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Hendersons - Barristers' Chambers
Articles 16th May 2016

Changes to the protection of guarantors under regulated agreements

Changes to the protection of guarantors under regulated agreements: opportunities missed and problems created

This article by Thomas Evans  was first published in Butterworths’ Journal of International Banking and Finance Law.

The FCA has recently tightened up the protection afforded to guarantors under regulated credit and hire agreements. This article considers those changes and their broad consequences for the UK lending markets. It focuses on the conceptual and practical difficulties posed by two new requirements that a creditor should assess whether a guarantor can afford to offer his guarantee and that a creditor should treat him fairly.

This article forms part of an ongoing series being written by members of the Henderson Chambers Banking Finance and Consumer Credit group for the Butterworths’ Journal of International Banking and Finance Law.

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