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My Nan Agreed to be the Guarantor for My Sister’s Car Loan in the UK. – Chris

“Dear Jon,

My nan agreed to be guarantor for my sister on a car loan ! My sister used the car for 6 months and then my sister fell out with the rest of the family and dumped the car on my nans drive , so my nan has the car and logbook and finance agreement but unfortunately we called the finance company and it appears that although my nan is guarantor the car still belongs to my sister even tho she has stopped paying for it ? So even if my nan was to pay the balance the car would still belong to my sister ? . Does my nan have any legal rights due to the fact my sister has effectively abandoned the car and will not reply to any of the letters my family has sent asking her to sign the car over to my man or just tell the finance company she does not want it . My sister Is being difficult and this is making my 96 year old man very ill . She will pay the balance but it seems my sis would own the car ?

How can my man resolve the situation if my sister will not speak to anyone ? She will happily pay the outstanding balance but does not want to do so if the car then belongs to my sister ? She just needs this sorting as making her ill . Money is not a massive issue . But nan is not mobile so can’t get out to go see a solisiter .

Chris”

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The Answer

Chris,

I understand your nan’s situation and do feel for her. Unfortunately this is what can happen when family or friends try to help others by co-signing or guaranteeing a loan.

A lot of what your nan’s needs to do and get advice on is really more of a legal matter. Fortunately she can afford to make the payments on the car.

If the log book is just in your sister’s name, it is her can, and to try and sell it without her cooperation can be very difficult and again, would require legal advice. Which your nan could just phone a solicitor, or you could on her behalf, or even speak to your local court and speak to a duty solicitor.

I would also advise speaking to the DVLA as you or your nan would not be the first ones in this situation.

If legally your nan cannot get the car in a situation where she can sell it, she may just be stuck, which I know is not what anyone wants to hear. If she isn’t to concerned about her credit, and depending what your nan’s full situation is, she could stop making payments, allow the car to go back to the finance company and be done with it. Yes, they will try to collect, but most collectors and the courts are going to be easy on a 96 year old OAP.

Whatever you do, you may want to have your nan give you authority to speak on her behalf about the car to the finance company and whomever, just to take any stress off her.

Let me know how you get on.

Regards,

Jon

My Nan Agreed to be the Guarantor for My Sisters Car Loan in the UK.   ChrisJon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

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