Guarantor on a loan. Problems with loan company.

[spammylou]

I will try and summarise this briefly:- Unfortunately partner is a guarantor and has had to cough up from the start.

The loan company have suddenly fired letters off for last 3 months saying they will be adding �20 charges for late payment; however they are the ones doing the collecting and the payment has been coming out from our a/c without problem. We have made an official complaint to them which they responded to and apologised but the same problem is still happening and now they have changed their story. We are not dealing with a high street bank but an organisation who are as I would describe as barely legal loan sharks. I have done a lot of investigating with this company and I know that they were once investigated by Watchdog, say no more. My question is this: At what point are we within our rights to refuse to pay or take legal action until this is sorted out? Any help is much appreciated.

[voltr4m4x]

Try the Citizens' Advice Bureau in the town in which you live. Their advice is free and you will come away perfectly satisfied.

[spammylou]

I would like to say this were true, we were pointed in the direction of the OFT/Trading standards but even they have not been of much help.

[emlett]

any charges for late payment eg interest etc should be contained within the original loan agreement so you ned to read through that and see if there is any such provision fo the loan company. if not then you can point out that there is no provision, pay up to date and make sure all future payments are on time. if they sue you, you will need to refer to the original loanagreement as a defence. if you refuse to pay then it makes it more likely they will sue and you would have no defence to an action for the original payments. a court is likely to order interest as well if you didn't pay those.

[spammylou]

Thank you.

The problem is that THEY are NOT collecting the payments on time. It's been fine for the last god knows how long and all of a sudden it isn't. The payments are up to date. I will read the small print and see what it says.