A woman who put her house in jeopardy over her son’s car loan has prompted a warning to make sure you know what you are getting into if you agree to guarantee a loan.
Financial Services Complaints Ltd (FSCL), an external dispute resolution provider for finance firms, dealt with a case in which a woman took out a $4000 loan from a finance company, secured by her car and house.
Her son also took a loan from the company.
Two years later, his loan was $4000 in arrears when the finance company agreed to refinance it and give him another $1000.
Read Susan Edmunds’ article about our case study here – http://www.stuff.co.nz/business/92400824/warning-after-mum-risked-house-…
You can read our case note for this complaint here – http://www.fscl.org.nz/case-studies/big-short-term-loan