UPDATE:
Do not use the templates on this page for the following lenders, instead see the specific page:
- George Banco & Trust Two a Scheme of Arrangement is being proposed, see Everyday Loan Scheme for details
- Amigo has set up a Scheme of Arrangement. the deadline for making a claim has now passed, see Amigo’s Scheme for details.
- Buddy Loans went into administration in September 2021, see Buddy Loans goes into administration.
- TFS Loans went into administration in February 2022, see TFS Loans goes into administration.
If you are a guarantor for a loan you can ask to be removed as the guarantor:
- if you couldn’t afford to repay the loan without difficulty; or
- you were pressured into becoming the guarantor; or
- you didn’t understand the implications of being a guarantor.
This article has a template letter you can use to complain to the lender:
- you can complain if the borrower is still paying the loan or if they have stopped and you are being asked to pay it;
- you can still complain if you have been taken to court for a CCJ or a charging order, see Is it too late to complain after a CCJ?
This page does not apply if you have given a personal guarantee for a business loan or a property rental.
If you are the borrower – this is the wrong page – see How to complain if you have got a guarantor loan which has a different template.
Contents
Reasons to complain
There are a lot of different reasons some people have why they should not be the guarantor. Some won’t apply to you.
You can win your complaint with only one of these reasons. But mention all the ones that apply to you to give yourself the best chance of winning. You may be most upset about the way you were talked into being the guarantor, but often it is the “affordability complaint” which is easiest to win.
There may be other reasons as well. You know your own case best – if something didn’t feel right to you, mention it.
a) The loan was unaffordable for you
A lender should have checked that a loan will be affordable for you before the loan started. And new checks should have been done if the loans was topped-up.
The regulator’s definition of affordable is that you have to be able to repay it on time without it leaving you so short of money that you have to borrow more, get behind with bills or sell your house.
The lender should have asked about your income and your expenses, including rent/mortgage and utilities as well as food, transport, clothes, children’s expenses, your other debts and everything else you spend money on.
Guarantor loans are major, serious, long-term financial commitments. I would expect a lender to ask for evidence of your income and to have checked your credit record to see what other debts you had. If your income may change over the term of the loan, the lender should have thought about this, for example if you may not always be able to get overtime.
Amigo says a guarantor
must be able to afford the monthly payments and still have enough money to live their normal life.
So the expenses taken into account should have been what you were actually spending. They can’t say the loan would be affordable if only you stopped smoking or didn’t give your children pocket money or stopped paying your credit cards.
Owning a house doesn’t mean you can manage the loan repayments every month! You have to be able to make the monthly repayments out of your income and/or available savings, without having to sell or remortgage your house.
Was your credit record good? A guarantor is supposed to be a person who doesn’t have money problems who can easily step in if the borrower gets into difficulty. If your credit record shows you have money problems, then you probably weren’t suitable to be a guarantor.
b) you had other financial links with the borrower
If you lived with the borrower or have other financial links with the person borrowing the money, the lender should have looked at how your financial situation would be impacted if the borrower couldn’t pay the loan.
Perhaps the borrower can’t or won’t pay the guarantor loan, because they are sick or have lost their job or because you have split up. In that case, your finances may have already suffered – you have to pay all the household bills, or they may have stopped paying your car finance or giving you child maintenance. So the lender should have taken these other problems into account.
c) a top-up to a previous loan wasn’t properly explained to you
Just because you agreed to the first loan, doesn’t mean the lender can assume you will be the guarantor of a top-up. The lender should have checked you were happy with this and that you could afford it – your circumstances may have got worse since the affordability check on the original loan was made.
The lender should also have explained clearly what the new loan was. It may be that you thought you were only now being asked to guarantee the “extra money” because the old loan was being cleared.
d) You were pressured into becoming a guarantor
I’m not talking here of your sister or a friend asking you to be their guarantor and you finding it a bit difficult to say “No”. But too often people can be put under pressure or bullied into agreeing to be a guarantor. Here are some examples:
- being asked by your manager or a colleague at work and thinking your job could be affected if you said No;
- being asked by someone you rely on for help if you are elderly or disabled;
- being asked by someone that helps with your finances – your partner that pays half the bills, your ex pays child maintenance;
- you were in an abusive relationship with your partner. The abuse doesn’t have to be physical, it can be financial, see Financial Abuse: How to tell if your partner is a money bully.
If any of these apply to you, mention it in your complaint. Don’t worry about how you can “prove” this, just say what happened and what you were worried about.
Sometimes people were literally told what to say on their expenses form and on the phone by the borrower – say if this happened to you.
e) You didn’t properly understand what being a guarantor meant
Everyone knows what taking a loan means. But being a guarantor is unusual and the lender should have explained it in detail and in words you could understand.
Lenders have to make sure you understand what you doing when agree to be a guarantor. So here are some good reasons to complain if they happened to you:
- your English is poor (perhaps a friend is helping you with the complaint, perhaps the borrower translated things for you when the application was made);
- your mental health or medication you are on makes it difficult to understand complicated money decisions;
- you thought you were just providing a character reference for the borrower;
- you thought when you gave the money to the borrower and they started paying the loan it became their loan and you were no longer responsible;
- you thought you would only have to pay if the borrower died or went bankrupt.
- you didn’t realise that Amigo would ask you to pay if the borrower offered a payment arrangement because the Amigo website said wherever possible, we will always work with the borrower first and come to an arrangement before looking to the guarantor to pay;
- the paperwork was too hard to understand.
f) the loan was unaffordable for the borrower
If the loan was unaffordable for the borrower, then the loan should never have been given at all by the lender! You may have thought quite reasonably that the lender was going to do proper checks on the borrower – but perhaps they didn’t.
This can be hard for you to prove unless the borrower helps you with your complaint. But it is worth mentioning if you think it’s important even if you don’t have evidence about it.
What would a “fair solution” be?
If you should never have been a guarantor for one of the above reasons, you should be removed as the guarantor. This will remove the problem for you and the loan turns into a “normal” loan for the borrower.
If you have made any payments, these should be refunded to you and any problems on your credit record should be deleted. This includes CCJs and any restriction on your house.
It will also make the borrower’s life easier! They will be able to sort out their financial problems without worrying that it will affect you, for example by including the loan in a debt management plan or bankruptcy.
How to complain
You should complain to the lender. Email is best, see Email addresses for guarantor lenders for the right email to use.
I suggest putting COMPLAINT BY GUARANTOR as the email title. Here is a template with blanks for you to fill in.
These cases are very individual – no one will include everything in this template. Delete what isn’t right for you, change it and add anything else you think matters!
I am complaining that you should not have accepted me as a guarantor for this loan.
Please send me a copy of all the personal information that you have about me, including but not limited to all credit record checks, a copy of all the paperwork I have agreed to and recordings of all phone calls from me.
My complaint is as follows.
Only put this in if it applies: I was pressured into agreeing to this loan by the borrower. I didn’t feel I could refuse because [explain why.]
Only put this in if it applies: I agreed to the top up to this loan, but you did not check properly that I could afford it. I could not afford the larger repayments.
Only put this in if it applies: For the top-ups, I thought I was only the guarantor for the extra money that went into my account to give to the borrower. It was not properly explained to me that the new loan was much bigger as some was settling the previous loan. I am not very familiar with complicated loans and you should have explained this to me more clearly.
Only put this in if it applies: I did not properly understand the obligations of a guarantor. If you listen to the call recording I think it will be clear that [my English isn’t good/the loan was not properly explained to me]. I didn’t realise I would have to make payments if the borrower wanted a payment arrangement. A responsible lender would not have given me the loan without making sure that I understood what I was signing up to.
Only put this in if it applies: I can not afford to make the loan repayments. This should have been obvious to you before you gave the loan. If you had looked at my payslips and bank statements in detail, this would have been clear. My income was erratic and you did not ask about this.
Only put this in if it applies: I was reliant on the borrower for other aspects of my finances. The borrower paid [all or the rent/half of the rent, council tax and bills/whatever applied to you] OR The borrower gave me c £x each month [to help pay bills/as child maintenance/to cover repayments on a loan from xxxx that I took out on his behalf]. You should have taken into account that if the borrower was unable to pay the debt to you then it is likely that the help the borrower gives me each month would have stopped or been reduced so my finances would probably have got significantly worse.
Only put this in if it applies: The loan was unaffordable for the borrower so you should never have given the loan at all. You did not check properly that the borrower could afford the loan.
Only put this in if it applies: The borrower had several top-ups. This should have suggested to you that their finances were becoming more difficult.
Delete or change any of the following so they are accurate for you:
[You did not ask me for proof of my income or expenses.]
[I was on a low income/My income was variable and you did not ask about this/My only income was my pension./My only income was from benefits.]
[If you had checked my credit record properly, you would have seen that I had other debts already.]
[My credit record would have shown that I already had financial problems. This should have suggested that I was not in a position to take on another large loan.]
[You did not ask me about my expenses in enough detail.]
[You have already upheld a complaint by the borrower that the loan was unaffordable for them.]
I am asking you to remove me as guarantor for this loan and for it to be deleted from my credit record.
If you have already made some payments to the loan add: I am also asking for a refund of the payments that I have made.
If you want to pay less: I cannot afford the payments you are asking me to make. I would like an affordable payment arrangement or I have no spare income to pay anything.
I would like you to suspend any enforcement action against me whilst this complaint is underway, including while it is at the Financial Ombudsman if I have to send my complaint to FOS.
Think about cancelling the payment authority at your bank
If you aren’t being asked to pay the loan at the moment, this doesn’t matter.
But if you are making payments or you have been told the borrower has stopped paying so you will have to pay, you need to think about whether you can afford these payments.
If you can’t, it is probably best to cancel the Direct Debit with your bank so the money can’t be taken. If you borrow to try to make these payments, you are just creating more problems for yourself.
If you have other debts you can’t afford, talk to StepChange about a debt management plan for all your debts including this guarantor loan. This gets you into a safe position while your complaint goes through. It won’t harm your complaint. If you win your complaint, the debt will be removed from your DMP and any DMP payments made to it will be refunded.
Don’t worry about your credit rating. This loan may not even appear on your credit report – have you looked? If it does, then any negative marks will be deleted if you win your case.
If you aren’t sure what to do, talk to StepChange or go to your local Citizens Advice.
Lenders often say No to good cases – go to the Ombudsman
Lenders frequently reject a complaint even if you have a strong case. So don’t be disheartened if this happens.
If they send you a long reply which makes it sound as though your complaint has no chance, ignore it! They are hoping you will give up.
When the lender says No (or if you haven’t had a reply within 8 weeks) you send your case to the Financial Ombudsman (FOS). If you aren’t sure whether to send your case to the Ombudsman, ask in the comments below this article.
FOS is very friendly. You just have to say what happened and why you feel it is unfair. You don’t need a solicitor to help you do this. You don’t have to argue a legal case or say what rules your lender has broken.
From mid 2019 there have been a string of good results from FOS against guarantor lenders for borrowers and guarantors.
Getting help with this
If you would like some help go to your local Citizens Advice. Citizens Advice can also help you to draw up an Income & Expenditure statement to be included with your complaint.
I strongly suggest you do this if any of the following situations apply:
- your case involves Financial Abuse or if you find it difficult to make money decisions – although a complaint from you should be taken seriously, these are situations where Citizens Advice could be a real help;
- a court case is underway or being threatened. Citizens Advice can help you get a court case “stayed” – that is the legal term for put on hold – whilst a complaint goes to the Ombudsman.
Amigo – time to make a claim
Is your credit limit too high? Not affordable?
Guarantor loans – more protection needed
Chris Bone says
My experience of complaining about the guarantor’s position from a money advice caseworker’s position (which I have done before formally) is that Amigo will state a full affordability check was undertaken and have back-up evidence by way of a taped conversation which they can pull off and send out by CD, they rely on this as their backstop and it is extremely difficult in view of this to have the Ombudsman look favourably on an affordability claim in the light of this evidence.
They are also quick to issue CCJ claims in default against borrower and guarantor, and secure against houses by Charging order when that is an option! I would be very interested to hear of any case where Amigo had agreed to relieve the guarantor of liability on affordability grounds (or lack of a suitable check). I have had one case where the mother was called upon, she offered £150 per month which was fair in relation to her income but only about half of contractual payment, they accepted this but still wanted to proceed with a CCJ and Charging order .
Sara (Debt Camel) says
Things that can help include getting the bank statements for the previous couple of months before the loans and highlighting any discrepancies between the guarantor’s credit record and what was discussed in the telephone call. Expecting a customer to give an accurate I&E over the phone is not that easy as we all know from the debt advice point of view!
I have helped a CAB client to be removed as a guarantor by George Blanco – that didn’t even need to go to the Ombudsman.
One reader reported this a couple of months ago: https://debtcamel.co.uk/bad-credit-rating-amigo-loans/comment-page-1/#comment-255529
Graham says
Hi Chris,
Back in the days of us doing consultancy I had a few guarantor loan cases, in fact I seemed to attract them (see Quarterly Account autumn 2017). We had to work very hard and very fast as the case was already subject to a claim, but the court stayed for us to use FOS.
The pay-out calls are generally friendly, not coercive and professional – but they make mistakes. Where DLA/PIP is evident there is a real risk the loan will become less affordable in year 2, 3, 4, etc as an illness gets worse. If there’s a child about to leave education, income may go down – its these foreseeable changes they sometimes fail to spot. Always request the call file as it will be key evidence either way.
The guidance about proportionality in CONC 5.2.4G puts the onus on a firm to choose how rigorous the assessment needs to be – our argument, successful certainly in the case mentioned, was that 5.2.4G would put really strict assessment conditions on a guarantor loan.
The team at Shelter are great with these, so do consult when in need. Especially where there’s a claim.
All the best
Graham
Sara (Debt Camel) says
UPDATE in summer 2019 a lot more people are winning guarantor loan complaints against Amigo and other lenders. I have added a section to the article above about these.
Billy says
Hi Sarah,
Cut a long story short, my wife was a guarantor for a very unscrupulous person in August 2011, he did a runner once the money came through, he went behind her back by applying on line for a loan, alls I know is he electronically put her signature to get the loan, following day my wife received a phone call from Amigo to confirm her name, adress etc, not once did she receive any paperwork to sign, at the time she wasn’t working nor would of been able to pay for the loan if the lender did not pay, oh by the way the dodgy ex went down on his knees to my wife begging her to accept the loan from Amigo whilst on the phone to them, I sent a template letter to Amigo, they replied quickly saying anything over 4 years they don’t keep, only if the loan was live! I ended up paying the Amigo loan, initial loan was £3500, but final balance with interest £4800,
Amigo also told me not to waste my time going to the ombudsman as they ‘Amigo’ could not supply any evidence after the 4 year rule, the question is…..do I have a case against this very dodgy company
Sara (Debt Camel) says
I am surprised Amigo don’t have the details for 6 years from when the loan ended.
I don’t know what the Ombudsman will say about this. These complaints are quite new. All you can do is try.
Daniel says
Hello,
Please, can someone help me!
I took out an Amigo Loan for the Company Director of my last job as me being the guarantor.
At first, he reassured me there was nothing to worry about and that he owns his own company and the payment s will be met every single time.
I foolishly went ahead and took out a loan for him and also sent of a copy of the Deed to my property.
I am now no longer in contact with him and also haven’t worked for him since April this year.
Today I received an email informing me that payment has been missed and that they will try to resolve the issue with him first before asking me for the money.
after reading the thread on here I do feel I was pressured into this for the obvious reasons of not wanting to get on bad terms with my employer and risk losing my job at the current time.
What can I do? I am in a position right now what so ever to even think about having to pay this loan off as I already have an issue with paying my own off.
In the past I have defaulted on repayment and also my credit score is far from the best I think the only reason they gave the loan was due to having the deed to my property but even this is on a contractual bases as my mum was the original buyer (borrowed me the money) but its in my name so she is down on a legal document somewhere as to state that she is entitled to her money back if the property is ever sold on.
