Question
My Dad went guarantor on my car loan. I’ve lost my job and I can’t afford to make the payments on the car, it’s still my debt right? What’s going to happen?
Answer
If you can’t make the payments on the loan they will pursue your father for payments. They will generally pursue both you AND your father for the money under the logic that this increases their chances of receiving some money.
If both you and your father are unable to make payments options for enforcing the debt include foreclosing on property (the car, other vehicles, houses, shares, etc), garnishing wages (obtaining a court order to take a percentage of your wage) and bankruptcy.
If you need a guarantor you probably shouldn’t be taking out the loan. If someone asks you to be guarantor you should have the financial capacity to make payments of the debt otherwise you could end up in serious financial trouble.
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Debt Collection Calls
Question
Debt Collectors are calling me ALL THE TIME and at like 8.30 at night. They even called me at work. Can they do that?
Answer
Unfortunately it doesn’t sound like the debt collectors have done anything illegal. While their behaviour isn’t plesant (that’s what they’re paid to be like)and it isn’t banned.
When can debt collectors call you?
From 7.30 am to 9.00pm weekdays and 9am to 9pm on weekends
How often can they contact you?
They can contact you 3 times a week or 10 times a month. That includes letters, calls and emails. If you don’t answer your phone and they leave a message on your answering machine that doesn’t count as a contact.
Can they call me at work?
They can call you on any number you gave them. Remember the application form for debt where you filled out home, mobile, work, partners phones etc. You gave them permission to call you on these numbers. However you can revoke the permision on some numbers. If they’re calling you at work next time they call tell them “I am revoking your permission to contact me here at work”. That should fix it.