In today’s challenging economic times if there is one thing that you need to understand, and make peace with, it is the fact that anybody can have a sudden need of money. If you are in need for money and banks are refusing your loan application due to low credit score or low income, you need not fret anymore. You can opt for a loan with a guarantor. Such loans are also known as guarantor loans.
These loans are fast and easy and can be disbursed within 48 hours of approval. These are hassle free as there are no credit checks made on the borrower. In addition, the borrower does not need to submit his or her wage slips or bank statements.
The reason why banks are generously giving out these loans is that these loans are backed by guarantors. These guarantors are friends or relatives of the borrower who agree to give a written guarantee to repay the loan in case of a default by the borrower. The guarantor should be someone with a good credit rating and a steady income. In some cases, they are required to own property.
The popularity of these loans is on the rise in UK as the number of people with low credit scores who are seeking loans is rising steadily. Since the risk of default is borne by the guarantor, the banks have no problem in liberally doling out these loans to people.
Another advantage of guarantor loans is that these typically have a larger lending capacity than payday loans as the income of the borrower is not checked.
You can apply for these loans online. You need to mention how much you intend to borrow and for how long you intend to borrow.
An add-on cover that is generally sold along with such unsecured financial loans is PPI or Payment Protection Insurance. This covers the repayment of the loan in case the borrower becomes redundant and is not able to make payments due to loss of income earning capacity. This could be due to illness, accident or disability. Though the PPI or Payment Protection Insurance cover may be useful for some, many a times this cover is added to the loan with the knowledge of the borrower.
The borrower ends up paying an additional cost for this cover with the right knowledge about it. In such cases, the borrower has the right to claim a PPI refund from the lender.
If you suspect that you have been mis sold a payment protection insurance cover or PPI do not shy away from filing a claim to recover your hard-earned money.
The claim procedure is simple and easy to understand and follow. You could file the claim or your own or take help from Claim Management Companies also known as CMCs.
These CMCs may charge you an upfront fee for their service. Some of these companies offer a no-win-no-fee arrangement wherein they charge you a predefined percentage as compensation that is charged only if you win your claim.
If you wish to file the claim on your own, the process is simple and straightforward. The first step is to write to the bank or the lender about the case of mis sell making a claim for refund. The bank needs to respond within eight weeks of the claim. In case the bank fails to do so or if you are not satisfied with the bank’s final response, you can write to the Financial Ombudsman Service to intervene in the matter. The Financial Ombudsman Service then looks into your claim and gives the final decision.