Sara (Debt Camel) says
You should complain now, say you felt pressured to agree to be guarantor as you felt it could affect your job if you didn’t and ask to be removed as guarantor. Don’t wait until they actually demand money from you.
As an additional point, Do you know what has happened to the company you used to work for? If it has folded, or laid off staff, you could add to your complaint that they should have considered that if your boss was in big financial trouble then your job would have been at risk so you were not a suitable guarantor.
Also when you were working for that firm, could you have afforded to repay his loan? That means afforded to pay it from your income as well as your own debts, not by getting deeper into debt elsewhere or selling the house. If the answer is No, then also say they didn’t check properly that the loan repayments would have been affordable for you. This is another reason they shouldn’t have accepted you as a guarantor.
These are not common complaints. Don’t give up if Amigo reject your complaint and say you agreed to be guarantor and you knew what you were doing. Your relationship with your boss was not a relative be or a good long term friend, it was one where you were vulnerable. Take your complaint to the Financial Ombudsman if Amigo say No.
Who owns the equity in your house isn’t relevant at the moment because it doesn’t affect whether they should have given the loan. If it later comes to court it may be possible to prevent Amigo getting a charge over your house but the aim at the moment is to stop this getting anywhere near court!
Daniel says
I have so far put this email together:
I am the guarantor for a loan taken out by (BLANKED OUT) on December 17th, 2017
The reference number for this account is (BLANKED OUT).
This email is a complaint that you should not have accepted me as a guarantor for this loan.
I was pressured into agreeing to this loan by the borrower. I didn’t feel I could refuse because he was the director of the company I was working for and if I did not take out this loan then I felt it could put me at risk of losing my job.
I can not afford to make the loan repayments. This should have been obvious to you before you gave the loan. If you had looked at my bank statements in detail, this would have been clear and also If you had checked my credit record properly, you would have seen that I had other debts already and You would also have seen that I had missed payments/had defaults showing that I was in financial difficulty
I am asking you to remove me as guarantor for this loan and for it to be deleted from my credit record.
Daniel says
In regrades to your questions – I’ve just checked company’s house and the status is Active but with Active proposal to strike off
accounts overdue by July 17th, 2018.
The job role was commision based but he told me to say I have an income of about 3,500 which sometimes I did make but not every time.
and that I had worked for the company longer then I did. truthy I only started working there in November.
I got paid into my bank but Amigo didn’t even ask to see any bank statements if they did they would have seen my true average sum of earnings.
Unfortunately, I no longer bank with the same Bank. The whole thing is a mess.!
Daniel says
sorry to bombard you with messages but to also add I thought the amount was for 5,000 however it was actually 10,000 as he already had £4,552.98 outstanding so basically I repaired this amount for him and then took out the 10,000 loans!!
Sara (Debt Camel) says
You can still get bank statements from closed accounts. I suggest you start to get these now, so you have them ready if you need to go to the Ombudsman.
Daniel says
thank you for your help and replies. I will be doing as advised.
Nicola says
I am a guarantor for a ‘friend’ with an amigo loan. When she asked me to be guarantor I wasn’t in the right state of mind mentally I was getting counselling and on anti depressants. My friend had a job and promised me she would make the repayments. She has since quit her job and I’ve found out she has a drug habit every month I’ve had to chase her to make the payments – she does pay eventually but I really don’t need the stress every month – I’ve had to go part time at work due to the break down of my relationship and I have 2 young children to care for. I can barely afford my own debts each month as they were all arranged based on my full time wage and I don’t earn that anymore. Do I have a leg to stand on to be taken off the loan?
Sara (Debt Camel) says
Do you think your poor mental health would have been obvious in the phone call to Amigo? Would you have sounded a bit confused and unsure or something?
Your current financial situation doesn’t sound good. Do you have a mortgage? What are your other debts?
Nicola says
Yes I have a mortgage and car finance a loan and 2 credit cards so it’s not great! I don’t know really if it would have sounded obvious that time of my life was all a bit of a blur so I don’t really remember much of it
Sara (Debt Camel) says
The first thing is that you need help with your current debts. I suggest you should talk to StepChange about the options available to you.
I think it’s worth trying to get yourself removed as guarantor for this loan. Send Amigo a complaint, saying they you had poor mental health at the time and a lot of other financial commitments and you don’t feel they investigated your situation properly. If you have any evidence about the counselling you were getting or your medication, attach that to your complaint. Ask to be removed as guarantor.
Nicola says
Thank you for your help I will give that a go and I will also speak to step change
Kev says
Hi I took out an amigo loan four years ago and on the phone I remember the agent telling that I needed to change some of the figures on the affordability check would I have a case for unaffordable lending? Thanks
Sara (Debt Camel) says
That is definitely something to put in your complaint! you have actually commented on a post advising someone who was the guarantor for the loan – if you were the borrower read https://debtcamel.co.uk/how-to-complain-guarantor-loan/ and use the template from there. In that template is says that if Amigo reject your complaint you want a copy of all phone calls – that will help you take the complaint to the Ombudsman.
Todd says
I am so glad to have found this site as I thought that there was no hope. Basically I have contacted the CAB and they have helped me write a letter to amigo loans which I have submitted. I am currently a guarantor for a friend but wasn’t fully aware of what that entailed (dyslexia etc) and the fact it as rushed. Also, I had a temporary job at the time so income was low, they shouldn’t have accepted me as i also had a below average credit score given my age (25 years) and that i only have one default. The catch is i didn’t fill out the guarantor form as this was not explained fully by the borrower. I am wondering about sending evidence to amigo loans i.e. temporary contract, JSA letter etc. I was also told to send the guarantor form to the borrower, can i evidence of a text which shows i did not fill out the form and therefore was not assessed properly. My friend is still paying the loan it was signed June 2018 but payments started August so still relatively early. Do you feel i have a good case considering the circumstances? Also, i have a text showing me sending the guarantor form to my friend, i really wasn’t aware about the process. Since I was on JSA briefly and did a temp job i could send that in as evidence? Any comments advice will be helpful.
Sara (Debt Camel) says
These all sound good points to make. If you didn’t fill out some form that you were supposed to, then this does sound worth mentioning to Amigo and then to the Ombudsman if Amigo reject your case. Amigo should have made sure you understood what was involved. There will be a recording of your phone call with them which may help your case.
I am glad CAB helped you with the letter – if Amigo say No you can go back to them and also ask on here. Good luck!
Todd says
Thank you, can I also use an email which states that I was in a temporary role. I sent my evidence of JSA, should I send evidence of a text that I sent my friend with the guarantor application?
Thanks.
Sara (Debt Camel) says
All these help a bit because they show show Amigo shouldn’t have approved your application. BUT what you really need to show is that Amigo shouldn’t have approved your application given what they knew or what they should have asked. So it would be more useful to point out that in the phone conversation with you they should have been able to tell you weren’t clear about your income or how the loan worked.
daniel says
I recently sent a letter to amigo on the 28th September complaining that I should not be a guarantor, basically saying I was pressured into agreeing to this loan by the borrower. I didn’t feel I could refuse because he was the director of the company I was working for and if I did not take out this loan then I felt it could put me at risk of losing my job.
I have no longer been working for the company since April this year and am also no longer in contact with the borrower.
It has come to my attention that the company is subject to an status is Active but with Active proposal to strike off, I feel you should have considered that if my boss was in big financial trouble then my job was at risk and i was not a suitable guarantor.
the person has not paid 2 payments now and im picking up the pieces. i spoke to them yesterday and today and they will soon be in process of Letter before action and then a pre-action protocol!??
Sara (Debt Camel) says
I hope they are just bluffing at the moment saying they will start the Letter before Action process. It would be very unusual for a lender to do this while there is a complaint outstanding.
I suggest you email them saying that in the light of your conversation yesterday with xxxx, you would like to point out that you complained to Amigo on 28/09/18 saying that you should be removed as guarantor for the loan, that this amounts to a dispute about whether you owe them money and therefore you want to remind them that CONC 7.14.1 says that A firm must suspend any steps it takes or its agent takes in the recovery of a debt from a customer where the customer disputes the debt on valid grounds or what may be valid grounds.
Come back here if you do get a Letter before Action – read https://debtcamel.co.uk/letter-before-claim-ccj/ to see what one should look like.
daniel says
thank you for your response. I spoke to them yesterday as they were trying to collect payment from me. he said he can see my complaint is being looked into and still went down the road of what will be happening in the next couple weeks I.E letter before action and then taking the equity from my house. as he feels my complaint is not really a valid point nor acceptable as I was given all the information about the loan at the beginning. I mentioned a budget plan but he denied me because I said I have more going out than in, so didn’t even bother looking into it although I said I can find 10 a month for them.
after calling up again and saying that i felt the treatment i received was unfair to not even allow me to do a budget plan. they have emailed me an example of a budget plan to send to them by tomorrow. i went down this road after being told basically my complaint will be rejected?!!?
before i send the email with your advise i wanted to know if what happened in the phone call effects anything?? and if i should still do the budget plan.
Jess says
Hii. I need your help please. My partner is a guarantor for an amigo loan for his friend. When my partner signed to be a guarantor he could afford the repayments if need be. However his friend then topped up the loan and without thinking my partner just agreed and didn’t think if he could afford it which he can not. My partner is not good with money has had numerous past debts and is also dyslexic so does struggle to understand and process some information. Would we stand in making a complaint and getting out of the guarantor loan aspect? My partner is now also without a job so it is a big struggle for us already let alone if his friend stops paying. Also can I request the informations they hold about him and the telephone calls before complaining? Thanks
Sara (Debt Camel) says
“However his friend then topped up the loan and without thinking my partner just agreed” Amigo should have conducted a new affordability check with your partner – did they, or did they just ask him if he was happy with the increase?
“My partner is now also without a job so it is a big struggle for us already let alone if his friend stops paying.” This is difficult but not a reason for your partner to be removed as a guarantor – he (or you on his behalf) has to argue that Amigo should have known at the time of the original loan or at the time of the top up that he could not afford the repayments.
But how difficult is his situation now? Does he have a lot of other debts? Are you renting or do you own a house?
“Also can I request the informations they hold about him and the telephone calls before complaining? ” Yes you can – email Amigo at complaints@amigoloans.co.uk and say “Please send me a copy of all the personal information that you have about me, including but not limited to all credit record checks, a copy of all the paperwork I have agreed to and recordings of all phone calls from me.”
You should listen to the call recordings and think – would it sound to someone who didn’t know him as though your partner understood the figures and what he was doing, or was he just being rather vague and uncertain, or was he led by the person phoning him to give the “right” answers that weren’t actually accurate.knew what he was doing
Jess says
Hi Sara
Thankyou for the reply, they just asked if he was happy and without thinking anything of it he just said yeah it’s fine. They didn’t ever ask about his outgoings and what he pays. He doesn’t owe any debts at the moment, well none have popped up yet, but they often do from time to time. But he does also have a car on finance and that to pay for. We are renting at the moment. Okay I will ask for them. I think I am going to ask for them and then see if i think we could complain and that and get him removed as a guarantor. As I said the friend who has the loan has always paid on time but I am just worried in case he doesn’t. Also we weren’t aware that it was going from a payment from two years to five!! Thanks Sara.
Sara (Debt Camel) says
“Also we weren’t aware that it was going from a payment from two years to five!! ” wow, they should have made that VERY clear when they asked him about the top up.
Jen says
Hi I’m hoping you can help! I’m a guarantor for an Amigo loan for my ex boyfriend and father of my child. I was bullied into agreeing to be guarantor by him last year(we were together at the time but lived separately). I’d already taken out a loan from my bank for him (£160 a month repayments) two years previous, he’s self employed and told me that if I didn’t agree to this Amigo loan then he’d no longer be able to work, which would mean that he wouldn’t be able to make the repayments on my bank loan and wouldn’t be able to support our son. I didn’t realise at the time that he had a bad cocaine habit and had got himself into a huge financial mess and was basically using me to try and get himself out of it knowing I’m too soft and he could take advantage. Also I don’t believe Amigo fully looked into my financial situation. I already owed £900 on a credit card as well as my bank loan I took out for him. I vaguely remember being asked about my income and outgoings but had they looked properly at debts I already had and considered the fact I was a single mother only working part time and receiving tax credits, and with two dependent children, I feel I shouldn’t have been accepted. I have to chase him every month for the bank loan repayment and to make Amigo loan repayment on time otherwise I get bombarded with texts and emails from them.
Sara (Debt Camel) says
That sounds worth making a complaint – on that income the loan may well be unaffordable – if you succeed you will be removed as guarantor. Don’t be put off if Amigo say No, send the case to the Financial Ombudsman
Todd says
Hey sarah, I received a letter from Amigo loans in response to the evidence that I have provided. They rejected to remove me as the phone recording indicated that i understood all the terms and that they had no concerns of the information, and if any information was falsified they do not take any responsibility for this, since i aksed when the loan will be paid out in the phone recordings they asked which shows a level of understanding, but since the phone call was quick, I tend to forget details easily (evident in learning disability) I was not fully asked to send proof of income and because i signed and agreed they said I seemed fully aware. I still need to take this further because if i filled out the expenditure form which I didn’t I would have known every bit of detail. I will still take this further but just worried that nothing will help me get removed from being a guarantor.
Sara (Debt Camel) says
Because of your learning disability, definitely take this to the ombudsman. These phone calls to guarantors should be DETAILED not QUICK.
You have 6 months to take a rejection to the Ombudsman, but getting on with it not delaying is normally best! Lenders have a duty to lend responsibly, to check the loan is actually affordable for you, they can’t just take your word for it. People taking loans can be desperate. Guarantors may not really focus on whether they could repay as it seems unlikely they would have to.
I’m not saying you will definitely win at the Ombudsman. It may not be easy but this is well worth a try – and even if the chance was low, it is still your best hope isn’t it?
Louise says
Who is best to complain the borrower or the guarantor. I was guarantor for my daughter but it was flm At the time then went to amigo she didn’t pay so I got letters but at that time I got into trouble with payday loans so I was struggling they eventually took us to court ccj this has now been paid but this started over 6 years ago do you think it worth complaining thankyou
Sara (Debt Camel) says
If the loan is still running, then both should complain if both have grounds for saying the repayments are unaffordable for them. the complaints are seperate, one may be won and the other lost.
If the loan has finished and the borrower paid all the repayments, then the guarantor has no grounds to complain, but if the guarantor made some payments then again both can complain.
But if this was a FLM loan over 6 years ago I don’t think you will get anywhere.
Cathy says
Hi Sara
I am so grateful to have found this website and hope you may be able to offer some advice. My son foolishly agreed to be a guarantor for his friend. At the time he was newly unemployed and struggling to set up his own business. He however had a good credit score from years of paid employment and managing his money well. His friend however did not and my son naively agree to be a guarantor for a £10000 with Amigo Loans. His friend has now stopped paying the loan, (he lost his job) unusually Amigo did agree to a payment plan and halved the monthly repayments but extended the loan term. My son was not consulted about this nor has he agreed to it. All amendments to the loan have to be agreed by both the guarantor and borrower (according to Amigo Loans T&Cs) Does my son have a case to have his liability discharged as a guarantor . Amigo have change the terms of the loan without his consent or agreement. He has fallen out with his friend who is now refusing to speak to him or discuss the situation. He is at his wits end and would appreciate your advice.
Sara (Debt Camel) says
So is the borrower now making the lower repayments? Or is your son being asked to pay them? How long does this revised loan go on for and what are the repayments?
Does your son have any assets? Could he pay this loan from his income? Obviously he doesn’t want to but I am just asking.
Cathy says
Hi Sara
No the borrower has stopped making the payments and from information my son has had from Amigo they are having problems contacting the borrower. The letter states, dated 09/11/18, the payment plan will be reviewed by an account manager and may be cancelled by them. They have not asked him to make up the shortfall but have suggested it would be beneficial to the borrower for him to make additional payments.
My son is currently working. He is not on great money and has a loan for his own car to get himself to and from work.
The initial loan was £10000 at £395 per month, the reduced payment is £73.85 per fortnight. He is not in a position to cover their loan. He has no assets he lives at home with me and his dad.
