Guarantor, What's The Risks?

[ScubaBuddha]

I have been getting a lot of mixed information about what kind of liablity the Thai gaurantor of a car loan takes on. I have heard from some that thier only obligation is to assist in finding the car if a repossession occurs, yet others claim their credit is ruined if they don't pay if there is a default, and that thuggish men make harassing calls and constantly come round the guarantors place of work demanding money or the car, and that they can also make withdraws from the gaurantors bank account.

Edited August 10, 2009 by Scubabuddha

[hansnl]

I have been getting a lot of mixed information about what kind of liablity the Thai gaurantor of a car loan takes on. I have heard from some that thier only obligation is to assist in finding the car if a repossession occurs, yet others claim their credit is ruined if they don't pay if there is a default, and that thuggish men make harassing calls and constantly come round the guarantors place of work demanding money or the car, and that they can also make withdraws from the gaurantors bank account.

The ultimate risk might be that you have to take over the payments, and not getting the car.

If the car disappeared (yes, it happens all the time), the one that loaned the money disappears (that too) then the finance company will go to the guarantor.

In the best scenario they will start sending letters to you after not having received monthly payments for 2 monthws, but there are cases known where the finance company only went after the guarantor after completion of the running period of the loan.

Which means the guarantor needs to pay the uotstanding amount of the loan, all original calculated intrest, and the extra intrest accumulated onf the not received payments

My brother in law guaranteed a 250,000 baht loan for a car.

The man he guaranteed died, the car disappeared.

Just as described above the financy company sent him a nice letter.

Please pay us 483,000 baht?

Due to his job (something to do with courts of law) he knew that the finance company should have contacted him after 3 months max, instead of nearly five years later.

He came away with paying only for the original amount of 250,000 minus the payments received including original intrest.

My advice, don't do it.