Be careful being the guarantor for a loan

beeza

Silver
Nov 2, 2006
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237
63
A sad story has developed for a friend of my wife. She is a seamstress and a good one at that. Lives a humble life and supports her two children and her husband on what she makes slaving over her sewing machine every day.

Back in 2012 her husband agreed to be the guarantor to a nephew to the sum of RD400,000. Supposedly this lowlife nephew had no intentions of paying back the loan and is now living a comfortable life in the US.

Today the bailiffs turned up at the home of the guarantor with official papers from the local fiscal and has given notice that they will repossess everything of value belonging to the entire family. That means, car, sewing machines, tv, stove, i.e. anything that's not bolted down.

We're trying to do what we can to help, but obviously it's a very distressing situation for all involved. They have four days to sort this mess out.
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
It's not so easy to be guarantor for 400,000 pesos if you live a humble life. Are you sure you know the whole story?
 

Derfish

Gold
Jan 7, 2016
4,441
1
0
A sad story has developed for a friend of my wife. She is a seamstress and a good one at that. Lives a humble life and supports her two children and her husband on what she makes slaving over her sewing machine every day.

Back in 2012 her husband agreed to be the guarantor to a nephew to the sum of RD400,000. Supposedly this lowlife nephew had no intentions of paying back the loan and is now living a comfortable life in the US.

Today the bailiffs turned up at the home of the guarantor with official papers from the local fiscal and has given notice that they will repossess everything of value belonging to the entire family. That means, car, sewing machines, tv, stove, i.e. anything that's not bolted down.

We're trying to do what we can to help, but obviously it's a very distressing situation for all involved. They have four days to sort this mess out.

Maybe try a GoFundMe campaign and see if the fiscal will back off and give it a few months to see if you get sufficient donors to take care of it. Looking over the GoFund Me campaings there are a lot more frivolous that seem to get donors. Onr had a batch of puppies to be spayed and collected several hundred bucks for that.
Der Fish
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
19,952
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South Coast
The same thing happened where we live. Someone we know very well agreed to be guarantor for someone, who used the money not for what he said it was for, but to go to the US. He never came back, and our friend is now repaying the loan.
 

ju10prd

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Nov 19, 2014
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Accountkiller
I'm a bit like Mauricio and ere on the side of caution. Heard these stories from ex esposa all the time when in the campo. Ignored them all because there was an agenda with me being a foreigner and they were playing to (our) supposed sensitivities.

Maybe in this case it is different but guards up' first and then act with vision.
 

dulce

Silver
Jan 1, 2002
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I suggest the woman hide her sewing machine in someones house until they come back to take everything away.
 

frank12

Gold
Sep 6, 2011
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It would be near impossible to get a loan for that amount without collateral here. In fact, in 50 years here, i have never heard of a large loan given to anyone, for any reason, without some form of collateral of equal value. No one here loans money on credit. Someone would have to handed over a land or property title for that amount of money. This is the business my relatives is in here.

Frank
 

ju10prd

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Nov 19, 2014
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It would be near impossible to get a loan for that amount without collateral here. In fact, in 50 years here, i have never heard of a large loan given to anyone, for any reason, without some form of collateral of equal value. No one here loans money on credit. Someone would have to handed over a land or property title for that amount of money. This is the business my relatives is in here.

Frank

And very high interest payments. My only caution was a mention of relative, but the more I recall, even a past loan to a tio involved collateral of a large chunk of land and monthly payments. And that was for 100k with 10k monthly interest lawyer backed with land as collateral.
 

beeza

Silver
Nov 2, 2006
3,138
237
63
Humble by Gringo standards, but middle class by Dominican standards. When the husband signed as the guarantor, he had a good job, money in the bank, credit cards, car payments and a good credit history. Since then he lost his job and the wife is now supporting the family and the husband makes what living he can with their car. But as he's not affiliated with any of the transport unions he has to be very careful about the business he chooses.

