On 19 May 2021 the Sanction Hearing was held for Amigo’s proposed Scheme of Arrangement. On 24 May, judgment was given and the Scheme was rejected.
The Amigo Board says :
The Board is reviewing all options including an Appeal. A further update will be given in due course.
This article looks at the Scheme, the judgment and what may happen next.
The proposed Scheme
The Scheme was proposed by Amigo in December 2020 to cap the cost of paying refunds to borrowers and guarantors. Poor affordability checking meant it was losing 88% of cases at the Financial Ombudsman (FOS).
See Amigo seeks refuge from complaints for more details about the Scheme.
On 30 March 2021 the Convening Hearing approved the proposed voting arrangements.
More than 75,000 customers voted on the Scheme, with c. 95% in favour of it.
The FCA’s stance before the Sanction Hearing
On 23 March, before the Convening Hearing, the FCA wrote to Amigo expressing its concerns about the fairness of the proposed Scheme but said:
FCA does not anticipate direct engagement with the Court during the Scheme process, should it proceed (although the FCA reserves its right to do so).
But on 10 May, before the Sanction Hearing, the FCA again wrote to Amigo, saying:
the FCA considers that a fair compromise could have, but in this case has not been, proposed to Scheme Creditors to vote upon
and that it intended to oppose the Scheme in court:
“on the basis that the Court cannot be satisfied that the Scheme in its current form is fair”.
The arguments at the Sanction Hearing
The court heard arguments from Amigo and from the FCA. The following are my short summaries.
Amigo argued that:
- it would go into administration very shortly if the Scheme was not approved;
- a large majority of creditors voting wanted the Scheme to go ahead. It would be most unfortunate if the 74,000 creditors who had voted for the Scheme got nothing if Amigo went into administration;
- it did not know why the FCA had decided to raise objections at such a late stage as it had previously said it did not expect to appear at the second court hearing and nothing had changed;
- the FCA had not been specific about what would need to be changed for the FCA to think the Scheme was fair;
- it was not the court’s job to decide if the Scheme was the fairest possible but to decide to approve or reject the Scheme presented to it in the light of the creditor voting.
- creditors are usually the best judges of what is in their interest. FOS, a sophisticated creditor, had voted for the Scheme.
The judge asked why Amigo would have to go into administration very shortly as there was no immediate cash crunch. Amigo said a Board meeting held the previous week after receipt of the FCA’s letter had confirmed it would have to go into administration if the Scheme was not approved.
The judge asked why no assessment had been presented from Amigo’s expert advisers to explain why any other alternative Schemes would not be feasible. He said the court appeared to be being asked to make a decision with the sword of Damocles hanging over it with the threat of immediate administration.
The FCA argued that:
- the Scheme disproportionately benefited the shareholders despite them ranking behind the redress creditors in insolvency. The capping of the claims of the redress creditors was being used to recapitalise the company;
- Amigo had not attempted to quantify the benefits to shareholders, nor suggested why the terms of the offered profit share – 15% over four years – were reasonable;
- the share price had tripled since the announcement of the Scheme in December, suggesting a large shareholder gain from the Scheme;
- presenting the alternatives to customers as the Scheme or administration was a false choice as other Schemes were possible, including a debt for equity swap;
- Amigo customers were unlikely to be familiar with Schemes or restructuring, and unable to afford professional advice. So deference to the creditors voting may not be appropriate;
- Amigo had said shareholders would be unable to afford a rights issue as part of the restructuring, but this was contradicted by its statement that a rights issue would likely be used to finance further lending;
- Amigo is in a strong cash position to do a restructuring and to negotiate with the creditors to produce a scheme that is fairer;
- the FCA had changed its position to a certain extent but Amigo was overstating this. The FCA had reflected at a senior level and decided to attend court to oppose the Scheme.
The judge asked if it was the FCA’s view that administration was not likely if the court rejected the Scheme. The FCA agreed, saying that an extension of the moratorium on redress payments would mean Amigo did not have a cash flow crisis.
The judge asked why the FCA had not said what it thought would be fair. The FCA said that was not its role – if there had been negotiations with creditors a proper process would have been followed.
The judgment
This is a 33 page judgment. It is pretty readable to a non-lawyer, but as it is so long I will give some brief extracts, shown here in italics.
Some terminology:
- where it says the Company, ALL, AMSL or the Parent, you can think of this as being “Amigo”.
- Scheme Creditors are the customers who may make a claim and the Financial Ombudsman.
- “I” is the judge.
23 ALL’s unsecured creditors, including the Scheme Creditors, would not receive a dividend in an insolvency (although those Scheme Creditors who have outstanding balances as borrowers would benefit from insolvency set-off). Equally, the shareholders of ALL (and therefore the shareholders in the Parent) would receive nothing.
39 The level of the distribution to be made in relation to Ascertained Scheme Claims is currently anticipated to be approximately 10p in the pound, although this is dependent on a number of variables such as response and uphold rate, and the distribution may therefore be higher or lower.
my comment – I still consider 10% to be unrealistically highunless either there is a surprisingly low number of claims made or Amigo rejects complaints about a large number of loans where the Ombudsman would have upheld them.
40 The estimated value of the Future Business Contribution is set out in a confidential exhibit to Mr Jennison’s witness statement… There is no need to set out the contents of the exhibit here, but I record that the Company’s forecast total Future Business Contribution is materially lower than the amount of Initial Contribution.
my comment – so 15% of profit over next four years is expected to add up to a lot less than £15m.
46 The Company did however fairly point out that the FCA’s decision to oppose the Scheme came very late in the process… it argued that the FCA appears simply to have changed its mind, but has not explained why.
47 the Company had limited time to answer the FCA’s evidence. I shall bear that in mind, but I also note that the Company did not ask to adjourn the sanction hearing and served further evidence from its directors…. the Company said that the unexplained change of mind by the FCA suggested that the objections should be treated with some caution. The FCA did not apparently consider at the date of the convening hearing that the Scheme was so flawed as to invite opposition and the Scheme has not changed since then. Again I bear this in mind, but it seems to me that in the end I have to consider the FCA’s objections on their merits.
70 Much of the FCA’s concerns about the Scheme stem from the respective positions of the Scheme Creditors and shareholders; and whether the Scheme Creditors are being treated fairly in being required to suffer a 90% haircut while the shareholders retain their economic interest in the Group.
74 The FCA says that the dramatic rise in the share price since the announcement [of the Scheme] … suggests strongly that the market regards the Scheme as (so to speak) shifting value from the unsecured creditors to the shareholders. In other words, the promoting of the Scheme itself has generated shareholder value. I consider that there is real force in these points.
