This article relates to Amigo’s first Scheme, which was rejected in May 2021.
In December, Amigo published details of its proposed new Scheme. See Amigo’s new Scheme for the latest news.
Surprise, surprise, the new Scheme also gives no details about how many claims may be upheld.
In 24 March 2021, Amigo announced some feedback from the Financial Conduct Authority (FCA) on its proposed Scheme of Arrangement.
Full details have now been given – the FCA’s Letter of Concerns was published on 31 March 2022. This said:
the FCA considers that the Scheme … may not be compatible with the FCA’s rules, principles and strategic objectives. In particular, the FCA is concerned that:
(a) customers with valid redress claims stand to receive significantly less than the value of their claims; and
(b) the methodology for assessing claims does not produce outcomes with the same high standards of accuracy and fairness as would be available under the FCA’s usual framework of complaint handling rules for firms or through recourse to the Financial Ombudsman Service.
However although the FCA does not support the Scheme, it is not currently proposing to take regulatory action to stop the Scheme if it is approved in the voting and then by the Court.
In this article I am looking at the second of those FCA concerns – the question of how Amigo will decide whether to uphold or reject a claim from a customer.
How Amigo will assess claims
Every claim Amigo is sent will have to be assessed. If Amigo decides it is valid, it then has to calculate what the “potential redress” would be. People will then later receive a small percentage of this calculated amount.
Schedule 4 to Amigo’s Explanatory Statement sets out how Amigo will decide claims. But it is just a list of things Amigo will be taking into consideration… I am not sure how many people will read that and think they know what Amigo will decide in their case.
Take a couple of very typical situations:
- Mr A has had one loan from Amigo and has made all the payments on time. Many similar cases are being won at the Financial Ombudsman (FOS) because Amigo did not look closely enough at the borrower’s expenses.
- Ms B had a loan and a larger top-up from Amigo. Last year, Amigo only upheld the top-up loan when she complained, and then deducted an amount for “unpaid interest”. When FOS looked at this sort of case, they often said both loans were unaffordable.
I am unclear what Amigo plans to do with these very typical cases.
Often it isn’t the cash refund that matters
Which loans are upheld is very important – it doesn’t matter if people will get paid 3% or 30% if your complaint is rejected!
The top priority for most people with current loans is to get their guarantor released and the balance reduced or written off. Getting a small refund would be nice, but it isn’t the most important part of the redress.
And for any customers with missed payments or defaults on their credit record, getting them removed can be far more important than a bit of cash.
Customers can benefit from all these non-cash elements – guarantor being released, balance reductions, credit records corrected – if Amigo fails and goes into administration.
The Scheme may uphold fewer claims than in Administration
FOS has been upholding 88% of complaints about Amigo.
I know from seeing a lot of payday loan administrations that the administrators are pretty good at making the same sort of decisions that FOS does. The administrators uphold rates tend to be roughly the same as the decisions FOS made.
So the FCA’s statement that Amigo’s Scheme may not follow the same approach as the Ombudsman is worrying. Perhaps Amigo is expecting to reject a lot more complaints?
Amigo hasn’t given any numbers on what it expects its uphold rate will be in the Scheme. But it has said it expect that the percentage it may payout is could be about 10%.
The average Amigo refund was £5000, so 10% of that would be £500 which suggest they are expecting to uphold about 30,000 complaints. Not everyone will complain, but with about a million customers, that suggests to me that Amigo won’t uphold a large proportion of the claims they are sent.
Amigo has been saying that people will get more in the Scheme than in administration. But this is only true if Amigo upholds the same number claims that the administrators would…
If Amigo doesn’t follow the FOS approach and rejects more cases, these customers may be better off if the scheme does not go ahead and Amigo goes into administration.
Can you get an overdraft refund?
Amigo Scheme deductions & CCJs
Refunds from large loans and car finance
Emma says
It’s all very messy isn’t it? Can I ask what happens to claims that Amigo have not upheld that are currently with the Ombudsman? I’ve been waiting since last June to be allocated a case handler. Will it just be bounced back to Amigo? Thank you.
