If I miss a payment will you take it straight from my guarantor?

matt1 (1 year ago)

If I miss a payment will the money be immediately taken from my guarantors account, or will a second attempt be made from my account before my gaurantor is informed?

FLM Loans (10 mths ago)

We only ever attempt to take the payment from the guarantor as a last resort. If an applicant’s direct debit bounces back we will attempt to take the payment from the applicants debit card. Once all payment options have failed for the applicant we will then have to take the payment from the guarantors debit card, as agreed with all parties when the loan is paid out.

The reason we do this is for the benefit of all customers. You won't get any late payments charges or negative impact on your credit file and it won't effect your guarantors credit history. Also, as a community lender we lend out what we receive back from monthly repayments, by collecting the payment on time we're not preventing a new customer from getting the financial help they need from us. The same as you did when we paid out your loan.

 

You and your guarantor need to ensure that all of your bank and card details are up to date and correct. If for example either of your cards have expired we will not be able to take that payment.

Comments (8)

Cheryl (1 year ago)

If this happens do all future payments default to the guarantor or will you carry on taking future payment from the loan applicant?

FLM Loans (1 year ago)

Hi Cheryl,

We will continue to take future payments from the loan applicant. If the payment is not successful we will again take the payment from your guarantors debit/credit card as agreed in the verbal contract.

TJ_123 (12 mths ago)

Will you contact the guarantor before taking the payment?

FLM Loans (12 mths ago)

We will normally text both yourself and your guarantor to let you both know that the payment is late and that we will be shortly attempting to collect a payment from your guarantor.

tamara (10 mths ago)

so what if you cant get the money from the guarantor say for instance if their card is out of date how would you collect the money?

FLM Loans (10 mths ago)

Hi tamara,

In the case that the applicant is unable to pay and the guarantor doesn't have up-to-date bank details on the account, we will contact both of you by text, email, and later on by telephone to remind you of your payment in order to prevent any Late Payment Charge. At this stage, either of you can make the payment manually by card or PayPoint and need to update your bank details online. Before you make the payment successfully, our system will keep trying to collect the payment from both of you through your added payment methods.

Also, we will always contact you when your bank details are invalid or are about to expire to make sure that you always have valid payment details on our system as this is part of our agreement before the payout.

Hope this helps. Thanks.

EH12 (7 mths ago)

I have made 11 payments to date and would like to top up following my 12th. Some of my payments have come from my guarantor's account. Are these deemed as 'on time'? Willthis affect my ability to top up?

FLM Loans (7 mths ago)

Hi Edward,

I can confirm that you are still eligible to apply for a top up loan once your 12th payment has been made. You will only be ruled out if you receive a late payment charge, which is issued on the 4th day of arrears.

Regards,
FLM.


Tags: agreement, arrears, bounce, collections, fail, failed direct debit, failed payment, guarantor notification, guarantor payment, missed payment, missed repayment, responsibility