Failed Lender TFS Fined For Flawed Guarantor Checks

By Ronan Barnard (June 10, 2022, 12:51 PM BST) -- The finance watchdog said Friday that it has fined an insolvent guarantor loan company £811,900 ($1 million) for not checking whether guarantors for consumer loans could afford to pay if the borrowers they vouched for failed to pay their debt.

The Financial Conduct Authority fined TFS Loans Ltd., a British consumer credit company now in administration, for deficient affordability checks on more than 3,000 guarantors between November 2015 and April 2018. Some guarantors, who were often family members or friends of the customers who took out the loans, were called upon to pay when the clients failed to pay their debts,...

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