Sara (Debt Camel) says
If the Scheme goes ahead, the cases will be returned to Amigo to decide
If Amigo goes under, the cases will be returned to the administrators to handle
Is there a Plan B which isn’t administration? I have no idea what that could be,
Emma says
Thank you Sara, it’s been going on so long now. I thought my case was strong, Amigo didn’t agree. Just hoping to hear from a case handler soon, I think my case, like many many others, would usually be a definite victory against Amigo, I guess we’ll all have to just wait and see how this all pans out.
Valerie Anne Sarson says
Amigo are not giving any more final decisions until position with arrangement scheme known. Because people will get peanuts back under scheme people really do need to consider whether to agree to it. There is also the issue that they want to resume lending which to my mind is totally unjust.
It will take 2 years at least before you see any money and you will probably only get around 2 to 4p in pound at most. Money shop went into similar scheme 18 months ago just had letter so would have been due £6,700 in compensation but will only get £270. Amigo have more claims than money shop.
People really need to think about how they vote for all the messing around putting claim in and waiting for best part of 2 years to get peanuts back. Doesnt really sound like fair to all claimants arrangement!
Jason says
Your comment stating Amigo wanting to resume lending again is unjust, You are forgetting Amigo is under new management so the wrongdoings of the previous management therefore in my mind it is not unjust. A percentage of the profits made forms part of the settlements is my understanding therefore it is a benefit for those concerned for Amigo to resume lending.
Sara (Debt Camel) says
You are entitled to make up your opinion on how to vote.
But the new management… well it doesn’t seem to be behaving much better to me, see https://debtcamel.co.uk/amigo-unpaid-interest-remove-ccjs/
Peter says
I’m a guarantor and have made a years worth of payments. I’ve now stopped and the account is currently 2 payments behind. FOS advises Amigo in late December the should remove me as guarantor, which has been ignored. I’ve now stopped payments as I see that as just throwing my money away if my claim to be removed is successful and I only get a small amount back. Yet Amigo is now trying to ramp up the pressure by threatening a Letter Before Action and maybe a CCJ. I’m sticking to my guns and not paying anything further.
As a guarantor would they issue a CCJ claim? Or would that be just on the borrower? I would contest any CCJ anyway in the basis that FOS have already said I shouldn’t have approved as guarantor in the first place. Do you think this is the right strategy Sarah?
Sara (Debt Camel) says
When Amigo go to court, they usually sue both the borrower and the guarantor at the same time, so both end up with a CCJ.
But it is incredibly unlikely that they will go to court now:
– you have a complaint in. The FCAs rules say they should not go to court when someone is disputing the debt.
– there is no time to do this before the Scheme starts. First you have to be sent a Letter Before Action, then you can sit on that for 3 weeks and return it saying you are taking debt advice and want them to send you more documention. Then they cant start a court case until 30 days after they send you the documenation.
– if they did, as you say you could defend it and produce your FOS adjudicator decision.
So it ain’t going to happen. But Amigo manage to get money out of many people by issuing these threats they know they have no intention of carrying out.
I think you know the position and are adopting a sensible strategy.
Michelle says
Personally im past caring, the debt wrecked my credit score, messed with my mental health and affected my relationships I’ve spent years sorting myself out and clearing my debt and trying to repair my credit score, I’m happy to just move on with my life and if magically I get a payout then amazing but I’ve spent too many years stressing over it and I think that’s what they’re hoping for but my fight is gone now, my health is more important to me now
Janet says
Have to say I’m very disappointed in this reaction from the FCA. We’re one of the lucky ones as I managed to get a refund and my relative removed as a guarantor after a very stressful 12 month battle with Amigo. But I haven’t forgotten or forgiven them for the treatment we received. I did write to the FCA saying that, due to our experience, I believe they should not be able to monitor their own complaints under this new scheme. We have received an email from Amigo so it looks like we will get a vote at least but is there anything else I can do to prevent this scheme going ahead? Can I write to the court?
Sara (Debt Camel) says
yes you can write to the court. Email $ALLSchemeLtd@freshfields.com. It isn’t clear how much notice the court will take about what an individual customer says, but why not?
