If you are a guarantor of a high interest loan for an individual and you have been called upon to make payment with regard to this loan as a result of the borrower defaulting then you can look at making a claim against the lender for the sums you have paid.
Why Guarantee a loan for someone?
Guaranteeing a loan for someone who is likely to be a friend or relative always seemed like a good idea at the time in order to help them in their time of financial need. Unfortunately you should as a guarantor have been made fully aware that in the event of default you would be required to meet the commitment of that borrowing.What started as an act of help and assistance can turn very quickly into a costly exercise.
Why are these Guaranteed loans so bad?
Guarantor loans are notoriously bad not only due to the high interest charged to the loan but also the nature of the loan itself. In that those that apply and obtain this form borrowing are unlikely to be able to apply for borrowing elsewhere due to a poor credit rating or other financial factors which mean the normal loan lenders are not an avenue the borrower can explore.
Guarantor loan firms provide assistance at a tremendous cost as the interest rates charged high. Sadly the protection for the guarantor is not as good as it should be as the correct and appropriate checks on the clients finances are in many cases not taken.
How do I know if the Guarantor loan was Mis-sold?
The guarantor loan could have been mis-sold if the firm did not take into account the borrowers specific financial circumstances and requirements. That the firm did not undertake a search of the financial history of the potential borrower including information regarding other outstanding financial commitments.
In turn if these checks were not undertaken then the firm was not providing you as a guarantor with the protection it should have done in assessing the loan application correctly. If the borrowing was provided without the correct checks then there is a good chance the loan was mis-sold and any financial commitment paid or provided by the guarantee should be addressed.
Will the Borrower Named on the Loan Need to Claim?
Claims against guarantor loans can be made into parts which are both completely separate. As a guarantor you can make a claim in relation to the payments that you have made and commitment you have under the guarantee. Likewise a borrower can make a separate claim in relation to the payments they have made or committed to under the borrowing.
We have represented both borrowers and guarantors with individual claims.
Can any Refund Repay the Loan?
The claim of a guarantor is making relates to the monies they have paid against the guarantee provided should there have been a default. In addition the guarantor will also be claiming for any requirement to continue with that guarantee to be removed.