Cathy says
Sorry meant to add that because his ‘friend’ has defaulted on the payment plan Amigo are threatening to refer the case to their pre litigation team to consider referral to court. The thought terrifies him and is making him ill.
Sara (Debt Camel) says
You are correct that an amendment to the loan has to be approved by the guarantor. But I don’t think that would cover a temporary payment arrangement.
I think your son should put in a complaint to Amigo saying they did not check properly that he could afford the loan repayments when the loan application was made. Use the template in the article above.
Whilst a complaint is underway, Amigo should not start any legal action.
Tony Brittain says
hi guys thanks for the Info on this site. I complained to bamboo for my wife who was guarantor for a loan for her son asking for her to be removed as guarantor due to affordability checks not properly carried out. after 6 weeks they have sent final response saying the complaint is upheld as they only asked for 1 weeks payslips. the following weeks were not so good and they agreed the loan would have been unaffordable for her if they considered these at the time. 400 pounds paid back by next week and removed as guarantor.
she is also guarantor for him with George banco. il go for them next with the knowledge that if 1 wasn’t affordable then another certainly wasn’t. bamboo loan was not disclosed when he applied for George banco. keep the faith they do make mistakes and do acknowledge when they are wrong. thanks again without you I wouldn’t even have known.
Cathy says
Hi Sara
My son took your advice and emailed a letter of complaint to Amigo loans on 12/12/18 asking for his name to be removed as guarantor. He received a letter from Amigo on 14/12/18 acknowledging his complaint and was advised that the pre litigation was on hold until the investigation was complete.
On 18 /12/19 my son received an email from the borrowers file handler threatening court action if he did not work with them to resolve the problem. The borrower is no longer paying the loan and my son cannot get in touch with her. My son referred the file handler to the complaint he had lodged and the response he had received on 14/12/198 suspending pre litigation action.He has received a further 3 email all from the file handler, one acknowledging the complaint (dated 12/12/18 but he only picked it up today, it had landed in his junk email) despite confirming the complaint is with their complaints team, he had proceeded to go through the complaint and dismiss it. He ends the letter stating ‘’ However, please note that as the account is now with me in our pre litigation team that should the Letter Before Action expire without a resolution with you and Emily then we can look to apply for a CCJ against you both as a last resort’
Cathy says
Sorry Sara i had not copied the whole section before i pressed send.
’The 2nd email states dated 20/12/18, states ‘’ I can assure you that the complaint is still being investigated. And although we would not seek any further action within this time it is important that you are kept updated as per the Letter Before Action that has been sent’’ The third dated 20/12/18 is a detailed email asking 11 questions about his mental health (he is suffering with depression and is on medication from the GP) It does appear the file handler and the complaints team are not working together and the file handler is appears to be trying to resolve the matter without a full investigation.Does my son have to reply to the letter before action if the complaint is outstanding?
Does he have to answer the detailed questionnaire about his mental health?I am happy to share copies of all the letters with you I appreciate you support in this matter.
Sara (Debt Camel) says
“On 18 /12/19 my son received an email from the borrowers file handler threatening court action if he did not work with them to resolve the problem. ”
is this just a threatening letter? or is it a Letter Before Action – see https://debtcamel.co.uk/letter-before-claim-ccj/ for what a Letter before Claim/Action looks like – there are some very specific attachments it has to have.
“Does he have to answer the detailed questionnaire about his mental health?”
If he is saying that one of the reasons he should be removed as guarantor is because of his mental health, then yes, he should answer the questions.
Cathy says
Hi Sara yes it appears to be the letter before court action. I have checked the web link and it appears to have all the documents listed. However the letter has crossed in the post. The letter is dated 11/12/18 and arrived in our house on 13/12/18. My son lodged his complaint via email on 12/12/18 before the letter arrived. Does he have to complete and return the form which gives him 30 to respond whilst his complaint is being investigated? If so what box should he tick Box’ C ‘I don’t know if i owe the debt’ or Box D ‘ I dispute the debt’ Should he also tick boxes G ‘I intend to get debt advice’ and Box I ‘I need more documents’ should we ask for copies of documentation including telephone call again (he did include this request when he sent in your template)
Sara (Debt Camel) says
I think it’s safest to reply to the Letter before Court Action. He has 30 days to do this, so I suggest he leaves it until say 7 January to post and also send it recorded delivery. But if he is likely to forget, do it now!
I suggest he ticks box C – I don’t know if I owe the debt. Don’t complete section 2 – how will you pay it.
Also tick Box G – say he intends to go to Citizens Advice, he will be getting advice about whether the loan was affordable and he will make this appointment when he has received the information he has asked for in his complaint date 12/12/18
In Box I put “I would like a copy of all my personal information, including copies of the CCA agreement, a statement of account for the debt, copies of all phone recordings and all credit record and other verification checks Amigo have made before the loan was agreed and afterwards.”
This information will come by post – make sure Amigo have his correct address!
Cathy says
Hi Sara
We followed your advise and returned the letter before court action on 04/01/19, it was delivered on 07/01/19. My son also returned the depression questionnaire on 07/01/19. Yet despite his ongoing complaint which was registered with Amigo on 12/12/18 his is still receiving letters threatening to take him to court, one sent via letter on 27 December and one via email on 08/01/19. He emailed them back yesterday pointing out all pre litigation is on hold pending his investigation. The response he received stated
” I can assure you that the complaint is still being looked into and the 8 weeks to complete this does fall on 6th February.
Following your response to our legal letter I have extended this for you until 7th of February to allow this, and also allow for all the information you have requested to be sent through to you.
The reason why it is important I advise the risks of court action is because following the complaint being raised, and the time I have granted this would still be a risks and I would not want to mislead you, as court could be assessed at this time.’
Do they really only give one day to source advice before court action is considered?
Regards
Cathy
Sara (Debt Camel) says
The creditor cannot start court action until 30 days after they have provided you with any documents you asked for on the Reply Form.
Miss W says
Im wondering if i could get any advice. I was very confused with regards to a guarantor loan. Cut the long story short my friend took out a top up loan in August 2018 which she asked me to be a guarantor for. Little did i read properly that it was for the full amount of £6,000. I only have the top up loan of £1039 paid into my account. when i realised what had happened i called and asked to repay back the £1039 however they said i was liable for the £6,000. I have sent my complaint to amigo, they have rejected and also the FOS has also rejected despite me explaining this and also stating that it was irresponsible lending as on my credit file there is numerous defaults. All the expenditure was wrong also. What else can i do as i really do not want this on my head anymore. The borrower has also now stopped paying and is 3 months in arrears. Any advice would be great thank you
Sara (Debt Camel) says
Your FOS complaint – has this gone to the second stage where it is looked at by an Ombudsman?
Your current financial position – how large are your other debts? how many of them are defaulted? are you buying or renting?
Miss W says
thanks for replying. I have a £400 loan that goes out every month, i have 18 month left now. Amigo has asked me to reduce that in order to pay Amigo. This is not possible. I am renting. I have gone through a new expenditure with them and i cannot afford it. During the time the loan was taken out they knew i was suspended from my job due to ill health and later could return in October however i got a new job which is less money however less stressful. The original expenditure was wrong and they took into consideration overtime. The FSO have come back to me and said that Amigo has done nothing wrong. I dont know where i stand with this now as i do not agree. I am trying to work with Amigos as i do not want this to affect me at all financially. It has taken me a long time to get to where i am now.
Miss W says
i have been offered for it to be re looked however it was the final decision.
Sara (Debt Camel) says
ok, it doesn’t matter if it is a final decision by the adjudicator, as you have asked for it to be looked at by the Ombudsman that is good. You need to listen carefully to the call recording (if you don’t have it, ask Amigo for it it) and make a note of the points where you mentioned your health issues and also how the amount of the loan was discussed.
Sara (Debt Camel) says
On April 23 Choe had her complaint upheld by an Ombudsman, so she is being removed as guarantor.
Cathy says
Fantastic news Miss W, I re read your posts and could feel your stress. I only hope that the guarantor loan industry is overhauled and regulations put in place to protect guarantors. If more cases succeed at the Ombudsman stage the ‘loan sharks’ in the guarantor industry will have to change.
Lisa says
Hoping you can help!
I’ve looked around online and there doesn’t seem to be much addressing the particular problem we have, so hoping you can help. Her former partner, the borrower, was abusing her physically and emotionally. We have reported this to the police, but I’m unsure how long a full investigation may take. I spoke briefly to Amigo regarding the situation, but am just waiting for my sister to confirm I am authorised to speak on her behalf (she’s in no fit state to deal with this). They stated that she would still be liable for repayments during the investigation, and would be unlikely to claim this money back. My family’s approach is that she is not paying any further amounts (she’s been paying it all along as he has no job or income).
In addition to the domestic abuse claim, I also have no idea how she was approved as a guarantor given that she gets Universal Credit, only works part time, is a single parent to a small child and has no assets. If you request from Amigo, do they provide evidence of their credit checking approval process? Can you find a copy of your credit record history to independently verify?
Any advice on templates/approach in this instance would be very helpful!
Sara (Debt Camel) says
It’s great you are supporting your sister through this. Abuse can take many forms – physical, emotional and financial. The fact she has reported him to the police is good – you should include the crime reference number for that in her Amigo complaint.
“They stated that she would still be liable for repayments during the investigation,” Liable yes legally, but that isn’t the point here. It doesn’t sound as though she has enough money to make these payments. She should not borrow elsewhere or get into hardship trying to make unaffordable payments.
What is the worst that can happen if she doesn’t pay? She has no assets you say. Amigo could add a default to her credit record – big shrug, compared with the rest of her situation that doesn’t feel important, and any default will be removed if she wins her complaint. If she gets a complaint in now (eg with you doing it on her behalf) than Amigo should not start court action for a CCJ until the complaint is resolved. The regulator’s rules say a lender should not start enforcement action when a loan is in dispute. Amigo have a reputation for being difficult and aggressive but I don’t think even they would start a court case against someone who has put in a complaint about coercion and domestic violence – and if they do I would expect the Financial Ombudsman to give this a high priority.
“would be unlikely to claim this money back” they have no right to say that. Her complaint to be removed as a guarantor should include asking for a refund of any payments she has made to Amigo so far – but it’s better not to make any!
“I also have no idea how she was approved as a guarantor given that she gets Universal Credit, only works part time, is a single parent to a small child and has no assets” all good points to make in her complaint. Of course she may have been pressured into lying to Amigo during their telephone call to her. Or her ex may have completed an expenses form for her which was a work of fiction.
“do they provide evidence of their credit checking approval process?” if you read the template above, the last part says that Amigo should send a copy of all personal information including credit records. Also a copy of all phone call recordings.
“Can you find a copy of your credit record history to independently verify?” yes, see https://debtcamel.co.uk/best-way-to-check-credit-score/. I think you should check her credit records with all three credit reference agencies – apart from this Amigo loan it would be good to know there is nothing unexpected on there such as a loan or credit card she knew nothing about…
The template says “I was pressured into agreeing to this loan by the borrower. I didn’t feel I could refuse because [explain in detail………..]” It may be very painful for her but if she can go into detail here it may help her case.
One option is for you and her to go to a local Citizens Advice and ask for their help. these cases are not common but a local CAB can get support from the national Expert Debt Advice team for this sort of case. they could also help write letters to any other creditors asking for debt write-offs, see https://debtcamel.co.uk/debt-options/less-common/write-off/.
If there are a lot of other debts, you may want to think if it wouldn’t be simpler for her to just go bankrupt and have a clean start. Dealing with a lot of lenders and having to keep giving details about abuse could be very difficult for her – something for you both to think about?
Cathy says
Hi Sara
Amigo sent all documents (SAR request)relating to my sons account, which was received on Saturday. The envelope was badly damaged with two large slits down the back and side. It was contained in a plastic wallet with a letter attached from Royal Mail apologising for the condition of the package and inviting us to apply for compensation if anything was missing. I photographed it and emailed Amigo asking for another set to be resent. We received am email advising us another set would be sent out. Today a further package arrived. The documents when stacked side by side are only half the amount of the previous package and did not contain the CD call recordings. I have emailed Amigo asking them to explain the discrepancy. Do they have to reset the 30 clock to when we receive another full set.
Additionally the guarantor CCA details both my sons name and the borrowers and states ‘You may have to pay instead of the borrower’ Is this the correct wording? I did expect the wording to be stronger if it was lawfully binding.
Kind Regards
Cathy
Sara (Debt Camel) says
Amigo need to buy some stronger envelopes, you are the second person who has this sort of difficulty.
I suggest you inform Amigo that what you have been sent so far does not constitute the documents you requested in your Reply Form dated dd/mm/yy and that as per 4.2 of https://www.justice.gov.uk/courts/procedure-rules/civil/pdf/protocols/debt-pap.pdf they will not be able to start court action against you until 30 days after you received the information you asked for.
Send your complaint to FOS immediately at 8 weeks even if you have not had all the SAR documenation at that point. Then inform Amigo of this and say that FCA rules say they should not seek to enforce a debt which is the subject of what may be a valid dispute, so ask them not to start court action until the FOS case is completed.
Cathy says
Thank you for such a prompt response Sara. What is your view on the terminology in the CCA.
” Additionally the guarantor CCA details both my sons name and the borrowers and states ‘You may have to pay instead of the borrower’ Is this the correct wording? I did expect the wording to be stronger if it was lawfully binding.”
Regards
Cathy
Sara (Debt Camel) says
I think you would need to get that looked at by a lawyer. Is there a Law Centre near where you live?
Cathy says
Not that i am aware of. However my son does have access to free legal advice via work (telephony). I will ask him to call them tomorrow. He did call into a local solicitors just before Christmas to ask for advice and was quoted £450 for a consultation. Not sure how they expect ordinary people to find that type of money.
Sara (Debt Camel) says
Indeed. I am afraid this is pretty specialised stuff as well. You need a firm that deals with CCA litigation.
Sarah says
I’m in an awful situation where I guaranteed loans for my ‘friend’ she started defaulting on all of them due to personal circumstances. I helped pay the monthly repayments for few months but I was getting myself in to debt and couldn’t manage it any more. The companies wouldn’t chase her cos they were receiving money from me. I spend hours on the phone to these companies every month and have spoken to a debt management charity who have also been talking to the companies on my behalf as I can’t cope with the constant harassment. Amigo are extremely difficult and will not make a payment plan despite me being transparent with them and sharing the remaining money I have from my monthly income with all companies. The borrower has not made any contact with these companies or started looking into a DMP as I advised. I don’t feel they fairly looked at my circumstances- I am a single working mum, they did not check if I was a guarantor for other loans. When I had the initial phone call from them about my income i was At work and unable to give my full financial statement but they just kept saying roughly what do you think you spend so some was just a guess off the top of my head. They are now going to take court proceedings but can’t come to a payment plan arrangement although I’ve offered alternatives. I don’t know what to do, I’m willing to work with them but they are being completly impossible
Sara (Debt Camel) says
Sorry quite a few questions…
For each of the guarantor loans separately can you say:
– who is the lender and how much do you owe
– were you asked if you had agreed to any other guarantor loans
– have you made a formal written complaint to the lender, if Yes has this been rejected, if it has what was the date of the rejection
– was this loan topped up
– have you asked the lender to send you a copy of all your personal details including copies of credit checks and recording of phone calls
– have you been sent a Letter before Action/Claim? This may have been titled something different but it would have had several attachments including one headed Reply Form? See https://debtcamel.co.uk/letter-before-claim-ccj/.
– have you been sent a Claim Form by the court
For the Amigo one (as that sounds as though it is further on?) all the above questions plus:
-did you tell them you couldn’t talk much as you were at work? was there a later call in which they ran through the figures again?
What was the order of the guarantor loans – which lender first, second, third etc
How much do your other debts add up to?
Do you have any assets eg a house with equity?
Which debt charity are you talking to? HAve they discussed an affordabilty complaint with you and going to the Ombudsman?