J says
Hi Sara,
I had a case with amigo last year, they upheld my 1st loan but didn’t uphold the 2 following this and both of these went to the Ombudsman, like everyone else I’ve heard nothing since amigo proposed a scheme. I still have an outstanding balance and over the last 6 months or so I’ve taken advantage of amigos scheme for covid to delay payments but last week they contacted me to say they’ve now lifted this, I didn’t want to pay the remaining balance as I feel if they go into this scheme I won’t get it back and I’m confident my case would win with fos but it sounds like it likely won’t go that way. Do you have any advice on what I should do or should I just pay it?
Sara (Debt Camel) says
how large is the remaining balance?
Do you know the numbers for laons 2 & 3? for each loan:
– how much you borrowed?
– if it was a top up, how much did you get in cash?
– how much have you paid in monthly payments eg 9 lots of £178
– how large the settlement amount for loan 1 was as I assume that was paid off loan 3?
J says
1st loan taken Jan 2016 for £1500, monthly repayments £92.72 x 10, then Nov 2016 I took a loan for £2000 (they used this to clear remaining balance from loan 1 and paid out the leftover), monthly repayments £97.58 x 4, then in March 2017 I took out loan 3 for £3000, again they paid off previous loan and paid out leftover, monthly payments were £128.33. September last year I had loan 1 upheld but they defended loan 2 and 3. Redress was £476.83 which they took off my remaining balance at the time of £1041. Current remaining balance is just under £600 as gained a little interest over the delayed covid period since September. I never missed any payments but I used to pay late all of the time and I used to change my payment date alot so amount of payments made are approximate but will be close. No payments made by guarantor
the terms of the loans when taken were: loan 1 – 24 months, loan 2 – 36 months, loan 3 – 48 months
Sean says
Possible scenerio if the scheme goes ahead: One is removed as a guarantor of loan that has already been paid out, the paid loan will come back as a debt.
Example:
– I am the guarantor
– They debtor failed to pay and I pay out a loan of £5000
– They remove me as guarantor and pay me a small redress of £200 as part of the scheme.
– They remove me as guarantor.
The debtor ends up with a £5000 debt. Amigo makes (£5000+interest) minus the small redress they pay to me.
This only a good reason to vote against the scheme unless they write the debt off.
Sara (Debt Camel) says
One is removed as a guarantor of loan that has already been paid out, the paid loan will come back as a debt.
No, that isn’t going to happen in this situation.
See point 4 of the Practice Statement Letter:
The Scheme will replicate the current redress regime of Amigo, except that, only for the limited purposes of the Scheme, there will be no Capital Revival. This will mean that no borrower will be worse off as a result of a redress payment being made to a guarantor under the Scheme.
shelley says
so i had 2 of these loans and thankfully managed to pay them ff in full years ago, what would you advise I do to put a claim in please? Thanks x
Sara (Debt Camel) says
You can’t put in a claim to the Scheme now, it won’t be up and running until late May.
Jenny Gelbman says
Did your guarantor make any payments? If yes, was the loan affordable to him or her? That’s the only way to assess if you can claim anything.
Sara (Debt Camel) says
That isn’t right! A lot of borrowers win these complaints at the Ombudsman when their guarantor didn’t pay anything at all.
Of course we don’t know how Amigo will decide whether to uphold these complaints….
Jack says
We now hve the abillity to vote when you log into your account.
Could you possibly breakdown in pro’s and con’s list. I’m stuck in deciding if it’s a good idea to vote yes or not.
Sara (Debt Camel) says
See https://debtcamel.co.uk/amigo-scheme-timetable-approval-how-work/ where I have listed things to think about.
