FLM Loan guarantor help!

Anniecakes

Does anybody know the legal stance on this?

iolanthe07

No it is not illegal for them to dip into your account because that possibility would be in the terms and conditions you signed up to. You need to get the charges back from your son, not the lender. FLM have a reputation on here for being ruthless, but they do (just) act within the law.

Apples2

Even if they had called you to discuss it, they wouldn't have done it out of kindness. They would have stuck £20 extra on the account for making the call.

As guarantor, you have to ensure you have enough in your account to cover the payment. It was made clear at the time. They aren't to know the payment will fail until the withdrawal attempt is made.

ILW

Thay also know that in the murky world of guarantor loans, that if they told people in advance that the funds were going to be taken, then some would empty or close the account before they had a chance.

MichaelCR

Anniecakes wrote: »

Hi, I have acted as a guarantor for my son with FLM. He has just defaulted on a payment and they took the money from my account, whilst I understand that I have agreed to this they gave me no notification and as a result I now have bank charges. I specifically asked if they would notify me before I agreed to be guarantor and they said they would, they are now saying that this is a complementary service and they are not obliged to notify me. I have asked for a copy of the transcript of the call as proof that I was told this, but I have a funny feeling they won't be able to locate it!!! I fully believe that a company must make you aware that they will be taking from your account, am I correct in this belief? their solution was that they would just tranfer the loan to my account so that I would be aware the payments were coming out of it- unbelievable!

Never, Ever, Ever Guarantor a loan for anyone.

Besides, Why did he want you to guarantor the loan ? Because he can't get credit himself due to adverse credit ? If a bank or loan specialist won't accept him because of his inability to pay back money borrowed, then Surely that rings alarm bells when he asks you to guarantor the loan for him ?

Why bother trying to get a transcript etc etc, They don't have to make you aware, You agreed to be a guarantor which means they can debit your account at anytime once your son defaulted on a payment.