86 The FCA has agreed since December 2020 (when the intention to promote a scheme was announced) to an informal moratorium on the payment of redress claims. The FCA’s Counsel confirmed during the hearing that were the court to refuse to sanction the Scheme but the Group wished to consider and promote another restructuring scheme or plan the FCA would agree to the continuation of the existing moratorium.
My comment – it is interesting that the FCA says it has agreed to this “informal moratorium”. Is this a DISP waiver?
95 Any further restructuring proposals would build on the existing ones. I do not see why a further restructuring would take as long as six months. For similar reasons I am unable to accept the suggestion that the further costs would be or approach £15m (a figure anyway not supported by any evidence).
97 The evidence adduced by the Company has failed to persuade me that the most likely alternative to this Scheme is the imminent collapse of Amigo into insolvency. I agree with the FCA that there is nothing in the evidence to suggest any imminent cashflow event that would force Amigo into insolvency.
105 it is very unlikely that [Amigo customers] will have any knowledge or experience of schemes of arrangement or corporate reorganisations. These are esoteric processes unknown to most people outside the financial world, let alone people with low financial literacy.
107 The FCA does not suggest that the provision of advice to creditors is a precondition for a scheme to be sanctioned, even in a case involving financially unsophisticated consumers. That must be right and each case turns on its own facts. But I consider nonetheless that there is force in the FCA’s observation that this is a relevant consideration when the court comes to assess the weight to be given to the casting of votes at the Creditors’ Meeting.
133 The Redress Creditors would also have very little grasp of the usual range of outcomes available to distressed companies seeking to recapitalise themselves. They are unlikely to have understood that the choice was not necessarily the binary one presented – it’s this Scheme or nothing.
134 There was nothing [in the Explanatory Statement] to explain why the directors of the Company were proposing that the shareholders should (subject to the contributions of ALL to the Scheme Fund) retain the whole of their interest in the Group while the Scheme Creditors should accept a 90% haircut. There is no material or analysis to explain why the directors were saying that this outcome was in the best interests of the Scheme Creditors (as expressly represented by the Explanatory Statement).
138 I have therefore concluded that, given the limited financial sophistication and literacy of the constituency of Redress Creditors, the Explanatory Statement was insufficient to inform them about the Scheme and the realistic alternatives to it. Scheme Creditors were therefore not properly consulted for the purposes of the Creditors’ Meeting. The information was not sufficiently full or accurate to enable the constituency of Scheme Creditors to form a reasonable judgment on whether or not the Scheme was in their interests. This itself means that the court is most unlikely to be able to place any reliance on, or give effect to, the affirmative vote at the Creditors’ Meeting (see Sunbird at [58] and the cases cited therein). This conclusion is reinforced by the other features listed above: the Scheme Creditors lacked any advice; there was no steering group; there was no negotiation; and the turnout at the meeting was less than 9% by number. In all these circumstances I am not persuaded that I can properly place any reliance on the vote at the Creditors’ Meeting or give effect to it. [my bold]
142. I am not satisfied that the court should sanction the Scheme… Some form of restructuring of the Group is clearly desirable and indeed needed. But the question is whether, in all the circumstances, this Scheme should be approved. As explained above, I have accepted the submissions of the FCA that the Redress Creditors lacked the necessary information or experience to enable them properly to appreciate the alternative options reasonably available to them; or to understand the basis on which they were being asked by Amigo to sacrifice the great bulk of their redress claims, while the Amigo shareholders were to be allowed to retain their stake.
143. I have also accepted the FCA’s submission that the court’s refusal to sanction the Scheme will probably not lead to the imminent insolvency of the Group; there is no evidence of any immediate (or even medium-term) liquidity crunch, and the directors will doubtless wish, if possible, to preserve the value of the enterprise for its various stakeholders. The FCA expects the directors to continue to explore and promote a restructuring which fairly allocates the benefits and losses among the various stakeholders. I agree with that, and would urge the directors to continue their efforts to promote a suitable restructuring. [my bold]
What happens next?
The Amigo Board is considering its options. These would seem to be:
- to Appeal the judgment.
- to enter administration as they said they would if the Scheme was not approved by the court.
- to set about negotiating a revised Scheme – Scheme 2.0 – which would be fairer to the customers.
- some other company restructuring.
The FCA has issued a statement saying:
The FCA believes that Amigo can propose a fairer Scheme to customers. It should also ensure that its customers are fairly represented and advised on alternative proposals for a scheme.
Options 3 &4 would take some months. I suggest the FCA should urgently consider the position of customers during this period.
The FCA statement originally said that customers can take complaints to the Financial Ombudsman if Amigo has not handled them fairly – but FOS has paused all Amigo complaint handling. The statement has now been corrected.
The FCA needs to consider if the temporary moratorium on redress payments it has agreed to should be two-way, with Amigo agreeing not to demand payments from borrowers or guarantors where a complaint has been started.
This legal article Back to the drawing board for Amigo points out the possible implications for other Schemes, with Provident’s court hearing to sanction its proposed Scheme due to take place on 30 July 2021.
UPDATES
In December 2021, Amigo published its proposals for a new Scheme.
See Amigo’s second Scheme for articles on this new Scheme.
Justin says
This is finally a promising step on closing the door on Amigo AND all other such schemes that loan companies try and take to stay afloat whilst protecting profits from other parts of the business and continuing to protect shareholders who have only made their money from this mis selling and unaffordable and irresponsible lending. Long may it continue! They just now need to do step No.2 as they said they would and honour their words as I’m unsure what there is to consider.
Nazia Bibi says
Hi sara so the court has rejected the scheme so what happens to the complaints that are with the fos also are we still supposed to be making payments on our loans as my payment is due in 2 days
Sara (Debt Camel) says
I think we may have to wait a few days to have much idea about what happens next.
From what you said before you have paid more than what you borrowed? If you need to stop paying, you have to explain to your guarantor so they can cancel their direct debit to Amigo and also phone their bank to cancel a continuous payment authority on their debt or credit card.
Cancelling your payment will harm your credit record but not your guarantor’s – the Amigo loan does not show on a guarantor’s credit report. Amigo may threaten to go to court for a CCJ but this is a long process and it isn’t going to start this now.
You could talk to National Debtline on 0808 808 4000 about cancelling your payment – they know about affordability complaints..
Suzanne Graham says
This is good news! I still haven’t paid them a penny since Jan 21 and I have no intention too either. Not heard a peep out of them!
Mandi Andrews says
Oh really I was thinking of cancel my DD With THEM .
Sara (Debt Camel) says
See my comment to Nazia above.
Suzanne Graham says
Yeah, make sure you cancel and DD or Card payments set up for you and you guarantee. I have paid well over the amount owed, and until my complaint is resolved they won’t het anything more from me .
