Guarantor Loan Refunds, Clams and Compensation

If you have struggled to repay your guarantor loan or have had multiple loans topped up, you may be eligible for a guarantor loan refund.

Thousands of loans have been granted in recent years and it has emerged that lenders have failed to carry out sufficient affordability checks, especially when loans were rolled over or extended.

But today, you can request compensation on your guarantor loan if you had difficulty making repayment – and this can allow you to reclaim the entire loan sum, interest and compensation on top.

Forces Compare has helped thousands of people in the UK reclaim on guarantor loans, with some people receiving large sums in compensation. We have now partnered with the very established Allegiant Finance Services who can process your claim for free.

Click ‘Get Started’ to complete the form in less than 5 minutes and you should hear back with a final decision within 6 to 8 weeks.

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Guarantor Loan Compensation, What’s it All About?

In recent months, guarantor loan companies have come under scrutiny for their high interest rates, potentially lax lending criteria and affordability checks.

So if you took out a guarantor loan in the last 5 years and found that you were struggling to repay, you could be eligible for a significant refund.

Not every claim is eligible of course, but certainly if you had financial difficulty and needed additional loans, or the lender continued to top up your loan again and again – this is not something that a responsible lender should have authorised.

Through the Forces Compare claims redress program, you can submit a request and we will process it directly with the guarantor lenders to get you the best outcome possible. In some cases a refund has been worth £50 or £100, but in other cases it has been as much as £15,000 or £20,000.

We have the ability to process your claim across all guarantor lenders through one form, including Amigo, Buddy, UK Credit, Trust Two, George Banco, TFS, Guarantor My Loan and 1Plus1. Simply click on ‘Get Started’ below to start your claim.

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“According to FOS statistics published recently, the Ombudsman have been upholding a huge 88% of guarantor loan complaints.”

You could be eligible for a guarantor loan refund if you struggled to keep up with repayments, took out multiple loans or had several loans topped up.

5 mins to submit a claim
Typical response time 6-8 weeks
Claims could be worth hundreds or thousands
Partnered with Allegiant Finance Services (fully regulated)

Why Could I Be Given a Guarantor Loan Refund?

During your application process, you may not have mentioned all of your debts and if this didn’t match with your credit record, the lender should have ensured to reaffirm this.

It is possible that you underestimated your monthly expenditure due to guesswork or eagerness to be eligible for your loan and in such circumstances, if your figures appeared too low, your lender should have explored their reliability further.

At the time of your application did you have a regular income? If you were self-employed during this period or even had overtime that fluctuated, the lender should have looked at this.

Did you have evidence of recent applications for credit or previous problems on your credit record? Guarantor loans are specifically targeted at those with bad credit scores. However, the lender should have been conscious of whether your situation appeared to be worsening.

Whenever you topped up an existing loan, your lender should have run another set of checks concerning whether this was affordable. Had you missed any previous loan repayments? Had your finances deteriorated since your first loan? If so, the lender should have addressed the fact that their current loan could be unaffordable and as a result, capped any more lending.

The firm may only have carried out a brief affordability check on you because of your guarantor’s circumstance. Regardless of your guarantor’s financial status, the loan needed to reflect your personal repayment potential.

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Guarantor Loan Affordability Complaints: An Overview.

The first thing to consider when reviewing the eligibility for a guarantor loan complaint is whether a loan was affordable before it was given to you.

In short, the appropriate definition of affordable is whether or not after repaying it in installments, on time, you have money left over to pay your bills to avoid further lending.

To summarise, if you had to borrow more money or became behind with bills as a result of your guarantor loan repayments, you have grounds to make an affordability complaint. This route is available regardless of whether you are still paying the loan, have stopped paying the loan and are relying on your guarantor or even if the loan has been repaid.

If your affordability complaint is successful there are three potential outcomes. Should you still owe money, your interest is removed and you simply repay back what you borrowed. If your loan has now been repaid you will receive a refund of the interest in addition to 8% of the amount of your statutory interest. If you still owe money but the compensation is more than the amount owed, your balance will be reduced to zero and you will receive the surplus as a cash payment.

If you cancel our service without our agreement after 14 days and after we submit your claim you will be liable to pay our full success fee should your claim be successful. You do not need to use our services to make a claim against your lender(s). It’s free to claim compensation from financial companies if you have lost money from a mis-sold financial product. You can do this yourself directly with the lender(s) and even if they reject your claim you can still take this to the Financial Ombudsman Service at http://www.financial-ombudsman.org.uk. If you aren’t sure how to make the claim, you can get free, impartial advice from consumer organisations.

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Why Submit a Guarantor Loan Claim with Forces Compare?

With our simple online application form, you can submit your claim in less than 5 minutes and we will package up all the necessary information and paperwork so the guarantor lender can respond and hopefully process your claim as quickly as possible.

We have an excellent uphold rate with as much as 88% of claims being successfully completed and we have now partnered with the market-leading Allegiant Finance Services who have completed over £50 million worth of claims from financial products since 2013.

With a free submission form and decisions in around 6 to 8 weeks, Forces Compare is in the perfect position to help you with you guarantor loan redress complaint today.

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