Guarantor loans are wide open to financial abuse, where the guarantor is pressured into agreeing to the loan, often without full knowledge of the borrower’s situation.
This can take many forms, but today, for International Women’s Day 2019, here are some recent comments from women who were bullied into agreeing to be the guarantor for their partner or their ex-partner.
I was bullied into agreeing to be guarantor by him last year(we were together at the time but lived separately). I’d already taken out a loan from my bank for him (£160 a month repayments) two years previous, he’s self employed and told me that if I didn’t agree to this Amigo loan then he’d no longer be able to work, which would mean that he wouldn’t be able to make the repayments on my bank loan and wouldn’t be able to support our son. I didn’t realise at the time that he had a bad cocaine habit and had got himself into a huge financial mess and was basically using me to try and get himself out of it knowing I’m too soft and he could take advantage.
Also I don’t believe Amigo fully looked into my financial situation. I already owed £900 on a credit card as well as my bank loan I took out for him. I vaguely remember being asked about my income and outgoings but had they looked properly at debts I already had and considered the fact I was a single mother only working part time and receiving tax credits, and with two dependent children, I feel I shouldn’t have been accepted.
My sister’s former partner, the borrower, was abusing her physically and emotionally. We have reported this to the police, but I’m unsure how long a full investigation may take. I spoke briefly to Amigo regarding the situation, but am just waiting for my sister to confirm I am authorised to speak on her behalf (she’s in no fit state to deal with this). They stated that she would still be liable for repayments during the investigation, and would be unlikely to claim this money back. My family’s approach is that she is not paying any further amounts (she’s been paying it all along as he has no job or income).
In addition to the domestic abuse claim, I also have no idea how she was approved as a guarantor given that she gets Universal Credit, only works part time, is a single parent to a small child and has no assets.
My ex and childs father emotionally pressured me into being an guarantor for a loan, he has been emotionally abusing me since we spilt up 3 years ago. My ex doesnt pay maintenance but he threaten to “take” my son, beat up family members and also threaten to kill himself because he didnt have any money.
I was completely pressured and coerced into signing to be guarantor for this loan, when he was fully aware I have no income to pay it, he told me exactly what to fill out, exactly what to say, and then tried to triple the loan and force me to do that too. I was promised he’d pay it, he has a full time job as a manager paying £1800 after tax.
I have no job or income what so ever. I genuinely did fear for myself if I did not agree and have recording of other occasions of his being abusive to prove he is not a nice man.
If you are the guarantor for a loan that you could never afford to pay, How to complain if you are a guarantor for a loan has a template letter to complain and ask to be removed as guarantor.
If you borrowed money with a guarantor loan and the lender didn’t check your income and situation properly, How to complain if you have got a guarantor loan has a template letter to complain and ask for interest to be removed from what you owe.