Did you take out a guarantor loan with LendFair? If so, you could be due a refund. LendFair is currently offering refunds to customers who were mis-sold guarantor loans. If you think you might be eligible, contact us today for more information. We’d love to help get you the reimbursement you deserve!
What is a Guarantor Loan?
The reason a guarantor loan is called a guarantor loan is that the guarantor agrees to pay the loan instalments if the borrower is unable to do so. It is still used in some cases to lend money to borrowers, but the lender is not required to verify the borrower’s ability to pay. Instead, the guarantor is held responsible if the borrower fails to meet his or her obligations.
Why were Guarantor Loans Mis-sold?
Guarantor loans are designed to meet the needs of a specific group of consumers who are unable to obtain financing through normal channels. Typically, the loans are guaranteed by a friend or family member who is liable for payment of the instalments if the loan is not repaid on time.
LendFair, as a lending institution, is responsible for two aspects of the customer relationship.
Borrower: When dealing with high-risk loans, it is important to understand your borrower. While the benefits are greater due to the high interest rates and fees, there is a danger due to the borrower’s financial situation and ability to repay the loan. Rules must be followed, financial problems must be disclosed if further borrowing is sought, and the borrower’s ability to repay must be demonstrated through information obtained not only from the borrower but also from a third party.
Guarantor: If the proper processes are followed in deciding whether or not to provide a loan to individuals, the risk associated with the guarantee will be significantly reduced and the loan will be approved. Any guarantor of a LendFair, loan is taking a huge risk with their own money. There is no prospect of return other than the satisfaction of helping a friend or relative; there is no monetary gain, but there is significant financial risk, unlike an investment. All of this should be discussed with you, and Bamboo should provide you with information.
LendFair Loans Mis-selling
You may be entitled to compensation if you previously had, or now have, a guarantor loan such as that offered by LendFair were mis-sold. The Financial Conduct Authority (FCA) has launched an investigation into the sales techniques used by the company, which has led to an increase in complaints from both borrowers and guarantors.
Significant funds have been set aside in advance to pay compensation for potential mis-selling in cases where the statutory standards for credit assessment were inadequate at best.
What went wrong with LendFair?
There are several areas where LendFair should have done thorough due diligence before making the loans, and if one or more of these areas were not thoroughly investigated, there is a reason for a bad purchase.
- The lender did not verify your income and you could not repay the loan.
- For those whose expenses were not verified.
- The use of top-up loans was not questioned in order to determine financial hardship.
- If your credit report was not evaluated
Make LendFair Claim
If you believe you are eligible for reimbursement, it is time to submit your reimbursement request. You can do this online and begin the process of claiming your refund from LendFair.
Use our easy-to-use online form if you think you may be eligible for a LendFair claim. We will help you submit your application today.