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
m says
hi i have put i have put in a case to the FO 1-2 weeks ago and amigo are aware of this and have finally decided to send me all my info via post which i am waiting for. I have just however, recieved an email from amigo stating that they need me to understand the meaning of CCJ that they may put in action if i don’t pay the arrears on the borrowers loan. They stated they accepted me as guarantor due to my credit rating and a CCJ will affect this. Are they allowed to pursue CCJ when i have a complaint in with them and FO? They also have it that they aren’t allowed to accept payment from me due to financial state it would be unethical until they decide on my complaint yet i still get hassled.
Sara (Debt Camel) says
I suggest you reply to the email saying they know you cannot afford to make any payments and you think they are being unfair in threatening to go to court when you have a complaint at the Ombudsman. And tell FOS that they are continuing to pressure you threatening a CCJ even though they know you cannot afford to pay anything.
Lisa says
I am Guarantor on a car that my son purchased from Vauxhall back in 2017(ish). Long story short he lost his job and was unable make the repayments. At the time of purchase my son was only 18 and had only been in his job a couple of months. The salesman did not include me in any conversations about the loan or the consequences of becoming my sons Guarantor and I had not long purchased my own car and had a 4 year loan on that to repay meaning there was no way I could afford to pay for his car too. This was never considered and I don’t recall them asking for my financial situation – only a signature on the paperwork. The only reason I agreed to be Guarantor was because I believed they would do a background check and see I was unable to pay on top of my own car finance. The car has since been repossessed and the debt has now be sold (by Vauxhall in the middle of lockdown) to a debt agency. Can I still be removed as Guarantor and who do I complain to – the debt agency or Vauxhall?
Sara (Debt Camel) says
You can try complaining to the car finance company that they did not check if you could afford it. I haven’t seen anyone do this with car finance, but it seems worth a try. Expect the car finance company to reject your complaint and so it will have to go to the Ombudsman.
Kerry says
Hi Sara,
I submitted my complaint and they have confirmed the earliest I may hear back is mid-July but looking at other comments on here I should probably be preparedfor it to be alot longer than that.
He took a 3 month payment holiday due to covid and is due to start paying again on 1st July BUT I think he’s going to tell me he can’t afford to pay it because he’s not been paid from work. I have however found out alot more about him, among other things, it turns out he has a drug problem and that is where his money goes. He borrows from everyone he can (he’s even had the front to ask me to lend him money)
Amigo have all my bank statements and can see I can’t afford to make these payments. I’m worried that they are going to come to me on 1st July and expect me to pay, if I do then I will be short on my own direct debits and will end up borrowing. If I don’t, I’m worried this will affect my credit rating. I have a mortgage and I don’t want this to affect me in the future. Should I cancel the payment instruction at my bank?
Sara (Debt Camel) says
have your finances been affected by Coronavirus?
Kerry says
I’ve luckily been working throughout so I’m ok but he (my ex who got the loan) told Amigo he was affected so took the payment holiday. Although he has been working himself & being paid too. After I’ve paid my bills/food/petrol I do not have any money left, which is one of my complaints to Amigo, that as a single person this in unaffordable to me.
Sara (Debt Camel) says
If you don’t have the money to pay, you need to cancel your direct debit. You do not want to get behind with essential bills so you can pay this debt.
Kerry says
Hi Sara,
I know Amigo doesn’t show on the guarantors credit file but if they attempt to take a payment from my account (because the borrower hasn’t paid) and it fails, will this appear on my credit? I’m worried it will and then potentially affect me down the line when I renew my mortgage?
Many thanks
Sara (Debt Camel) says
No a failed payment will not show. The only way an Amigo loan will show on your credit record is if they go to court and get a CCJ. They should not start a court case while you have a complaint in with them or with the Ombudsman. Amigo sends nasty texts and emails and letters but it isn’t actually going to court in this sort of situation at the moment.
Jordan says
Hey, Thank you for the article.
I am a guarantor for a loan where I had changed my mind on being the loan the day after. I spoke to the person who wanted the loan and they agreed to it and wanted to pass on Amigos bank details. They did and gave it to me on what looked like an Amigo form, but they had changed the bank details for their own. They have since changed my details on the account such as email and how to contact so I thought I was no longer on the agreement. Now, I have recently discovered I am still on the agreement and it is in arrears.
I have reported it to Amigo and they are not willing to help. I emailed this to Amigo over a year ago. I have not sent an email in the format above should I do this first or just escalate the complaint further? or any other solutions would be amazing.
Sara (Debt Camel) says
oh, a new form of guarantor loan unpleasantness I haven’t come across before…
I have reported it to Amigo and they are not willing to help. I emailed this to Amigo over a year ago
Did you send this as a complaint? Did their response to you advise that you had the right to take the complaint to the Finacial Ombudsman? IF it did, can you dig this out and see if it mentions any time limit on it. Amigo used to not set a time limit so there may not be one.
What was your financial position at the time the loan was applied for?
What is your financial position like now?
Jordan says
Thank you for getting back to me Sara.
I sent it as an email and they did not provide any real advice other than it wasn’t their problem and was a civil matter.
my financial situation then, I was full time employed and now I do not have a job.
and now Amigo are asking me for money…
Sara (Debt Camel) says
ok, so to be clear, you agreed to be guarantor but then changed your mind, you told the borrower this and you say he told you to repay the money to Amigo and he sent you a forged document with what you thought were Amigo’s bank details but were actually his own?
How long ago was this?
How large was the loans, how many years and what were the loan repayments?
When did you find out you were still a guarantor and talk to Amigo about this?
Amigo have now asked you to pay?
Can you say some more about your current situation. has it been affected by cornavirus? Do you have other problem debts? Do you own a house?
Jordan says
That is correct.
This was Feb last year for around £7000 over 5 years.
I initially found out a couple of months after with a letter about payments. I tried to allow the loan holder time to find themself a new guarantor. which had not happened which is when they changed details on the account such as how to contact and the email address. Amigo are contacting me through phone now.
Amigo are now saying that I should be paying as they can not come to an agreement with the loan holder. for £1400.
I do not own any property or other debts. But I am unemployed and living on my savings.
Sara (Debt Camel) says
I understand you may not want to discuss this in public. You could talk to your local Citizens Advice about this or phone National Debtline on 0808 808 4000.
But also read through the article above and think if you could really have made all the loan repayments on time and still paid all your other bills and expenses. Just because you were in work then, doesn’t mean the loan was unaffordable.
Jordan says
Thank you. I spoke with my local Citizens Advice and they did not help and barely listened to my complaint. But only passed me a pre-printed list of solicitors.
My complaint really is that the loan money, which I wanted to return, was stolen by the account holder and I can’t seem to find any help. I have reported it to Amigo, my bank, the police and I have tried to contact various solicitors about it and I’m honestly lost on where else I can go. I do only want to be removed as a guarantor. Do you think If I made a complaint using your template above could help with this?
Sara (Debt Camel) says
The problem is that it isn’t clear Amigo has done anything wrong here. It’s not their fault the borrower tricked you into handing over the money (unless you think this is Amigo’s fault in some way ??)
You do have a legal claim against the borrower. But unless you are sure they have got the money pursuing that may not help you.
I understand that you are outraged the borrower was able to do this. But I am suggesting you put that to one side for the moment and think about whether the loan was affordable for you. because if it wasn’t, complaining about that may offer a much easier way to get yourself removed as the guarantor for the loan, which is what you want.
Jordan says
Thanks, Could I argue that the loan is no longer affordable for me due to change of circumstances? I know that they stole the money but would most likely not have it now as the account is in arrears.
Would I be able to state that the loan should not have been issued to the account holder in the first place? I believe that more careful checks should have happened.
I did not know them too well and I felt pressured into agreeing to help solve their problems.
If not, do you know of any other options I might be able to pursue?
Sara (Debt Camel) says
Could I argue that the loan is no longer affordable for me due to change of circumstances?
That won’t help you be removed as guarantor. It would let you make a payment arrangement at an affordable level.
Would I be able to state that the loan should not have been issued to the account holder in the first place? I believe that more careful checks should have happened.
yes you can state this. See the article above. but unless you have any proof of it, it may be hard to win this argument.
I did not know them too well and I felt pressured into agreeing to help solve their problems.
Do you think you would have sounded uncertain in the phone call with Amigo?
do you know of any other options I might be able to pursue?
I repeat my suggestion to consider if the loan was really affordable for you at the start.
Apart from that, you have a potential legal case against the borrower. but unless they have money, you may not get anything back.
Jordan says
Thank you. I think I will send a complaint shortly. would this sound okay?
”
I am complaining that you should not have accepted me as a guarantor for this loan.
My complaint is as follows.
I was pressured into agreeing to this loan by the borrower. I didn’t feel I could refuse because during the time, xxxx began to tell me about his life and how his grandfather had recently passed and he began using drugs and fell into personal debt and that this loan would solve all of his problems. I did not know xxxxx too well which I believe during a phone call with Amigo I would have sounded hesitant and uncertain regarding some questions about him. He was in the room at the time and watching and listening very intently which made me feel as though I couldn’t have said no. I can not afford to make the loan repayments. Due to a change in my circumstance, I am no longer employed and do not have a source of income. Being expected to survive and pay this money is unrealistic given the current circumstance.
I would also like to stress that 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.
I am asking you to remove me as guarantor for this loan and for it to be deleted from my credit record.
“
Sara (Debt Camel) says
If you think that is an accurate statement of your case, then it sounds fine.
But I want to be clear that you are accepting that at the time of the application you could have afforded to make all the loan repayments and still pay all your other debts, bills and living expenses… if that isn’t right then you should add into the complaint that the loan was not affordable for you at the time. That is a much stronger point than not being able to afford it now.
CC says
Hi Sara,
I am a guarantor for a loan and the borrower has done a runner and the company can’t get hold of them. I have raised a complaint with the ombudsman and the Adjudicator has ruled in favour of the business. I have asked this to be escalated to the Ombudsman. The loan was unaffordable and I have ended up losing my job and now on jobseekers but the ombudsman advised that they can’t take into consideration my circumstances now and advised making a payment plan. It just sounds irresponsible to ask someone who isn’t working to carry on paying a loan that was unaffordable to start with and encouraging more debt? Also I was advised to stop making payments by the ombudsman until the case was investigated and now my credit score has taken a huge hit. Was this the right advice? It seems like this may have been a rushed decision as I wasn’t advised that my credit would take a hit and I’m sure the ombudsman would have known this!
