by tonytran2015 (Melbourne, Australia)
#parasite, #loan, #guarantors,
The Parasites of Western Economy, Part 4: Scammers who entrap acquaintances into being guarantors for their loans.
In the Western societies, asset rich people are often preyed upon by scammers. After a family break up, an asset rich person may feel lonely and scammers will target him to befriend then to rob him of his assets.
1. A guarantor of loans is usually set up to carry the loan burden of the actual borrower.
The scammer/borrower pretended to be friendly to a lonely asset rich person. He then pretended to be hard working, responsible, wealthy and virtuous in front of that rich person.
One day the scammer S would ask the asset rich person R to be the GUARANTOR to his loan from a (crooked) banker B. The scammer S would tell the rich person R that he needs a loan from B for his business plan. He would claim that banker B is too rigid and too demanding and is not satisfied with the motgage of his huge asset. He would claim that banker B unnecessarily asked him to have many guarantors for a simple loan just because he has not been a long time client to that banker B.
The rich person R may then be willing to help a virtuous person starting his business career by becoming the guarantor of his loan. Asset rich person R would think that banker B will only bother him only in the unlikely event that the huge asset mortgaged by borrower S cannot settle the moderate loan from B to S.
2. The guarantors has been set up by the scammer/borrower and his crooked banker.
Once the asset rich person R signed the paper to act as guarantor to the scammer/borrower he is done.
The scammer/borrower will not meet the loan repayment schedule. The crooked banker has granted him the loan knowing that his mortgaged asset has very little value but his guarantor has hige assets. The crooked banker C started issuing warrants of possession to liquidate the assets of the asset rich person R.
Yes, by laws, there is no difference between the borrower and his guarantor. The lender can recover his loan by any way easiest to him, that is starting with the asset rich person R!
3. The word loan guarantor used by lenders is misleading.
In a effect, the loan guarantor R mortgaged his assets to borrow from the lender B then he makes an unsecured loan of that amount of money to the borrower/scammer S on the same terms and conditions. Usually the borrower/scammer has little asset and want a free ride on the assets of his guarantor!
In a effect, the loan guarantor risks his assets (that is equivalent to him paying insurance fees on loan default) for the borrower/scammer.
4. Loan guaranteeing is only to be used by parents to give early inheritance to their own children.
In a effect, the loan guarantor risks his assets (that is equivalent to him paying insurance fees on loan default) for his children to avoid giving outright inheritance to the children and being liable to taxes.
5. Avoiding being trapped.
You don’t want to lose your assets to scammers. So you have to:
5a. Keep secret your possession of assets to avoid being targeted.
5b. Avoid every false friendship from persons with unknown history, origin.
Don’t let anyone buy you coffee all the time without returning the favour. This prevents him from asking any favour from you !
5c. MAKE IT CLEAR to your acquaintants that you may help any of them looking for work but UNDER NO CIRCUMSTANCE YOU MAY TAKE RESPONSIBILITY FOR ANY OF THEIR FINANCE.
Otherwise once you have taken only a single responsibility for their finance you will see their irresponsibilities grow like mushrooms overnight and there will also many more copies of such “friend” knocking on your door or ringing your phone !
5d. Practice saying NO firmly to any request to take over responsibility for someone else’s finance. Practice telling requesters that those who don’t want to swim deserve to sink !
Similarly, do not enter into any contract to exchange your money for “friendship” or “love”.
5e. Avoid any contact with scammers or debt ridden or financially irresponsible people.
6. Main areas infested by this scam.
This scam is practiced where there are loan guaranteeing rules while scammers can intermingle with asset rich people.
The scams are commonly found:
6a. In refugee population where people who had been rich and poor in their countries of origin intermingle.
6b. At tourist bars where tourists from rich countries intermingle with English speaking locals who are not rich.
6c. At single/divorced bars where scammers can target lonely, sad people.
This scam relies on a VAGUENESS of the meaning of the word guarantor. As it is almost like giving away the asset of the guarantor, THERE SHOULD HAVE BEEN (but sadly, there has not any) LEGISLATION requiring the guarantor to obtain legal advice from a competent lawyer before the guarantee contract can be signed.
Added after 2017Dec20th:
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