Shaf
Verified member
This was a topic some friends were seriously debating last week. Apparently, a friend served as guarantor for someone's loan, and his details (including complete account details) were also taken.
When the person couldn't pay back on time due to some unavoidable issues, the payment for that month was deducted from the guarantor's account, which he only discovered when his friend wanted to pay directly and was made to know payment was done.
Does this have legal consequences?
I do know that once you serve as a guarantor anywhere and in any capacity, you can be held accountable like the person you are standing for. Be it a for legal purposes or for finances, you only do such if you are willing to bear the consequences of failure.
If you ever want to take a loan for another person or stand as a guarantor, be sure you have the capacity to pay, and that the person would be willing and able to lay his loans all the time.
When the person couldn't pay back on time due to some unavoidable issues, the payment for that month was deducted from the guarantor's account, which he only discovered when his friend wanted to pay directly and was made to know payment was done.
Does this have legal consequences?
I do know that once you serve as a guarantor anywhere and in any capacity, you can be held accountable like the person you are standing for. Be it a for legal purposes or for finances, you only do such if you are willing to bear the consequences of failure.
If you ever want to take a loan for another person or stand as a guarantor, be sure you have the capacity to pay, and that the person would be willing and able to lay his loans all the time.