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.Apply Now
Our Unaffordable Lending Claims Process
We realise that claiming against a high cost loan lender can seem daunting. We aim to make the claiming process as simple as possible. We specialise in affordability claims. Our experienced team will communicate with the lender (and where required, the Ombudsman service) on your behalf. We use bespoke technology to ensure efficient claims handling. Throughout the process, we inform you of claim progress using a “stage process”, so you can track your progress easily. Please remember though, that you do not need to use a claims management company to make your complaint to your lender, and if your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Pre complaint investigation and analysis
Formal mis-selling complaint made
Lender responds with a Final Response Letter
If appropriate resolution cannot be reached with the lender, referral to Financial Ombudsman Service.
We are one of the few claims management companies that offers a “No Cash, No Fee” service. This means our success fee is only charged on the actual cash you receive – not on debt deductions applied by your lender. To put it simply, you’ll never be left with less cash in your pocket than you began with if you use us.
Our standard success fee is 30% inclusive of VAT calculated on the cash-in-hand that you receive. It couldn’t be more simple.
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- Our fee £. This fee includes VAT.
- £ Cash in hand after you pay our fee.
To be clear, we do not charge the success fee for tax deductions or debt deductions of any kind.
Working fee examples:
- If you are awarded £0 in redress/compensation, there is no charge
- If you are awarded £1,000 in redress our success fee would be £300 (inc. VAT)
- If you are awarded £3,000 in redress our success fee would be £900 (inc. VAT)
- If you awarded £10,000 in redress our success fee would be £3,000 (inc. VAT)
- If you have an active loan or arrears, the lender will likely reduce or wholly offset any cash in hand you receive. In this scenario, the success fee will be calculated on the cash in hand you receive, for example:
If you are awarded £1,000 in redress but your lender also deducts £500 for outstanding liabilities, our success fee is calculated on £500 cash in hand. Our success fee would be = £150 (inc. VAT).
But don’t just take our word for it – why not try our calculator to see how our fees work on a hypothetical award:-
The Smart Choice For Unaffordable Lending Claim Representation
A trusted name
Allegiant Finance Services is widely regarded as a pioneer in the high cost loan claims management market.
Friendly and experienced advisors
Contactable by email, phone, live chat or post, whichever you prefer
Confidential & Discreet
We will only correspond with you and keep your details secure. We’ll never sell your data.
True Online Application System
Much more than a contact form. With our full online application process you will receive an instant automated decision on whether we can take on your claim
Over £50+ million recovered
We are proud to have recovered £millions on behalf of our customers
Proven Track Record
We’ve been claiming high cost loan refunds since 2013