Mrs Nazia bibi says
Hi suzanne as you mentioned you havent made payments to amigos since jan have you had any texts or letters from them demanding payments
Suzanne says
Not a thing nor have they added anymore interest
DW says
Have just come off the phone to Amigo and these are the main points from the call.
1. They are looking to put a new scheme or something similar into place and there will still be NO offers made until the new scheme has been presented.
2. The complaints team member fully admitted that they are breaking FCA guidelines by not dealing with complaints in the interim period, even although they are in effect back to square one. With no scheme nor plans for a scheme in effect.
3. He could not verify any timescales for any action of any sort. Any requests from FOS will be dealt with within 4 weeks of receipt.
They have more than enough cash in the medium term and there is no reason that I can see to carry on withholding redress payments, I would think Provident might not be so sure of themselves after this decision.
Mal says
The FCA have approved that no redress is paid, the agreement that Amigo entered in Dec 2020 continues today.
This is a fact please refer to communications today.
Sara (Debt Camel) says
I have already put a link to the FCA statement in the article above.
But it isn’t clear what is happening…
Is this a DISP waiver? If so, why did Amigo withdraw its request for one. If it isn’t a DISP waiver, what is it?
And why has the FCA told customers they can take a complaint to FOS?
Louise says
So I’m a guarantor having to pay £406 a month as she stopped paying it?! What do u advice i do now. Struggling to pay it but worried it will affect my credit as I have a mortatge too? Will this go against my credit rating at all?
Also if amigo goes into administration would this mean that I wouldnt have to pay anymore?
Sara (Debt Camel) says
If a revised Scheme goes ahead, you can make a claim to that. If Amigo goes into administration you can make a claim there.
You said in a previous comment that Amigo had never contacted you when the borrower took top-up loans. In that case you have a simple complaint that you never consented to be the guarantor to the current loan.
You said you are getting deeper into debt each month trying to pay Amigo – that can’t go on or you may win your Amigo complaint and be left with impossible other debts… I think you should talk to a debt adviser about this. Phone National Debtline on 0808 808 4000.
This loan does not appear on your credit records. if you want to be sure, have a look. So if you stop paying that will not be recorded as a missed payment or a default.
The only way this loan can harm your credit record is if Amigo gets a CCJ. Going to court is a long process and Amigo are not going to do this while you have a complaint in that they have not decided.
Administration won’t wipe out borrower or guarantor obligations. But you would be able to make the same claim in administration and if it is upheld you would be released as guarantor.
Janet says
It’s very concerning to think that Amigo may try to stretch out the process of improving the scheme to avoid paying redress to customers and to continue receiving payments on possibly miss-sold loans. Although I have huge sympathy for customers who will probably not get the refunds that are due to them, I believe that Amigo going into administration would prevent many more people from falling into unaffordable debt. Are Amigo still taking on new loans? Is there any way that they can be prevented from lending to new customers until they have dealt with the complaints from existing customers?
Sara (Debt Camel) says
Are Amigo still taking on new loans?
No
Alice says
Hi I got a letter from amigo stating they are still looking into my complaint however they have advices me to take the complaint up with FOS what should I do . Also if amigo go into administration does that mean I am no longer guarantors to the loan my brother took out
Sara (Debt Camel) says
I don’t think FOS are taking Amigo complaints at the moment.
Is your brother paying the loan?
Alice says
No there is no contact from him I have not paid anything towards the loan waiting on amigo addressing the matter the complaint also addressing that I suffer menlth health deaf and dyslexia I only have enough money to keep myself on other person to depend on
Sara (Debt Camel) says
Sorry to hear about your health problems. You don’t need the added stress from this amigo situation.
Administration doesn’t automatically remove you as guarantor, but you will be able to make a claim to the administrators that you should not have been accepted as guarantor, in the same way you can make a claim if Amigo set up a differenert and more fair sort of Scheme.
Amigo can sometimes be very pushy to deal with which isn’t nice, but they aren’t going to take you to court whatever they threaten while you have a complaint outstanding.
Ms Suzanne says
Amigo have told me that the fca are not excepting new complaints. It has been ongoing since March and I havnt had a satisfactory outcome due to the proposed scheme. Is this correct?
Sara (Debt Camel) says
I think they probably mean the FOS (the financial ombudsman) is not accepting complaints.
Ms Suzanne L Hewitt says
Is it worth trying with the fca not fos?
Sara (Debt Camel) says
no – the FCA doesn’t look at individual complaints at all, that is FOS’s job.
Alan says
Hi Sara. Thanks for all the work you’re doing on this.
I have never lodged a complaint with Amigo but will be affected by any proposed scheme or insolvency event. I had a loan in 2017 which was topped up twice. I am 17 payments into a 60 month repayment term paying £355 per month and it seems like I could be paying this for some time before there is some sort of resolution to claims.
Forgive me if this has already been asked – can you recommend if new SARs and complaints should be submitted to Amigo at the moment?
Sara (Debt Camel) says
If you send Amigo a complaint now, they will ignore it :(
If a different Scheme (“Scheme 2.0”) is set up, then you can make a claim to that. If they go into administration you can make a claim to that. whatever happens going forward, as someone with a current loan you will be able to make an affordability complaint about it – at the moment it just isn’t clear what is going to happen.
Can you afford the monthly payments?
Alan says
Thanks. Due to my current financial circumstances I have a DMP through Stepchange where other debts receiving reduced payments. I also pay less into household bills than my partner. I have prioirtised the Amigo loan as I don’t want late payment charges, 60 months becoming 70 months or my guarantor being asked to pay.
Sara (Debt Camel) says
what is your guarantor’s financial situation?
Alan says
My guarantor couldn’t afford to make the repayments.
Lou says
Hi Sara,
I put in a complaint as guarantor in May 2020. FOS emailed 2 weeks ago confirming they wouldn’t be looking at any cases until a final decision on the scheme has been made (Amigo rejected my appeal last year) The borrower hasn’t made any payments to the loan in over a year – he actually only made the 1st & 2nd payments. Amigo intermittently chase me but I haven’t heard anything from them for weeks. The last email I had was them telling me they are now only contacting me and not the borrower, wouldn’t say why due to “data protection”. I previously completed my budget with them, they believe I have £100 spare per month (loan payments are £400) I replied saying I take that as they agree the loan was not affordable to me and so they should not have accepted me as guarantor without asking for evidence of my income and expenditure. They haven’t replied. I refuse to make any payments at all, however worry that Amigo don’t care because I have a mortgage and so they can just apply for an attachment order to my property? I’m guessing my only hope now is that Amigo do go bust and FOS side with me?? I know you said previously if Amigo’s scheme is approved they are not going to listen to anything the FOS says and will probably stand by all the rejections they’ve made?