Thank you
CC
Sara (Debt Camel) says
three different issues here:
Was the loan “affordable” when it was given?
If you think you could not have made the loan repayments at the time the loan was issued, then it is right to ask for your complaint to be looked at by an Ombudsman.
The fact that you are currently unemployed doesn’t change this, what matters is your situation at the time.
Whether you should make a repayment plan now
In general if someone loses an affordability complaint at FOS, then they have to repay the debt and a payment plan is typically the right answer. But if you are on JSA it is unlikely you can afford anything, although you may think you can manage a £1 a month token payment. If you have other debts as well as this one, then I suggest talking to a debt adviser about what your options are – phone National Debtline on 0808 808 4000.
Your credit record
I assume this is not an Amigo loan, because they don’t appear on guarantor’s credit records.
FOS doesn’t usually advise people whether to pay or not. But as a matter of practicality if you were on JSA how could you pay this loan? If you had taken debt advise, a debt adviser would have said this was a non-priority debt which you were disputing and that paying things like your rent, council tax, utilities and buying food and other essentials should be done first. what could you have done differently that would not have affected your credit record?
Cc says
Thanks Sara,
This particular loan was not Amigo it was Bamboo. However a few months before I became a Guarantor for the Bamboo loan I also became a guarantor for An Amigo loan which I have been removed from and didn’t have to go to to the ombudsman for this. For some strange reason Bamboo are not acknowledging this loan or the ombudsman so I feel like I’ve been made out that on lying about the Amigo loan. I have spoken to CAB and stepchange about this and during the months after the loans were taken out I was signed of sick and was still being hassled for payment when all I could afford was sick pay which both companies knew about. Stepchange did say I am paying more out than coming in and my other bills come first. The ombudsman have said they haven’t been sympathetic to me (Bamboo) but it’s all seems weird about the Amigo loan? I have paperwork but don’t know if I can send this to the ombudsman due to data protection and I’ve been removed from the loan now.
Many thanks
CC
Sara (Debt Camel) says
Amigo loans don’t show on your credit record if you are the guarantor. so if you are saying Bamboo should have declined you because of this, well they couldn’t actually know you were the guarantor for an Amigo loan. So FOS may ignore the Amigo loan – they aren’t saying you didn’t have it, but they have to assess what Bamboo could reasonably have seen when they made the lending decision.
You can send any paperwork you would like taken into account to FOS. no problems about data protection.
CC says
Thank you so much Sara,
You have answered so many of my questions in two messages and this has been going on for 8 months so far! I will send the FOS the Amigo paperwork as I did advise there was another loan when the application for Bamboo was being processed on a phone call and numerous other phone calls. I think if Bamboo could have seen the other loan the loan may have not been paid out as in one month I would need to use near enough half of my wage to pay for both loans if the borrower didn’t pay before paying my own bills. I am so glad to have come across your website. I’ve been spending hours and hours doing research about pay day loans etc as it’s been a nightmare.
M says
Hi,
I placed my complaint with Amigo loans a while back and it passed the 8 weeks so i contacted the FO three weeks ago. Amigo are still contacting me with threats of CCJ despite me emailing them back to explain again my circumstances and the fact they have paused taking money from me whilst they STILL look into my complaint. I mentioned this to you a while ago and you said to add this to my FO complaint but i havn’t actually had any case number or acknowledgement yet from FO. I assume when they do acknowledge my complaint i can them add it this way? otherwise i have no way of adding this to my original complaint.
Sara (Debt Camel) says
you can phone FOS and say you want to add some information.
CC says
Is it possible for Bamboo loans to only do a credit check on the guarantor and not the main borrower? If they can do this how would they know the loan was affordable at all? and if the main borrower was self-employed as they say they were Surely Bamboo would need to ask for proof of earnings or bank statements? Sounds like they may have just gone on my credit file to pay out the loan?
Sara (Debt Camel) says
They should have credit checked borrower & guarantor & run an affordability check on both. And the ombudsman is deciding often that the affordability checks – which are even harder for the self-employed as their income tends to be more variable – they do have not been adequate.
CC says
Hi Sara,
Thank you your reply. You have answered some questions for me that I have been trying to get answers for. Do you think it would be too late to ask for a copy of my file that Bamboo sent to the ombudsman? Or if I can ask for that information? It’s at the first stage and my complaint hasn’t gone in my favour but I’m escalating my case. Thank you
Sara (Debt Camel) says
You can ask, but I am not sure what you can be shown.
Were you sent the personal information by Bamboo that you asked for?
CC says
I didn’t ask unfortunately as I have heard people ask for it but I wasn’t sure.
I just wanted to check a few details to see if what I have said on phone calls has been put in notes etc. As the ombudsman may not have all the Information needed to make a fair decision.
Sara (Debt Camel) says
Then you can ask Bamboo for the information now. tell FOS you haven’t yet heard the recording of the call and ask if they can let you hear it as well.
Marie says
Just received my final response from George banco, they are upholding my complaint however they are saying they will ronly refund any payment made above the loan amount. Even with the 8% stat interest that is still £200 less than I paid towards the loan. Is this normal?
Sara (Debt Camel) says
So you borrowed £2000 and have only paid £1800 say? Then in that case it is normal that you have to repay the amount that you borrowed.
Marie says
I was the guarantor not the borrower, he borrowed £1000 but then stopped paying and I paid £544 ish to get rid of it. They have said they uphold my complaint that it was unaffordable for me (so surely they should not have accepted me as guarantor) but have said they will only pay back anything above the £1000 which was borrowed, that only equates to £385, including the 8%.
Sara (Debt Camel) says
Go back to GB and say that is not acceptable, that FOS say guarantors should be refunded all the money they paid plus 8% if the loan was unaffordable for them and that if they don’t do this you will be sending your complaint to FOS.
Marie says
I emailed them back at the time and queried their final response but have received a reply from them today stating that they will still only refund anything above the principal amount. I’ve replied and told them that I will just wait for FOS, I raised my complaint with FOS at 8 weeks (so approx 6 weeks ago), I’ve copied the guidance the FCA provide about refunds to the guarantor but am not expecting George Banco to change their decision.
Portia says
Hi There,
i came across this article back in September last year. i am a guarantor for a loan which was for my ex. Without explaining the whole story i was forced to take out the loan. The borrower was emotionally and financially abusive with a bad gambling addition. He was definitely in no position to be granted the loan from Amigo. But as i was down as the guarantor with no history of poor credit they accepted it. We spilt 1 month after and i have been left to pay the loan on most occasions now. I also have a £15k loan out which i again forced into which leaves me paying over £600 per month for my ex debt.
Anyway after reading this article, i thought there may be a small bit of hope for me. i made a complaint to Amigo. 4 months later they came back to me and advised my complaint wasn’t being upheld. As upsetting as it was, i knew your article mentioned that is an argument was good, they would most likely refuse it to defer you away form pressuring it any further. So i went to the FO as you suggested. And yesterday i received the best news ive had in a real long time. FO agreed with my point that the loan wasn’t affordably to the borrower, and has asked Amigo to remove me as a guarantor, refund my any monies paid, plus 8% on top. . Unfortunately, there is not much i can do about the £15k loan as its in my name but its still a win with one less loan that isn’t mine. Thank you so much :)
Sara (Debt Camel) says
That’s good news.
Can I be clear – because this could be important for some other guarantors – that FOS are upholding your complaint that the borrower could not afford the loan. Not a complaint by the borrower. And not a complaint by you that you could not afford it.
Is this an adjudicator decision or a second level ombudsman decision?
Portia says
So they agreed it was not affordable for the borrower. however they have not said they will take the loan away from the bower, just remove me as a guarantor. I’ve received their response today and they have not admitted any wrong doing however, because the FO found in my favour thY they had given a loan to someone who couldn’t afford it, my complaint was upheld.
CC says
Hi Sara,
It’s good that Amigo are upholding complaints.
I was removed as a guarantor for an Amigo loan but I’m still the guarantor for another loan. Do you know if I could ask Amigo the reasons why I was removed from that loan or is it something they can’t go into? Thank you
Sara (Debt Camel) says
I was removed as a guarantor for an Amigo loan but I’m still the guarantor for another loan
with another lender?
you complained to Amigo?
Shorty says
Hiya, I am a guarantor for a loan with amigo. The borrower was in a difficult relationship at the time she need the loan and ask me to help out I didnt really want to do it but I was guilt tripped into doing it as was getting told there was noone or nothing else she could do. I was scary for her and myself what would happen if I didnt try, known that my credit report and my financial sitution wasnt great I did it thinking I wouldnt get accepted but I did. Know the borrower is going to be made bankrupt and i am going to be left to pay for this loan. What its my best option I have a letter here ready to complain and ask to be removed as guarantor.
Thanks
Sara (Debt Camel) says
If you think the loan was unaffordable for you and Amigo should have known this, then send that letter.
It sounds as though you aren’t being asked to pay at the moment. It is less stressful to start the complaint now, not wait and worry and complain only when you are being pushed to pay something you can’t afford.
Are you still speaking to the borrower? If you are, it could help you if she also complains. But Uk not then as you weren’t in a good financial position then you still have a good complaint.
Shorty says
Thanks. Yes i do think the loan was inaffordable for us both. No not being made to pay anything at the moment till the 17th july. So i will send the complaint today how long does it take. Aslo i do still talk to the borrower but she is going bankrupt so should she still complain will that still be ok.
Thanks
Sara (Debt Camel) says
The borrower can still complain – if she gets a refund after she goes bankrupt then it would go to the Offiical receiver not her so it won’t help her – but if she does it basically gives two ways of getting you removed as guarantor – if she wins her complaint that the loan was unaffordable for her OR if you win your complaint that the loan is unaffordable for you.
It’s up to you, from what you said the loan doesn’t sound as though it was affordable for you so you could just choose to go with that.
Shorty says
Hiya thats great thanks i will talk to her about it thanks
Lillian says
Sara
My son became a guarantor for a friend with Amigo loans, in April 2019. I only found out about this yesterday.. The friend had a loan for over £5000 which my son didn’t know about and Amigo then topped it up to £7000 in April 2019 and Amigo are now saying my son is responsible for the whole debt, not just the two thousand. Using your template letter my son and I emailed a complaint to Amigo last night. My son has never been in debit, has never had a Loan, he just thought he was helping his friend did he not know the implications of being a guarantor meant. The friend has missed three payments, and my son has received a letter from Amigo telling him this. Surely Amigo should not have allowed a top up loan if this friend was having difficulties with the first loan. This is so wrong and I will do what I can to get his name removed from the loan as a guarantor, your template was a great help to me, I am so worried about all this.
