People are Claiming Thousands on Guarantor Loans…

A guarantor loan works on the basis that if you are unable to keep up with the payments of the loan, then the listed guarantor, whether it be a friend or a family member, will need to keep up with the repayments for you. This type of loan is usually taken out if you have a poor credit score, or if you need a large amount of money urgently. They are generally used as a last resort.

Consequently, guarantor loans such as those provided by Sunny, Wonga and Amigo are all subject to sky-high interest rates which leave people paying back around 3 times the amount they originally took out – if not more.

Money-saving gurus such as Martin Lewis have recently turned their attention to guarantor loans and have expressed that many Brits will be able to claim thousands of pounds back on these loans due to them being mis-sold. Reminiscent of the still on-going PPI mis-selling scandal.

How were Guarantor Loans mis-sold?

The nature of the mis-selling here is largely to do with the lenders doing proper affordability checks before granting the loan. If the lender did not thoroughly check whether either the borrower or the guarantor could afford to repay this loan, then mis-selling has likely occurred.

Another type of mis-selling in this field relates to unfair treatment of the borrower. For example, using external debt collectors without first allowing for fair repayments to be made. Alternatively, the lender pressuring someone into becoming a guarantor may also class as mis-selling and compensation may be due.

How to Claim…

Most guarantor loans complaints will be made through the Financial Ombudsman Service, but may be taken further and even litigated if it is deemed necessary.

The claims process here can vary significantly depending on the circumstances, but the good news is that there are already successful claims happening. According to The Express someone called Sam has already received a goodwill gesture of £14,000 from a lender, and many others have had these loans wiped off their credit record, if not receiving further compensation for the distress caused by having the loan.

If you think you might have been mis-sold guarantor loans, or want to discuss a loan, contact us for a free consultation on 0800 862 0605 or simply email claims@civilclaimservices.co.uk with the details of your guarantor loans. Our friendly claim-handlers will be happy to help you and see if we may be able to take your claim further.