WHAT IS A GUARANTOR LOAN?
It is a kind of unsecured personal loan that requires a second party (guarantor) to co-sign the loan with the borrower. If the borrower defaults on the loan at any time, the guarantor agrees to shoulder the repayments.
HOW DO YOU KNOW IF YOU HAVE BEEN MIS-SOLD A GUARANTOR LOAN?
As a borrower:
- The loan was unaffordable for you but it was still approved without thorough affordability checks.
- A top-up to a previous loan wasn’t properly explained.
As a guarantor:
- You had other financial links with the borrower.
- You were pressured into becoming a guarantor.
- You didn’t properly understand what being a guarantor meant.
If you are a borrower or a guarantor, you may be entitled to compensation from a mis-sold guarantor loan.
