Guarantor of someone who passed away

LinaG

My partner is a guarantor for his friend who suddenly passed away. We have been repaying his loan for more than toi year. Can we get our money back? 

[Deleted User]

No.  However, the lender may seek settlement from the borrower's estate, if there are funds.  Otherwise, your partner will need to finish the loan off.

Thrugelmir

Rather than get your money back you may well remain liable for the balance. Read the small print you signed up to. 

jonesMUFCforever

I agree with Thrugelmir - the guarantor will be liable for the loan.
The guarantor can then put in a claim on the deceased's estate. From what 's been written there does not seem to be much hope of funds there to claim against.

ThriftyMister

There's a lot of anecdotal evidence around of guarantors being released from their obligations as guarantor if their obligations weren't explained clearly to them at point of entry, whether or not it was in a written contract.

There have also been cases where guarantors were released from their obligations off the back of the borrower being lent to irresponsibly.

You would need to raise a formal complaint to the lender regarding this and escalate to the FOS if the lender don't agree with you.

You'll need a very strong argument, or at the very least, to argue strongly.

I'm not suggesting anyone "weasel out" of their obligations, merely that it would be prudent to argue your case if this paticular obligation (i.e. in death) wasn't made clear to you at point of entry into the agreement. 

https://www.thisismoney.co.uk/money/cardsloans/article-8377251/FCA-launches-investigation-guarantor-lender-Amigo-Loans.html

Good luck. And sorry for your loss.