car finance gaurantor

jemjuno

hi I am trying to help my son in law who at 19 was talked into becoming a guarantor on his older brothers car finance. The problem is that the brother stopped making payments 18 months ago and my son in law has just found out there is a 10000 debt on his credit file with Experian. I am trying to find out if he has a case for unethical sales practice with the car company (stoneacre).I ask this as firstly he lived at home with his mum secondly he was in college, and thirdly he had no income. Surely there are stipulations with regards to who can qualify as a guarantor?

Apples2

I suppose the real question "what did your son in law tell them when agreeing to become a guarantor?"
Did he tell them he had zero income or tell a white lie to get the application through?
Don't underestimate the pressure people needing a guarantor place upon the victims, it's a totally selfish act.

From the website:

we do indeed provide guarantor car finance and provided your guarantor has a more positive financial history than you, this may improve the likelihood of your application being accepted. Have you tried making your own application, without using a guarantor? We work with a panel of lenders who specialise in missed payments, defaults and CCJ's so we may be able to work towards a vehicle finance approval without a guarantor.
Regardless of whether you wish to proceed with an application for car finance with a guarantor or on you own, there are many other factors that will have to be taken in to consideration. Do you have a regular income? And, can you provide documented proof of this income? We will also look at income and expenditure in order to ensure you have sufficient disposable income to meet monthly payments.
Please bear in mind that your guarantor must be aware of the consequences of guaranteeing your application. If at some point you we're to default on the agreement, your car finance guarantor may have to accept financial responsibility for your monthly repayments.

http://www.stoneacre.co.uk/car-finance/q-and-a/car-finance-with-guarantor

jemjuno

hi thanks for the reply.to be honest I don't think he really new what he was signing up for as he originally thought he was just a witness to the sale. that said surely stoneacre would need proof of income for the guarantor as well as the purchaser?

Apples2

That's normally the case with guarantor loans. It's surprising how much the original requester "forgets to mention".
They aren't obliged to check documents, it is normal a written statement would suffice considering the lenders are there to make as much money as possible. They are well versed in chasing non payers, they end up providing a very good income.

Start with a letter of complaint toward whoever provided the finance.
If you still aren't satisfied after they give you a fob off answer, try going through the FOS

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

jemjuno

thanks for your help