Lillian
Sara (Debt Camel) says
So your son thought he was only guaranteeing the extra 2000? And some one else had been a guarantor for the 5000 loan before that was being “topped-up” with this new loan? Amigo would only have transferred the 2000 to your son to pass to the borrower, you can see why your son may have made this mistake… of course amigo should have carefully explained this to your son.
That is interesting because the ombudsman has already seen what sounds like a very similar case. Here is the Ombudsman’s decision https://www.financial-ombudsman.org.uk/files/239434/DRN3847539.pdf – (it is extremely long because this was the “example” case the Ombudsman used to cover a lot different points about complaints by guarantors, most FOS decisions are only a couple of pages!)
If you read it, you will see that the Ombudsman agreed with Miss W that Amigo had not properly explained to her that she was the guarantor for the whole amount.
So he should use this bit from the template in his complaint:
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.
And he should also say if the loan was unaffordable for him. This is the commonest way for a guarantor to win these complaints and be removed from the loan.
If he can’t afford to make the payments at the moment, he should cancel his direct debit to Amigo. he will get hassled about this, but it’s better than paying and ending up having to borrow elsewhere. They can’t take him to court while he has a complaint outstanding. And this loan will not be on his credit record at the moment, so he doesn’t have to worry about that.
Lillian says
Sara
He only has had one letter from Amigo, they haven’t asked him for any money yet although they have his bank details. My son also said Amigo did not put any money into his bank account it went straight to the borrower, have you ever heard of this happening before.
Lillian
Sara (Debt Camel) says
Well if he wouldn’t be able to afford the payment it may be best to cancel the DD now.
That sounds unusual – in the template letter it asks for a copy of his SAR. It will be interesting to see what that says.
Lillian says
Sorry Sara, I hope I am not bothering you,When my son was 11 he had an educational Psychologist report done at the request of myself and his principal, if needed I will send copies of this to Amigo or the ombudsman, the conclusion of the report was that my son has specific literacy difficulties, the report is three pages long. I hope this will help his case. There is probably no point sending it to Amigo now or do you think it would help.
Thank you
Lillian
Sara (Debt Camel) says
I think at the moment I would let Amigo get on with responding to your son’s complaint. If it has to go to FOS, at that point think of other supporting evidence.
Karen says
Hi ive been a guarantor for george banco and amigo.George banco case my friend was sectioned so i had to take over the payments and they changed it into my name even tho they had the evidence of her mental health.amigo my friend sadly got ill last year and passedaway.They are chasing me fir payments.Things have changed ive only my wage and child benefit.My husband cant work cause of mental and physical health.I have a five yr old and suffer with anxiety and depression myself.Ive gone to payplan and theyve paid them a very reduced rate now they arnt acceptin it and threatening court! Both havnt frozen intrest although my other debts have.Amigo was for 9500 and my friend paid off 5000 in oct 2018cause of the intrestbalance is nearly 9000 again.gb was for 7500 i think with intrest gone up to over 10000
Sara (Debt Camel) says
What a horrible position to be left in after you tried to help a friend.
I have several questions, some you may think sound irrelevant but the answers could be helpful in ruling out/in different solutions so if you could answer them all I could suggest what your options may be.
Also I am going to talk as though it was just one loan, but I suppose your answers could be different for the Amigo loan or for the George Banco loan..
Can you think back to when the loan was taken out.
What was the borrower’s financial position at that point? If she was sectioned afterwards, had she been ill and off work before the loan was arranged? Did she have a lot of other debts? If someone had looked at her bank statements and credit records, do you think they would have though “yes she can afford this loan as well as her other debts and expenses?” or would a fair minded person have thought no way was she likely to be able to repay it?
Which loan was taken out first and how long was there between the loans?
What was your financial position at that point? Could you really have afforded to make all the repayments to the loan and still paid all your other debts, bills and expenses?
Are you renting or buying?
You have other debts in your DMP as well as these guarantor loans – what is the total of all the debts?
Does your husband have problem debts as well?
What payments are you making each month as it sounds difficult to afford anything?
You say Amigo and George Banco haven’t frozen interest. Do you mean the balance you owe is going up every month?
Lillian says
Hello Sara
On checking bank statements my son did get £198:74 paid into his account to give to the borrower, on 1April 2019.
On that same day 1April the Amigo statement then shows £7000 balance, Amigo states settlement of old agreement £5012.26.
Sara I’m confused those two figures add up to £7000, which Amigo state my son is responsible for, does that mean a previous guarantor was taken off the loan, my son does not think he was told about the previous loan but as you said the SAR will tell us this, he has no understanding of this all. Amigo haven’t acknowledged the complaint yet, but reading your post I know I have 30 days for them to reply
Thank you
Lillian
Sara (Debt Camel) says
does that mean a previous guarantor was taken off the loan
yes.
But the problem for Amigo is that they did not clearly explain this to your son. (At least that’s what it sounds like – listening to the phone recordings will make this clear.)
being a guarantor is legally such an odd thing that the lender has a duty to be absolutely clear what responsibility the guarantor is taking on. If your son was left thinking he was only guaranteeing a small loan and it turned out to be more then three times as large, then this isn’t fair.
John says
Hi my daughter was awarded and paid redress for irresponsible lending back in March. I’ve only just found out as we don’t speak anymore (I was guarantor) I’ve e-mailed Amigo staring that “as the FOS and they agree it was irresponsible
Lending then surely I should be paid a redress of the payments I had made (which amounts to at least 15 x £181 between 2013 and 2015). They have replied with the “8 week response”.
1 – Should I have to wait 8 weeks given this is in regards to a complaint dealt with by the FOS/Amigo already
2 – Should they not have sent me redress payments when they paid out to my daughter.
3 – How much can I expect back?
I have been told (by Amigo) they did not include any payments I made in daughters redress claim. How true that is I don’t know. Thank you
Sara (Debt Camel) says
1 – Should I have to wait 8 weeks given this is in regards to a complaint dealt with by the FOS/Amigo already
yes. This is a different complaint.
2 – Should they not have sent me redress payments when they paid out to my daughter.
Amigo have changed their policy on this a couple of times. At the moment they are offering the guarantor a payout when a borrower’s complaint is upheld.
3 – How much can I expect back?
the 8% interest will depend on when you made the payments and when this gets settled. but at a guess about £3800.
I have been told (by Amigo) they did not include any payments I made in daughters redress claim. How true that is I don’t know
I don’t know how to interpret that. Do they mean that they did not include the interest component of the refunds you paid in the refund to your daughter? Or that they calculated her refund ignoring the whole contributions from you?
John says
No payments or interest in those that I made was included in my daughters redress.
Thank you for your swift response
John says
Sorry also is there any chance they can refuse to award any redress to me if they have already said they had lent irresponsibly?
Thank you
Sara (Debt Camel) says
Amigo have changed their complaint handling so often that I can’t say there is “no chance” of anything. But I would be surprised, and if they do reject your complaint, take it to the Ombudsman.
Eloise says
Hi there,
I am hoping that you will help me on a situation I am in.
I am currently a guarantor for someone through amigo loans.
This has been going on since mid last year. Since then the borrower has gone through an Iva in hope it would clear me from the guarantor loan, however it breached amigos contract terms, therefore I am now responsible for this loan.
I was seriously coerced into agreeing to be a guarantor by the borrower, as he was at the time my manager at our work, and felt like if I said no my job would be at risk.
It is also having a huge strain on my mental health as this person was very financially abusive towards me during our “friendship”.
Since being notified by amigos that I was now responsible for this, it has put an even bigger strain on my mental health and well-being.
I have emailed over an official complaint to amigos, and have also been in contact with FOS and they have said that if I do not hear back, I may be able to send over the complaint to them.
Do you know if bamboo guarantor loans are the same as amigo loans going through an Iva? As he pressured me into being a guarantor for this one too, again I felt like I couldn’t say no..
He has since told me, very bluntly, that “bamboo dont bother with guarantor loans, they just accept payment from the Iva”
Please can you advice if there is any way of me getting out of this amigos loan?
Sara (Debt Camel) says
You have already complained to Amigo – that is good as you think you were coerced into agreeing to guarantee the loan. If the repayments would also have been too much for you to afford, you should also complain about that. You can be released as a guarantor for either reason – coercion or affordability – so give yourself two chances of winning the complaint by mentioning both if both apply to you.
Bamboo will also expect you to pay as the guarantor if the borrower is in an IVA. I suggest you send a similar complaint to them asking to be removed as guarantor.
Eloise says
Thank you for replying,
I have also sent over a similar complaint to bamboo today. I used the fact that I was coerced into it in both, and also the fact that they both didn’t properly check if the borrower could afford the payments (which he couldn’t hence why he now has an Iva) and if I could.
I have had an email from amigos today saying that that have raised a complaint on my behalf and a member of their customer relations team will be in contact in 3-5 days.
If I don’t hear back off them in 5 days, what should/ could I do?
I read on this site above that even if my cases are good they can still say no, but if that happens I can pass these cases over to the FOS, is that possible for me?
I thought it would be more difficult for these complaints due to the Iva which the borrower now has, but I’ve since been told that it could actually make the cases stronger as it’s clear he wasn’t able to pay them?
Vanessa Enticknap says
Hi Sara
My guarantor got her decision from the adjudicator last month saying they have decided that she should be released as guarantor and be paid back what’s she’s paid off the loan amigo had to the 21st may to respond . On the 12th June the adjudicator has said amigo have said they are going to do a reconciliation exercise and advised my guarantor to wait can you tell me what this means please
Sara (Debt Camel) says
It may be the first time they have had to decide what to do when the borrower has had a DRO. I think you just have to wait and see what they say. Come back if you aren’t happy with it.
Vanessa Enticknap says
Ok Thankyou our case is still being looked at by the case handler we are waiting to hear her decision. I will let you know what happens with my guarantor (daughter) hopefully amigo get back to the ombudsman soon
TITO says
CRS are instructed by TrustTwo to recover £8010.93 due to them. Click the link to pay today and resolve. Ref TTWO18G00185
Hi Sara , I have got this this morning, but I have an ongoing complaint with FOS,is a Guarantor loan and it is with the investigator at the moment, also I cannot login, in CRS sit, what shall I do now ?
