Good to know: You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.

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Guarantor Lenders: Friend or Foe?

A guarantor loan is a longer term loan of 12 months or over where a lender requires a guarantor to jointly sign the loan agreement. In doing so, the guarantor agrees to repay the borrower’s debt should the borrower default.

Guarantor loan claims have hit the press recently, with major lender Amigo’s affordability checks coming in for criticism. Amigo has been facing an increasing number of affordability complaints, from both borrowers and guarantors. Amigo’s mis-selling was one of the biggest mis-selling scandals of 2020. Yet Amigo weren’t alone in failing to undertake proper unaffordability checks.

Why can I make a Guarantor Loan Claim?

Much in the same way as with payday loan claims and doorstep loan claims, a guarantor loan lender has a duty to check to see if the loan was affordable before lending the money. Just because someone else promises to pay them back if the borrower defaults doesn’t mean the lender can ignore their affordability check obligations.

Despite the slick and friendly advertising, things can get very messy with guarantor loans. They can strain friend and family relationships. Sometimes, guarantors have ended up with huge bills because they tried to help someone out, but did not foresee they would default.

Who we can represent in a Guarantor Loan Claim

We can represent borrowers and guarantors in making claims against guarantor lenders. You don’t need to tell the borrower or guarantor about the claim – it’s confidential.

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Disclaimer:

Good to know: You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.