We've offered to hide what we can at our place, especially the sewing machines. But I have not been approached for a bail out, so there is no agenda there. i offered the, help, it wasn't asked for.

They are seeing what options there are to contact the nephew via legal means in the US. But obviously that's going to cost money.
 

Derfish

Gold
Jan 7, 2016
4,441
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Don't know about the rest of you, but over my life I have been caught twice with having co signed others' debt and having to pay it out.
Der Fish
 

caribmike

Gold
Jul 9, 2009
6,737
164
63
It would be near impossible to get a loan for that amount without collateral here. In fact, in 50 years here, i have never heard of a large loan given to anyone, for any reason, without some form of collateral of equal value. No one here loans money on credit. Someone would have to handed over a land or property title for that amount of money. This is the business my relatives is in here.

Frank

I was offered and given 650,000 DOP from BHD over the phone, just like that, I did not ask for, nothing to sign. I took it because we could use it that day and paid it back after 4 month, (maybe they wasn't counting on that but had planned me paying off for years, well...).
 

frank12

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Sep 6, 2011
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I was offered and given 650,000 DOP from BHD over the phone, just like that, I did not ask for, nothing to sign. I took it because we could use it that day and paid it back after 4 month, (maybe they wasn't counting on that but had planned me paying off for years, well...).

That's interesting. Never heard of anyone given a loan without collateral. Ever. As in never, ever. Did you already have a home loan with them?

A bigger question is why did they call you out of the blue and offer you a loan?

Frank
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
If your credit rating is fine they do give loans. We buy furniture now and then with a loan because the store doesn't lower the price of you pay cash, it's never an issue and my wife has no income (and mine is abroad). They have no information what I earn and besides the loan is on my wife's name all the time, only that until now we've always paid. Not 650,000 in our case, but 200,000 pesos with no questions asked.
 

frank12

Gold
Sep 6, 2011
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36
If your credit rating is fine they do give loans. We buy furniture now and then with a loan because the store doesn't lower the price of you pay cash, it's never an issue and my wife has no income (and mine is abroad). They have no information what I earn and besides the loan is on my wife's name all the time, only that until now we've always paid. Not 650,000 in our case, but 200,000 pesos with no questions asked.

I understand with the furniture, because our employees get furniture on loan despite having no collateral or credit rating. The reason why they get the furniture is because the company here in Sabaneta knows where they live and will simply come and re-possess the furniture if they stop paying. On top of this, the interest rate is astronomical, so the store stands to make a lot of money.

But our employees also have to show the furniture company an income from our restaurant, so the furniture company is not just giving out furniture to anyone without a job.

But with loaning money, that's a whole different ball game. They can't come and re-possess the money if you spent it all. Once its gone its gone.


I'm probably missing something here.

Frank
 

caribmike

Gold
Jul 9, 2009
6,737
164
63
That's interesting. Never heard of anyone given a loan without collateral. Ever. As in never, ever. Did you already have a home loan with them?

A bigger question is why did they call you out of the blue and offer you a loan?

Frank

I had nothing before with them only a savings account. My wife is client there and to her they offered 200,000 the same way. No collateral. But if you want one, you have to bring it all... when you don't need a loan they call you and stuff it down your throat like take it!!! :D

Maybe they go by your monthly income or whatever. Even that I stopped receiving via BHD a while ago (I switched back with this to BPD b/c I can get my money via PayPal instead of wire transfer there).
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
I think most of the consumptive credit plans with stores in SD work like this: the bank pays the store and the loan is with the bank. At least that's how it is in my case. Who evaluates is the bank, not the store.

But obviously they are profiling people. Several cell phones that are always paid on time, electricity bill that's paid on time, that's what they check I suppose.
 

zoomzx11

Gold
Jan 21, 2006
7,550
209
63
Fortunately thus is a mistake you only make one time. Mistakes involving women get repeated over and over. Just saying.