As guarantor, am I consulted before the top up is paid?

A_Guarantor (1 year ago)

I am a guarantor of a loan for someone and they have been granted a top-up. Am I consulted before the top-up is added to the loan and given a chance to decline? Or is the top-up just added to the existing agreement?

FLM Loans (3 mths ago)

A top up is treated as a new loan and so they would need to go through the application process again. You would need to agree to stand as guarantor again and there is no way for a top up to be paid out with you as guarantor without your knowledge. 

Comments (2)

total (5 mths ago)

Can loan be increased without my permission as guarantor?

FLM Loans (5 mths ago)

Although the top-up is based on the applicants’ previous loan history, a top-up is considered a completely new loan. Before the top-up is paid out, you will have to sign the agreement form and the caseworker will need to speak to you to confirm your information. Once this is all done, the funds will be paid into your account like before. So no the loan increase / top up cannot be paid out without your permission.


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