I am sorry to say that unless your “friend” has any assets I suggest you give up thinking they are ever going to pay anything – it is very unlikely and it is a distraction from sorting out your situation.
Chaz says
Hi Sara
I really need some help, my ex and childs father emotionally pressured me into being an guarantor for a loan, he has been emotionally abusing me since we spilt up 3 years ago. He made the first payment in november 2018 and hasn’t made any more payments. Amigo are now sending me emails and text messages everyday.
I have debts myself and some more because of him and cant afford to make payments. Im unsure what to write in an email to them. Please can you help
Sara (Debt Camel) says
Do you think you could afford to repay this Amigo loan from your income? If not, then Amigo may not have done proper checks that the loan was affordable for you. They can’t rely on the fact that you have a house with equity (? do you?) to meet the affordability criteria.
What sort of emotional pressure – did your ex say he wouldn’t pay maintenance or something if you didn’t agree to be the guarantor?
Chaz says
I knew I wouldnt be able to pay from my income, I currently make payments to two different loan companys and previous phone bill debt again from my ex.
When I was filling out the form online it stated my out goings were more then my income and wouldnt allow me to continue. I have screenshots of this. Then they called me and I told them the exact same thing and some how they accepted. I dont have house equity or any equity at all. I live with parents.
My ex doesnt pay maintence but he threaten to “take” my son, beat up family members and also threaten to kill himself because he didnt have any money. I also believe but im unsure that he already had a loan with them under a different guarantor and the loan he got out with me was a top up.
will amigo contact the borrower regarding my complaint?
Sara (Debt Camel) says
This sounds like a strong case.
Read what I have written to Megan below – you are not alone in going through this sort of thing, it may feel like you against this horrible lender, but you can get support here.
As I said to Megan, work your way through the template complaint in the article above. You have two sets of points to make – the pressure you were put under and the fact the loan was also unaffordable and they should have known that from your application.
The template asks for you to be sent a copy of your personal infomration – this includes phone recordings. They could prove useful evidence for you when this goes to the Ombudsman.
About your other debts – can I suggest you talk to StepChange about a debt management plan for them if you are struggling?
There is no reason why Amigo should inform your ex about your complaint if you carry on making the payments.
Megan says
I was completely pressured and coerced into signing to be guarantor for this loan, when he was fully aware I have no income to pay it, he told me exactly what to fill out, exactly what to say, and then tried to triple the loan and force me to do that too. I was promised he’d pay it, he has a full time job as a manager paying £1800 after tax. I have no job or income what so ever. I genuinely did fear for myself if I did not agree and have recording of other occasions of his being abusive to prove he is not a nice man.
I’m finally out the relationship but I cannot pay my loan and his.. once again for the third time he’s not paid it on time and I can’t have this hanging over me for 3 years.
Do you think I have a case and if so what should I say as I’m awful at the legal side of things.
Thank you so much, Megan
Sara (Debt Camel) says
Hi Megan,
don’t worry about not being good at the legal side of things – if your complaint has to go to the Finanical Ombudsman (and most complaints do – Amigo are not good at making reasonable offers to settle a complaint) they just need you to say in your own words what happened, not quote laws and regulations.
You must be feeling very upset, both about this loan, the long term deception and having so recently split up. I’m just going to be factual here, I am sympathetic but the best way I can help is by talking about practical things you can do. Your other comments didn’t get lost – I will send you an email about them.
The article above has a template letter you can use as the basis for your complaint:
– right at the start add a bit if you have moved, give your new address and say in IN CAPITALS that they must not send any responses of infomration to your previous address.
– it asks for a copy of all your personal information. This is really important as it may show where there are discrepancies in your case – what you told them didn’t match with what your credit record showed for example. Amigo will send this to you by post, hence the change of address being important.
– Include the bit which starts “I was pressured into agreeing to this loan”. Add a detailed description of what happened. Don’t worry that you have no evidence for this, just set out the truth.
– skip the bits about top ups or not understanding the loan if they don’t feel right for your case. You don’t have to include points that were irrelevant for you,
– the bit about not being able to afford the loan, write some more about your self-employment and very low income. Add that you have no assets (if that is right? you don’t own a property, car, savings?).
Amigo may be threatening you with court action – once this complaint is in, they shouldn’t start any court action. If they reject it, you need to put your complaint into the Ombudsman that day and then again Amigo can’t go to court until that is sorted.
Whatever you do, don’t borrow more money to pay them or ask your family to make the payments. You have two ways of winning this case – because of the pressure on you or because Amigo did not check your case properly. It may be difficult to prove the pressure but don’t let that stop you from bringing this complaint.
Michael says
Hi, thanks for the guidance I am assisting my sister in law who signed up as a guarantor for her ex without knowing what a guarantor really was.
Her ex has stopped paying so she has made about 4/5 payments thus far. We’ve written up the complaint based on your template, should she continue to pay in the meantime or stop making payments until the matter is resolved either way?
Thanks, Michael
Sara (Debt Camel) says
Can she afford to make the payments from her income without hardship? Can you say something about the rest of her situation – does she have other debts? Assets? Had she already separated when she became his guarantor?
Michael says
She can only just about afford the payments on her current salary if she spends nothing each month accept bills. Yes she had other debts when the loan was taken out, she has no assets as lives at her parents. She wasn’t separated but they weren’t living together. I have included all in the email. They definitely didn’t check her financial situation properly.
Chaz says
Hi,
Me again, I sent in a complaint at the beginning on February and sincr amigo has been sending emails, texts and letter about going to court over the loan.
They have responded to the complaint saying that I didnt tell them when I spoke on the phone that I was being pressured and didnt sound like was. They said if this is the case I should contact the police and keep them updated on this. They also said that I agreed to loan and because they asked me about previous debts, they did do checks on me. Even thought I always said I have debts and are trying to pay them off.
So they have no accpeted the complaint. They also stated that the information ( checks and phone recording) will be sent separately.
What should I do now?
Sara (Debt Camel) says
Send the complaint straight to FOS. And tell Amigo you have done this and ask them to hold off on court action until you get a decision from the Ombudsman. Don’t wait until they send you all the information, you want that FOS complaint in right away to stop Amigo starting court action while you don’t have a complaint in progress.
Mark Anthony says
Guarantor loans should be banned immediately, my partner is a guarantor on a loan that started at £3000. The person who had the loan could afford those payments. My partner did not know that the person had been bankrupt before. The company who lent the money did, my partner did not. It should be common practise a guarantor should be informed.
The company was irresponsible in offering a top up loan of £7000 within 8 months. The person who had the loan only made one payment at the new rate for the new loan. She had to pay half the due monthly figure due to financial problems. Now she has passed away.
An original loan of £3000 was then £7000 plus arrears and interest my partner is now asked to pay £12000! The loan company are threatening legal action by 7 March 2019 if the arrears amount of over £5000 is not paid. If anyone can help with guidance please let me know. When I spoke to the lender they said – we offer credit to someone who has had bad credit history the past, we do not look at their credit history. Instead we look for a guarantor who will confirm they will pay, or the guarantor will pay. This is totally irresponsible taking advantage of those already in financial problems, they have a apr of 49.9%.
Mark Anthony says
Hi Sara
I am the one who contacted BBC moneybox programme regarding my partner Lesley. They discussed her on the programme earlier. The financial ombudsman has asked Amigo Loans to with hold court action but they are still threatening to do so by March 7 2019. Lesley found out the person had been made bankrupt 11 months after she agreed to be the guarantor when the person told her. Amigo were irresponsible in offering a top loan within 8 months of the original loan which the woman could not afford. My partner was made redundant last August and is awaiting 2 operations so cannot work. The woman was a carer for my partners mother who could not feed or wash herself. Over that time she gained my partner confidence. The woman was standing by my partner telling her what to say when Amigo were speaking to her. My partner can only afford the payments out of her redundancy pay but that would leave her short. She still has a mortgage.
Regards.
Mark
Sara (Debt Camel) says
It was brave of her to be prepared to speak on the radio – I am sorry she herself is ill which must make this harder to deal with. I am sympathetic but my comments here will be very practical. There is a difference between what you (and I) think is morally right and what can be achieved in a complaint and it’s vital that you concentrate on points where you can help her case.
re court action, I asked these questions to try to work out whether this is just vague threats or if the process is already in motion:
Has your partner been sent a Default Notice?
Or a Letter Before Action/Claim? This is a formal letter with forms enclosed including a Reply Form, see https://debtcamel.co.uk/letter-before-claim-ccj/?
Or a Claim Form, see https://debtcamel.co.uk/court-claim-form/?
Do you know how long before the first loan the borrower went bankrupt?
Have you sent Amigo a Subject Access request asking for a copy of all the personal information they hold about Lesley including the credit checks and the recordings of the phone calls? If you haven’t, get her to ask for this immediately – email hello@amigo.me with SAR as the subject line. Until you have this you can’t tell if it is going to help your case or not. You are going to be looking for discrepancies – things which she said that don’t seem to match what her credit record said.
Do you think she would have been unable to afford the payments even if she had not lost her job or become ill. To win an affordability complaint that is what you have to show.
Does she have other debts at the moment apart from the mortgage?
Mark Anthony says
Hi Sara
She has received letter from Amigo solicitor dated 7 February 2019 asking for completion of forms. seeking payment of the full debt £11,947.11 by 7 March. It mentions default notice 11 July 2016.
She does not know when the woman was bankrupt.
No request for credit history but I asked for copy of agreements and recordings they said will take 30 days. I asked 25 February 2019.
She would not been able afford payments if she was still in work.
Other debt is mortgage current account.
Thank you for your help.
Mark
Sara (Debt Camel) says
If her only debts are her overdrafts and her mortgage then her credit history wouldn’t be very interesting unless she had mortgage arrears – which I assume she didn’t. But I think you should go back to Amigo and say that you actually want a copy of ALL her personal infomration – you can’t name all the documents and you may be unaware of some of them.
“She would not been able to afford payments if she was still in work.” you need to be able to prove that Amigo should have realised this before they gave the first loan – or before the top up.
Are you getting any help to do this? Your local Citizens Advice may be able to help.
Todd says
Hey Sarah,
I finally received the information from Amigo Loans end of January but due to being really busy and other things going on, I now have tomorrow to put more evidence to the FOS as I am on annual leave. I aim to get a doctors letter, a written reference from the educational psychologist who did my diagnosis as well as another reference. The third reference will be from a homeless charity organisation I registered with as i was at a high risk of being on the streets 2 years ago, this was due to dodgy landlords and unsafe surroundings. I would want to bring this in as I was in a vulnerable position not understanding certain processes. I have set an appointment to speak to the caseworker at the charity to get a written reference. I also aim to listen to the phone recordings to pick out pieces that they may have missed. Would all of this evidence help in relation to the FOS decision?
Sara (Debt Camel) says
Getting evidence about your reduced mental capacity vulnerable position may help. But I am going to say again that listening to the call recordings is vital. Could you get a friend to listen to these? Or go to your local Citizens Advice and ask for their help?
I said before that you are looking for:
“– any points where you just seemed to be saying Yes (or No) but not really thinking (perhaps you didn’t understand what you were asked)
– any points where Amigo lead you into giving a figure by suggesting one and you just agreeing
– and regular expenditure you weren’t asked about. Go through this online calculator which has a long list of categories https://tools.nationaldebtline.org/yourbudget/ and see if any were missing. For example you may not have given estimates for opticians, dental, prescriptions. You may have given petrol and car insurance costs but nothing for servicing. You may not have thought about lunches at work. etc etc”
So you can then say that the evidence from your doctor, educational psychologist etc about your mental capacity for making good financial decisions supports what you are saying that you didn’t really understand what you were being asked in places in the phone call and Amigo did not do a thorough job of estimating your expenses.
James says
Hi, my guarantor has complained and they have got back to her now saying they don’t think they’ve been wrong to accept her and because her credit was so good she was fine and because the budget calculator she filled in left enough over. What should the next thing to be done be? I can send the entire email if needed?
Thanks
Sara (Debt Camel) says
When she gets the copies of her personal information, she needs (or you need to help her) listen to the call recording and look at the budget and compare that to what her credit record showed and look at whether anything important was missing.
Then you can send her complaint to the Financial Ombudsman saying she could not afford to make the loan repayments, Amigo did not properly check on affordability and ask for her to be removed as guarantor.
Chaz says
Hi
Me again.
I have sent my complaint to the Financial Ombudsman and they are looking into it.
I have also received my data request from amigo. I havr listened to the recording and realised they didn’t ask me about any loans I already have.
Also I keep recieving letters and emails one today about court action being planned. Can they take court action on me while I have complaint being dealt with by the Financial Ombudsman.
Sara (Debt Camel) says
“I have listened to the recording and realised they didn’t ask me about any loans I already have.”
OK… the following questions are exploring the ways you could make this help your complaint:
– had you completed any form with details of your expenses, if yes, did you include your loans on these?
– you should have been sent a copy of the credit record check Amigo did, were all your loans shown on there?
– was there an income & expenditure sheet where Amigo has estimated your disposable income, were the loans shown on there?
“Also I keep receiving letters and emails one today about court action being planned. Can they take court action on me while I have complaint being dealt with by the Financial Ombudsman.”
No they can’t. I suggest you reply to the email saying
“You are aware that I am disputing this debt. My complaint was sent to FOS on dd/mm/yy. The FCA’s rules say:
CONC 7.14.1 R (1) A firm must suspend any steps it takes or its agent takes in the recovery of a debt from a customer where the customer disputes the debt on valid grounds or what may be valid grounds.
Can you please confirm that you will not start any court action until my complaint with FOS has been resolved.”
Kate says
Hi
I am hoping for some advise please.
I took out a loan in october 2018 for 5000 my mum is my guarantor. I am really struggling to make repayments but I have not missed one as I would not want this to affect my mum as it’s not her fault. I feel that the loan should never have been approved in the first place i have bad credit history And had a house repossesed in 2016 due to abusive relationship. I have 2 little ones and i am currently a studnet but still work part time. I did not think my mum would even be accepetdd as my guarntor as she is disabled on benefits.
I dont belive she should have been accepted as my guarntor of they had checked any details as her monthly is under £500 and rents. Do you think she wiuld be able to be removed as my guarntor? She did not have to to provide them with any evidence. Thanks any help much appreciated
Sara (Debt Camel) says
I think your mum should complain and ask to be removed as a guarantor. If she is disabled and on benefits it’s highly unlikely she could afford the repayments. And the Income & Expenditure for her should have taken account of the extra costs she has because she is disabled.
Sara (Debt Camel) says
At the same time I think you should complain the loan was not affordable for you. If you can get the interest removed and an affordable payment accepted, without it impacting your mum, that would be a huge improvement. So two separate complaints, these are different and you can’t tell which is more likely to succeed so go for both.
Kate says
Im worried about complaining incase it affects my mum. Should we complain on her part first. Are they meant to ask for proof of income? As none of us was asked for any proof atall. Thanks for your quick reply
Sara (Debt Camel) says
Your complaint will not affect your mum if you carry on making the payments.
The problem with complaining about your mum first is that this is very likely to have to go to the Financial Ombudsman, so this could be a long while. Starting both complaints at the same time is the safer route.
There isn’t a law that says the lender (who was it?) has to ask for proof of income. But this was a large loan and the lender should have made adequate affordabilty checks.
Kate says
The loan was taking out with amigo, should o complain to them first or the ombudsman Im not really sure where to start. I thought a perosn could only be a guarntor if they were working or owned a house which my mum is nither of these.
Sara (Debt Camel) says
The complaints, from your mum and from you, need to go to Amigo first.
There is no absolute rule that says a guarantor has to be working or own a house. But don’t worry that this means you will lose your complaint. Just start off the complaint process for your mum and a separate one for you. Take it step by step and com back if you aren’t sure what is happening.
