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Warning after mum risked house for son’s car debt

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 –…

You can read our case note for this complaint here –