The guarantor position
A guarantor is a joint legal borrower in most guarantor loan contracts. You are not just a "backup" — you are equally liable from day one.
If the primary borrower stops paying, the lender turns to you for full payment. They do not need to try harder with the primary borrower first.
Missing payments will hit your credit file just as they would the primary borrower.
Guarantor loan mis-selling
Amigo Loans, TFS Loans, George Banco and other major guarantor loan providers have faced significant complaints and regulatory action for mis-selling.
Common grounds for complaint: inadequate affordability checks on the borrower or guarantor, unclear explanation of the guarantor's full liability, or lending to guarantors who were themselves in financial difficulty.
Complaint to the lender first, then Financial Ombudsman if not resolved. Successful claims can result in interest refunds and credit file removal.
If the borrower has already defaulted
You can be pursued for the full balance immediately once the borrower has defaulted. The lender has no obligation to keep pursuing them first.
You have some rights: you can pay the debt and then pursue the primary borrower yourself, or you can make a mis-selling complaint if grounds exist.
Debt solutions (DMP, IVA, DRO, bankruptcy) can include guarantor liability like any other unsecured debt.
What if you are the primary borrower
Your DRO, IVA or bankruptcy clears your liability for the loan. But it does not clear the guarantor's liability — the lender can still pursue them.
This is one of the difficult aspects of guarantor loans in insolvency: solving your own problem can create a new one for your guarantor.