Regards Piero
Sara (Debt Camel) says
So just checking, you are the guarantor for this loan and the borrower has stopped paying?
TITO says
yes, the borrower stopped paying from the start, I paid few months then I stopped as well and I sent your template letter, but they did not accept the complaint, now is with a FOS investigator.
Sara (Debt Camel) says
Then tell CRS you are disputing the debt and FOS are looking at your case. If they start threatening legal action (which they should not start but they may make threats) then tell your FOS adjudicator.
TITO says
I have raised a query with our client in regards to this the account has been placed on hold fir 30 days whilst we await a response.
THIS IS CRS RESPONSE
Marie says
I just called amigo to try to get an update, they have said they are trying to get responses out before the end of the month but can’t guarantee this will happen (I complained 30/01). She was surprised I haven’t received my DSAR yet but then I only asked for it 5 weeks ago and given the length of time it’s taking them to do anything in relation to my complaint I’m really not sure why she’s surprised. It feels never ending at the moment, next payment due to go out before monday so looks like I will be making the payment this month.
I have so many complaints in I think I’m going to have to pull a spreadsheet together so I can easily see when I complained, which company it was and when I raised them with FOS.
Amy Robinson says
Hi Sara! My complaint is being upheld woohoo!!! SUCH a massive weight off my shoulders and I could never of done it without you. Thank you so much!! It’s taken 7 months for this, but nothing compared to the 2 years of hell with amigo. So thankful I was told about this forum. You are an angel and I can’t thank you enough!!
G says
Hi Amy have Amigo emailed you confirmation I was emailed by FOS to say that my case was being upheld but Amigo are dragging their heels no email to confirm.When I call they say they are in the process of calculating redress.I believe they may be going bust and are dragging this out.
Amy Robinson says
Hi, I’m currently waiting on a letter from amigo confirming everything, I received the email on Monday 15th from FOS and still no letter yet, thank you for making me aware of that! If I don’t receive a letter from amigo I will phone them and query it
frogman says
Please is there anyone here that’s been removed as a guarantor by Amigo while the loan still has a balance? Is the actual borrower notified immediately ? My guarantor’s complaint is 20+ weeks now and no response yet. Mine is 6 weeks so I am just wondering if anyone here has had a similar experience and want to know what to expect from Amigo if complaint is upheld.
Stefania says
Hi Sara,
Thank you for your article! Is such a relief to see I’m not the only one in this situation and it might be an actual solution to my problem.
I am the guarantor of an Amigo loan taken in March 2019. The borrower made the monthly repayments till Jan 2020 when he told me he will not have money to make the payment in Feb as his business is going not well at all and he is even thinking of not paying it at all as he is really struggling financially speaking( he even moved back to his country, is not in UK anymore).
He did made the payment after all but in the same time, being really late with it, Amigo set up a direct debit on my account and took the money from me as well.
When I agreed to be the guarantor of the loan I had a stable but variable income( now when I checked if i were to make the monthly repayments, £395, i would have been short) but now I am a newly single mum and my income had lowered a lot.
Now that the borrower doesn’t really afford to repay his debt ( now he has until September a pause in repayments due to coronavirus) and they will come more than sure after me, do you think I will have any chance of getting out of the guarantor contract?
Also, when I received the money from Amigo( almost £7000) no one told me that in fact that was a top up for a previous loan.
Sara (Debt Camel) says
It sounds like you have 2 good reasons to complain and ask to be removed as guarantor:
– affordability “now when I checked if i were to make the monthly repayments, £395, i would have been short”
– guarantee not properly explained to you “when I received the money from Amigo( almost £7000) no one told me that in fact that was a top up for a previous loan.”
Also cancel your DD to Amigo if you can’t afford it. I hope you win your complaint – lots are being upheld by Amigo or by the Ombudsman – but if you don’t you can then make an affordable payment arrangement.
Stefania says
Thank you for your reply! I will email the today!
Marie says
I have just spoken with amigo to try to get an update, whilst they have not been able to provide any timeframes they were able to give me some interesting information. Apparently the borrower also complained (after I put my complaint in) and his cmc received a final response 2 days ago. I assume this complaint was upheld as amigo told me that they have not received a response back from him yet and I can’t see why they would expect to if it wasn’t upheld. I was told that my complaint is still being looked in to. What I don’t understand is what happens next, as I have made payments of approx £9000 surely they can’t give him his redress figures until they have spoken with me? Amigo did say that their request to FCA for an extension should not impact on the current timeframes as it is only in relation to newer complaints. Fingers crossed I receive a response by close of day on Friday, this is really starting to cause major anxiety issues.
Sara (Debt Camel) says
If they have upheld the borrower’s complaint, they will normally ask you if you want to receive a refund of the payments you have made.
Marie says
I raised this with them and they said they are unable to share any information with me about the borrowers complaint and final decision. They said they are waiting for him to respond to them and then it will be up to him to share the outcome with me. I told them that he is not in contact with me since he stopped paying but they refused to budge. I can’t get access to the initial loan information or anything before the last top up but I know that his last top up was to £10000, £9430.12 was used to pay the previous agreement and he received a payout of £589.88. He has then made payments of £2371.50 and I have made payments totalling approx £9000. I asked how his final response impacts on me as I am still paying £250 a month and they have said that I need to continuing paying as I am in a long term financial contract with them. It’s so frustrating, not only has he rinsed me of in excess of £25k but then he complains after I told him I had and still gets a response before me and to top it off I’m still expected to carry on paying his loan for the next 4 years. I did raise concerns with FCA yesterday as I’ve had enough now of how amigo treat people. My complaint went to amigo 30/1, I then raised it with FOS at 8 weeks and yet I’m still waiting. It’s been 21 weeks now and they still can’t tell me when I will receive a response.
Sara (Debt Camel) says
are you still paying this? I suggest you cancel your direct debit and tell Amigo you will review the payments when they respond to your complaint.
Marie says
Yes I’m still paying, my most recent payment went out on Saturday, I’m just really worried about them pursuing court action if I stop paying.
Sara (Debt Camel) says
Amigo should not start court action while you have an open complaint at the Ombudsman. So far I have not seen them actually do this – they threaten you but that’s all.
Marie says
I’ve now cancelled payments and told amigo, they have said their collections process runs as normal until complaints are fully processed. Still no further forwards in terms of a final response but I have contacted FOS to update them on what I was told about the borrowers complaint. I don’t expect it to have any impact but just thought they should be aware as part of my complaint anyway.
Sam says
Hi, I have been put into a horrible position because of an old boss he personally owes me 1000s and differant lines of debt including amigo. (Me being guarantor)
everything is now into a debt management plan but cause off the virus I am no longer able to pay anything.
But basicly i have put amigo into a debt management plan in january when i had to take over the loan along with all my debt and everything else. Amigo has not accepted the DMP but havnt contacted my DMP to say this either. So a couple of weeks ago put in a complaint in with amigo before finding this amazing page, my complaint isn’t 100% professional and also misses details of him being my boss and pressured into it. I also didnt say what outcome I wanted (me removed as guarantor and any money I have paid in refunded) if I can get amigo sorted i can go into a IVA and move past this mess and get on with my life.
What’s best to do put in another complaint with more information and basicly disregard my first complaint or wait for a response and give more information to the FCA when they more than likely decline it.
(I have deleted alot of this message because it was too big.)
Thanks
Sara (Debt Camel) says
Go back to Amigo with more details to add to your existing complaint, not a new one. Especially the fact that he was your boss if you felt you had to agree to be the guarantor. Also send Amigo your bank statements from the time of the loan application if you are saying the loan was not affordable.
Your current situation – are you buying Or renting? How large are the other debts in your DMP?
Is thus likely to improve rapidly or has COVID-19 hit your medium/long term finances?
How much have you paid Amigo so far?
Nana says
Hi Sara,
Thanks for the great website, lots of valuable advice.
I’m a guarantor for a loan yet and the borrower is currently affected by the pandemic and is losing his job.
However the loan company say that only if I’m not able to make payments either can they then consider the payment holiday as that was part of the agreement.
I have mentioned the FCA and said that is not what they say, that they’re supposed to be helping the borrower? Also he’s been making all payments up until when he asked for help.
The lender is Guarantor My Loan.
The borrower has asked again about the payment holiday but they are requesting his and my bank statements – I don’t understand why they need my bank statement though, as obviously they would then start taking payments from me and therefore would not be helping the borrower at all.
Nana says
Also last month when he was struggling he made a partial payment and had spoken to them yet they took the full monthly instalment from my account. It was only when I called to question it that they refunded me just the amount that was paid by the borrower.
Should I cancel the direct debit?
Sara (Debt Camel) says
yes cancel the DD!
And send GML a complaint saying they had no right to take a payment from you when the borrower was on a payment deferral because of coronavirus. And your finances are irrelevant to whether the borrower should be given a further payment deferral so you will not be sending them your bank statements. Quote from this FCA document: https://www.fca.org.uk/publications/finalised-guidance/personal-loans-coronavirus-temporary-guidance-firms which says:
“In this guidance, ‘payment deferral’ means an arrangement under which a firm permits the customer to make no payments under their regulated credit agreement for a specified period without being considered to be in arrears. As the customer would not be considered in arrears we would expect firms not to pursue relevant guarantors for payment during a deferral period, in respect of payments deferred under this guidance.”
You could also do the borrower a favour by sending them a link to this page: https://debtcamel.co.uk/how-to-complain-guarantor-loan/ and suggest they consider whether to make an affordability complaint. If they win this, interest is removed from their loan (a big win for them) and you are released as guarantor (a big win for you).
Also read the article above and think about whether you can argue that you couldn’t have afforded the repayments from the start of the loan.
But these affordability complaints are extras, on top of the basic complaint that GML are not applying the FCA’s rules on payment deferrals.
Nana says
Thanks Sara. Would this be considered a payment deferral if the lender refused to help the borrower?
In this case they’re refusing to do anything until they’ve seen both our bank statements, but I’m not sure why they need to see mine in order to determine if they can help the borrower? As from what I understand, according to the FCA, they should be expected to help the borrower?
Thanks, just wanted to be clear before I raise a complaint! Could the borrower raise a complaint that they’re not following FCA regulations?