Simon Martin says
Hi, I was a guarantor for a loan for a then friend, he defaulted and it was left for me to pay. At the time I was not in a position to pay the normal repayments so I defaulted, Amigo added a CCJ to my house that if sold they would recoup their money and I agreed a very small monthly repayment (£20) with a debt recovery company. I created a complaint case on the 22nd December 2020 which they did respond to on the 22nd January 2021 to advise of the “Scheme Arrangement” that they were proposing. The last email I received was 24th Feb supplying a generic response advising that Amigo were pursuing their Scheme of Arrangement. I have received an email today from Amigo asking to vote on the scheme. I have a few questions, should I vote yes? If I do I have read that if Amigo are successful I may receive 2-4p in the pound of what I am owed is that correct? Also should I continue to pay the debt recovery company?
Sara (Debt Camel) says
how much have you paid Amigo or the debt recovery company so far?
how large is the CCJ for?
This loan, was it always unaffordable for you from the time it was taken out?
Lee says
I have been smarting over the whole Amigo SOA situation. I figured out Gary Jennison’s email address and sent a polite email regarding my concerns not only my case but also the overall SOA proposal and the disappointment I feel about the non responsiveness to the emails I’ve sent to their complaints team. Didn’t expect to hear anything back but low and behold, got an email this afternoon from their customer service team acknowledging the email I sent to Gary (I’m not under any illusion he read it by the way, I’m sure there’s someone filtering his mailbox!) I got an apology and, although they didn’t acknowledge my concerns about the unpaid interest and not upholding the first three loans, they’ve raised a separate complaint about customer service.
I ended up ringing as well and spoke to a helpful account manager who put me through to a lady who’s part of a new team who address customers queries specifically about the SOA. Had a long chat and she’s escalating the concerns around errors Amigo have made with my business file etc back to the original investigator. I await the outcome of that! I’m not holding my breath but she promised me she’d call me back once she’s escalated. Can’t fault her customer service. I put challenge in around my concerns about unpaid interest, clearing the outstanding loan and before any SOA complaint is upheld which could see me out of pocket etc ultimately. Let’s see what occurs
Sara (Debt Camel) says
well done!
Mr Andy says
Hello
I had a bad 8 years after a split up in 2010 and my money problems spiralling all the time with a house and 3 kids to deal with any way I got a loan with Amigo seemed a good idea at the time to pay off a few things to keep others happy and leave myself a bit, so in Dec 2017 I took a £4000 loan with them and my Daughter is my Gurantor and was paying them back and realised it was not the best as I had other bills and dues pilling up again so I madly took out a top up loan to pay off the old one and again leave me with a bit to help with Xmas so in 2019 I took out a £4750 loan to pay off a balance of £3063 which left me with £1686 from the £4750 top up.
I have until April 2024 to pay @ £203 per month and not missed any payments after the promised to my daughter I would not and okay I am with a new partner now and I have been able to get back on track finances wise with help but omg what a battle it was but I have started the ball rolling with Resolver after reading Martin Lewis article in Dec.
I am now in the queue for a scheme or scam as I have read a few articles on it from your site.
What options do I have regarding this top up loan currently on and what about my old loan that’s paid off and I am also scared to vote the wrong way in case I get scammed or nothing back so if you can spare me a few minutes of your time Sara I would be grateful
Thank you
Sara (Debt Camel) says
as your finances have improved, the current repayments are affordable?
Mr Andy says
Hi,
Thank you for the swift reply, I can pay the £203 per month and not in a bad place and I have promised my daughter this as I know she cannot pay for me as she lost her job last year due to her place closing down and then lockdown kicked in and she as now got a job but her finances are not in good shape herself.
I will keep paying.
Mr Andy says
What would be the best way to vote yes or no for the scheme? I know you cannot advise this but I just wanted a breakdown of the pros and cons of either.
What will be the likely outcome of my old and top up loans on the yes or no vote been passed off in the way of refunds or balance reduced ?
I am new to this site and I did reply to your last reply but I do not know if it’s in a queue sorry.
Regards
Sara (Debt Camel) says
I am not quite clear about the top up loan.
A £4750 loan being repaid at £203 a month looks like a 4 year loan. Was it a typo to say it will end in 2024 – if it was taken in 2019 it should end in 2023?
Or have you had a 6 month payment break but are now back paying?
What matters for the outcome you may get in the SCheme or in administration is how many payments you have made to this last loan?
