Guarantor Loan Refunds
What Is a Guarantor Loan?
Guarantor loans are agreements between two people: the borrower and the guarantor. The lender requires a guarantor to take on some of the risk of the loan, meaning that if the borrower fails to repay their instalments, they can claim them from the guarantor instead. Guarantor loans, however, have a much higher interest rate than normal personal loans.
There are numerous lending institutions that offered guarantor loans. They are a good solution for people who find it difficult to borrow money due to a poor credit rating or lack of income. By having another person act as a guarantor, you can usually get instant approval on your loan application.
Which UK Companies Provided Guarantor Loans?
The main providers of guaranteed loans in the UK were Amigo Loans, Bamboo Loans, Buddy Loans, and George Banco, as well as a few others. These companies all provide loans to the value of £1000 and go up to over £25000. Generally, these loans were available for people between 18 and 65 years old with a poor credit history who couldn’t get finance from banks or other lenders and for whom a guarantor loan was their last option.
How can a Guarantor Loan be Mis-sold?
When a guarantor loan is mis-sold, it is because the person applying for the loan is not qualified for the loan. That person may be in debt, have a low income, or have a poor credit rating. If you are considering a guarantor loan, you should do a basic affordability check to make sure you are able to make the payments while not putting your financial well-being at risk. Failure to do so can result in excessive borrowing, which is detrimental to both the borrower and the lender.
Making an Affordability Complaint
To file a complaint, someone who can not keep up with repaying a loan can claim that the lender miscalculated how much they could afford.
A complaint against a guarantor loan is often brought when the borrower has difficulty repaying the loan. This is because monthly repayments are affected by interest rates and fees, as well as the amount of money a borrower can borrow. The borrower may not have been aware of this upfront.
If applicants are not informed of the specific limits they must follow when establishing an initial line of credit or maintaining affordability during the approval process, lenders may be in violation of industry-standard rules for unaffordable lending practises.
Claiming for a Mis-sold Guarantor Loan as a Borrower
If you are a borrower who was mis-sold a guarantor loan, you may be able to file a claim. It is important that you contact the lender or organisation to determine your alternatives and next steps. We have assisted several people with these claims and can help you too!
Claiming for a Mis-sold Guarantor Loan as the Guarantor
Even if you were the guarantor and not the borrower, you can file a claim for a mis-sold guarantor loan. This is due to the fact that you were also mis-sold the loan.
If you did not know what a guarantor loan was, or if your lender did not tell you anything about how it works or the costs involved before you took out such a loan, it might be worth your while to take a closer look.
Guarantors should be reimbursed for all payments they’ve made and any interest they’ve accrued in the event that they were wrongly accepted as guarantors, either by the guarantor lender failing to obtain proper consent from the consumer or by an assessment that would have shown that they couldn’t make the loan repayments in the long term.
Guarantor Loan Refunds Make a Claim Today!
We’re here to help if you believe you were mis-sold a guarantor loan. We can assist you in filing a claim with our claims management business. Please note that this will have no effect on any of your credit reports or records in the United Kingdom.
Mis-sold and high-priced UK Guarantor loans were a major problem. If you believe you were mis-sold one of these guarantor loan packages, you should be eligible to file a claim. So, get in touch with us right now!