Donna says
Hi could you help me please? I took out a George Banco loan in 2014 after having a baby and my ex partner us guarantor, I paid 200 a month for the first 6 no the then they rang to offer me a further 2000 top up to which I agreed, I then ran into fiancial difficulty and noticed then that they where charging double in interest, and tge first 6 months payments had disappeard!! I cannot pay and my ex partner is struggling to pay also they ring his work and send messages constantly even when I’ve agreed to pay an amount each week and so does my ex partner! I’m really struggling to deal with this hope you can help??
Sara (Debt Camel) says
OK, both you and the guarantor can make an affordability complaint to George Banco, about the original loan and about the top up.
The article above looks at how a guarantor can make a complaint, so suggest your ex does this. Did you split up before or after you took out the guarantor loan and the top up? If his complaint succeeds he would be removed as a guarantor and you could then just make an arrangement to pay, knowing he would not be chased.
This other article looks at how you, the borrower, can make an affordability complaint: https://debtcamel.co.uk/how-to-complain-guarantor-loan/. If you win your complaint, the interest will be removed so you only have to repay what you borrowed.
These are two separate complaints, start them as soon as possible as you don’t know which is more likely to work.
Your ex, what is his current financial situation like? Does he have other problem debts? Is he renting? It may be easier if you can get him to post here directly himself.
Sara (Debt Camel) says
In addition to the standard affordability complaint, you have mentioned two other issues – that you have been charged the wrong interest and that the first 6 months payments have disappeared.
I think the first 6 months payments may have disappeared as the “top up” loan was actually set up as a new loan to pay off the old loan. In which case you wont see the payments you made to the first loan when you look at your current loan account. Does that make sense?
Can you say why you think the interest rate is too high?
Craig says
Hi my dad took out an amigo loan for my brothers then girlfriend even though my dad was on benefits (DLA) and now his money has stopped altogether, she had an affair and refuses to pay the loan even though she can afford it so now my dad is liable and if he doesn’t pay he will have charging order on his property I think the loan was 15,000, please help as this does not seem at all fair thabks.
Sara (Debt Camel) says
OK, if he was on benefits, then he may have a very good complaint that Amigo did not properly check for affordability. When they went through his income & expenditure, as much of his income was from disability benefits, he should also have been allowed enough expenses to cover the costs of his disability. that could have been extra heating, taxis, parking at hospitals, a cleaner, gardener whatever. My guess is that Amigo didn’t properly explore with him what extra costs he had because of his disability.
So read the article above and help him with a complaint. Asking for a copy of all his infomration – including the phone recordings , can mean he gets a lot of useful data if the complaint has to go to the Ombudsman. Which most of these cases will.
Todd says
Great! I finally have a few days off work to finally get the final complaint done once and for all! I am just careful on how I should write together the doctors letter, for example I don’t know whether the reduced mental capacity due to learning disability should be put forward or whether it was due to the affordability checks, looking at the budget, clothes were missing, medical expenses and leisure activities were not there. Since I did not fill out the form, from the last decision of the complaint they said amigo is not responsible for this so I am concerned the Ombudsman would not support my case. On the phone recording I was not asked about any other accounts like my credit card. Should I put in a case for the learning disability/mental capacity or lack of proper checks. I was unsure of the learning disability as lacking mental capacity is a specific definition and from speaking to a person at my local citizens advice they said I do not have a strong case and shouldn’t bother to put a complaint in, they said this should be done only if the borrower defaults and amigo try and take further action.Would the local citizens advice be able to help with my doctors letter. If not who could help? Thanks
Sara (Debt Camel) says
you have good points to make to FOS saying that Amigos affordability checks were not adequate and the phone call was too brief and not through.
As I said, you are looking for places where things were missing from your budget or had too low amounts that Amigo should have queried – food, clothes, car expenses etc etc And also for points where your budget wasnt in line with what your credit record would have showed. If you go to your local Citizens Advice they can help by suggesting what items should have been included in a full income & expenditure statement and whether they think any of your amounts look unusually low, so Amigo should have queried the.
If credit repayments were showing on your credit record, then you should have included lines in your expenditure statement for repaying them. So if Amigo could see you had a credit card where the minimum repayment was £80, then they should have asked you if you were paying that if you hadn’t listed it.
The fact the phone call was brief wouldn’t matter if it had covered all the points. But the fact that they weren’t encouraging you to make sure your expenses were complete is not right. And here the letter from your doctor about the difficulty you had with understanding somethings will help. Asking closed questions where you could just quickly say yes or no, didn’t really explore your situation.
Todd says
Thanks for that, since I did not fill out the expenditure form so i would not know too much however, parts did look quite low ie. food was put as £50 which is very difficult to spend food this low in this day and age. You are right about the phone call, if it was short but there was more open questions then that would be fine, but because there wasn’t then I will use that in the complaint, I was advised that I should only put the final complaint if the borrower fully defaults the account, as my case for my learning disability is not strong. I will still complain and get the doctors letter. I have sent the FOS the call recording to keep my case open, should I like parts of the phone conversation in my doctors note?
Sara (Debt Camel) says
£50 is absurdly low. It should be more than twice that. And more if that figure also includes toiletries and cleaning things – loo rolls, shampoo, bleach, shaving stuff etc. There should have been allowances for clothes, prescriptions/dental/opticians, etc
“I was advised that I should only put the final complaint if the borrower fully defaults the account, as my case for my learning disability is not strong. ” I don’t understand this logic. Your case won’t get stronger by waiting and it’s more stressful!
Also you can’t hold open a complaint at FOS, once it is underway you can say you need to wait for something like a doctor’s letter but not for possibly months.
Ade says
Hi. I agreed to be guarantor for a loan last year to assist in a friend and his now wife getting married after someone let them down. At the time I had a well paid job however had to leave in August due to how the job was affecting my health. Since then the person has failed to pay four times and this has been taken from me causing me financial issues – I’ve had to borrow off family to cover bills etc. Despite assurances the money will be paid back and there will be no more issues, this hasn’t materialised and I have no faith that monthly payments will be made doing forward. Is there anything I can do as the person has blocked me from contacting them. It appears the couple owe many people money and it’s getting worse. Really appreciate any advice you could offer me.
Sara (Debt Camel) says
What is the rest f your financial situation like – do you have a mortgage or are your renting? Other problem debts?
Ade says
I have a mortgage and also have a personal credit card along with normal household bills which must be the priority
Sara (Debt Camel) says
Sorry, I missed your reply.
It sounds as though you could have afforded to make the repayments when the loan was set up – is that right? It also sounds as though you entered into this contract freely – you weren’t pressured into doing it and you knew what you were signing. In that case, you aren’t likely to win a complaint to ask to be removed as guarantor.
I think you need some debt advice about the whole of your finances. You borrowing off family is not a sustainable situation.
Yes, your mortgage and household bills have to be priority. There is a list of priority debts and bills here: https://debtcamel.co.uk/start/priority-debts/. But your personal credit card is just another unsecured debt, as is this guarantor loan. You may need to set up a debt management plan or look at other options such as an IVA if you have a secure, if lower, income. I suggest you call National Debtline on 0808 808 4000 and talk through your options with them.
Ian says
Hi Sara, I’m looking to get my name removed from 2 guarantor loans that I guarantor for someone. A long story short, but this person has already had around 12k of my own money before the loans were taking out that haven’t been repaid as of yet, I have taken him to a small claims court.
In regards to the 2 guarantor loans I have with this particular person and the money I have loaned him previously, He had stated in various email’s beforehand that all this money was needed for his business, a business that was set up and closed down within a month whilst he took the money and hasn’t repaid any of the loans. The loans were actually took out a few months after I had found out about the business closing down!
I have on many emails from him stating that if I didn’t guarantor these loans then I wouldn’t have my original money back that I had loaned him! Now this person has sent fake hmrc letters to me via whats app stating he has a tax rebate coming in. My main question to you, is there enough evidence for me to complain to the lenders about getting my name removed as his guarantor? I feel the companies in question (bamboo, trust two) did not do the correct checks on this person, The fact he was classed as self employed and not in employment would have rang alarm bells to me.
Thanks, Ian
Sara (Debt Camel) says
So you are planning to argue that the lender had a duty to you, the guarantor, to do adequate checks? I am not sure how far you will get with that argument.
“He had stated in various email’s beforehand that all this money was needed for his business, a business that was set up and closed down within a month whilst he took the money and hasn’t repaid any of the loans.” emails to who?
“The loans were actually taken out a few months after I had found out about the business closing down!” so you knew the reason given to the lender was false when you guaranteed the loan?
“I have on many emails from him stating that if I didn’t guarantor these loans then I wouldn’t have my original money back that I had loaned him! ” so you were told that you would be paid money – the repayment of your loans – if you agreed to be a “guarantor”. I think you need some specialist advice on this point and whether it could help you to get yourself removed as guarantor.
Ian says
I’m going to go with the pressured route for my case but I do not feel the lenders did the checks on the borrower and didn’t check his employment status, is that a case to argue at all? To me, I feel they shouldn’t let someone agree to borrow x amount if they can’t repay the money, isnt that classed as stealing?
The fact he had already has 12k of my own money then sending me emails saying he needed these loans to ‘save his business’ that didnt actually exist is fraud in my eyes as well as black mail.
I have all emails he had sent me in regards to this, my thinking was if I didnt agree to being his guarantor then i Would not get my orginal money back I hand lent him.
I did not know the business had been set up and closed until I went to c.a.b a few months after being a gurantor to the loans, they did the checks for me to flag up potential fraud case. If I knew there was no business I wouldn’t agree to any of this.
so you knew the reason given to the lender was false when you guaranteed the loan? No I did not know the reason given to the lender was false, I only found that out after he had the money and hasn’t repaid it.
thanks
Sara (Debt Camel) says
“I do not feel the lenders did the checks on the borrower and didn’t check his employment status”
I would agree with you that guarantor lenders do not do adequate checks. But the regulator just says they have to make “appropriate” checks” and doesn’t say what they have to be.
“The fact he had already has 12k of my own money then sending me emails saying he needed these loans to ‘save his business’ that didnt actually exist is fraud in my eyes as well as black mail.” I am sympathetic but my sympathy isn’t going to help you here.
If you can argue that you could not afford the loan repayments so the lenders did not do adequate checks on you, this may be an easier case to win.
Sara (Debt Camel) says
Coming back to this, the recent decision by the ombudsman in Miss W’s case (which will be published soon) says that the Ombudsman will consider whether the lender checked properly that the borrower could afford the loan.
It may be hard for you to produce evidence about this, but it is worth a try!
Miss W says
Ive had a provisional letter sent through to me basically saying that amigo should never have taken me for a guarantor loan. So after a long 9 month battle, i have won my case with compensation. They have removed me as a guarantor and everything taken off my credit file! Finally.
Jane says
That’s fantastic news, well done! May I ask did you have to refer your case to the FOS? My Mum was my guarantor and also contacted Amigo asking to be removed as my guarantor. They declined and the email exchanges were very unprofessional to say the lest. She then referred the matter to the FOS last year as a matter of principle, that she should never have been approved as my guarantor.
Any more details would be very welcome, if you do not mind.
I’m still waiting patiently for the FOS to conclude investigations on my case…hope we have some good news for people soon
Best wishes,
Jane
Miss W says
Hi Jane,
I asked to be removed as a guarantor. I first sent my complaint to amigo, got rejected, then went to FOS where a investigator rejected and then sent to final stage to ombudsman who then upheld my complaint. SO make sure you keep fighting as i am glad i did. I put in a affordability complaint and said that if Amigo actually did there checks properly,i should never have been accepted in the first place. When i requested my SAR data, all of it was wrong, including that i earnt 3k a month. They should never ever take over time into consideration, so this is where i won my case. Basically the borrower topped up her loan, however i then became a guarantor for the full loan of £5750, when the top up was £1039, i only thought I was guaranteeing and supporting the £1039. On the call this was not made clear and amigo were at fault which the ombudsman pointed out and upheld my complaint on this also.I suffer from mental health and amigo did not sympathise at all, hence for compensation. Keep fighting and if i can help anymore just let me know. The borrower is now bankrupt.
Sara (Debt Camel) says
Well done for persevering.
The point about overtime could be useful for other people – I will remember it.
Jane says
Thanks so much for the update, really appreciate your comments.
Take care,Jane
Tracey says
Hi Sarah,
Looking for some advise a friend of mines was talked into being a guarantor for a family friend she has extreme learning difficulties and thought that the repayment amount was the amount her friend was getting so a very low amount of £300 she was also told to lie about her income and we have proof of this through chat by her so called friend now this loan has been bumped and she is getting pressured to pay 7000!! she does not even have a job and lost her job at the time of the loan and was again told to lie she is a very easily lead person. I am upset that anyone would do this to someone vulnerable and get them to lie should they not be held accountable for her lack of understanding she has a child like mentality. I do not believe she would of understood the phone call and would of just agreed. she does have proof that she has learning difficulties as she was diagnosed as a child. This was for amigo loans.
Sara (Debt Camel) says
It is one of the big problems of guarantor loans that there aren’t proper safeguards to stop someone like your friend being taken advantage of … or indeed scammed. You may be interested in how I think the system should be changed, see https://debtcamel.co.uk/guarantor-loans-extra-protection/ but those are ideas to protect people in future, what matters now is what can be done to help your friend.
I’m going to try to write this simply so she might understand it. It’s great that you are helping her but the more she knows about what is being the done, the less she should worry.
The aim of making a complaint is to get her removed as a guarantor – if this is done the loan is no longer anything to do with her.
She has two good reasons for asking for this.
1) she didn’t really understand what she was agreeing to. This was a serious, large, long term undertaking and she gained nothing from it, so Amigo should have been careful to make sure she understood. As part of the complaint letter (see article above) you will be asking for a copy of all her personal information, including recordings of her phone calls with Amigo. These may show that she was just saying “yes” without really understanding. Or they may show that Amigo were not listening carefully and didn’t realise she didn’t understand.
It will help this part of her complaint if you can get evidence eg from her doctor about whether she has the capacity to undertand about money, loans, interest etc.
2) that she could not afford to make the loan repayments and Amigo did not check properly that she could.
If she wins on either 1) or 2) she should be removed as guarantor, she doesn’t have to win on both.
These complaints can take a long time, many months. Amigo almost always say “no” and so the complaint has to go to the Financial Ombudsman.
If she is being sent texts and calls or letters by Amigo, you should tell Amigo that she is vulnerable and ask for these to stop. There are a few letters they legally have to send, but she should not get a lot of them.
Once a complaint is underway, Amigo cannot take her to court. If (when) Amigo reject her complaint, you should send it to the ombudsman as soon as possible, no delays in which Amigo can start a court case. It is possible to get a court case put on hold, but it is simpler not to have to bother with that.
Does she own any assets? eg a car or a house with equity? If the answer is No, then if she doesn’t have a job, in the end even if she loses her complaints, there is little Amigo can do to harm her and there will be debt options to get rid of this debt. But that is a long way away and the priority is to win this case!
Tracey says
I will get on to this ASAP thank you for what you do and the time you take to help people like my friend.
And really hope changes can be made like your article to protect vulnerable people and stop people taking advantage!!
Cathy says
Hi Sara
How long does it usually take for the Ombudsman to pick up the case. I referred my sons case to them on 24/02/19. I received the temporary reference number but I have not heard anything since. Although Amigo have suspended sending letters, the interest appears to still be accruing on the loan that my son is a guarantor. The borrower stopped paying before Christmas and has disappeared.
Sara (Debt Camel) says
sorry there isn’t an easy answer here. There seems to have been a delay of a few months, some people heard the team was being reorgnised and few people had decisons at all. In the last few weeks, decisions are starting to come through, so it may be that things are now better organised?
Cathy says
Hi Sara
Thank you for the advice. Did u mean to type a few people had no decisions at all (few people had decisions at all.)
If that is the case and i didn’t hear anything from the Ombudsman, what will Amigo do. I assume they must have a deadline for cases to be resolved. I certainly have no intention of reminding Amigo Loan that our case is outstanding, but i would rather be armed with the knowledge before the deluge of letters starts again.