Sara (Debt Camel) says
worry that Amigo don’t care because I have a mortgage and so they can just apply for an attachment order to my property?
They can only do that if they first go to court for a CCJ – and they won’t start a court case while you have an open complaint.
if Amigo’s scheme is approved they are not going to listen to anything the FOS says and will probably stand by all the rejections they’ve made?
I think I said that Amigo haven’t said they will try to do what FOS would have done. That doesn’t mean your claim would definitely be turned down by Amigo – especially as it sounds as though the loan repayments are unaffordable for you!
If Amigo go bust – we don’t yet know what will happen – you can put a claim into the administrators to be released as guarantor.
Lou says
Thanks Sara,
Amigo have threatened CCJ multiple times but I just say the same thing when I speak to them – they know my income and outgoings, I cannot physically make the payments.
Keeping everything crossed then because I think my best bet is for Amigo to go bust.
Roshan says
Hi Sara my name is roshan n I’m one of the amigo customer I’ve been paying my loans since last Two years and I’ve still left one more year and I’ve already paid more then what I’ve took from them now it’s their highly rate interest is left which I’m paying now so is there any help for not to pay the remaining interest so what happen if I don’t pay them will it be illegal against the law . Looking forward for ur reply n regular help
Sara (Debt Camel) says
Are the repayments affordable for you?
what is your guarantor’s financial situation?
Leonie williams says
Since the scheme had been rejected can I still put in a complaint I waited because amigo said to wait until the scheme was approved. Can you help on what I should do now
Sara (Debt Camel) says
You can send a complaint but Amigo are likely to ignore it. Do you have a current loan?
Leonie williams says
I do yes have a current loan with them im since going to send in my complaint any other suggestions on what I can do
Sara (Debt Camel) says
are the repayments affordable?
what was your guarantor’s financial position like when you took the current loan – could they have afforded to make all the repayments and still be able to pay their own debts, bills and living expenses?
Sharon says
Hi Sara,
Just logged into my clearscore account and noticed my old Amigo loan account has been removed very recently, do you have any idea why this might have happened please? I had an affordability complaint in July 2020 where they responded saying they couldn’t find my loan and I replied with the information. I then escalated to the FOS where my complaint is currently on hold due to the current situation.
Thanks as always x
Sara (Debt Camel) says
No idea!
Sharon says
No problem, just seemed a little strange that it’s just showed up with what’s going on in the last week and I wondered if the same had happened to anyone else.
Thanks x
Jan says
Can you answer a question for me please about Bankruptcy and money judgements.
Can a money judgement (CCJ) be included in a Bankruptcy or is it exempt?
Many Thanks
Jan Williams
Sara (Debt Camel) says
Hi Jan, yes a CCJ will be included in bankruptcy. See https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-explained/debts-that-bankruptcy-covers/ for a list of the debts included.
Bo says
Hi Sara I have an outstanding complaint against Amigo.
I am thinking now because the court has rejected the scheme. What would happen if I decided to stop paying them?
Sara (Debt Camel) says
Are you a borrower or a guarantor?
If you are a borrower, how large was the loan and how much have you paid them so far? Did you have previous loans?
Amy says
Hi, I put an affordability complaint in with Amigo about two months ago (didn’t realise at the time this scheme was going ahead) had quite a few rolling loans the past few years, the last one was £550 per month for 12 months. I never received a response and assumed this was due to the scheme, is this correct? Or should they still be investigating this? Am I best just waiting to see what happens next? Thanks
Sara (Debt Camel) says
yes they aren’t looking at any complaints at the moment :(
If a new version of the rejected Scheme goes ahead, you can send the claim to that.
Do you still owe a balance?
Amy says
Thanks for that. No they were all paid off in full etc just put a complaint in as I had about 6 on total without a break.
Des says
Hi,
What happens if I put a complaint through in March 2020, it’s been with the FOS and the upheld the complaint for all 3 of the loans a month prior the first hearing? What will be the case now? Will amigo deal with upheld complaints now or will I have to wait and carry on making monthly payments?
Sara (Debt Camel) says
Amigo hasn’t said what will happen. you shouldn’t assume that they will now accept FOS decisions though.
Would your guarantor be happy to cancel their payments if you stop oaying? Because it sounds as though you probably have a good claim to any future Scheme or to the administrators if they go bust.
Des says
Hi
My guarantor will only cancel any payments if it means his credit rating and finances will not be effected. He not longer owns the home he originally had at the time he agreed to be my guarantor.
The FOS upheld my complaint for all 3 loans (2 top ups). The very clever Amigo loans FOS team delayed responses for months because they were aware of the scheme and it was before it was made public knowledge. They thought all would go to plan and the customers who have suffered will carry on suffering. I’d hope that Amigo would have to deal with all claims upheld prior the first hearing. Once again they are being very limited on information (except that we have to carry on making payments to them).
Sara (Debt Camel) says
Your guarantor’s credit rating will not be affected if he doesn’t pay – the Amigo loan doesn’t appear on his credit records. He should check this if he is unsure.
He can only be affected if Amigo goes to court and gets a CCJ. That takes a long while and Amigo is not going to start this while there is an open complaint – especially where you have received a FOS adjudicator decision in your favour which they are ignoring!
Karl says
I had a loan some years ago with amigo which is now cleared, I have a current loan with amigo which I struggle to pay every month and sometimes have to borrow money from other sources to meet the monthly payment, I do this out of respect for my guarantor, I was definitely given the loan without them checking affordability etc, as I was 6 months in arrears with mortgage etc but was desperate at the time, I have emailed my complaint to amigo and had it acknowledged. I have maintained my payments and have probably paid back more than what I initially borrowed, big question…should I continue to pay as it stresses me out every month
Sara (Debt Camel) says
Being in mortgage arrears when you took out the loan should have been a huge red warning flag that the repayments would not be affordable – this sounds like a strong complaint.
As you have already repaid more than you borrowed, you could stop paying. If you win the claim in any new Scheme, the balance will be cleared and you may get a very small amount of cash back. If you carry on paying then you will effectively have wasted the payments you are making from here until the new Scheme starts, which could be months.
You would need to explain this to your guarantor who would also need to cancel their direct debit to Amigo and also phone up their bank and cancel any continuous payment authority over their debit or credit card.
Stopping paying will harm your credit record but any negative marks should be removed if your claim is upheld. It will not affect your guarantor’s credit record as the Amigo loan does not show on there.
Amigo may threaten court action but this isn’t going to happen while you have a complaint in.
