Guarantor Scam

A guarantor is someone who agrees to repay a debt or meet an obligation if the primary borrower or tenant defaults. Guarantor scams exploit this legal arrangement by recruiting victims — often through romance fraud, friendship, or bogus employment schemes — to sign as guarantors for loans, rentals, or financial products on behalf of fraudsters who have no intention of making payments.

In some variants, the guarantor is deceived about what they are signing: they believe they are endorsing a character reference or completing a routine form rather than accepting legal financial liability. In others, they are pressured by someone they trust — a romantic partner, a 'friend' who has helped them financially — into agreeing 'just as a formality'.

The consequences are severe: when the primary borrower defaults — by design — the lender or landlord pursues the guarantor for the full outstanding amount, which may be substantial. Guarantors can find themselves with County Court Judgements, damaged credit histories, and debt collection action. Anyone asked to act as a guarantor for someone they do not know extremely well — or for a business opportunity — should seek independent legal advice before signing.