Sara (Debt Camel) says
Sorry I missed your reply. No I just meant that hadly anyone has had any decisions. Everyone will get a decision – FOS won’t just not look at some cases. I am expecting increasing numbers of decisions to start coming through.
caitlyn says
hello I need to ask while my mum is in the complaints process to be removed as guarantor for a loan is she liable to pay anything while this is being done.
Sara (Debt Camel) says
Hi Caitlyn – it’s good of you to support your mum through the complaints process.
Can you say a bit more about her situation? Which of these stages is she at, then I can give the specific answer that matters to her.
– the borrower is still paying but your mum is worried they may stop?
– the borrower is paying erratically and your mum is getting a lot of texts/emails/letters from the lender suggesting that she should make some payments
– the borrower has stopped paying and the lender has demanded she pays
– the lender is threatening court action
– a court case has started
– there has already been a court case and she has a CCJ?
Is her complaint currently with the lender or has it gone to the ombudsman?
It would also help if you can say if she could actually pay (without borrowing more of getting behind with bills or living on beans on toast) or just can’t. I’m not suggesting that she should, but it helps to know.
And does she have any mental health problems?
Caitlyn says
Hi so I am the borrower and I have not missed any payments or been late. My mum just can’t have this attached to her. She was never in the right financial state to take on the loan when it came to affordability. Its with UK credit. She wants to be taken off so its one thing she doesn’t have to be concerned about.So my mum had a record of financial difficulties on her credit score when the loan was taken out and she is in a job were the hours are not guaranteed every week and her and my father entered some sort of agreement were they could not take any further credit. And she was in debt at the time too. She has sent the complaint as of today with the template and appropriate bits added on.
Sara (Debt Camel) says
OK, so you aren’t struggling yourself to manage the repayments, it’s just that being the guarantor is stressful for her – understandable!
The fact that she had financial difficulties on her credit score means the lenders should have looked at her finances VERY carefully before accepting her as guarantor.
craig says
hi my father became guarantor for my brothers girlfriend a couple of years ago, since then she had an affair and they have split,the problem is she has stopped paying the loan out of spite as she still works full time as well as her new boyfriend so she can still afford to pay but refuses to as my brother moved on with his life, therefore she has left my pensinor father with a 10,000 loan hovering above his property via charging order.
Also they took my mothers financial income towards my fathers even though my mother is a guarantor for me is this legal please help as my mother has mental health issues and my father is classed as disabled tnak you.
Sara (Debt Camel) says
I guess your father can’t pay this loan out of income? In that case he can make an affordability complaint to the lender – is it Amigo? The lender should have been very careful about taking his wife’s income into account unless she had agreed to do this and even then the lender should have looked at her other expenses carefully. If your father is disabled, there should have been proper allowances for any disability costs made.
You mentioned a charging order – has the lender actually gone to court or is this just being threatened?
In addition he may also be able to argue that he was misled about the responsibilities of a guarantor – he understood he was responsible if the borrower was unable to pay, but it wasn’t explained to him that the lender would not chase her if she was able to repay but refused.
You have a guarantor loan as well? Is that affordable for you? You can consider making a borrower affordabilty complaint. Would your mother be able to repay it – if not, she can complain now and ask to be removed as guarantor.
craig says
Hi thanks for the reply they amigo are threatening with ccj charging order, but when my father took the affordability check he was getting dla but this has since been severely reduced to the lowest rate so my father is relying on my mother to survive.
The lender is blatantly refusing to pay out of spite as she has nothing to do with my family any more.
Do you think if we went to court and put our case forward the judge could send the debt back to original debtor I.e the one who received money but now refuses to pay, as I think putting this on to a disabled oap is disgusting thank you.
Sara (Debt Camel) says
Putting in a complaint and taking it to the Financial Ombudsman (FOS) is a MUCH better option than trying to argue his case in court. FOS has more general powers to look at what is fair in a situation than a court has.
If your father can get removed as a guarantor – which is what these complaints are about, see the article above – then Amigo will have to pursue the borrower if they want any money.
While he has a complaint with Amigo and then FOS (because Amigo almost always reject a complaint so it has to go to FOS) Amigo cannot start a court case against him.
If your father had DLA, then Amigo should have allowed for the costs of his disability when they assessed his income – they may well not have done this well which will help his complaint.
joana says
hello there,
I was forced by my husband to be his guarantor to a loan with Amigo, he took out a loan on the 29th of November 2017. Missing his first repayment I ended up paying for it. on the 6th of December 2017, just 6 days from his first loan he was approved for a top up, so he and myself ended up owing the amigo staggering amount of £10, 000.00. although I was forced to be again his guarantor for his top up, I agreed because I am 100% positive and sure that I wont be accepted as I have existing loans that time (likely, sunny and avant credit and quite a few direct debits as I am the one supporting our children. It was very obvious that amigo did not do proper credit checks as I have more outgoings than incoming as shown in my bank account. how on earth I was accepted to be his guarantor? My ex husband has left us in February of 2018, he had made 4 payments only and so far, I have managed 14 payments (£395.25 a month) with the some help form my friends and other short term loan company. There is no way that my ex husband will be responsible enough to pay the remaining 42 months as I heard rumours that he is into gambling business.
Please advice me if there’s any way I can be out as his guarantor? I am so stressed!
I really hope changes can be made to stop loan companies taking advantage of vulnerable people like me. Thank you very much. God bless!
Sara (Debt Camel) says
It sounds as though Amigo can’t have made proper affordability tests on you or on your husband. That sounds like a very good case for you to be removed as a guarantor! I suggest you put in a complaint right away.
I am afraid you have to expect that Amigo will reject your complaint and it will have to go to the ombudsman. This doesn’t mean it is a poor complaint, they seem to reject everyone.
Please don’t take out any more loans in order to make payments. Tell Amigo you can’t afford them. They can’t take you to court while you have a complaint going through – with them or when it goes to the Ombudsman.
And while you are making this complaint, also look at making affordability complaints to Likely Loans and Avant – see https://debtcamel.co.uk/refunds-large-high-cost-loans/ – and to Sunny and any other payday lenders you have used, see https://debtcamel.co.uk/payday-loan-refunds/
joana says
Thank you very much Sara, That was a huge relief for me to know that i can be removed as a guarantor. Have a nice day!
Sara (Debt Camel) says
Well there is a way to go yet, but it sounds like you have a good case. I have deleted your surname as you may not want your full name on the internet.
Dan says
Hello,
I was a guarantor for a Bamboo loan of 5000£ for my supervisor in sept 2016 and he paid like 2 times . Now i have a CCJ of over 14k for it. I don’t received any letters from anybody in hand coz i don’t live anymore to that adress. I just saw that CCJ on my credit file , i had court for it in 24th May 2019. What can i do about it ? The loan was transfered to Lantern Recoveries team and they worked with WILKIN CHAPMAN LLP solicitors.
Any point to send them or to Bamboo that complaint now ?
Thanks
Sara (Debt Camel) says
Sorry, quite a few questions:
So the debt shows on your credit record under Lantern’s name?
When you agreed to become guarantor – did you feel pressured to become the guarantor because he was your supervisor?
Were you actually friends & did you know anything about his finances?
Did he carry on in the job when he wasn’t paying the loan?
Did you make any payments to the loan?
Could you afford the loan repayments when you agreed to be the guarantor – by afford I mean could you have paid them out of your income and still been able to pay all your normal bills and your other debts?
Dan says
I received few days ago on email a letter from Wilkin chapman that Lantern debt services limited received a CCJ against me on 24 May and need to pay that amount of over 14k in 28 days or their client is entitled to consider enforcement proceedings.
Yes, i felt presure to become guarantor but i don’t even understand everything coz my language was no so good back then and don’t understand exactly what suppose to be a guarantor only what he translate for me, when they called me he was next to me and tell me what to answer . We used to be friends aswell and he told everything will be ok , he will pay but after 2 or 3 months he left UK. I didn’t know so much about his finance but i knew his earning good monies.
I couldn’t afford to pay the loan at that time not even now and have monies to pay the rest of the bills and everything + i had other debts. Was more then 200£ per month and i was doing around 900.
But they didn’t ask me to send them a statement just for that month ( sept 2016) .
Sara (Debt Camel) says
OK – the first thing you should do is immediately send a complaint to Bamboo. Use the letter above which starts with asking for a copy of all your details including the recording of the phone call.
You have three main reasons to complain:
1) you didn’t understand what being a guarantor meant because your English was poor three years ago, the borrower (use his name) translated a lot for you and was with you for the phone call and told you what to say.
2) you were pressured into this by your boss at work. Say what your job was and what his was. If you thought you might lose your job or saying no would affect the work you were given, say more about that.
3) you could never have afforded the repayments and bamboo did not check properly that you could. If you have a bank statement from that time, enclose a copy with your complaint.
I will send you an email about where you can get some help to deal with the CCJ.
Matt says
Hi,
I am a Guarantor for a friend who has a loan through Amigo and they have not paid the debt for the last 4 months, which I have covered. They are no longer responding to any messages. Amigo have also stated that they cannot get in touch with them despite numerous attempts. At the time of agreeing to be a guarantor I could afford the repayments my circumstances have now changed and I cannot. However, at the time of agreeing to be a guarantor I was in rented accommodation and had a very poor credit record.
I have raised a complaint using your template asking to be removed as Guarantor on the grounds of not being an acceptable Guarantor at the time the loan was taken out. Amigo have acknowledged the complaint stating the 8 weeks they have to respond, but have also contacted me today as this months payment is now 15 days overdue. I went through with them a new budget sheet and they acknowledged that I cannot make the full payment but have asked if I can agree with them a sum I can afford by tomorrow, albeit if the borrower then doesn’t make payments moving forwards, my agreed payment will extend the loan term.
If I agree to pay something will this close my complaint or will this still continue? As my preference is to be removed as a Guarantor and the loan revert to loan directly with the borrower.
Sara (Debt Camel) says
“at the time of agreeing to be a guarantor I was in rented accommodation and had a very poor credit record.” that doesn’t sound like the ideal guarantor, does it!
“If I agree to pay something will this close my complaint or will this still continue? ” no it won’t.
Agreeing an affordable monthly payment is probably sensible, but don’t be pushed into paying an amount that will leave yourself short you will be getting behind with bills or other debts. Amigo can’t start court action while a complaint is going through, including at the ombudsman.
Caitlyn says
Hey sorry so I am making payments but I am severely struggling with the payments its 384.85 per month I had a change in circumstances due to me tel health being diagnosed with bipolar type 2. So I can’t afford the payments but I’m making them and in some cases going hungry. My question is while my mum is in a complaints process and I miss or make late payment can the chase her for the payments? I am so worried and loosing sleep and becoming ill from stress and not eating. I just don’t know what to do. My mum can in no way pay these payments she has been off work for 8 months and it has put a serious strain on her marriage. I live with my partner but because of the loan repayment and paying my half of house hold bills and my other bills I pay b out 860 a month and get paid 900 a month. He doesn’t realise that I don’t eat and stuff and all the stress is putting a strain on us. I’m so stuck.
Sara (Debt Camel) says
£384 is an enormous amount each month. I think you too should put in an affordability complaint. Your situation may have got worse since the loan started, but the loan may still have been unaffordable sat the begining.
While your mum is in the complaints process, they can ask her to pay but shouldn’t pester her and cannot take her to court. that includes when the complaint goes to the Finacial ombudsman as these complaints almost always have to do.
If you put in a complaint, also get a letter from your doctor about your mental health and send that to Amigo and onto the Financial Ombudsman.
Caitlyn says
My loan is with UK credit is that OK or does it make a difference? I am just worried sick about it all I just can’t have my mum pay any of it.
Sara (Debt Camel) says
All guarantors loans are the same from the point of view of the possible reasons to complain and what the ombudsman may be looking for. You mostly hear about Amigo here as Amigo have 85% of the market, so they also have almost all the complaints!
Debbie says
Hi Sarah,
I have previously posted about my FLM & Amigo loans and you suggested that my husband (my guarantor) and myself did a subject access request. I have now got all the information and it looks like they don’t have a signed agreement from my husband. I have a copy of a letter to him that says he signed the agreement electronically but the page where it show the T & C’s and signature is blank. Can I now get them to remove him as guarantor?
Sara (Debt Camel) says
An electronic signature is valid. Does he recall signing the loans?
If you want to argue that the guarantor documenation is invalid as there is no signature on it, you are going to need some specialist advice. You could see if there is a Law Centre near you https://www.lawcentres.org.uk/. Or you can go to your local Citizens Advice, where the advisers have access to the very good national Specialist Debt Advice Service – SDAS seem to be doing a lot of work onguarantor loans at the moment.
Daniel says
Hi, thanks a lot for the advice on this page and the template for the email. I was the guarantor on a loan for my ex partner who could not afford the loan in the end and I was hounded for the payment which I made four payments towards the loan. Her finances have never been great but after pressure I agreed to be guarantor which was a bad mistake, it has put me under stress for months but after sending in my Guarantor complaint after seeing this website 2 months ago I got a reply 2 days so saying they partially uphold my complaint and that I am no longer liable for the loan or any future payments which is great news and a great sense of relief. I’m not sure if I should push for my four payments back if I’m no longer liable? Thanks
Sara (Debt Camel) says
That’s good news! It’s good not to have drag this out by going to the Ombudsman. Can I ask who the lender is?
It’s up to you if you want to push for a return of the payments. If the lender thinks you should not have been accepted as a guarantor, then in theory they should return the payments, but if you are happy with the result you may decide they have made you a reasonable offer you are happy to accept. If getting the money back would make a big difference to your life though, then ask for that.
Have you told your ex you are being removed as a guarantor? She will probably be releived even if you aren’t close any more. And it may be she also could complain that the lender didn’t check her situation properly before giving her the loan.
Daniel says
The company was amigo loans, they agreed they should have looked into the borrowers finances more which makes me think my ex might have a case for sending an affordability complaint. It was good I didn’t have to go the ombudsman and amigo agreed partially with my complaint. I am happy with the outcome and don’t really need the payments back but it would be nice if I got them but I might just leave it as I’m happy with the outcome and happy to not be harassed or liable anymore. I have told her and advised she look at your site and send a complaint similar to mine as her finances where very bad at the time of applying. I’m just happy I’m off the loan now and can sleep more soundly now without worrying about the dreaded email or text about guaranteeing a missed payment. Thanks
Sara (Debt Camel) says
Thanks for the information. This is the first time I can recall Amigo upholding a complaint like this :)
Craig says
Hi
I was hoping someone could answer a question I have regarding guarantor loans.
My brother has asked me to be the guarantor for a loan he needs to get him out of a very difficult situation. We have discussed this at length and every other avenue has been explored, and despite my reservations I have to conclude this is the only option available to him. I go into this with my eyes open, fully aware of my obligations.
The difficulty I have is how I would be liable to pay the full amount in the event that my brother were to die. It’s not something anyone wants to think about, but it seems very underhand that this would be in the terms of the loan. Surely, the whole point of a guarantor loan is that people who have difficulty obtaining credit can use a guarantor to offer the lender security against defaults. How have they manged to extend this so that you are also a guarantor against the death of the borrower?! If I were to die, my debts wouldn’t disappear but they would come out of my estate. Surely this should apply to a guarantor loan also? Surely they should reclaim that debt from the estate of the borrower, not simply pass it on to the guarantor? So, the question I guess, is in this event how enforceable would that be in law?
Sara (Debt Camel) says
It is 100% enforceable if the borrower dies.
BUT have you really looked at the other options? These are horribly expensive loans.
If you have a good credit record and the spare income to be able to pay a loan like this, why can you not borrow the money at less than 10% interest, give it to him and he can repay you? That loan is much, much less likely to go wrong because the repayments will be much lower every month.
Also just how wide open are your eyes? Have you asked to see his credit records from Experian and Credit Karma? Have you asked to see his last 6 months bank statements?
Sorry but you wouldn’t be the first person to be lied to… and in a lot more cases the borrower isn’t deliberately lying, they are deceiving themselves that they will be able to repay the loan.
