§ Mr. HunterTo ask the Parliamentary Secretary, Department for Constitutional Affairs, if he will take measures to ensure that no guarantor of a joint and several personal guarantee is able to default; and if he will make a statement. [124494]
§ Mr. LammyWe have no plans to introduce such measures. There is existing case law regulating the relationship between creditors, debtors and their guarantors. The House of Lords has ruled that banks (or a creditor in the same position) should inquire into the status and competence of an individual as guarantor. This is particularly so when the individual is guaranteeing the debts of their spouse or partner. This case applied to a single guarantee, but the principle would extend to joint guarantees.