Sara (Debt Camel) says
If Amigo goes into administration you will also be able to make a claim to the administrators.
Mario says
Hello,
I paid what i borrow.Still got interest to pay. Can i still complain about iresponsible lending? Who i should contact Amigos or go straith to FOS?
Thank you
Sara (Debt Camel) says
yes you can if you think the loan was unaffordable for you – you can’t afford to make the repayments and still pay your other debts, bills and living expenses. This is a test at the time you took the loan out… if you later had an income cut, that doesn’t mean the loan was unaffordable from the beginning.
if you complain now, Amigo will ignore it. You need to wait and see if they go for a new Scheme and claim to that, or claim to the administrators if they go under.
Mario says
Thats guarantor loan.Im borrower.Can i stop payments somehow? i cant afford that.And was in bad financial situation when i took loan.
Thank you
Sara (Debt Camel) says
If you stop paying it will hurt your credit record for a while – but the negative marks will be removed if you win your claim.
You will need to ask your guarantor to cancel their direct debit to Amigo and also phone their bank and stop an continous payment authority over their debit or credit card.
CAn you do this?
This will not hurt your guarantor’s credit record as the Amigo loan does not show on there.
Amigo may threaten going to court but they won’t do this if you have complained or made a claim.
Mike says
Do you think Amigo could commit a percentage of future profits until ALL mis-sold claimants are given their redress in full? Even if it took several years. They could then continue to operate under their new management team where the mis-selling of loans would no longer be applicable as they would/should have fixed the issue.
Sara (Debt Camel) says
I think if Amigo goes for a new Scheme they will have to look at ways customers can get more, hopefully some more up front and there may be some more more in future years. Of course there is no guarantee that Amigo will do well in future – it’s profits in the past were made by a significant degree of mis-selling.
Phil says
“Amigo can sometimes be very pushy to deal with which isn’t nice”
At what point does them being pushy, (as you describe it), become “criminal”, with my view being the way they are hassling me and guarantor amounts to harassment, especially due to the threats they are making against us, my guarantor sending me this message yesterday:
“I’m going to have to pay it. I can’t handle the stress”
With this being after we have both submitted complaints, pointed out that the way they are behaving is having a detrimental effect on both of our mental health and they have been written to by a debt advice organisation I have consulted that should have resulted in us being given 60 days “breathing space” to put a debt repayment plan together, with my understanding of the law being that by continuing to harass both me and my guarantor in the way they are constitutes harassment and possibly even demanding money with menaces.
I intend taking legal advice on this tomorrow and if this advise confirms my view that Amigo are acting criminally reporting their harassment and demands to the police…
Sara (Debt Camel) says
Which debt advice organisation? Is this a formal breathing space being set up for you?
If it is, then it will cover your side of the guarantor loan but unfortunately it will not stop Amigo from demanding payment from your guarantor… unless the guarantor also enters a breathing space.
This effectively makes the breathing space useless for guarantor loans. These are a horrible product that bars borrowers effectively from all forms of debt help if they want to protect their guarantor – and this isn’t explained to people before they take the loan.
ste says
Hi,
I had a loan of 10k for my wedding my father was the guarantor. When I started to fall behind with my loan I spoke with Amigo and put in a complaint but it was in Jan 2021 so after they stopped dealing with things. My father stepped in and paid the loan off for me as it was causing my mental health to suffer and not doesn’t speak to me because of the contact harassing they done to him to get the money just after my mother died. I don’t understand what to do next? I dont have an active loan, do I still have a complaint?
Sara (Debt Camel) says
What an expensive way to start a marriage – it’s a pity they didn’t do better checks and reject the application.
It is also a shame your dad paid off the loan as if he hadn’t he would have been removed as guarantor and interest would have been removed from the loan.
But you are where you are, so what Dan you do?
You can still complain without an active loan. If a revised Scheme goes ahead, if your complaint is upheld your dad would get a bit of money back – it would have been 10% or less in the proposed Scheme, hopefully it will be more in a more fair Scheme. The chances are you would get nothing back, but you would not be left owing any money AND your credit record would be cleaned, so this will be worth doing.
Jean says
Hi Sara I’ve had 1 Amigo loan which was paid off and now have a current one with my nephew as guarantor. Tbh I don’t understand what is happening with Amigo . I know it said on my app they weren’t taking any applications or Top up loans so they could concentrate on their current customers during the pandemic. I have been paying my loan religiously since the 1st payment I have paid over £2000+ more than I borrowed and still have £4000 left to pay . I genuinely don’t understand what I should do as I can’t put a financial burden on my nephew and don’t want to spoil my credit rating. Please could you explain what is the best course to take Ty
Sara (Debt Camel) says
Do you think the current loan is “unaffordable” – paying it each month leaves you short of money to pay your other debts, bills and living expenses.
Jean says
Hi Sara I’m afraid I still do not understand what this is about. Are We, as customers of Amigo, supposed to be making a claim due to the high 49.9 % interest on loans (rather like other payday loans) saying it is unfair as not affordable? Ty
Sara (Debt Camel) says
No, people are not complaining the interest rate is too much. You won’t win a complaint saying that.
People are complaining that the loan was unaffordable for them – they couldn’t make the repayments and still pay all their other debts, bills and expenses.
Amigo should have checked a loan was affordable for the borrowers AND for the guarantor. The guarantor has to be able to pay it out of income – just owning a house isn’t enough, they have to have the spare income each month to pay the Amigo loan.
But in too many cases Amigo did not check properly that the loan was affordable.
Then people can make an affordability complaint and if it is upheld, the interest is refunded (or removed from the loan if there is still a balance, so you only repay what you borrowed).
Jean says
Hi Sara ty for replying. When I applied for my loan , as I recall Amigo only asked me if my guarantor was willing to guarantee the loan and could afford to pay if I couldn’t. At the time of applying this was a verbal yes but no affordability criteria was checked by Amigo on the guarantor. I understandably do not want to put my guarantor in the position where Amigo would hound them for the payment so I continue to pay. Unfortunately, things have changed but can we put in a claim regardless even if I continue to pay ? Ty
Francis kearney says
Hi Sara
This isn’t a question more of an observation. 2 weeks since amigo had their scheme rejected. I for one was delighted by the decision. Just goes to show that they were lying to the creditors of the scheme all along, with threats of near instant administration.
They are still considering an appeal which would cost quite a bit in legal fees. More money wasted. In my opinion. which could have gone to redress. They are in a quandary now as their director shares have gone down the toilet.
It amazes me they are still being allowed to collect loan payments they should be handed to independent financial organisation, to hold until this fiasco has played out.