Sara (Debt Camel) says
The problem is this is all third hand. You are telling me about a conversation between the borrower and GML. Did he ask for a payment deferral or to make a reduced payment because of cornavirus? If he did, why was this not granted? If it was granted, you should not have been asked to pay the rest.
And they should not be asking for your bank statements now as your finances are not relevant to giving him a payemnt defaerral because of coronavirus.
Nana says
I’m not aware of the exact conversation that the borrower had but when I spoke to GML yesterday they were telling me they had to see our bank statements before they can decide to help him.
It looks like they are not following the FCA guidance then.
Sara (Debt Camel) says
It does. I think you can complain about this.
Sam says
I am currently renting. I am having to move back to my parents in September when my tenancy ends because of the situation. I was at my parents when I became guarantor at the time. I have just been made redundant but hopefully get a job very soon. My other debts are about 20k credit card and loans alot of it lent to my boss.
I should be able to get back paying again in around a month i hope. I have only pade my self around 500 since the loan was taken.
martin says
Good morning I need some advice i am a guarantor on a amigo loan for a so called friend at my work .
My friend was paying the loan for about a year he then decided to leave my place of work move house etc and basically run away leaving with the dealt
I got hounded for payment where I have been paying a payment for about a year for a debt i didnt take out
Sara (Debt Camel) says
Was he an actual friend? Or was he just a work colleague and you felt it would be difficult at work if you refused to be the guarantor?
What were your finances like when the loan was approved 2 years ago – at that point could you have made all the repayments to this loan and still paid all your own debts, bills and other expenses? Or would making these payments have left you with too little money?
Eloise says
I have also submitted a complaint to bamboo as well about how I was pressured into being a guarantor, as well as one for amigos.
Since doing this, I’m being told by the borrowers mother that I should cancel my payments to both loan companies, should I do this? How do I do this? And what will happen to me if I do this?
The amigo Loan defaulted when the borrower went through an Iva so I am now responsible, and the bamboo loan is in arrears from where the borrower missed payments. The next payments are also due tomorrow and the day after.
I’m terrified and panicking I am going to get people knocking on my door, as the complaints have only really just been made so I have at least 8+ weeks of potential panicking, can you help me please?
Holly says
Hi Sara,
This article has come up at just the right time. I was diagnosed with a severe mental health condition a couple of years ago which effects my ability to foresee problems and excessive spending. I am going to write an email to Amigo asking them to remove me as the guarantor of a loan my boyfriend took out last year. They did not request bank statements from me, otherwise, they would have seen I was severely in my overdraft and actually had two loans in my name as well as a car finance, totalling around £35,000.
I am going to try and will let you know the outcome. Thank you so much for the help. I really needed it, this guarantor thing is causing me severe anxiety.
Kind regards,
Holly
Marie says
Just off the phone to amigo, they have told me that the borrowers complaint has been upheld and they are currently working out the figures for my redress. I haven’t had a response to my complaint yet but as long as what they have said today is true i really don’t care.
Dana says
Hi, my ex partner took a rather large loan out and my brother is a guarantor for. My ex partner is being very unreasonable and threatening to not make the payments knowing the stress it will cause me and my family he is doing this out of spite. There is no way I can afford to pay this loan and neither can my brother. Is there absolutely anything I can do.
Sara (Debt Camel) says
At the point the loan was taken out, could your brother have afforded to make all the repayments to the guarantor loan and still pay all his own debts and bills and everyday expenses?
Emma Stewart says
Hi All
I became a guarantor for someone who never paid a penny in repayments, I became liable for all the repayments. However, I got behind on the payments and UK credit took out a CCJ, despite being offered a repayment plan as they rejected this. They also took out a charging order on my property, the whole affair was a complete nightmare at the time, I was a single mum to two children and had no one to turn to.
I made a complaint to UK credit back in May 2019, which is when I first found out you could make a complaint against unaffordable lending. The loan was taken out in 2011 so UK credit came back and said they would not look into the complaint as it was older than 6 years. I then took the complaint to the FOS, as I only back aware in May 2019 that you can complain for unaffordable lending. It has taken over 1 year for the FOS to confirm that they do believe I have the right to make a complaint and they then asked UK credit to look into the complaint, however UK Credit still refused. The FOS advised me on the 17th June 2020 they will now make a decision on my complaint, I am still waiting. Has anyone else had to wait this long for a decision? Has anyone else been successful with an old complaints like mine? Lastly has anyone been successful with a complaint against UK credit?
Thanks Emma
Sara (Debt Camel) says
Loans over 6 years are often longer but are often upheld.
UK Credit isn’t mentioned much.
Fingers crossed for you!
Emma Stewart says
Thank you. Quick question, this has now been passed to the Ombudsman from the adjudicator as a priority case, how long in your experience does this normally take?
Sara (Debt Camel) says
I would hope less than a couple of months, but that is a guess,
M says
Just wondering how soon after the borrower has received their final response I’m likely to receive my redress figures. His final response was sent to his claims management company on 22nd june, I was not told it had been upheld until I called amigo on Wednesday but they have said they are currently working out the figures. Today is 10 days since his complaint has been upheld but they have not formally informed me of this, it was only by chance that I called and was told. They have not responded to my complaint yet but I don’t think they need to if his has been upheld?
Sara (Debt Camel) says
have you made any payments to the loan?
M says
Yes I’ve been paying for the last 2 years.
Sara (Debt Camel) says
well at the moment you don’t know what has been upheld. If it is an earlier loan you didn’t make any payments to it may not mean you are released and refunded. That is unlikely, I am just saying it is possible.
M says
I spoke with amigo again yesterday and they confirmed they are in the process of working out calculations and I will then receive an email with these provided. They are not able to give any kind of timeframe and just kept apologising that I have been waiting so long. I have still not received a final response about my complaint and the calculations relate to the borrowers complaint but they confirmed they are working out my figures because of his complaint. The borrowers complaint was upheld on 22/06, so that’s more than 2 weeks ago now. I don’t understand why it takes so long to work out the figures and also why I have not received any communication yet, except when I have rung them. Surely the borrowers claims management company will be annoyed about the wait too….I understand that he won’t receive his redress figures until I have had mine and accepted (or declined but that’s not going to happen).
Eloise says
Please can someone help me?
Since putting my complaints in to both amigo and bamboo, I have cancelled the payments through my bank as advised by this site. I am the guarantor for both loans. Before putting my complaints in the amigos loan defaulted due to the fact that the borrower went through an Iva, today I had a letter through from amigos saying that the default notice has now expired, however they are NOT looking to take any further action at this stage. I’ve cancelled the payments for them, one should have gone out yesterday but didn’t, does this mean they will look into taking further action against me because of this? Even though my complaint is still being investigated and still have at least 6+ weeks to wait for them to even make a decision? Please can someone help me as this puts massive strain on my mental health everyday!
Sara (Debt Camel) says
They have said they are not looking to take any further action at this stage? Then nothing is going to happen for a while. Amigo should not start court action against you while there is a complaint outstanding, although some people have had threatening sounding letters, emails and texts, in practice Amigo hasn’t been going to court while there is a complaint open.
Have you let Amigo know about your mental health issues?
Eloise says
Thank you for replying, I’m just worried that since the default notice has expired they will start taking further action once they’ve realised I’ve cancelled my payments. I briefly went into detail about my mental health as a part of my complaint, but it was only quite brief. Should I add an extension onto my complaint email to them, and even bamboo saying that since putting in my complaint I have cancelled my direct debit payments as advised by this site? Would it also be worth adding in that I would like them 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?
Sara (Debt Camel) says
Can you say on what grounds you have complained to Amigo and Bamboo?
You mentioned you felt you had been pressured into being the guarantor as the borrower was your manager at work. That is a good reason to complain!
Did you also complain that at the time the loan was taken out you could not afford to make the loan repayments and still pay your other debts, bills and expenses?
I don’t think I did suggest you should stop paying. You said “I’m being told by the borrowers mother that I should cancel my payments to both loan companies”.
Can you actually afford to pay them at the moment? Your situation is quite different if you can’t or if you can but understandably don’t want to.
Sara (Debt Camel) says
Let me try to explain about Amigo and starting court action. There is a big difference between what they can do in theory and what they are at all likely to do in practice.
Amigo are not likely to go to court in the next few months for the following reasons:
1. you have an active complaint in. The FCA rules (CONC 7.14.1) say ” 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.” . while you have a complaint with Amigo or the Ombudsman that is “disputing the debt”.
2. the FCA is currently investigating Amigo’s recent lending. It is a very good bet that Amigo wants to be squeaky clean about complying with FCA rules at the moment.
3. I have not seen Amigo start a court case in this situation for the last year or more. many people like you have been worried. They have received alarming sounding letters, but Amigo has not followed through to court.
But suppose Amigi decide to go to court. Which I do NOT think will happen, I am just trying to say what the worst case would look like. Let’s look at all the stages and how long it would take, because it will be incredibly slow.
First they have to send you a debt pre action protocol letter (sometimes called a Letter Before Claim or a Letter Before Action). That is a letter with several attachments including one headed Reply Form.
If you get one, come back here and I will point you to information on how to complete that form. If you wait and reply after three weeks, they then have to supply you with more information and can’t go to court until 30 days after they have sent that.
Then you will get a Court Claim Form. At that point, I will point you to somewhere you can get help with submitting a defence.
From that point on, your aim is to delay the court proceedings as long as possible. The average time for a court claim to go through in 2019 was over 9 months. And court delays are likely to have got much longer with Covid-19 as the county courts are mostly shut at the moment so a backlog will have built up.
And in your case the simplest approach is to ask the court to “stay” the case – that is legalese for put it on hold – until the Financial Ombudsman has reached a decision on your case. Again I can point you to where to get help to do this.
So this is an incredibly prolonged process. FOS will have made a decision on your case long before there is a court judgment unless you do an ostrich-act and ignore court papers.
This is of course another reason why Amigo is very unlikely to go to court in the first place…
Eloise says
Okay thank you so much, that’s a relief off my shoulders. It was just seriously worrying when I got that letter through as I started panicking that they might take further action. What do you suggest that I do in terms of the payments? Should I keep them cancelled and send them an email sort of extension of my complaint to both of them saying that whilst my complaints are being processed I have stopped all payments and that I would like them to stop any enforcement action against me whilst my complaint is with them or the FOS?
Sara (Debt Camel) says
You can’t afford to pay them and pay your other debts, bills and expenses? In that case you shouldn’t pay them – you do not want to get behind with bills or have to borrow more money.
