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How to Complain When You Are a Guarantor on a Loan

Did you wish your friend looked at loans without guarantors? To be honest, there are a lot of people who didn’t believe they were eligible for a loan without the need of a guarantor and as a result, ended up getting stuck with an expensive and problematic loan. However, borrowers aren’t the only ones who wished the same, as guarantors are starting to think twice about the commitment they face. However, can you complain when you’re the guarantor on a loan and if so, who should you make your complaints to? Click here!

Contact the Lender Directly and State Reasons for the Complaints

Were you fully aware of what a guarantor did? Did you know the type of responsibilities you faced? Did the borrower explain your role as a guarantor? Whatever the reasons may be, you have the right to complain if you’re a guarantor. However, you need a valid reason to lodge a complaint and ask for you to be removed as guarantor. That won’t be easy, because you signed the contract and the lender was going on your word, so that might be a sticky point. Of course, if you weren’t aware of the responsibilities beforehand, some lenders may be understanding and allow you to walk away from the obligation. However, unlike loans without guarantors, you are classed as the guarantor and as such you are obligated to see through the term of the loan.

Contact Your Local Ombudsman

Sometimes the lender will refuse to let you off your responsibilities with a guarantor loan, and it’s understandable because after all you were supposed to sign after reading all terms and conditions. However, if you feel you have a case to be removed from the loan then you should speak to the local ombudsman. This is someone who can fight on your behalf and hopefully come to an arrangement with the lender. Of course, this is a sticky issue and it might not be as easy as you’d hoped for it to be finished. However, talking to an ombudsman might help the situation nonetheless. Unlike loans without guarantors, a guarantor loan is a tricky problem to deal with.

Speak To a Lawyer

After all ease has failed you might need to take your case to a legal expert. Financial lawyers might be the best people to speak to so that the case can be resolved. You can easily complain through the lawyer as they can draft an email or letter stating you want to complain about the loan and the reasons why. Sometimes the issues can be resolved with legal help, but again, it depends on your specific reasons. If you opted for loans without guarantors you mightn’t have these problems, but again, it depends on the extent of the problem at hand.

Know Your Rights

Unfortunately, there are thousands of guarantors who sign a loan agreement and end up facing trouble they never anticipated. It’s the unfortunate reality of lending and borrowing, but, you need to take hold of the situation. If you were misled or are unable to pay the loan because the borrower defaulted, you need to tell that to the lender and get the mess sorted out. Complaining to the lender can be a useful idea and may prevent future issues from arising. Loans without guarantors are sometimes easier to deal with. For more details, visit: https://smallbusiness.chron.com/proving-validity-promissory-73019.html