Select Page


Claim a Guarantor Loan Refund

If you have previously had a guarantor loan that you struggled to repay you could get back £100’s or even £1,000’s in compensation. Some guarantor lenders are going into administration which means you should act now if you want to secure the maximum compensation payout you could be entitled to.

Home E Financial E Guarantor Loans

What is a guarantor loan?

Unlike payday loans, guarantor loans are much longer. Instead of just a month, guarantor loans are typically 12 months or longer and require a signature of a ‘guarantor’ who promises to repay the loan if you can’t.

Guarantor loans have less interest to pay than payday loans (59.7% APR compared to eye watering 1,250% for some payday lenders). Like payday loans, guarantor loans are approved within 24 hours and because they have a ‘guarantor’ they are targeted at people with poor credit history.
With a guarantor loan you can typically borrow anything between £1,000 to £7,500 over a period of 1 to 5 years.

How to check you had a guarantor loan

You can quickly check to see if you had a guarantor loan by following these simple steps.

Check your email

Search for the names of guarantor loan companies you think you may have used in the past. If you find any emails, search for keywords like ‘credit’, ‘loan’ and‘ statement’. If the company is emailing you statements of your account it’s proof you have a credit account with them.

Search your credit record

Use this free credit check tool to check your credit history for the last 6 years. See if any credit was ‘repaid’. Remember you can still get compensation from loans older than 6 years and even if the loan hasn’t been repaid in full, although it’s likely to be much less.

Check your bank statements

Looking through your old statements is often an easy way to find out if you had a loan. Don’t worry if you no longer have them, due to GDPR regulations you can request a copy by submitting a Subject Access Request (SAR) to the bank. Once you have them look for money going in and then money going out each month (a typical pattern for loan or credit facility).

Guarantor Loan Refund Calculator

You can quickly check to see how much you could be entitled to by using our loan refund calculator.

Try the calculator >

The guarantor lenders we can claim against

These are the current lenders we are accepting claims for. When you apply you can also select multiple lenders if you had credit or loan from more than one company.


This lender is in a scheme of arrangement but you can still claim with us, just click the button below.

Visit lender page ›


Bamboo provides guarantor loans from £1,000 to £8000 from 1 to 5 years with a max APR of 69.90%.

Visit lender page ›

George Banco

This lender is currently in a managed run-off in order to close down the business. See FAQs here

Visit lender page ›


1Plus1 provides guarantor loans from £1,000 to £10,000 from 2 to 5 years with a max APR of 47.80%.

Visit lender page ›


TrustTwo provides guarantor loans from £500 to £10,000 from 2 to 5 years with a max APR of 49.70%.

Visit lender page ›

Checking you have a valid claim

If you can relate to any of the below you may have claim:


Fees or charges not clear?

When you took out your guarantor loan were the charges and associated fees made absolutely clear to you?


Unable to pay bills?

Your payments for the guarantor loan were so large that you struggled to pay for your monthly essentials like bills or mortgage payments.


Rolling over credit?

You had to take out a further guarantor loan to pay the initial one back, supporting unaffordability.


Lenders taking automatic payments?

Did the guarantor loan company take automatic payments from your account without telling you that put you in financial difficulty to pay other essentials.


Encouraged to borrow further?

Did the guarantor loan company advertise ‘good customer’ offers that promoted regular use and the ability to get better deals the more you borrow?


Unfair lending

Despite clearly not being able to pay the first loan back, did your guarantor loan lender continue to offer more through debt consolidation?

If you can relate to any of these points you may have claim and should complete our 5 minute form now:

The Legal View

“Rules imposed by the Financial Conduct Authority mean any firm offering credit has an obligation to check your financial situation to make sure you could afford the credit they were providing, before giving it to you.”

Key Fact

The Financial Ombudsman Service (FOS) reviews complaints made about firms by checking if their terms and conditions were applied fairly – and whether any charges were clearly explained.

The evidence you need

All you have to do is show that your guarantor loan company acted ‘irresponsibly’ in providing you with a loan that could not be repaid without ‘undue difficulty’. Get a list of all your guarantor loans together and then write down how much you earned each week or month. After that, detail all your expenses like rent and utility bills (electricity, gas and water) as well as council tax, broadband, mobile phone, car and home insurance, grocery, clothing, childcare, other debts and outgoings. Finally, write a letter to each lender including this information explaining that your loan was unaffordable and ask for a refund.

But don’t worry if this sounds daunting, we do all this for you. Claim online by filling out our form and let our experienced claims team handle the headache and hassle for you.

Did you know?

On average, the uphold rate for guarantor loan redress claims is 68%.

Common questions

What else can I claim for?

You can request from the lender to remove any ‘black marks’ or poor payment records’ from your credit report. The lender has to instruct the credit reference agency directly so you have to go through the lender first.

Can borrowers & guarantors claim?

Absolutely. Remember that the guarantor can only claim for issues that impacted them as the guarantor. Likewise the borrower can only claim for issues that impacted them as the borrower. The guarantor couldn’t claim for interest and charges related to the borrower unless they paid them, likewise the borrower couldn’t claim grounds for compensation regarding how the guarantor was treated.

Doesn’t the FSCS cover lenders?

Guarantor loan companies are not covered by the industry safety net provided by the FSCS which means your payout is dependent on the Administrator and not dictated by the industry. So far no guarantor lenders have gone into administration but that doesn’t mean they won’t so it’s wise to get your claim in now.

Can I claim if the lender has gone into administration?

Yes you can but your payout amount is solely determined by how much money is left over and how many creditors want a share.

Should I stop repayments if my lender goes bust?

No, it’s not wise to stop paying any loan repayments unless told to do so by the administrator. Missing payments could just increase your fees and charges further and also adversely affect your credit rating.

Will my guarantor be affected?

No, your guarantor will not be told you have made a complaint unless they have made payments themselves. If you still have a loan and you continue to make repayments, it won’t affect your guarantor in any way.

What happens if I win?

It is likely that you will only have to repay what you borrowed, your guarantor will be released from the loan and you will also get a refund on the interest you paid on the loan. If you have a balance outstanding, it’s likely you’ll only have to repay the loan at a lower interest rate.

How many years can I claim for?

The Financial Ombudsman Service states you have 6 years after the loan was issued or 3 years from ‘when you were first made aware’ you could claim, whichever is longer. This means you have a good chance of claiming loans older than 6 years if you weren’t aware you could claim. We have some claims dating back to 2010, but don’t delay, start your claim today.

Read more FAQs >

Typical claim payout

The FOS says the payout is dependent on how much trouble and upset was caused by being mis-sold or treated unfairly. It also takes into consideration where you would be now if you had been treated correctly from the start. The refund is calculated by adding up all your loan interest as well as any fees and charges. Your original loan will not be refunded and if you haven’t paid it back yet, the balance owed will be taken from any refund you get. On top of your refund you’ll also get interest which is a statutory 8% for every year you had the loan.

Example Calculation

“If you had a £1,000 refund in fee, charges and interest you would also get £1,000 x 8% = £80 x 4 years = £320. That means in total including compensation you would get £1,320”

Don’t Delay. Check Now.

Don’t miss out on £100’s or even £1,000’s in compensation you could be entitled to. Checking only takes 5 minutes, so why not do it now?

You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service for free. Claims Bible does not charge you for our service, we may be paid a fee by the final supplier for any introductions. This will not impact on any costs incurred by you.