You can tell them that if you want.
If you are on medication from your doctor for mental health problems you could also mention that.
Ruby says
I have put in a complaint with amigo and recieved an email back stating what they can do. It says we have removed the guarantors liability. Does this mean it comes off their credit file?
Sara (Debt Camel) says
if your guarantor looks, the loan will never have been on their credit record unless Amigo had gone to court for a CCJ.
Ruby says
Brilliant thank you
Amos says
Hi I complain to amigo loans as a guarantor it has been 10 weeks now amigo loans have emailed me that they are aware that it has gone over the eight weeks and hopefully will get back to me with a decision as I am struggling with my mental health even more now because the Borrower has just text me to say that they are going for a debt relief to wipe off the debts and they have said if they apply they will get them wiped off but then make the loan be passed on to me so now this has become more worrying than ever any help for what I can do please
Sara (Debt Camel) says
HAve Amigo asked you to make any payments yet?
Amos says
No not at the moment because they’re only just starting back getting payments from the borrower and they start back on the 10th of this month Because of COVID-19 they gave the person a holiday which I’ve already put my complaint in before They start asking me for money my complaint was unaffordable and I have mental health problems and now borrower just told me they are going to debt relief To clear the debt off which then amigo will get the money off me the borrower said
Sara (Debt Camel) says
So before you said you can’t afford the repayments and live in your overdraft.
On that basis, you should cancel the direct debit to Amigo with your bank – you will get cross letters and emails, but that is better than them taking money you need and leaving you too short to manage.
Your complaint will be in “the backlog” that Amigo has told the regulator it will be resolving, so hopefully you will soon get a response. but for now, get your finances safe.
Labs says
Hi, I just wanted to say a very big thank you for putting together the template. I made some adjustments to it and sent it to the FOS on behalf of my mum who stood in as a guarantor for £7,000 loan that she could not afford. The FOS ruled in our favour. It hard to describe how much of a relief this… i felt it could have gone either way and this placed a huge emotional strain on us. My mum is very trusting and she was used by her church member who i believe never had any intentions of paying back the loan in the first place. Fortunately for us, my mum is on such a low income, she should have not have been accepted as a guarantor in the first place. She just about makes enough to meet her basic needs. I normally dont comment on anything on the internet. I’m old fashioned in that I like to look at someone in the eye, shake their hand and say thank you… but this is the internet age, and I owe you a big debt of gratitude for making the advise and support available on the internet. So thank you very much!
M says
So today I have contacted FOS and FCA to raise further concerns about amigo. 18 days after the borrowers complaint was upheld they have still not provided me with my figures and continue to state they cannot give me a timeframe for this to be done. I really don’t understand how it can take so long when they keep clear records of every payment made. I’ve raised that the call handlers are being inconsistent with what they are saying as well…..amigo told me today that anyone who is saying they received figures and / or payment in less time than I have been waiting are lying.
I don’t expect to get a response from FOS anytime soon, only been waiting since march so not that long really. Amigo on the other hand…my complaint was made in January and still no response.
I’m waiting on FOS for george banco too….they upheld but didn’t offer my payments back, they only offered what was paid above the principal loan amount.
The waiting is a constant source of stress and anxiety, george banco isnt too bad as that was paid off 2 years ago but amigo will start demanding payment again in a few days time. I have cancelled the payments but will still receive the text messages and emails which I could do without.
Helen says
I’m a guarantor for a loan my daughters boyfriend took out, the original loan was taken out in 2014 with 2 top ups in 2016 and 2017. He went bankrupt 12 months after taking the last top still owing over an £8k balance plus interest.
He has submitted an affordability claim based on the fact he was evicted from his council house for non payment of rent and had to go bankrupt as Amigo refused to agree to a DRO he should never of passed the means testing. I have also submitted a claim, but both have now passed the 8 week period and been passed on to the FOS.
Should I continue to make the payments or stop them until a decision is make and if I do stop the payments and it is not upheld would I have to bring it up to date or just start payments again.
Sara (Debt Camel) says
Sorry I missed your comment.
Should I continue to make the payments or stop them until a decision is make?
f you can’t afford to make the payments i suggest you should stop . Cancel the direct debit to Amigo with your bank – you will get cross letters and emails, but that is better than them taking money you need and leaving you too short to manage.
Amigo should not go to court while you have a complaint outstanding, with them or at the Ombudsman. If you are worried about this, see this reply I made to someone earlier: https://debtcamel.co.uk/amigo-complaints-by-guarantor/comment-page-5/#comment-373670
If your finances have been affected by Covid-19 you can ask for a payment break because of this.
Your complaint will be in “the backlog” that Amigo has told the regulator it will be resolving, so hopefully you will soon get a response. but for now, get your finances safe.
if I do stop the payments and it is not upheld would I have to bring it up to date or just start payments again?
So you have two ways to be removed as the guarantor. The borower can win his complaint OR you can win yours. In either of those cases you will be released as the guarantor and the mopney you have paid so far will be refunded to you plus 8% interest.
As the borrower has gone bankrupt, that is usually a sign that his finances were in a mess when he took the last loan, so there may be a very good change you will win!
If you and he lose your cases, then you have the remaining debt to repay. For you this is a normal debt. If your current fiances mean you can only pay less, you can ask for a payment arrangement or put the debt along with your other debts into a debt management plan.
M says
Getting really quite naggy with amigo now, I’ve been told today that my complaint was looked at alongside the borrowers complaint, yet I haven’t received a response and even if I accept my redress (if I ever get provided with the figures) I will not receive anything if the borrower doesn’t accept. Surely my redress should be separate given I complained separately? I tried challenging it but his line was so poor he ended up cutting me off and now I can’t get through f talk to anyone. I feel like this is never going to end. Any advice what more I can do? My complaint was made 30/01, I have had no response and FOS haven’t picked it up yet.
Dave says
Hi,i don’t know where I stand with this and was wondering if you could offer any advice.
I put myself down as a guarantor for a loan for a friend from Amigo loans, they paid me the money and I forwarded it to the friend.
The friend then mislead me and told me they had the loan and money cancelled and rescinded from them.
So they asked me to be a guarantor on a loan from Bamboo instead unwittingly I agreed to this again recieved the money and forwarded them it.
I then became aware the loan from Amigo was infact still active and that the loan from Bamboo had been forwarded to a 3rd party(there friend)so I was now relying on there friend to repay the loan from Bamboo and not them as I was lead to believe.
Obviously I’m not happy about this as they are struggling to keep up with repayments and I’m been pestered by Bamboo to make payments, And I’m not really in a position to be able to afford to be guarantor on both loans.
Any advice would be great appreciated
Cheers kev
Sara (Debt Camel) says
How long after the Amigo loan was the Bamboo loan?
M says
Actually ready to give up now, they told me on 30th that I am just awaiting my redress figures because the borrowers complaint has been upheld and now today I’ve been told that was incorrect and they have to investigate my complaint before deciding if I’m entitled to any redress. They haven’t investigated my complaint despite it being submitted on 30th jan and being told yesterday that it’s with a case handler and being investigated as a matter of priority. I’ve never suffered with my mental health before but I’m really struggling now because of all of this and the constant lies, they dont care at all and just say they will submit another complaint about how it’s been handled. I dont want a new complaint raised, I just want a final response to the one that was made 6 months ago. I tried to call back to speak with someone different but they’d turned their phones off by 5:45 despite saying they are open until 6. FOS aren’t anywhere near to picking it up. It feels like they can just play with peoples lives without any consequences at all
Sara (Debt Camel) says
Have they upheld the borrower’s complaint about the last loan you are still a guarantor for? And about any other loans you made payments to?
M says
They told me they have but then today they’ve told me I was given incorrect information. I’ve resorted to trying to contact the borrower…not something I wanted to do or feel comfortable doing because of the emotional and financial abuse he subjected me to but I dont feel I have a choice any more. I have an email and text message from them stating that once they have an update or figures for me they will let me know. During a call 2 days ago they confirmed that my liability should have been removed and they would look to get it sorted and then yesterday they said they had removed the sending of automated messages to me as I have cancelled the payments. Today he told me that they have basically been lying to me since 30th june when they told me it had been upheld and I would receive figures. He said that there is nothing recorded which makes him believe I am awaiting figures and I have to wait until my complaint has been investigated to find out if I am entitled to redress.
M says
Sara, I just thought I’d update you….they sent me an email on 10th very clearly saying my account was with the appropriate team to calculate my redress as the borrowers complaint was upheld. Then on friday and again today they have said that I should not have been told that as its incorrect and the borrowers complaint was not upheld. They have now said I have to wait until my complaint has been investigated. I made my complaint on 30th jan and have been informed that it was only allocated to a case handler at the end of last week. They have told me that the case handler has not started investigating it yet and they can’t give me any timeframes at all. They have very clearly admitted on so many occasions that they breached GDPR and have mismanaged my complaint and yet there seems to be no accountability at all. I’m beyond devastated, they told me on Thursday that my liability as guarantor has ended and then the very next day they tell me that his complaint wasnt upheld so that is actually wrong and I am still liable.
Julie says
Hi. I was a guarantor for someone back in 2012. I paid 26 payments and she paid 9. When I realised she wasn’t paying, I quickly paid it off and put it on a 0% cc. In June 2020 I had an email saying she had complained to Amigo due to her not being able to afford it , and they were offering me full monies back that I had paid + interest. This amounts to 11.5k! Obviously I accepted the offer on June 15th. You then have to wait 14 days before they process the offer and then a further 10-15 working days, which brought me to July 17th. They told me my redress payment day was July 20th and today they said I should get payment this week, but they told me it was Monday. Is anyone else at this stage and has anyone received a refund yet? I’m worried I’m being fobbed off. Can they suddenly not pay me?
Paul says
Hi Julie. I’m at the same stage. Have you received anything yet?
Adam says
Hi i have been accepted for redress and wondered if you could tell me what a suitable offer should be
loan 1 – £5000 – 36 months – 7 x £244 payments (then topped up)
loan 2 – £6000 – 36 months (received £1550) – 2 X £292 (guarantor paid in full £6000)
loan 3 – £500 – 12 months – 4 x £51 – (then topped up)
loan 4 – £3500 (received 3080) – 60 months – 4 x £138 – (then topped up)
loan 5 – £ 9000 – 60 months – (received £5530) – 13 x £355 + 3 x £50 (during covid -19)
thanks
Sara (Debt Camel) says
Are all the loans being refunded?