Ganesh Sittampalam says
The point the court made about set-off seems quite important – if in the end any outstanding legally owed payments could be set off against compensation owed, then making payments now is quite a big decision.
You might put in an amount (e.g £100), are entitled to receive it back as compensation but because of the haircut you only get £10 or less. Whereas if you don’t pay then it all gets wiped out, but you risk extra fees being added or any other action Amigo might take.
Sara (Debt Camel) says
Yes, this right of set-off will apply in any Scheme and also in administration if Amigo goes under.
Amigo doesn’t add on extra fees and its interest is capped at what you were quoted at the start. Stopping paying means your credit rating would be harmed, but the negative marks would be removed if you will your claim in the Scheme or in administration.
Of course a borrower will need to explain to their guarantor why they are stopping paying and the guarantor will also need to cancel their direct debit to Amigo and contact their bank to cancel the continuous payment authority over their debt or credit card.
Rose says
Hi sara
I have a current loan with them of 10k..and ive had 2 previous loans whicb are paid off.
I currently have a complaints which was passed to the fos last year in July but they hadn’t reached a decision due to the volume of complaints theyve had to deal with.
Im currently struggling with the repayments due to having to go on universal credit due to the pandemic..i was struggling before and now its worse..i constantly tell amigo that i cant afford the payments but they keep threatening me with late payment markers and default..i had deferred payments for 6 mths..but its really stressing me out now as for the last 6months ive had to borrow from friends and family..my current payments are 463 per mth over 3 years and the loan was taken out in July 2019..ive made 17 payments and have not been able pay my rent
At my wits end and don’t know what to do as i don’t want to let down my guarantor who cant afford the repayments
Sara (Debt Camel) says
I think in this situation you have to be very practical. You have no easy options. You have to choose the least bad.
If you are on UC and you have rent arrears they have to be your top priority. Nothing to your other debts – bother your credit rating, the protections against evictions are ending and if you don’t clear the arrears and keep up with future payments you will lose your home.
And even if you didn’t have rent arrears, there is no way you could pay a quarter of £463 a month when you are on UC.
It is going to take at least 3 months for a new Scheme to go though (that’s my guess) and after that it will take many more months before your claim is decided in the Scheme (or in administration – you have exactly the same rights in administration that you would in the Scheme, it is nothing to be worried about.)
You can’t continue to have the Amigo loan paid by your family for all that time. It is very kind of your family to be helping you but this help should go to clearing those rent arrears.
Of course you don’t want to let down your guarantor. But you need to explain the situation to them, say you can’t pay any more or you will lose your home, and suggest your guarantor cancels their direct debit to Amigo and also phones up their bank to cancel any continuous payment authority over their debit card.
This will NOT harm your guarantor’s credit rating – the Amigo loan does not show on there.
Amigo may threaten debt collectors, and being taken to court. At the moment this is just unpleasant bluffing. They know you have no money, they are not going to waste their money sending a debt collector round who anyway has no right to come into your house at all. And taking you or your guarantor to court is a long process – there is simply no time for Amigo to do this before a second Scheme or they go into administration. If they did – which they won’t – you have an excellent defence in court that the loan was unaffordable!
Rose says
Thank you..ive just tried to call amigo loans and their number is dead..any idea whats happening??
Sara (Debt Camel) says
what number did you call?
Anne says
Hello, your advice would be hugely appreciated
My daughter has unfortunately been involved in an Amigo loan as a guarantor in 2019. The individual who took out the loan is now in an IVA. My daughter‘a financial situation has since changed and she keeps getting correspondence from Amigo requesting her to start making payments, threatening her with this situation affecting her credit history.
She cannot afford to make these payments. Her mental health has hit rock bottom as a result.
Please could you advise. Should she lodge a complaint with Amigo and go through the process. Any help would be appreciated. Thanks
.
Sara (Debt Camel) says
What was your daughter’s financial situation at the start of this loan – at that point could she really have afforded to make all the payments to the Amigo loan and still paid her own debts, bills and living expenses?
What was the relationship between her and the borrower – friends? relatives? partners?
Anne says
Probably not in all honesty but she trusted her friend who promised that they would not default, to her detriment
Sara (Debt Camel) says
Then she has a good reason to make an affordability complaint. She can send this to Amigo now – email hello@amigoloans.co.uk with AFFORDABILTY COMPLAINT as the title and just say they did not check properly that her borrower could afford the loan nor that she could afford the loan. Ask to be removed as guarantor.
Amigo will ignore this. If a new Scheme goes ahead, she will have to submit a claim to that, or to the administrators if Amigo goes under.
But the purpose of sending a complaint now that will be ignored is so that she can reply to the emails from Amigo saying she cannot afford it now AND it was unaffordable when the loan was taken out, that she will not be making any payments until they consider her complaint.
Any payments she makes now will effectively be throwing away most of the money as if a new Scheme goes ahead it is most unlikely to refund the whole amount. As she can’t afford them, it is a very bad idea to have to borrow money or get behind on bills to pay a debt she is disputing.
Not paying will not affect her credit history – the Amigo loan does not appear on there. Amigo may threaten going to court for a CCJ which would appear on her credit record but this is just trying to bluff her into paying
a) the regulator says they shouldn’t do that when a debt is disputed (hence sening in that complaint now)
b) it take a long while to start a court case and even longer for ait to go through as she can just defend it saying she has a countercalim against Amigo and ask for the case to be stayed until Amigo decides her complaint
c) Amigo has said it will not go to court in the Scheme until a claim has been decided.
She can also ask her friend to submit a complaint. It won’t help the friend’s IVA get sorted any sooner but it would get your daughter released as guarantor if the friend’s complaint is upheld.
P says
Hi Sara
you raise an excellent point at the end of your article “I think the FCA should insist that customers who have made a complaint should not be required to make loan repayments in this situation.”
I’m sure it would bring everyone some comfort if they knew they had FCA backing to stop payments while their complaint is outstanding and could continue to be for many months to come
Thanks
Des says
I have made these comments to the FCA who will be passing it to the team dealing with Amigo. I was also advised to speak to the FOS as my complaint is upheld. The scheme they went to the courts with was rejected and therefore there is no scheme. All complaints should be dealt with until Amigo come up with another scheme or whatever they deem “appropriate”.
Basically we are at square 1 again and Amigo shouldn’t use this as an excuse not to deal with complaints appropriately.
Jim Campbell says
Any company that sets out with a requirement for a guarantor obviously thinks it’s clients will default. After 40 years in credit and risk, my belief is that Amigo used the guarantor request to keep their lenders happy. Anyone with any sense would know that chasing a guarantor for money is time and money consuming. It is used merely to embarras the debtor.
