If you acted as a guarantor on a car finance agreement that was mis-sold in the UK, your ability to claim compensation directly might be limited. Here's why:
Limited Guarantor Rights:
Indirect Benefits:
Reduced Liability:
Alternative Actions:
Disclaimer: Reclaimingcarfinance.co.uk cannot provide legal advice. This information is intended as a general overview and shouldn't be a substitute for professional guidance.
Additional Resources:
Remember:
Although direct compensation claims might be limited for guarantors, supporting the borrower's mis-selling claim and seeking legal advice can significantly improve your chances of minimizing financial losses.
Limited Guarantor Rights:
- Unlike the primary borrower, guarantors generally don't have the same right to directly claim compensation for mis-selling.
- Your situation is often linked to the borrower's claim.
Indirect Benefits:
- However, if the borrower successfully claims mis-selling, it can indirectly benefit you as a guarantor.
- If the mis-selling led to the borrower taking on unaffordable debt, the car finance company might:
- Reduce the overall loan amount.
- Offer alternative repayment options.
- In some cases, even cancel the agreement entirely.
Reduced Liability:
- Any positive outcomes from the borrower's mis-selling claim would typically benefit both the borrower and the guarantor.
- A reduced loan amount translates to a lesser potential liability for you if you're called upon to make repayments.
Alternative Actions:
- While you may not be able to directly claim compensation, there are alternative actions you can consider:
- Supporting the Borrower's Claim: Encourage the borrower to pursue a mis-selling claim with the lender. Their success can have positive downstream effects for you.
- Seeking Legal Advice: Consulting a solicitor specialising in mis-selling claims can be valuable. They can analyze your situation and advise on the best course of action to protect your interests.
Disclaimer: Reclaimingcarfinance.co.uk cannot provide legal advice. This information is intended as a general overview and shouldn't be a substitute for professional guidance.
Additional Resources:
- The Law Society of England and Wales: Find a solicitor in your area: https://www.lawsociety.org.uk/en
Remember:
Although direct compensation claims might be limited for guarantors, supporting the borrower's mis-selling claim and seeking legal advice can significantly improve your chances of minimizing financial losses.