Mr Andy says
Hi
I took it out in Oct 2019 and yes I had a 6 month pay break from first lock down sorry I forgot about that and I am back paying at £203?and it does end April 2024.
The first original loan x £4000 was taken out Dec 01st 2017 and paid every month until Oct 2019 but I can’t remember the monthly payments then I made a final payment of £3063.62 from the second loan of £4750 leaving me £1686.38 to pay on the bills/Xmas.
Hope that helps
Gary says
I have a loan with amigos…..I am up to date with payments……I rang them today to change my number….I was asking the lady on other end about this scheme and I asked if amigos goes bankrupted what would happen with my loan…..all I got back was if another company brought amigo loan I would have to pay them……i think it wrong cause I had no dealing with this other company…..it not at my fault they went bankrupt……I had email about this scheme but don’t know if to agree to it or not….someone shed more light on it for me please
Sara (Debt Camel) says
Some people have been getting very odd messages talking to Amigo customer services.
If you say more about your situation I can be more clear about how the Scheme or Amigo going bankrupt (the legal term for that is administration) would affect you.
Is this your first loan from Amigo? How much did you borrow on this loan? How much have you paid to it so far? Is it difficult making the payments?
Gary says
I had 4500 loan last year I am pay 192 and odds every month…..it all up to date….I struggle some month but I pay it cause a very good friend is my guarantor who in the arms forces and don’t want to make him pay.
Sara (Debt Camel) says
was this your first loan with Amigo?
Gary brown says
Yes……I just after more info on it.
Sara (Debt Camel) says
So that was a 4 year loan. You won’t yet have paid back more than the £4500 you borrowed so this is what will happen if you make a complaint to the Scheme that the loan was unaffordable AND Amigo agrees with your complaint:
– the interest will be removed from the loan so in total you only have to repay £4500
– your guarantor will be released
– and you can arrange to pay the lower balance at a more affordable amount.
If the Scheme doesnt go ahead and Amigo goes into administration, then exactly the same would happen. You make a complaint to the administrators, if they agree with it your balance is reduced the same amount, your guarantor is released and you can pay at a lower rate.
You don’t gain anything from this Scheme at all.
In fact you may lose, if Amigo rejects your complaint as the administrators may be more likely to uphold it.
Administrators usually try to follow roughly what the ombudsman does. Amigo hasn’t given any details but it may be going to reject more complaints.
Gary brown says
So shall i agree to it or not..
Sara (Debt Camel) says
I can’t tell you which way to vote.
I have made some informed guesses about what might happen in the Scheme and in Administration. If you think the Scheme sounds better, you could vote Yes, if you think administration sounds better, vote No, or not vote at all if you can’t decide.
JN says
I was a guarantor for a person I taught I knew. This person passed away last year June and I found out from the dad that she was a con woman. She conned me out of thousand of money.. nearly 45k with her stories. I put my name down for 2 loans.. Amigo and Buddy. I complained to them once I heard from the dad about the lies and the way she conned me out of money. Spoke to Ombudsman.. they advised for me to complain to both.. which originally for declined. I was then asked for the dad to complain as she should not have been given the money. Dad complained to both.. Buddy loan cancelled but not Amigo. They call, threatening… I have just stopped to care as I have nearly £1000 loans every month to pay😫
Sara (Debt Camel) says
How much do you currently owe Amigo? On other loans? What is your current financial position – are you buying or renting?
JN says
I have .. taken money from people / family to clear it as I was denied a mortgage offer last year as I had a lot of debts to my name.
Sara (Debt Camel) says
Then I am afraid you will only get a tiny amount back in the scheme – even if Amigo upholds your complaint they say you may get 10% of your money back – I think it could be a lot less.
Jn says
I heard back from Ombudman and they have informed me that there is nothing they can do because of what I’d going on with Amigo. I have not made any payment as they should not have given out the payment. What are the next steps for me please?
Sara (Debt Camel) says
So when you say you “took money from family to clear it”, you meant clear your other debts? And you have not made any payments to Amigo – is that right?