Now they will be looking for a debt collection company that is “persuasive”
If they got the basics wrong they should simply write the debts off.
Sara (Debt Camel) says
If they got the basics wrong and lent to someone who could not afford it, what will happen in the Scheme or administration is:
– interest is removed from the loan so the borrower only repays what they borrowed
– the guarantor is released
– the borrower can then make an arrangement to pay any remaining balance at an affordable rate with no interest added, or indeed can opt for insolvency if that suits them better.
Loans won’t be sold until claims have been resolved.
Nazia Bibi says
Hi sara so me and my guarantor have received a text from amigos today that a letter befor action will be sent if payment is not made and will get a ccj from court any news on the company as what is happening after the court rejrction cant keep making payments and knowing will jot get anything back i dont understand how can fca let them get away with not paying out redress and still threatening for coutr if payment is not made I’m only scared of my guarantor not for myself please can you advise
Sara (Debt Camel) says
Does this say a letter Before Action WILL be sent or MAY be sent?
Nazia Bibi says
Hi sara its says soon a letter before action may be sent for you and your guarantor
Sara (Debt Camel) says
yes, it is very carefully worded to sound worrying but actually doesn’t say they WILL do this, exactly the same wording was used in an email someone else was sent.
And even if they send you an LBA, you can reply asking for more information, this all takes time, and you can say you dispute the debt.
Getting an LBA doesn’t mean they WILL go to court.
I have not seen Amigo actually go to court when people have an affordability complaint in with them or with the Ombudsman.
Nazia Bibi says
Oh ok thankyou for the reply but how long is it going to take what amigos are going to do now as fos are not working on any claims and how can the fca allow amigos to take payments and not give refunds we are the ones suffering to make payments and my complaint with fos is on priority
Sara (Debt Camel) says
good questions :(
the only thing I can say is that it is unpleasant and aggressive of Amigo to use words that lead people to believe they are about to be taken to court when they are not… you now know this but what about all the other people, many of them vulnerable, who do not?
Nazia Bibi says
But my question is why are the fca not doing anything as the court has rejected the scheme made by amigos and amigos said if it was rejected they will go into administration and thats not happened so why are the fos not been givenca go ahead to start working on claims
Des Harris says
I had the following message from Amigo, I was asking why they can’t put my payments on hold as my complaint was upheld in February 2021 (to which they put on hold to add to the now no existing scheme), instead of working with me they sent:
Hi Desmond, I’ve been trying to work with you to get things back on track since your account fell into arrears. Unfortunately, we still haven’t reached a resolution with you. For this reason, we will ask Guarantor to pay in line with their agreement and may continue to attempt payments from you. If your account is already more than 15 days behind we’ll begin attempts to collect from Guarantor, but you can still work with us yourself. Please go online to make your payment at Easypay: https://amigo.me/…. Thanks, Saba, Amigo Account Manager
🤦♂️
Considering I have paid every month still on a lower payment arrangement (they still say I’m in arrears, which astounds me) and was only 3 days late because amigo hadn’t responded to my query. When I finally get through, the persons on the phone are told what to say and what comments to make (scripted). They also say the courts advised they are entitled to collect on upheld complaints based on the judgement but cannot tell me specifically where it says this.
Sara (Debt Camel) says
They also say the courts advised they are entitled to collect on upheld complaints based on the judgement but cannot tell me specifically where it says this.
could you copy out the bit where they say this please?
Des says
It also as far as I’ve read NOT said this in the courts. The judge did not say Amigo could do such a thing. Just something Amigo representatives say in order to squeeze more money out of people. By the sounds of it they think if they say it’s “agreed by the court” then people will just say ok. But when I asked them to show me specifically where it stated this… surprise surprise they couldn’t
Des says
Hi Sara,
The person said it on the call… so it should be recorded their end… I also asked for a call back from a manager… no call back.
The guy I spoke to Ronaldo Almeida tried to show me, started telling me a part of the scribe (from the hearing) which was basically the court allowing them to try another scheme. When I said this, he backseat very uncomfortable and didn’t know what to say. I will see if I can get it in writing …
Sara (Debt Camel) says
So of course the court said they could try for another Scheme.
That doesn’t mean that the court says they are entitled to collect on complaints by threatening a client who has made a complaint with being taken to court.
So they have tried to get round this by using words about what “may” happen…. not what “will” happen… knowing perfectly well that most clients won’t appreciate the difference and think if they don’t pay their guarantor will get a CCJ.
Amanda says
Hi sarah ive now heard back off the financial ombudsman and buddy loans have agreed i was mis sold a loan as ive payed £4940 back of the £5000 i owe them £60. Apparently it can take upto 28 days for buddy to get back to me ao im going to cancel my direct debit as if they take the payment they will end up owing me would you say thats acceptable.
Sara (Debt Camel) says
On those figures that sounds sensible
Vicky says
Hi Sara,
Just a quick question. I took out a loan with amigo in October 2018 for £3000. I have been paying monthly instalments of £118 since then and my loan is only at £2500, almost 3 years later!! I’ve been in situations where I’ve missed payments on other bills to ensure I don’t miss the amigo payment and doesn’t affect my guarantor. Is there anything I can do or do I need to wait until they’ve gone onto the next stages with the scheme of arrangement?
Sara (Debt Camel) says
Did you have difficulty from the start?
The rules say a loan is only affordable if you can make the payments and still pay your other debts, bills and living expenses.
And the loan has to be affordable for the guarantor too – do you think at the time the loan was given they could have afforded to make all the repayments and been ok with the rest of the debts, bills and expenses?
Vicky says
No not initially, however, as time has gone on and the cost of living has risen, I’ve had more difficulty in paying other bills and expenses, having making sure not to miss any payments so as not to fall on my guarantor. Had this been the case, it would have put my guarantor in difficulty.
Sara (Debt Camel) says
and what was your guarantor’s situation when you took the loan? Obviously you don’t want them to have to to pay, but I am asking to see if they have a good case to make an affordability complaint? They may be better off than you but still be unable to pay over a hundred pounds a month for a debt.
Daniel says
Hi Sara we spoke About my situation a couple of weeks ago regarding amigo loans i have paid what i initially borrowed and have now stopped direct debit payments until i know more about what is happening with there situation i have received texts threatening action against me and my guarantor but the one i received today seems to have stepped up a notch what would you do in my situation i will copy the text i received below thank you in advance your advise is much appreciated.
**************, As there is no resolution in place, soon you may be issued with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. In Court, an order for the full balance will be sought. A CCJ may be issued against you and *********, where it will stay on both of your Credit Files for up to 6 years. If you’re in a position to do so, please arrange payment of the arrears. Call me on 01202 629161 or make a payment now
Sara (Debt Camel) says
These texts and emails are very carefully worded – if you look closely you will see it says “you MAY be issued with an LBA”
and later a court claim will be “CONSIDERED“.