Have you paid your guarantor back? Your guarantor will be offered a refund, will they accept this?
MW says
Sorry, new to this. Does the guarantor get notified of redress if they never had to make a payment. Does the redress include the broker fee that was charged?
Sara (Debt Camel) says
Assuming you win your complaint, the guarantor is not contacted about redress if they haven’t made a payment, but they will be informed if they are being released as guarantor for a current loan.
All interest, fees and charges are included in the redress calculation.
MW says
Thanks for info, just wasn’t sure if the £500 broker fee amigo charged is classed as a fee or is classed as loan. They have accepted the claim, whilst it was waiting for it to be allocated to an ombudsman. I’m just awaiting their redress figure. Loan was paid off 4 years ago, guarantor didn’t make any payments.
Is interest calculated from start of repayment till settlement of loan or settlement of claim?
The loan was for 4 years in 2012. So not sure if the simple interest will be for the 4 years of loan or the 8 years since I took it out?
Sara (Debt Camel) says
A broker fee is a fee and it should be refunded to you.
The 8% simple interest calculations are complicated but for one loan that has been settled, if you work it out from the settlement date, then that should be the minimum you will get.
As the loan has been repaid, your guarantor will not be contacted at all unless they made some payments to Amigo.
Mw says
Thank you for your advice. Now just got to wait for figure from them, 2 weeks from last Monday..
Suvetha says
Hi Sara
I have friend who is a guarantor for two separate loans from Amigo and Bamboo. My mate was pressurised into becoming the guarantor for these loans, he did not understand fully the consequences of becoming a guarantor; therefore, he is now paying for these two loans whilst the borrower is not. For the past 8 months, my mate has been transferring the money to the borrower’s account as the borrower has been threatening him a bailiff might come to his house. My mate is not in a financially stable place due to the Covid 19 as his dad and grandad has been stuck in another country; hence, he had to take care of his family. So, my mate confronted about the payment of the loan to the borrower, he started threatening him. This has led my mate into feeling unsafe and he has become more stressed out. Moreover, my mate is a part- time worker and at the time of the loan he was cannot afford the loan amount. I am unsure of how both loan companies allowed this knowing that the guarantor (my mate) and the borrower are not financially stable to pay this loan amount. My mate now wants to quit being the guarantor for both of these loans. Could you please give some advice on how to go about this situation?
Thank you
Sara (Debt Camel) says
There is a template letter in the article above your friend can use to make a complaint to be removed as the guarantor.
If your friend was working p/t at the time of the loans and could not afford it then, then he can make a complaint that the loan was not affordable for him. It is often easier to win that than to show he was pressured into agreeing to the loan.
The borrower is lying to him about bailiffs. He needs to know that bailiffs will never come for this loan until the lender has asked him to pay, he has said he can’t, then after months they take it to court for a CCJ and a court case will take on average 9 months to go through (unless he does an ostrich act and ignores it.).
AND if he has a complaint in with the lender, or with the Ombudsman if the lender has rejected it, the lender will NOT start a court case until the complaint has finished at the Ombudsman. Some lenders threaten court but they are just bluffing. Like the borrower is at the moment.
But this can take many months to go through. I am afraid he has to stop paying the money to the borrower – this is money he will NOT get back even if he wins his complaint as from the lender’s point of view the borrower has paid it, not the guarantor.
Suvetha says
Thank you Sara
My mate wants to make an affordability complaint as he was the guarantor for the first loan with Bamboo, despite this Amigo still accepted him for their loan. They did not check his credit score properly as he is a part time worker and it is not realistic for him to pay that loan. Is this the right way to go about this situation for him to get removed as the guarantor for both loans?
Sara (Debt Camel) says
It sounds as though he should complain to both Bamboo and Amigo – two separate complaints.
Suvetha says
Thank you Sara
What should my mate mention on the complaints to win the case; therefore, get himself removed off being the borrower’s guarantor?
Also, what evidence would he need to win the case?
Sara (Debt Camel) says
Read the article above. It explains all about complaints by the guarantor and how to make them.
K says
Hello i made my complaint on 22/6/2020 and got an email today saying because my loans are old 2008/2009 they have limited information and that they were affordable. I have escalated to FOS but not sure on outcome as i made every repayment as my guarantor was sick and left her job so i went without food and essentials , sold belonging i had and borrowed from family and friends to make the repayments.
If i do win somehow do you no how much i would be looking at ? all loans were fully paid. These are the only details i have sorry
Loan 1
Date Of Loan: 14 May 2008
Amount Of Loan: £3,000.00
Term Of Loan: 36 Months
Monthly Payments : £137.46
Loan 2( Top Up Loan)
Date Of Loan: 26 Nov 2009
Amount Of Loan: £5,000.00 ( Top Up Loan Unsure On Amount Recieved)
Term Of Loan: 60 months
Monthly Payments : £180.66
Sara (Debt Camel) says
It can be hard but any evidence you have of your situation at that point will help. Emails, bank statements, old letters or emails about other debts you took on etc.
Unless you know exactly how many payments you made to the loans and how much you received for the top up, I can’t estimate the refund, sorry.
Suvetha says
Hi Sara
I have a question about the complaint I am about to make. After I make a complaint to the loan company, will they remove me as a guarantor or will they need the permission of the borrower?
Thank you
Sara (Debt Camel) says
They will remove you as guarantor if they agree you should not have been accepted as the guarantor. The borrower won’t be asked about this.
Suvetha says
If both companies refuse my complaint to remove my mate as a guarantor, should he take this further to the FOS? And if so should he make the same affordability complaint to the FOS or should he mention anything else in order to remove himself as the guarantor for both the loans?
Sara (Debt Camel) says
I think you need to get your mate to be posting here. These things work better when someone asks their own questions.
But tell him to take this step by step. A complaint to both lenders, then see what they respond. There are two different complaints, they may go at different speeds.
Gg says
Hi Sara
Basically I’m the mate she is on about. The Bamboo loan I haven’t updated my card details since Jan because I knew I couldn’t afford to pay the loans if the borrower couldn’t make payments. Also for the Amigo I did update my card with them because the borrower said he made the payment but he didn’t, when I got an email from them and I called up Amigo to double check and I got scared and so I payed the recent payment for it.
Was that okay about me not updating my card with Bamboo??
Since I’m making a complaints to Bamboo and Amigo so I can get removed from being a generator for both loans? Should i go to the bank and ask to stop Amigo from taking money from my account??
Thanks.
Sara (Debt Camel) says
Hi Gg!
Can we go back to the beginning.
You feel you were pressured into agreeing to be the guarantor my your “friend”? This is a reason to complain but it can be hard to prove.
What were your finances like at the time of the two loan applications? At that point could you really have afforded to make all the payments if your friend had dropped dead say? That is make all the payments and also be able to pay your own debts, bills and living expenses?
If the answer is NO, than you can also make a complaint that the loan was unaffordable for you. This can be easier to show.
It is better to complain with two reasons rather than one if they both apply to you!
Have you been giving the borrower money to pay to the loans?
Gg says
Hi Sara
At the time of both loan applications? I really couldn’t afford it, even tho I’m part time worker before the loans was taken out and I’m still a part time worker now and still can’t afford make the payments, as well as paying my own bills or living expense.
Yes I have been because he has been scaring me take someone is gonna come to my house and take things out of my house where I live with my parents. And I been transferring him money to pay off the loans for the past 8 months I believe now and the borrower knows that I’m struggling each month and getting broke. Also still trying make me to transfer him money or let the payments to be taken out my bank card and where I have to wait until I get paid from work next to pay my own bills etc and living expense and to have some money to go out with friends or something else like I need money which I need to work on my future goals but he’s holding me back because of loans. Which I need my money to pay my own personal bills, living expense, going out with friends and even working on my future goals but I can’t get there because I’m a generator both of loans that couldn’t afford in the first place and I don’t know how they couldn’t have expected me to be a generator at the start and been stressed, struggling about money since then.
Thanks Gg
Sara (Debt Camel) says
ok, so if you think really couldn’t afford the payments, and that the lenders would have realised that if they had looked at your situation detail eg at your bank statements, then send in a complaint to each of them.
But you have to find a way of stopping paying him. If you win the complaint you will not get this money back. And what’s to stop him saying he will still come round and take things even if you are removed as the guarantor? Tell your parents not to let him in? Depending on how bad this is, you may need to inform the police.
Gg says
Thanks Sara
I will let you know what the loan company’s say after I sent the complaints.
After I send the complaints in? Would they know that I have sent a complaint and put the payments on hold or do I have to go to the bank and tell them to stop any transactions been taken out of Amigo since I have updated my bank card with them?
Thanks Gg
Sara (Debt Camel) says
If you want to stop making payments directly to a lender, you need to cancel the direct debits. You will get pushed by the lenders to make payments, if they are more than you can afford you can offer a lower amount.
Lenders probably will threaten court action, but if you have a complaint live with a lender or with the Financial Ombudsman this seems just bluff. In practice lenders have not actually gone to court – if they did you can get the court case put on hold until the Ombudsman reaches a decision.
Gg says
Okay. Thank you Sara
I will let you know what they say after I sent the complaints off.
And if I need any more advice, I will definitely let you know.
Thank you Gg
Gg says
Hi Sara
Do I need to mention anything else on the letter complaints? Apart from affordability and me wanting to be removed as a guarantor?? So I can win the case.
Should I write it up and send as a word document or should send it as normal email? If you get what I mean?
Thanks Gg
Sara (Debt Camel) says
Read through all the article above and see which bits might apply to you.
I think most people just copy what they want to say into the email itself, but it doesn’t matter.
m says
Hi Sara
I posted some time ago about Buddy Loans and finally today after emailing their CEO they have agreed to the adjudicators findings that the loan wasn’t affordable and have offered redress. However the figures don’t seem to be quite right.
I paid 30 payments of £53.90 which I total to be £1617 which therefore means a refund of 617 plus 8 percent.