Todd says
Hi Sarah, I have finally sent the doctors letter and the call recording to the FOS for a final decision, just in the process of sending an additional letter. For another written statement could I mention that the borrower has been paying irregularly and awkwardly, when I was sent all my data i saw a mini statement of payments and the borrower is using a different card, not the direct debit used to make the payments and they have changed the payment dates multiple times in the space of a few months. I really want to get this thing as sorted as soon as possible, I feel the borrower is trying to do a disappearing act, (i.e. blocking me on social media). As well as not being assessed for the loan properly the borrower also deceived myself. What additional steps can I take to protect myself? When I put this through to the FOS will it halt any action Amigo takes, even if it takes several months? previously Amigo have sent me texts to say if they didn’t work it out with the borrower they will automatically take it from my card. Please Advise. Thanks.
Sara (Debt Camel) says
Hi Todd,
“when I was sent all my data I saw a mini statement of payments and the borrower is using a different card, not the direct debit used to make the payments and they have changed the payment dates multiple times in the space of a few months.” I can see why that is very stressful for you, but it doesn’t actually help your complaint very much. You have to show why Amigo should not have accepted you as a guarantor, not prove that the borrower is being difficult or evasive.
So it’s important that you concentrate on what can help your case. From what you have said before, there are lots of useful points to make:
1) some of the expense amounts were very low. You aren’t particularly good with money – the doctor’s letter has mentioned the problem you have processing information. So you may have said £50 a month for food, but amigo should have realised that was not likely to be sustainable over a long period. Anyone can live on very little for a few weeks in an emergency, but it’s not reasonable to live on that little for the years it would take to repay the loan. Also I think you said there was nothing for clothes or medical expenses – mention if you have glasses or need regular prescriptions – and nothing for any leisure activities. Amigo should not just have accepted these zero lines!
2) the phone call was only 4 minutes – that is very short and if they had really discussed your situation in depth, they would have asked more questions and realised that you didn’t really know much about money or whether you could afford this loan or whether you understood what it really meant. The doctor’s letter should help and the phone call itself. You aren’t arguing that you have a major learning disability, but what the doctor said – that you aren’t very good at processing information.
3) your finances were not good. You have talked about being at risk of being homeless. This suggests you were not a suitable person to be a guarantor! A guarantor should be someone who is a home owner or who has a good credit record and a safe financial position.
Good luck!
Todd says
Thank you very much, will send this all end of this week,. You’re right it won’t be useful to show the borrower being difficult but can I mention deception and not fully understanding what it fully meant to be guarantor, the doctor’s letter does mention I am not good with processing information and highlights evidence from childhood of being a late talker etc. In addition, the borrower changed the repayment date a few times, therefore extending the term, however I did not agree with this arrangement. Is it worth mentioning? Finally, the letter which supports the case of a brief period of where i was at risk of being homeless and confirms dates I accessed the service, I am wondering should the letter be addressed to the financial ombdudsman at the start or should it be left as “To whom it may concern”.
I already sent a statement to the adjucator but I will finally put together a statement stating all valid points. Please advise. Thank you. Will keep you posted when a decision is made
Sara (Debt Camel) says
Yes you can mention deception, it is part of explaining your story and it’s important the adjudicator gets the full picture. And definitely mention not understanding the full implications of being a guarantor.
Changing the repayment date – surely this can only have added. A few weeks to the term? I don’t think that is very significant.
The letter about being at risk of homelessness, either of those will do, if it’s easy I would suggest “to the Financial Ombudsman”.
Todd says
the evidence has been sent, as part of my story of deception, the borrower lied about their credit rating and then after a few months told me they had a CCJ in the past, Amigo did not give me details on borrowers financial status. Is this worth mentioning? Also, I was off sick for 2 weeks in August and have a doctor’s fit note will this also be good additional evidence as well as my latest bank statement for the last 3 months.
Many Thanks.
Sara (Debt Camel) says
I would wait until you have an adjudicator assigned and then tell them about not knowing about the CCJ.
Are you currently paying this loan? What is your current financial situation? Sorry I am on my mobile and can’t easily search back as I am sure you have already answered these questions.
Todd says
I am not paying the loan as the borrower hasn’t defaulted, I am working but in August i was off sick for 2 weeks so was partially paid including receiving SSP for the time i was off. I only started the job in June and still on my probation period.
This is currently the final decision I am going through now.
I am glad that I can now ask you more questions as the FOS wrote to me today and have said that I need to get more information from Amigo Loans before they can provide me with an answer to my complaint.
In addition, to the points you made should I mention my work status now and being off sick. The FO also mentioned yesterday when they got in touch that I can send bank statements during that time, can I also send bank statements about my current situation now? Once you answer these then I will give the FO my written statement as well as the extra pieces.
Sara (Debt Camel) says
The most important thing for your complaint is your situation when you agreed to become the guarantor for the loan. That is what the “affordability” will be assessed on.
Your current situation is much less important. It’s worth telling FOS as background, but the fact that have a new job or are off sick doesn’t change whether Amigo should have accepted you as a guarantor. I asked if you were currently paying the loan because your current finances would affect that, but as the borrower is still paying, it isn’t relevant.
Yiu should send your bank statements from the few months before being accepted as guarantor. FOS will probably have asked you for specific months. Your bank statements now aren’t relevant.
Did you mean that FOS has also dyiu to get information from Amigo? Or that FOS is asking Amigo for more information?
Todd says
Great. I will get couple of months statement prior to getting the loan, this will also show that I received job seeker’s allowance as I wasn’t working at the time, even though i didn’t work i did receive some money from family and I am no longer in contact with them.
I meant the FOS is asking amigo for more information.
Todd says
Also in response to this post, I have a query the statements from a couple of months showed there was some money in my account a couple of grand but this was given by a family member as i wasn’t working, and during the guarantor loan application I was working on a fixed term contract which ended in July 2018, I plan to show statements a couple of months after the loan which also showed I had stopped working as well as being on job seekers. I hope they don’t feel it was affordable for me a few months prior to the loan as i wasn’t working, it also showed outgoings for things like close.
In response to your question the FOS are asking amigo for my information? I hope I can win the case through any of the points you mentioned, but I believe the phone recording be just over 3 minutes and not exploring my situation could be a deal breaker?
Sara (Debt Camel) says
Cash given to you by a family member should not make a difference. Amigo needed to assess if you could repay the whole loan over the years it would have taken and srill paid for all your living expenses and other debts, not if you had some money in the bank.
Todd says
That’s fine. I will be printing out the statements a few months prior. Should I also send statements of the couple of months after the loan agreement was signed as I my fixed term contract job ended which shows job instability, they should have mentioned this on the phone call. Yesterday I got a text from amigo loans saying he has not paid yet. I feel the borrower is doing this slowly to try and default, thus abandoning repayments on me. In terms of explaining my story I will highlight the deception- do I just explain they tricked me into what being a guarantor meant and their situation (the borrower claimed that they did not have bad credit) , at the time I did not know they had a CCJ, I know there may not been evidence about this but as i had taken a substance prior to agreeing I feel that may have also affected decision making. Should I have a someone look over it before I send them the final written statement along with bank statements? Also since they are asking for more information from Amigo, what would be that information? My adjudicator for my case says I will have a decision in a few months. Thanks for your advice
Todd says
After printing my statements yesterday I think that it is best I focus on the points you mentioned, forget what I mentioned in the previous post of what I took, I’m just confused about how to go about this and the whole situation is making me feel very overwhelmed. Do I highlight every single out going, for general things such as a phone bill, internet and utility biil I have highlighted that Also as I had a credit card on m file, this was a foundation card which is for people with a lack of a credit history, I wasn’t using it much as I wasn’t working a few months prior to taking out the loan, so my credit rating wasn’t the strongest, I used some online credit checks which showed it was below average. Over the last few months I received counselling due to work related stress in a new demanding role, I called there 24/7 hour helpline, they hinted about telling other people about it, I mentioned the borrower’s brother has a business and has their details on the business page,.so they suggested possibly letting them know what their sibling (the borrower) is doing? I don’t know if that would make matters worse?
Sara (Debt Camel) says
I think you just need to send the statements from the 3 months before to the ombudsman unless thay have asked for more.
You don’t need to highlight all your outgoings, the staff at the ombudsman are used to doing this.
Say that you aren’t good with money and that you have memory problems – enclose a copy of the doctor’s letter.
I think you should say the borrower lied to you about his good credit record and Amigo should have been able to see that if they had checked his file properly.
Then say that you didn’t have a great credit score and you were out of work at the time. You were only managing as some family had given you some money.
This doesn’t have to be long and complicated. If you want you can go to your local Citizens Advice and they can help you with it.
I don’t think telling the borrower’s brother sounds like a great idea – could be more stress for you.
Stevie says
Hello, I have just come across this article. I am a guarantor for my brothers loan with amigo. He pressured me into, he is a very manioulative individual to the point he had me lie saying my income was more than it actually is, he told me it was to get bond ect and furniture for a house as he was splitting up with his partner and needed to get a house ASAP so he can have my nieces and nephew. He assured me he could afford it as I told him I knew I couldn’t bit he paid 1 payment on time then since December I have been paying it but has to go through step change as I can’t afford it and it was effecting my mental health. I had only just got my 1st morgage in the February 2018 as he got the loan in the end of june 2018. Could I comaplain to be took off as guarantor or would they tell me no as I agreed? Any advice would be brilliant please. I’m a single parent really struggling with the stress of it all.
Sara (Debt Camel) says
This sounds like the combination of emotional blackmail and lying from your brother that is a major problem with guarantor loans.
Yes you can complain and ask to be removed as guarantor and for a refund of the payments you have already made.
It sounds as though you have several reasons to complain:
– amigo did not do proper checks that you could afford the loan. Your bank statements from before the application time should prove this. Obviously it’s not good that you said it was affordable but Amigo still had a duty to verify this.
– Amigo did not do proper checks that your brother could afford it. This may be difficult to “prove” unless your brother co-operates, but it sounds highly likely to be true so just put it in your complaint.
– you were unaware of the financial problems your brother had and Amigo did not treat you fairly by not asking you if you were aware of his CCJ and other difficulties.
Of those three, the first is probably the strongest reason, but it is always good in these cases to use all the reasons when you complain. Expect this to have to go to the Ombudsman as Amigo may well object.
Stevie says
Thank you very much, I’m going to have a go at writing a letter this weekend, we come from an abusive childhood so he is very good at manipulating. They definitely didn’t check my bank statements ect that I know of. I think I was at work when they phoned me so if I was it was brief but can’t be 100% on that bit. The stress of it all caused me to lose my baby in April this year, also I have dyslexia and other mental health issues that come from my childhood issues should I mention them or is there not much point?
Also can I still do this if I am now on a debt management plan with step change?
Sara (Debt Camel) says
I think you should mention the dyslexia and mental health issues as they form part of your whole situation, but unless Amigo was aware of them (or should have been from something you said) they may not be a reason why the loan should not have been given. So perhaps just a brief mention but concentrate on the affordabilty issue and the fact Amigo did not do adequate checks.
I am so sorry to hear about your baby, that’s so sad.
If you feel that Amigo treated you poorly after your brother stopped paying, this is also worth adding to your complaint, especially if you told Amigo about your mental health issues at that point or your baby. The regulator expects lenders to behave in a sympathetic and sensitive manner when a customer is vulnerable.
Yes you can make a complaint if you are in a DMP. This is the same as with PPI claims and payday loan affordability claims – making the complaint will not affect your DMP and if you win it will reduce the debts in your DMP.
Cat says
Hello so my mum put a complaint to UK credit about the loan I took out and she was guarantor for and basically refused the complaint. She was in no way able to afford the repayments if I didn’t it now needs to go to the ombudsman so I’m asking how we go about that and what the process is how long it takes etc? Thanks so much.
Sara (Debt Camel) says
Hi Cat,
See Lenders normally say No – so take your case to the Ombudsman in the article above. You can just copy out what she sent UK Credit as a complaint, that is simplest. But if she asked for a copy of her personal information and has that, looking through that can be useful.
It isn’t clear how long this will take. These complaints were moving very slowly at FOS, but then nothing happened for a few months while they had some team re-organisation and since then more complaints have been going through.
Andrew says
Hello
I would really like to get help I take a loan of 10000 from Amigo I paid back 3 month’s 437.75 p/m and now me and my fiancé witch is also the guarantor,left the UK, we didn’t have jobs anymore.How can I do if I still want to pay the loan but I don’t have anymore the same amount of money as an example I can pay just 200 p/m. What I can do so me and my fiancé(the guarantor)to don’t have any kind of problem in the future.We come back home(Romania) and for the moment I don’t have in plan to come back.
Thank you very much.
Sara (Debt Camel) says
You two have several different ways to approach this (I am assuming you don’t own any property in Britain or Romania):
– you could simply stop paying and ignore any contacts. Are Amigo likely to waste time and money trying to pursue two people for large debts in Romania when they have no assets? Probably not!
– your partner could put in an affordabilty complaint and ask to be removed as guarantor – the article above explains how she can do this. It’s a pretty fair bet that the loan was unaffordable for her before she lost her job. She would have had to be able to repay it even if you had lost your job, so she would probably then have had extra household costs herself… unlikely! So if she can get removed as a guarantor you can then starting making low repayments to the loan or ignore it yourself…
– and you too can put in an affordability complaint. See https://debtcamel.co.uk/how-to-complain-guarantor-loan/. If you win this, the interest would be removed so you would have a lot less to repay.
– you may both have options such as bankruptcy in Romania – I don’t know anything about those.
B.F says
I agreed to go guarantor for a former friend whilst I was off work with depression. The loan was for £7000. Needless to say the loan hasn’t been getting paid and is now up to £14000. I don’t know where I stand with this. Do I have a case for being removed as guarantor due to mental health issues?
Sara (Debt Camel) says
It isn’t always easy to win a case because you had mental health issues, as the lender may not have realised you had problems.
BUT it can be much easier to win a complaint about affordability – the lender should have checked that the borrower could afford the repayments and also that you could too. That means you could afford to make all the monthly payments if you had to without hardship, from your spare income. If you were off work because of your health, that suggests the lender didn’t properly chek you could afford the repayments. In that case you could be removed as the guarantor, and if you have made any payments they would be refunded to you.
Matt says
Hi
I have been in a long term abusive relationship, I agreed to be a guarantor of my ex’s loan when we were together. Since leaving the relationship she now uses the default on her payments to effectively extract more money from me.
I have been received support from an independent domestic abuse adviser who would back up the evidence of financial abuse and coercive behavior.
I’m looking to put a complaint in to remove myself as guarantor as I was coerced into being the guarantor. Do you feel i have a case?
Sara (Debt Camel) says
Who is the lender? Do you think they could have told from the phone call they had with you that you were being pressured into agreeing to be a guarantor?
It can be hard to win a complaint to be removed as a guarantor because of financial abuse. I’m not saying it can’t be done, but it’s worth seeing if you have other avenues to complain about as well…
What was your ex’s situation at the point the loan was applied for? If you can argue that the lender should have known she could not afford the loan (how much did you know about her circumstances?) then you could be removed as the guarantor because of that.
And how affordable are the loan repayments for you? When the lender looked at your situation, they should have considered if you would be able to afford the loan if your ex had lost her job, so you would be having to pay all the household bills on your own. This is often the simplest way to win a complaint – to say that the lender didn’t properly asses your ability to repay.
Paul Wakeman says
I took out an Amigo Loan for £5,500 in Oct 16 and my Cousin was, and still is, my Guarantor. Back then my Cousin was employed part time by the Co-Op and worked approximately 25hrs per week. She owns her own home and is mortgage free as her Partner unfortunately passed away due to Bowel Cancer but his will ensured that the mortgage would be paid using Life Insurance so she would never need to worry. I have always paid my Monthly Payment of £268.34 to Amigo Loans and she has never had to make a payment but is it worth making a Guarantor complaint for her to get the record removed from her Credit File (There are only 4 payments left). She would never be able to afford to make a payment if necessary and she even ended up having a loan from Lendable in 2017 as she was struggling financially. She also last year “cashed in” a pension as she was struggling with day to day bills. It should be noted that I already have a complaint with the OmBudsman in regards to irresponsible lending with Amigo Loans. Thanks.