I have put MAY and CONSIDERED into capital letters and bold – Amigo wants you to read this and think it will send you an LBA and then go to court. But it isn’t saying that at all…
Amigo should not go to court with an affordability complaint outstanding. I have seen a lot of people worried by these threatening letters but only a handful of LBAs ever sent and no-one actually taken to court with an outstanding complaint.
They are just being unpleasant bullies.
if you get an LBA, come back here and I will suggest where you can get help. You can reply to it after a few weeks asking for more infoo. They then have to send you that and can’t start a court case until 30 days after you have been sent it.
Amigo has sent it will not go to court in the Scheme if one is approved.
Worst case if they start a court claim, you can defend it and ask for it to be stayed (legal jargon for put on hold) pending a decision on your complaint.
In 2019 court cases were taking 9 months on average to come to court if defended and the backlogs have got longer with the pandemic.
Tony says
Hi Sara, Please do you know when i will be able to make an affordability complaint to amigo since rejection of the scheme.
Sara (Debt Camel) says
You can make a complaint now, but Amigo are ignoring them…
Do you have a current loan?
Mark King says
Hi Sara,I’m one of those thousands of people who have been conveniently ignored when the FOS found amigo in the wrong and selling me a loan when it was quite clear at the time it was more or less impossible for me to keep the payements up for the 60 months,I took out the loan in 2016 and have paid back around 5k more than the capital I borrowed,my case has been goin on around 14 months now and amigo totally delayed my case which I went to the FOS last aug,they delayed til after their December deadline and finally looked at the FOS’s final decision in March,how convenient!! I feel that the way they’ve handled my case is a disgrace because they know full well they owe me a lot of money back which I’ve overpaid,I will not pay a penny more because I feel anymore cash I pay I’m never gonna get back,I’ve cancelled direct debit and have told my guarantor to speak to his bank and block any attempt to take from his account,can you just give me advice on myself being well within my rights to do this? I’m prepared for the threats of the ccj’s letters but I’m guessing it’s not gonna be that easy for amigo being as I have an ongoing complaint,many thanks Mark
Sara (Debt Camel) says
can you just give me advice on myself being well within my rights to do this?
Amigo may threaten taking you and your guarantor to court. At the moment this is just unpleasant bluffing.
A lender is not supposed to start court action if the debt is in dispute – you have made an affordability complaint which was with FOS which has not been resolved – that is a dispute over the debt.
In this situation Amigo has not been going to court – they threaten it, a small number of people have received a Letter Before Action, but they don’t follow this through with a court claim.
Amigo has said it will not go to court in a Scheme until a complaint has been resolved.
Worst case – which I do NOT expect to happen – if they did start a court case then you have a defence – your affordability complaint – and you can ask for the case to be stayed (legal jargon for put on hold) until your complaint is resolved.
Mark King says
Many thanks for the advice
Rochelle says
Hello,
I am a guarantor of an Amigo Loan that my friend has had. He has now got an IVA. I put a complaint in around May/June 2020 with a firm called Alliegance Finance Limited. Amigo has replied to my new complaint saying they upheld my original complaint, have confirmed I can’t start a new one and have told me to keep making monthly payments. I put everything you stated above in the new complaint.
I’ve emailed them stating I can’t afford the monthly payments of £217 and I’m having to borrow from else where.
What do I do and where do I stand now?
Many thanks
Rochelle
Sara (Debt Camel) says
Amigo has replied to my new complaint saying they upheld my original complaint
Do you mean reject?
Rochelle says
Yes they rejected it. They’ve stated I need to continue making payments. They’ve ignored my statement saying I cannot afford to make the repayments.
Sara (Debt Camel) says
Do you think the loan would have been unaffordable for you from the start? A loan is only affordable if you can afford to make the payments and still pay all your own debts, bills and living expenses.
Do you have other problem debts?
Would the borrower be prepared to make an affordability complaint to Amigo say the loan was unaffordable for them? It won’t hurt their IVA and if they win, you are removed as guarantor.
Nazia Bibi says
Hi sara any news on amigos as what they are considering now im fed up of waiting .dont understand how they have got fos claims on the hold too
Sara (Debt Camel) says
I have just written an article about this https://debtcamel.co.uk/amigo-silence-possible-scheme-2/
steph says
hi anyone had their payment redress yet from the money shop scheme
I’ve just heard and I’m disgusted with the amount they are sending me after telling me I what I would of got which was a lot more.so I will definitely be voting NO to the provident scheme its insulting after all stress these companies put people through trying to pay the loans off now they just don’t give a damn!
Kelly says
Hi. I submitted a complaint to Amigo they refused this so I forwarded it to the FOS around May 2020. I received one email saying they had received my complaint however due to covid/high volumes it would take them some 6 months to respond. Obviously with Amigos court situation I received an email stating they wouldn’t be looking at my complaint until their situation was resolved. What’s they best way forward now? Will FOS now look at my complaint or am I best washing my hands of the whole situation.
Sara (Debt Camel) says
Has the loan been repaid?
K says
Hi Sara. I just received an email from FOS stating they are not longer looking at my Amigo Claim and wont be commenting further. I logged the claim with Amigo in June 20 and then sent to FOS in October. Im paying £300 which is unaffordable but i have no other debts so i priorotise the payment over basic everyday things as i dont want my credit affected and im hoping to get a mortgage one day. I just wondered if you knew a time frame for all this to come to an end? If they do go into administration will my payments stop? I have paid way over my borrowing amount but i dont care amount the redress. I just want the payments to end. Thank you
Sara (Debt Camel) says
The payments don’t stop if they go into a Scheme or administration until your claim is decided. So realistically you are looking at 6-12 months more payments – and the 6 months is very optimistic.
I’m sorry but I think you have to be very realistic about your situation. If you can’t afford to make these payments, then you are not going to be in a position to get a mortgage any time soon as you will not be able to save up for a mortgage deposit. Making your current finances much worse for what is little more than a nice daydream about a mortgage is not sensible.
If you stop paying it will hurt your credit record but if you later win the claim in a Scheme or in administration then your credit record will be cleaned.
Can you explain to your guarantor why you are stopping paying Amigo and say they need to cancel their direct debit and phone their bank to cancel the Continous Payment Authority Amigo has over their debit card? This will NOT hurt your guarantor’s credit record as the Amigo loan does not appear on there.
Also Amigo may threaten to take you both to court. They are just being aggressive and unpleasant – they will not do this while you have an open complaint.
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/