Guarantor loan

[M10wew]

First time posting so forgive me if this in in the wrong place .

 

I have had an affordability claim upheld by a lender with respect to a loan I had which required a guarantor. 

 

They admit to irresponsible lending but are refusing to release my guarantor as there is still an outstanding amount once all interest and fees removed. 

 

Surely due to the lenders errors in not checking my affordability at point of sale that any contracts are void especially my gaurantors why are they still been held liable 

 

Obviously I benefited from the loan so I should pay the remaining balance. 

 

Any info or help would be great 

 

Just to add this never went to the FOS the company upheld the complaint themselves. 

 

Thank you 

Edited June 9, 2020 by M10wew

[AndyOrch]

Hi and Welcome to the Forum.

 

Quote

Obviously I benefited from the loan so I should pay the remaining balance. 

 

The guarantor only becomes liable if you default...so you pay the balance......everything remains the same as the guarantor secured the agreement initially.

 

Andy

[M10wew]

I understand that but if the loan should never of been sold to me and the lender has admitted that shouldn't they release my gaurantor of any liability. 

[AndyOrch]

Then there should be no balance if the the agreement is deemed invalid.

[M10wew]

It's like they make up their own rules . 

 

the account had defaulted and charging order placed on guarantors property and ccjs for both of us .

Been paying reduced payments that the court set and have been for the last year.  

 

Affordability claim upheld and they said :

all interest and fees removed 

charging order removed 

ccjs removed 

even paying the guarantor money back as they made a few payments on account 

BUT wont release them as guarantor as there is a bit of principle owing .

 

its madness 

 

 

 

 

[dx100uk]

no they are quite correct.

 

it makes no odds to him or you as long as you pay what is now owed..

dx

 

[AndyOrch]

Was your CCJ removed also ?  How much is outstanding ?

[M10wew]

Yes removing mine and guarantors plus removed charging order on guarantors house

refunding payments that guarantor made (as they say shouldnt of paid ) leaving approx £1000 on the principle. 

 

Then say they are liable still for the remaining principle ?

So why remove charging orders and pay them back if that's the case ... it makes no sense 

[dx100uk]

following your IRL complaint their investigation concluded they had not acted in compliance with the published industry standards.

Additional interest and charges had been added unlawfully creating a false balance.

Thus any payments made or legal action taken upon that false balance were also unlawful.

 

To unwind their actions which they concluded were non-compliant and unlawful, they refunded the guarantor payments and removed the CCJ's & CO as they were attained upon a false balance and would not have occurred had they acted appropriately at the time.

 

However the above does not vary the signed agreement and there is still an outstanding lawfully owed balance remaining which is compliant with the agreement conditions.....one of which was it was a guaranteed loan. The agreement you signed is still in force.