JN says
Yes… other debts that I unfortunately took in my name for this lady
Sara (Debt Camel) says
so in that case you need to put in a claim to Amigo in the Scheme (or to the administrators if the scheme doesn’t go ahead, we will know more in a wek or so) saying the loan was unaffordable for the borrower AND you were conned into agreeing to be the guarantor as you were unaware of her financial position.
danny says
hi, hoping you can help me with some advice. my mum has a £10k amigo loan and has paid back £17k we had a complaint with the ombudsman for unaffordable lending however due to this scheme the ombudsman have said that she should vote for the scheme and submit the claim.
my concern is that as the loan was unaffordable and should not have been given we had hoped the fos ruling would uphold her complaint and write the remaining balance off- my mum does not want a pay out she just wants the loan written off as she has paid a significant amount of interest back- so my question is that if the scheme goes ahead and her claim is included and she received a small pay out would she still have to pay and continue with the loan? thanks
Sara (Debt Camel) says
I don’t think FOS said she should vote for the Scheme. It said if the Scheme goes ahead she can put a complaint into the Scheme.
If the Scheme goes ahead, she should definitely make a claim. If Amigo uphold this claim as she has repaid more than she borrowed, the balance would be cleared and she would get refunded a small percentage of the interest she has paid. Amigo say possibly 10%, I think it may be a lot less.
If the Scheme does not go ahead, she will be able to make the same claim to the administrators. If the administrators uphold the claim, she will have the balance written off but there would no cash refund,
As your mum just wants the balance written off, the question for your mum is, is her claim more likely to be upheld by Amigo (vote Yes) or by the administrators (vote No).
In my experience administrators usually try to do roughly what the ombudsman would do – and the ombudsamn was upholding 88% of Amigo complaints. Amigo may be planning or rejecting a lot more – it hasn’t given any useful information on how it will decide which complaints to uphold.
Danny says
Thank you for advising of the below this is very helpfull- and to confirm you are correct they did not say she should vote for the scheme this is my error, and it did say if the scheme goes ahea dshe can make a claim thanks.
Kirstie says
Hi Sara. You helped me in the past with my Amigo Complaint. Basically Amigo upheld my first and second to last loan but not my final or top ups inbetween. I declined their offer and took my claim to FCA. This was July and i only heard back last week saying they cant help because of the ‘Scheme’ court case with Amigo. Could you help me in understanding what happens now. Im still paying £300 per month. Will i ever get out of this mess? What will happen if amigo go under? Thank you
Sara (Debt Camel) says
If the Scheme goes ahead, you can make a Claim to the Scheme. Amigo will assess the claim and there will be an appeal possible to an external expert, but not to the Ombudsman.
Hopefully Amigo will uphold the last loan and possible more in the Scheme. Unfortunately they are still carrying on applying their unfair “unpaid interest deduction”, but provided the last loan is upheld at least your guarantor will be released.
If the Scheme doesn’t go ahead, you can make the same claim to the administrators.
What is your guarantor’s financial position? When the last loan was taken, could they really have afforded to make all the payments to the loan themselves and still pay their own debts, bills and everyday living expenses?
K says
Thank you for your reply. Will they still relook at my claim even though i declined their previous offer? My guarantor is unemployed on benefits. They dont even have the repayment amount to live off each month.
Sara (Debt Camel) says
Yes they should.
What was your guarantor’s financial position when the loan was taken out? And now, do they have their own debt problems?
K says
Hi. They were on benefits throughout but have no unmanaged debts. They havent paid one payment, its all been me but ive had to move out my home (rented) and live with family because this Amigo payment is just too much.
Sara (Debt Camel) says
If they were on benefits then it is very likely the loan would have been unaffordable for them. They too should make a claim in the Scheme. Could you explain this to them and get them to cancel their direct debit and any continuous payment authority to Amigo? So you could stop paying or pay less until your claim is decided – which may not be for many months?
K says
Hi yes, i didnt know that was an option. If i approach them with a deducted pay amount would that affect my credit? Thanks
Sara (Debt Camel) says
It will affect your credit but
A) any negative marks will be removed if you win your case
And
B) it cannot affect your guarantor’s credit as the Amigo debt does not appear on their credit record.