George says
I become a guarantor on my friends loan for £10,000 in May this year he said it was to improve his credit score which now seems like a lie because he hasn’t made one payment and whenever i ask him about it he seys he will sort it but nothing changes the only payment that has been made was by me which he said he will pay back and never did which is What made me suspicious. I’ve known him for 2 years and am pretty sure he can afford the loan from knowing him I’ll put it that way. Also this is a £400 month loan and since I’ve agreed to this loan I’m only bringing in £900 from my current work the £400 I’ve already lost has put me way back. It is very early in the loan but thought it would be better to ask this sooner than later. I don’t care about getting any money back I just want to know if I have a case of being removed as a garrantor because this guy has changed ever since this loan and I can not afford 400 a month with my current wage and bills already to pay and am getting hassled by amigo loans a lot because he keeps missing payments.
Also the interest I’ve recently become aware of on this loan is truly INSANE.
Thanks Sara great site by the looks of it you are helping a lot of people
Sara (Debt Camel) says
Hi George,
It sounds to me as though the loan isn’t affordable for you now and Amigo should probably have realised that you couldn’t afford the loan before that set it up. So I suggest you send them a complaint straight away. Not because the guy has changed but because Amigo didn’t check properly that you could afford it. The guy sounds like a con merchant :(
George says
I have just sent them one explaining my financial situation and will write back on here when they reply, I understand that might take 8 weeks but it is what it is thanks for your help
Emily says
Hi,
My partner is a gurantor for her sister, there’s no way she would be able to afford repayments, she is on a zero hour contract, so her wages are very sporadic. As far as I know, no wage slips or bank statements were provided. She is also dyslexic, and didn’t really understand her true responsibility and interest charges, and the potential affect it would have on her in the future.
It turns out the borrowers husband has a gambling problem and they both have other loans the gurantor was not aware of at the time of agreeing. They are both off sick from work at the moment and have missed a payment, amigo have given them a week to pay, then will be coming to the gurantor. Will any of this stand up? I’m scared to death my partner will have to pay. The sister forced my partner not to tell me any of this until it was all paid in 5 years time! Its not ideal whilst we are trying to raise cash and credit scores for a mortgage, would’ve been an awkward conversation with the mortgage advisor if she hadn’t of told me!
Anyway, thankyou in advance for any advice
Sara (Debt Camel) says
It sounds as though your partner was put under some emotional pressure to agree to this and to keep quiet about it. This is a familiar story, it may be hard to “prove” but it is definitely worth mentioning in her complaint.
You will get a copy of her phone call with Amigo, that can sometimes be useful in showing she didn’t really understand the implications of the loan.
If she is on a zero-hours contract it may be quite easy to show that Amigo did not do enough to check that she could afford the loan and it may be possible to get her removed as a guarantor because of this. I suggest she includes her last year’s pyslips and bank statements with her complaint.
It may also help a bit if she mentions that she thinks Amigo didn’t properly asses her sister’s position as she has since found out they have a lot more debt.
Zora says
Hi there,
I agreed to be my then-boyfriend’s guarantor for an amigo loan back in 2017 March. We broke up a year later and he left the country. He then told me he sold the the bike he took the loan for and paid back the loan in one go. At the end of July 2019, more than a year after our break up, I received an email from amigo that he has missed a payment and that they can’t reach him so it’s on me now to pay the loan. When I emailed them about my situation, stating that we’re not together anymore and that he lied to me about paying back the loan they said they can’t do anything about it, it’s a civil issue. I also told them I can give them his new address but as it turns out, if he left the country they can’t send him letters to him and since he’s not picking up the phone nor answering the emails, they come to me. I can’t reach him as he’s blocked me on social media and blocked my number and told his friend, who’s been very helpful tryong to chase him, to block me and forget about it.
I am not sure who to turn to with this and if I can actually ask to be removed as a guarantor, as they already stated I can’t.
Thank you in advance for any advice!
Sara (Debt Camel) says
What were your finances like when you agreed to be the guarantor – could you really have afforded to make all the monthly payments from your income or would that have caused you a lot of problems?
What was your credit record like at the time?
Did you think Amigo explained what being a guarantor meant – that if he just stopped paying they would come after you?
Zora says
I was working part time as I was a university student, so my monthly income wasn’t high, and as we lived together everything we paid for went half half, but I also received maintenance loan. I believe that’s why they accepted me as guarantor. But that doesn’t seem right, as that isn’t a regular permanent income.
I never had any kind of loan besides my student and maintenance loan.
Regarding them explaining I definitely would have thought that they would go after the borrower first and not the guarantor, specially if I can provide them with address.
Sara (Debt Camel) says
So you weren’t a homeowner. It doesn’t sound as though you had a strong credit record.
If your partner had just disappeared, you would have had to pay for all the bills. My guess is you couldn’t have managed to do that AND paid the Amigo loan repayments.
On that basis Amigo should not have accepted you as the guarantor, because you were partly dependent on him to pay his share of the bills, but you were only likley to be called on as a guarantor if he was very shoprt of money or had vanished from your life.
I suggest you send in a complaint today using the template in the article above.
Zora says
Thank you so much for your help! I will do that!
George says
Hi I posted my situation on here a few weeks back. I complained to amigo on 5th of August about a affordability complaint to sum it up im a guarantor on a 10,000 loan with 400 month repayments and my income is 850 a month. they replied saying they are investigating I understand it takes 8 weeks until I could get a reply however yesterday I had to go tough my budget with them and they said if I don’t pay anything they will pass the account on to the legislation team for court proceedings. After I went through my budget they said I’ve got about 218 spare which I asked if I could pay 100 a month while the complaint is going through they said it would take 20 years to pay off the loan and they need more than that we finished on paying back 150 once i send them my bank statements and payslips which im doing today now I’m really worried because it’s leaving me with more a less nothing this whole thing had pushed my anxiety through the roof and im looking for different work but am worried if I start earning more I will have to pay more.
Sara (Debt Camel) says
Hi George,
“they said if I don’t pay anything they will pass the account on to the legislation team for court proceedings. “ they can’t start court proceedings while a complaint is in progress. That includes a complaint at the Financial Ombudsman, even if it takes a year to sort out!
I’m getting a bit fed up with the way Amigo is handling some complaints. Can I suggest you talk to National Debtline on 0808 808 4000, tell them you are making an affordability complaint and say you would like them to help work out the amount you can afford to pay Amigo each month while the complaint goes through, given your other bills and expenses.
They should be able to help you produce an Income & Expenditure sheet along standard industry guidelines that you can show AMigo. If that says you can afford £58 or whatever, that is the amount you should agree to pay.
If Amigo continue to pressure you to pay more, then come back here and say.
NB for anyone else reading this – it’s easy for a guarantor to refuse to pay more than they can afford. But it’s harder for a borrower if you don’t want your guarantor to be affected.
Adrian says
Hi I’d like to say thanks to people who created this page and for all the advice. I was asked by coworker who was in charge of me to be a guarantor for 10k loan, I have agreed as I was worried about future work relationship. Plus I thought that being on a low income I’ll never be approved, however I was approved.
Payments were made regularly for about 10 months till the person decided to suddenly move out to another county and stop making payments. Amigo wanted me to take over the repayments that were at 40% of my monthly earnings.
Following the advice on this website I have written to amigo and asked to be removed as a guarantor based on the fact that I was put on the spot by a person in charge of me at work as well as I didn’t think that my credit wasn’t good enough to be approved for such high loan. Eight weeks after submitting my letter and countless emails from amigo asking for repayments and with information what will happen if I don’t make payments, I was removed from being a guarantor and no longer owe amigo any money.
It was a positive outcome for me and I’m grateful for all the advice I have found here. Many thanks
Adrian
Sara (Debt Camel) says
This sort of financial coercion only happens with guarantor loans. Very good news that Amigo have recognised their error in accepting you as a guarantor and removed you.
Amanda says
My partners just left me moved in with a women who’s just had his baby.
So he has this amigo loan started Nov 17 asked me to be guarantor didn’t want to buy he needed a deposit car so he’d help more with shopping and school runs. Fast forward 6 months cars gone didn’t say why now needs a top up to buy a older car out right pressuring me saying he needs it for his better job that he can only drive to. So now there’s a £10000 loan over 60 months.
As I above he’s left me then says he might pay the loan but isn’t sure if he can afford it and he certainly can’t give me csa if he does. so now worried I’m going to get stuck with this loan and lose my house which I bought on my own before we were together. Now Ive had a debt management plan with step change since August 2013 and it’s a long way of finished so all the extra money I have pays this. Also now that he’s gone I’m left with all the bills to pay on my own when he used to go halves with gas electric water council tax etc.
Should Amigo if allowed me to be a guarantor in the first place they never asked about it surely there checks would of shown such a big thing especially a charging order in the house?
Sara (Debt Camel) says
Amigo should have checked you could afford to pay the loans from your income. If you were in a DMP is sounds pretty obvious that you couldn’t!
Also when doing this check, Amigo should have taken into account the fact that you were living with the borrower who was sharing the bills with you. So if he couldn’t pay the Amigo loan, then he may well also not be supporting you and so your expenses would increase – which is exactly what has happened.
So you have two good reasons to say Amigo never made proper checks you could afford the loan and should remove you as the guarantor – you were in a DMP and were dependent on your partner to pay part of the bills. Put in a complaint using the template letter in the article above.
If your ex stops paying the loan and Amigo ask you to start paying, they can’t make you and they can’t take you to court while a complaint is going through. This includes if your complaint has to go to the Finacial Ombudsman, so if Amigo reject your complaint send the case to the Finacial Ombudsman straight away.
Sara (Debt Camel) says
Apart from this Amigo guarantor issue hanging over you, your finances sound pretty difficult at the moment. Some suggestions:
– have you told the council tax people he has gone? You should be getting a 25% single person discount.
– tell StepChange that you need a review of your DMP payments as you are now paying all the bills.
– you may be entitled to more benefits, go to your local Citizens’ Advice for a benefit check-up. And any benefits you are currently getting except for child benefit need to be told that you are now single.
– it sounds as though some of the debts in your DMP may be quite old? when things have settled down a bit in a few months, read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ and think about doing that for some of the debts in your DMP.
Stupid girl says
Hi, I feel like I’m in the worst situation ever. My ex partner pressured me into taking out a loan as his guarantor. He was so controlling and when I came up with ways to say no but he didn’t listen. A month later he made me take out another loan. This time I wasn’t with him and asked the advisor to tell him I wasn’t approved to avoid taking out the loan. After being declined he went to buddy loans and listened to the call and made me do it. Now he’s blocked me and hasn’t paid back a penny. I complained to the companies but they said no. I asked for the recording of the loan company who lied for me to decline the loan in case its worth sending it to the ombudsman. I literally feel sick daily. Considered suicide and feel depressed. Both loans are £1000 in total a month. I feel stupid. He keeps giving me dates when he’s going to pay but not seen a penny. Please advise. Thank you
Sara (Debt Camel) says
Hi, don’t kick yourself, many people here were subject to this sort of emotional pressure and agreed to be a guarantor even though they knew it was a bad idea.
The Financial Ombudsman is now upholding a lot of complaints about guarantor loans and some of the things you have said make this sound like a strong case that you should be removed as the guarantor and have a refund of any payments you have made. This is a hassle to get through but lots of people are winning!
It sounds as though the first loan was with one lender – who? – and the second with Buddy Loans. Is that right?
And you told Buddy Loans you did not want to to this but you later changed your mind? Your first “refusal” should have alerted the lender to the fact you were under pressure and I think they should then have refused to accept you as guarantor without any evidence that you had taken legal advice about the loan and were really happy to go ahead.
And apart from that £1000 a month repayments across the two loans – those are both big loans and the lenders should have looked at your finances very carefully to be sure you could make the payments. Unless you are very well paid, it’s hard to see how either loan could be affordable.
So what should you do now… when did you complain to the lenders? are you making any payments to them at the moment?
And what are the rest of your finances like apart from these guarantor loans? Do you have a lot of other debt? Without your ex, are you managing the household bills and expenses ok?
Stupid girl says
Hi Sara thank you for responding so quickly. It’s so hard to accept I did this. I feel so stupid. First loan was with George banco second with bamboo. Sorry for the confusion, the company who I asked to lie and say it never went through is buddy loans. I was hoping no other company would agree but bamboo did. I didnt complete the application, I only spoke to them when they called to confirm and e sign documents.
I certainly cannot afford these loans either. There is no way I have 1000 left over. No I don’t have any serious debts I’m usually very sensible so I’m very annoyed for allowing myself to be forced into this. I’m hoping to move away soon so he cannot contact me or harm me in any way. Both accounts are in arrears but I have paid before by credit card. I’m holding out as he’s promised to pay ASAP. Thanks for the help, how do I go about appealing.
Sara (Debt Camel) says
ok so two lenders, George Banco and Bamboo. You have a clear case that the loans were unaffordable and also you can argue that you were pressured to agree to them.
You have already complained to them – when did they reject your complaint?
Stupid girl says
This is all very recent so only a few weeks back. In terms of going to the ombudsman, do I gather all the evidence at once or just tell them what has happened? I really hope they are able to take my name off, I’m so low due to it. I can’t function properly anymore I can’t believe. Thank you
Sara (Debt Camel) says
I suggest you send the cases to the Ombudsman straight away as it can take months for them to be looked at. So get in the queue and you can contnue to assemble evidence and add it to the cases once that have been started.
So what evidence:
You can attach a copy of your credit report to your Ombudsman complaint straight away. Download a Credit Karma report for this.
Did you ask the lenders for a copy of your personal data, including phone recordings and copies of all credit record checks they did? If you haven’t done this, ask them now. It’s hard to guess what here may be useful for your complaint until you see it!
Do you have your bank statements from 3 months before the loan applications? Downloaded ones is fine. The Ombudsman would like to see those.
I don’t think you should be borrowing on a credit card to make these loan repayments. If you don’t pay the guarantor loans anything, are you OK financially with your other debts? If you aren’t, I suggest you talk to StepChange about a DMP.
Dee says
I am guarantor on an amigo loan and at the time could afford payment if my son in law did not pay. The loan paying £295.00 a month for a £7500 loan over 6 years. I have since entered into an iva and can no longer afford any payments. Can i ask them to take me off being guarantor.
Sara (Debt Camel) says
Hi Dee,
Did you list the guarantor loan in your IVA? If you did, there may not be much point in complaining.
But if you didn’t (? why not? did the IVA firm discuss this with you?) then I think this is definitely worth a complaint. The fact you have had to enter an IVA suggests that actually the guarantor loan would not have been affordable when it was given.
Mrs Smith says
Hi Sara,
I’m currently in a situation whereby I agreed to be the guarantor on a loan for a friend of mine through Amigo. At the time she had been emotionally blackmailing me into signing for the loan for weeks as she had a young daughter and said she needed the money to purchase a car for taking her to and from places. after eventually giving in and signing for the loan, I have now been paying for the loan solely for over a year and a half. I get constant excuses from her and it is clear that the loan is now my problem.
my friend, who’s name the loan is in has since then been diagnosed with a split personality disorder which may have contributed to the problems I am now having with her trying to get her to pay for the loan. she was also working full time at the time of the loan but now is not. On top of this she is now talking about filing for bankruptcy which again, doesn’t help my predicament . I am now struggling financially myself because of this debt. I have been in touch with Amigo and explained the situation who have obviously said there’s nothing I can do. can you give me any advice on weather I’m in any positon to try and take myself off this loan as the guarantor?
Any advice is much appreciated.
Sara (Debt Camel) says
As you are struggling with the repayments, it may well be that Amigo didn’t do a thorough check the loan would have been unaffordable for you. I suggest you put in a complaint using the template letter above, saying that the loan was unaffordable for you. You could also say you think the loan was unaffordable for the borrower – even though she was working at the time, there aren’t many single mums with a young child that can afford an expensive loan.