They have only offered:
Overpayment made: £558.34
Interest @ 8%: £85.80
Total Refund: £644.14
All payments were made on the loan and it’s closed. When I have queried the difference they have stated the following:
“The reason for the difference in our calculations will be down to how interest was applied and adjusted on your account depending on the date repayments were received.” is this correct?
thanks
M
Sara (Debt Camel) says
They are wrong. It doesn’t matter how the interest was applied, you should be refunded everything you paid over the amount you borrowed.
m says
Thanks, I thought that was the case – I have just replied back to them to state they must pay what’s owed or I will continue with the FOS – lets see what their response is
M says
Final response has been received today and they have upheld my complaint. After 26 long weeks I will be able to call tomorrow to accept. Just under £9.5k will pay off the remaining debt and help me pay for my upcoming wedding. I just hope they dont take too long to pay it now.
Sara (Debt Camel) says
at last, good result!
suvetha says
Hi Sara
My mate GG spoke to citizen’s advice and they told him to speak to Step Change to get a second opinion where they did not provide useful information of how to quit being someone’s guarantor. He explained to them that at the time of the loan he could not afford it as he was a part time worker, so he does not understand how he got accepted as being the guarantor. They told him that he can send an affordability complaint, but they were unsure if he will win. Could you provide more advice on his current situation and how he can remove himself from being the guarantor? And should he still proceed with the complaints to both lenders?
Thank you
Sara (Debt Camel) says
They told him that he can send an affordability complaint, but they were unsure if he will win.
Advice agencies will not often tell someone they are definitely going to win a case! They will say if it seems like it’s worth making a complaint.
Could you provide more advice on his current situation and how he can remove himself from being the guarantor?
Not sure what else I can say? He thinks he couldn’t afford them at the time of the applications so that is a reason to complain to both lenders.
If he wants to be removed as guarantor, he should use the template letter in the article above and change it so it says what happened to him. This isn’t guaranteed to work, but what does he have to lose by doing this?
James says
Hello, Roughly 5/6 years ago..
I was in a tight situation where I lived in a completely different city and was struggling to find somewhere to live.
I had a friend in the area who agreed in allowing me to stay on the sofa.
She was on benefits and had issues with council tax payments, therefore she seeked out GLO Loans. She borrowed roughly £2500 to pay off her debts.
She asked me to be a guarantor which I was desperate for a place to live and believed she would repay this amount.
1 year down the line I decided the best route for me is to return to my home town and back with my parents.
As I completely forgot about the loan and purely entrusted my friend to repay. I recievd a letter saying the account has now defaulted and the sum is now £5500.
She hasn’t made a payments in 4 years leaving GLO constantly chasing me to make payments and no other consequences or attempt to penalise my friend for anything as she refuses to speak to them.
She currently trying to get out of this however I find it selfish and very unfair that im paying for the consequences thats she has brought down on herself.
I was desperate for a place to stay and didn’t know what else to do.
I signed a digital contract. No background check on myself or her I believe.
After 5 years I want to but this to bed as it affects my mental health and I get grave anxiety from all of this.
What are my chances of getting out of this?
Thank you.
Sara (Debt Camel) says
She currently trying to get out of this
So she has put in an affordability complaint?
At the time, were the loan payments affordable for you?
Have you never had emails or texts about this?
James says
I’m unsure of what she’s been doing. I believe she’s seemed out ways to get the debt written off.
Because I moved house they had my old address and mobile number. They said they tried to contact me to chase up my friend.
I was currently in a new job, average 30 hours per week.
I couldn’t afford much at all so no.
Honestly don’t believe they were affordable for her also but I was desperate and didn’t want to see both of us homeless.
4 years later I recieved a letter to my parents address stating the account was defaulted and the final sum. The arrears still climb up but they said due to it being defuslted it was just the account balance of £5500.
I rang up in tears sating I couldn’t afford this and still to this day they haven’t got in touch with my friend and no actions against her.
I pay a very small amount every month to simply keep them off my back.
However with my friend refusing to pay, this will go on for years to come.
Sara (Debt Camel) says
It’s pretty unlikely they will write off the debt.
I suggest you send a her a link to this page about how a borrower can complain: https://debtcamel.co.uk/how-to-complain-guarantor-loan/. If she can win this complaint, you should be released as the guarantor.
But if you couldn’t have afforded the payments at the time the loan was taken, you too can complain, as the article above explains.
James says
Is there anyway I can do legally to her as she’s refusing to contact them, speak to them or make paymemts…
Or else anyone could simply take out a loan and dump it on the guarantor and cut contact.
I will send her the link and see if she actually does anything.
Sara (Debt Camel) says
Or else anyone could simply take out a loan and dump it on the guarantor and cut contact.
You aren’t the first person to have been conned like this!
You can’t MAKE her complain.
So put in a complaint yourself, that you cannot afford it. Do this even if she also complains, as it gives you two different ways to win.
Suvetha says
Hi Sara
My mate GG has not sent the affordability complaint yet, but has cancelled all the direct debits to both of the lenders. What will happen to him if he does not pay the lenders nor sends the complaint to the lenders?
Thank you
Sara (Debt Camel) says
They will probably threaten court action and if that doesn’t make him start paying, then start a court case.
He has three options.
1. Send in a complaint. They can’t go to court while there is a complaint live with the lender or the Ombudsman.
2. Tell the lenders he can’t afford the whole payments and make an arrangement to pay.
3. Not pay and end up with a CCJ.
I don’t understand why he is reluctant to put in a complaint. You need to tell him to post here himself.
Tom Granger says
Hi,
I am the guarantor for a loan. I can’t really afford it (but I’ve left it too late to complain to the FOS after receiving a final response).
The borrower used to live with me but has since moved out and stopped making repayments to the loan so it has fallen to me to repay it. The borrower will not tell me his new address and has not updated the loan company with it either. It now turns out that actually he had several other loans before this one and would never have been able to afford this loan. He’s not willing to complain to the FOS directly because as it stands he’s getting away with just completely ignoring the situation and I’m left picking up the bill! Needless to say we are not on good terms as a result.
I tried sending another complaint to the company with this new information but they didn’t want to know, and I then submitted it to the FOS but they refused to look at it unless it was sent by the borrower. The borrow still won’t play ball, so is that it now? I’m just stuck with all the debt?
Thanks
T
Sara (Debt Camel) says
I am sorry but if you did not take your complaint to the Ombudsman in time – and there were no exceptional circumstances – then there is nothing you can do.
Can I ask why you did not send the complaint to FOS?
If the payments are currently unaffordable, you can ask for a payment arrangement. What are the rest of your finances like?
Tom Granger says
At the time I didn’t think I had any chance with the FOS, I didn’t realise that my estimates for income etc.. being wrong was a good enough reason to complain.
My finances aren’t great and I am now on a plan with them. But it’s just so infuriating to find out that the borrower should never have been given the loan in the first place and that I am prevented from doing anything about it even though it affects me (and only me!).
Sara (Debt Camel) says
so is the guarantor loan included in your DMP? has the guarantor lender stopped adding interest?
How large are the debts in your DMP and how much are you paying each month?
are you renting or buying?
Tom Granger says
Yes it’s included (£5,000) with interest stopped. I am paying £200pm towards the plan which in total is just below £15,000. I am renting.
Sara (Debt Camel) says
Ok, so that’s a bit over 6 years. To complete the DMP. Good luck!
Louise says
Hi Sara,
I sent my complaint to Amigo using your template on 06/05/20. After 8 weeks they emailed me to say they had no answer but I was welcome to contact the FOS which I did. I only received an acknowledgement from FOS on 09/08/20, which was 5 weeks after I contacted them, so now I’m at week 14.
The borrower’s breathing space on the loan has now expired and so he was meant to start making payments again however he has defaulted this month. Amigo have emailed me with the following:
“Please be aware that as guarantor we will expect you to clear the arrears if the payment does become 14 days overdue. If this happens, we’ll attempt to collect payment from you the following day and will try again every third day until the payment is resolved. We may also need to issue a Default Notice at this time and will send a copy of the borrowerl’s Notice to you outlining the consequences of allowing it to expire.”
I don’t have the money to pay it anyway but what does it mean for me to get a default notice? Will this appear on my credit file? I am so worried about this and how it will affect my mortgage.
Thank you for your help.
Sara (Debt Camel) says
Have your finances been affected by Coronavirus?
If you look at your credit record you will see the Amigo loan is not on there. The only way this can harm your credit record is if Amigo take you to court and get a CCJ. But with a case open at the Ombudsman they shouldn’t do this – although other people have had threatening letters no court case had been started.
Louise says
No as I have still been working but after I’ve paid my bills and fed myself I do not have any money left.
Since I left my last comment on here I have actually had a response from Amigo rejecting my complaint. They say my monthly income was verified by a 3rd party credit reference agency but the amount they have said is £400.00 more than what actually goes into my bank account (they have my statements) which makes no sense?
Do I now forward this to the FOS to take further?
Sara (Debt Camel) says
Yes, send that to FOS too.
Louise says
Ok, will do, thank you.
Where do I stand right now though with regards to payments if the borrower still doesn’t pay? I’m guessing as far as Amigo are concerned they have completed my complaint but would it still be classed as “open” if I’m passing it to the FOS? So no court action? I don’t have the money to cover any missed payments and never will – this is what my bank statements show, if they had bothered to look at them properly rather than guessing my outgoings based on the Office of National Statistics.
Sara (Debt Camel) says
Yes, having a complaint open at FOS is “disputing the debt” and a lender should not start court action while this happens. So get the FOS complaint in now!
You can either refuse to pay anything or offer a low affordable amount – you may get less hassle if you do that but don’t be pushed into paying more than you can afford.
Aga says
Hello Sara
I have complaint to FOS about 2 loans which I was guarantor for. When I complaint to the companies they have both rejected my complaint.. One of them came back with email saying they have revived with FOS and they have come to conclusions that they can return me £750, take me off as a guarantor ( only £330 to pay now) and remove any bad credit – which there is none. I have paid £2800 in total for that loan. Should I accept that or ask for more or just say I’m not accepting it and wait for another respond from FOS? Is there a chance I will get all of this back and Bamboo is emailing me just so they can settle it on low amount?
Thanks again Aga
Sara (Debt Camel) says
It sounds as though Bamboo are trying to settle this very cheaply. If you let this process go through FOS and FOS agrees you should not be the guarantor, then you would normally get a full refund of the money you have paid plus 8% statutory interest.
There is some risk that Bamboo might go under but I haven’t heard anything to suggest that is about to happen.
You could go back to Bamboo and say you would be happy to settle for the £2800 without any statutory interest being added? Or you could say you would be prepared top accept £2000 (or some other figure in between 750 and 2800) in the interest of getting this resolved quickly?