda sad to see a lively guy become so depressed staring into space and zoning out thinking about all this. Apparently, he was dumb enough as to become a guarantor for 2 bikes and now the borrower decides to go MIA with accumulated of over 10k left for him to settle. Please render me your expert advice as i do not know where to turn to and how to help him. Thanks in advance.

[GuiNNeSS]

Its too late to advise against being a Garantor. So here goes:

 

As a Garantor, not the owner of the bike. Once the Owner default on the instalments. The Owner defaulted on the payments means that the contract becomes operational that the Garantor has to pay off the amount agreed on the bike.

 

Even if the bike is repossed and sold off. The Garantor, unless have agreement that he only needs to pay off whatever is outstanding on the loan. Is still liable for the amount agreed as a Garantor. Eg. The bike original price was $20k. The Garantor garantees for $20k. Irrespective as what was paid. Once payment is defaulted. The Garantor has to pay the shop $20k.

 

The only thing the Garantor can do now. Is to talk to the shop. Check for the firm amount to be repaid. Work out a repayment scheme.

 

And as a Garantor, he/she will have to seek private legal service and see whether its possible to sue the Owner.

 

Usually the bike shop will have initiated the same proceedings against the Owner and the Garantor. But now sure how it works for the Garantor and the Owner as a private loan matter.

 

If Garantor does not work out a repayment scheme. The Bike shop can also sue the Garantor till bankruptcy. So the best way to help your Friend. Get him to save himself being sued, and sue the Owner.

[mechwira]

I didn know a guarantor was liable for the full sum regardless of any money recovered or paid off by buyer. I always thought guarantor was liable for whatever sum left owed after payments and repo.

[GuiNNeSS]

I didn know a guarantor was liable for the full sum regardless of any money recovered or paid off by buyer. I always thought guarantor was liable for whatever sum left owed after payments and repo.

 

Its up to the Guarantor to check for the Firm Sum the Bike Shop is demanding on the Guarantor. Its in the agreement between the Shop and the Guarantor.

 

Some will have clauses to say that even the Owner is liable for the Full Sum Payable, and what was previously paid is treated as Gone Case, especially if the bike is not recovered.

 

Safest now, is for the Guarantor to check with the Shop. How much was the Outstanding. And whether the Outstanding can be paid by the Guarantor so that no legal actions needed to be pushed onto the Owner and the Guarantor. Because legal actions means extra costs will be levied against the Owner and the Guarantor.

 

And for the Owner to please own up, and at least once all paid for, sell off the bikes and compensate the Guarantor.

[FB666Y]

A guarantor is not completely helpless.

He/She has certain rights and powers - like forcing the hirer to court, taking possession of vehicle.

A better understanding of the obligations/responsibilities/duties can had through the Hire Purchase Act.

Check with bike shop as to what yours are ACCORDING TO THE LAW.

That might give you a better understanding on what actions to take.

[GuiNNeSS]

A guarantor is not completely helpless.

He/She has certain rights and powers - like forcing the hirer to court, taking possession of vehicle.

A better understanding of the obligations/responsibilities/duties can had through the Hire Purchase Act.

Check with bike shop as to what yours are ACCORDING TO THE LAW.

That might give you a better understanding on what actions to take.

 

Nicely put. (Dunno how to do a thumbs up sign)

[Frenzal]

Thanks for the advices. Now we know the bike is repossesed. So out next question is, is there any way as the guarantor , to sell the bike off or change the ownership of the bike since the owner is MIA? What if the own is in prison or something? Is there any way to get a hold of the terms and condition paper that was signed so we can understand more rights of the guarantor? If we were to take a legal option, what are the options we can explore? Thanks for the kind advices people. Really appreciate them all.

[GuiNNeSS]

Thanks for the advices. Now we know the bike is repossesed. So out next question is, is there any way as the guarantor , to sell the bike off or change the ownership of the bike since the owner is MIA? What if the own is in prison or something? Is there any way to get a hold of the terms and condition paper that was signed so we can understand more rights of the guarantor? If we were to take a legal option, what are the options we can explore? Thanks for the kind advices people. Really appreciate them all.

 

Thats good news.

 

Get the Guarantor to get the copy of the contract signed from the Bike Shop.

 

Speak nicely to them. And if they do not want to negotiate or at least willing to discuss how they can compromise. Then get a lawyer to write to them for the papers and proceed from there.