Amigo may threaten court but it has said it will not start legal proceedings until a complaint has been decided in the Scheme.
You have to tell them you are paying less, not ask them, as they are very difficult to deal with.
K says
Thanks Sara. Im very scared to do this as I have really fought to build my credit these last few years. I would love to get a mortgage soon in the future. If i told them of the lower payments which resulted in my credit score being affected and then i lost against them in my claim in the scheme. Wouldnt my credit stay negative. Hope that makes sense? Technically the loan is now affordable that im living with family. Obviously this is only short term and at the time of taking out the loan it was not affordable. What are my chances of them admitting there werr irresponsible? Sorry for all the question. Thanks again for all your help
Sara (Debt Camel) says
If the payments are now affordable you can just carry on making them. If you win a claim in the Scheme any interest payments you have made (and that could be all of them) in the Scheme will be refunded in full. I assumed from you wanting to pay less that the payments weren’t manageable.
What is a bad move is to struggle to pay Amigo and because of that run up more expensive debt elsewhere. But if you dont Have to do this then you can just pay and hope you win your claim.
K says
Thank you. I shall keep paying and see what happens. Fingers crossed we get some idea of whats happening soon. Last question, do you have an idea of when the decision should be finalised? Thank you
Sara (Debt Camel) says
The decision on the Scheme? The second court hearing is next week on the 19th
N says
Hi Sara, I agreed to be a guarantor for my partner at the time in 2015, who coerced me into it on the basis they would be able to clear the debt without any financial help from me. Predictably within a few months of taking out the loan, I started having to cover the payments. I agreed to a top-up loan on the basis it would assist him in clearing his other outstanding debts. To cut a long story short, I stopped paying the payments as he agreed to pay them, when he failed to pay them and I was not prepared to pay them any more, Amigo applied for a CCJ against both of us and I now have a Property Charging Order against my mortgaged property just in my name. I now pay a small monthly amount to Amigo to bring down the outstanding balance. I am disappointed in myself on a number of levels, but the worst part is that I never thought to complain to Amigo or the FOS. I have now put in a complaint a few months ago and have received the standard letter. If my claim is upheld in either scenario, would I be able to get the Property Charging Order removed? Also, if Amigo go into Administration and my claim is not upheld, what happens to the Property Charging Order? One other thing, based on the situation that I have put in a complaint, can I now stop paying the monthly amount until the outcome of the Scheme/Administration?
Sara (Debt Camel) says
If Amigo uphold the complaint, they would have to remove the charging order – as you wouldn’t owe anything. They have said they won’t remove CCJs – which is extremely petty of them as other lenders would do this. But you will be able to apply for the CCJ to be set aside your self, but this will cost you money – come back and talk about this if your claim is upheld?
If Amigo go into administration, you make a claim to the administrators. If it is rejected, then the charging order continues and it is likely the debt would be sold to a debt purchaser.
I don’t suggest you stop paying the small monthly amount if it is affordable.
N says
Thank you very much, you have been very helpful.
Cj says
Is it worth making complaint now to amigo I’ve only had one loan of 4000 overall payable 9500.at the time had numerous payday loans and horrific overdraft . So at time was not affordable .
Sara (Debt Camel) says
yes it is worth a complaint if you know that making the repayments caused you a lot of problems.
Do you still owe a balance on this?
Cj says
3600 had the loan since jan 20
Sara (Debt Camel) says
so are you managing the current payments ok?
what about your guarantor – would they really have been able to afford to make all the payments to this loan and still been able to pay their own debts, bills and living expenses?
Cj says
I am managing just now it’s hard my guarantor can afford easily but he in his 70s and not best of health now and not fair to ask him to pay or go through all the trouble of phone calls etc still have 43 payments left so amount left plus interest
Louise Gaffney says
I am the same. But still paying the 195 month balance. I find them a terrible company to deal with but am not good with this type of thing.
Sara (Debt Camel) says
I am turning comments off here. Please leave them on the latest Amigo news page: https://debtcamel.co.uk/amigo-new-scheme-2/