Guarantor loans in debt management plan

foxy-stoat

gw432 said:

I realise that I probably will have to bite the bullet and pay up by settling the debt with a much cheaper loan. I

he assured me could afford/ keep up the payments. I trusted his word. More fool me! 

That is the general advice before putting yourself as a guarantor, that and decline to offer help full stop......

The people always say they will pay it and ask them to trust them.

Willing2Learn

gw432 said:

I do feel the lender didn’t check properly that he could afford the payments at the time.  The loan was started nine months ago, my son who is married with a young family and lives away was living beyond his means (and still is by the looks of it) and had built up credit card debts, etc and I felt pressured into agreeing to be a guarantor and he assured me could afford/ keep up the payments.

You can make a complaint about irresponsible lending if you feel that they did not carry out the necessary affordability checks:
How the borrower of a guarantor loan can complain
If proper checks would have shown that your son could not afford the repayments, then complain

If you are a guarantor for a loan you can ask to be removed as the guarantor:

• if you couldn’t afford to repay the loan without difficulty; or
• you were pressured into becoming the guarantor; or
• you didn’t understand the implications of being a guarantor.

How to complain when you are the guarantor for a loan

John_

gw432 said:

Thanks for your replies everyone. I realise that I probably will have to bite the bullet and pay up by settling the debt with a much cheaper loan. I do feel the lender didn’t check properly that he could afford the payments at the time.  The loan was started nine months ago, my son who is married with a young family and lives away was living beyond his means (and still is by the looks of it) and had built up credit card debts, etc and I felt pressured into agreeing to be a guarantor and he assured me could afford/ keep up the payments. I trusted his word. More fool me! Needless to say, relationships aren’t that great between us at the moment. 

I think that you misunderstand the deal here. They don’t care at all if he can afford it or not, you are the one who’ll be paying it back, so it’s affordability for you that’s the issue.

gw432

I have started the complaints process via Resolver. However, I am under no illusion that if this isn’t successful then I will have no option but to pay the debt. 

John_

gw432 said:

I have started the complaints process via Resolver. However, I am under no illusion that if this isn’t successful then I will have no option but to pay the debt. 

It’s what you agreed to, so it’s not really clear yet what the complaint is. Did you fill in the form completely honestly? What has changed that you thought it was a fair contract previously but now think it was unfair?

It seems a bit strange that it was fine when you were asking them to lend money and only iffy now you are expected to pay it back. It seems a bit unfair to me that they have honoured their side of the deal but you are trying to avoid doing the same.

gw432

Four months on and the lender finally responded. They upheld my complaint stating that they found evidence to suggest that some of the necessary checks were not carried out on the applicant during this loan application and therefore the loan should not have been granted. Also all payments I made as a guarantor to be refunded back to me with 8% statutory interest and any reference to the loan on my credit files to be removed. 

MinuteNoodles

Once again irresponsible borrowing gets rewarded and people wonder why there's an increase in snotty responses in this sub.

smaa84

MinuteNoodles said:

Once again irresponsible borrowing gets rewarded and people wonder why there's an increase in snotty responses in this sub.

Completely agree with this, it’s going to cost everyone more in the long term because of irresponsible borrowing like this. 

sourcrates

Well done OP, good result, these companies need to follow the rules.

Hope your boy gets himself sorted out with less reliance on loans in the future.