If you have a guarantor loan either in place or have one or a number in the past then there is a good chance that the firm lending the money did not complete a sufficient number of suitable checks in order to provide the finance. If this is the case then you could well be entitled to compensation through a refund of interest on the amount borrowed.
What is a Guarantor Loan?
A guarantor loan is a loan facility taken by an individual who otherwise due to their financial record would be unable to obtain finance. The loan taken being backed by a third party which is normally a friend or relative. If the borrowing is defaulted upon then the loan company can pursue the guarantor for payment.
The loans due to the risk associated with the borrower normally attract a high interest rate.
Why Guarantor Loans are bad?
Guarantor loans have a poor reputation due to the fact that the borrowing is granted to those in financial difficulty or with a record of either financial constraint or lack of justification for the borrowing through traditional lenders. This risk to the lender means they believe that they are justified in charging considerably higher interest rates against the borrowing which is agreed.
Sadly firms have profited considerably regarding this form of lending charging excessive interest against borrowing which has not been correctly scrutinised before being agreed.
How can I get out of my Guarantor loan?
If you have a guarantor loan in the past or currently have one running there is a good chance that if a missile can be established that any refund would clear the balance or a large proportion of the balance outstanding. It can also if the borrowing is clear largely cleared provide a considerable refund taking into account the interest you were charged.
Will I get enough to reply my loan?
As the main focus with regard to any mis-sold guarantor loan is the interest applied and compensatory interest which can run into considerable sums and in total over take the amount originally borrowed any refund is likely to clear the vast majority if not all of the borrowing.
How do I know if my loan was Mis-sold?
How would you know if your guarantor loans mis-sold?, we would need to establish that the lender did not undertake the correct level of searches or obtain sufficient information to make a professional judgement in agreeing to the finance provided by the guarantor loan.
Any borrower is protected by requirements provided by the regulator to lenders in order to establish if an individual can borrow monies which are ultimately affordable and appropriate for their needs. Should this not be the case then a mis-sale may well have occurred.
Can the Person Guaranteeing the loan claim?
As a borrower you can of course make a claim in relation to the loan facility that you took. However, the case is also true that anyone who has guaranteed the borrowing and had to pay money to the firm under this guarantee can also make claim. We represent a number of clients both acting for the borrower and the guarantor as the claims are entirely separate. Neither affecting one another.