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
Lorraine McFadyen says
Hi, i’m looking for help on this. My friend was “taken advantage off” when suffering from depressing to be guarantor for someone last year. The girl has since entered into a trust deed leaving him feeling very let down. He was off work at the time after an attempt on my life due to his marriage breakdown. Within two months of becoming guarantor she become distant and has since shut him out her life. Amigo are now saying he is liable for this debt however felt he was pushed into being guarantor for this girl. He has also spend part of this year trying to rebuild his own credit rating as he is currently living back at his fathers and looking to get a place of his own next year.
Any advice would be greatly appreciated.
Sara (Debt Camel) says
It’s nice of you to help and you can encourage him to keep going through the complaint process. But my comments here are addressed to your friend not to you =- can you get him to read this?
1) you may have felt pressurised into agreeing to this but this can be very difficult to prove. I am not saying don’t mention it in your complaint to Amigo, but you cannot rely on this working.
2) how much do you know about her finances when she took this loan? One of the reasons you can complain is that the loan was unaffordable for her, but it will help if you can give some examples.
3) what were your finances like at the time of the loan application? You may be living cheaply back with family now, but that isn’t relevant, what matters here was your situation when the loan was given. At that point could you afford to make all the loan repayments AND pay all your own bills, debts and living expenses?
4) at the time of the loan application was she just a friend, living somewhere else? Or was she in the same house as you and helping with the bills?
Lorraine McFadyen says
Thanks so much for your reply Sara. This is all very helpfully I’ll screen shot this and send it on to him but he ok be pursuing this as I’m encouraging him to do this.
You’ve been great tho thanks 😁
Hannah says
Hi I was wondering if you can help me,
I was a guarantor for an Amigo loan, my ex at the time applied for the loan without my knowledge and forced me to agree to it when they phoned. The money was paid into my account and the full balance was transferred to his account, I received nothing. A few months down the line and we split. He then stopped making payments to which they started contacting me, they did a full financial report on me and it turned out they wouldn’t have accepted the loan if they’d known my true finances, he even got my place of work/ job title, income and expenditure wrong. I was then told we would both be taken to court to retrieve the money as I was not in a position to pay it back and my ex had stopped all communications with the company. My current partner was fed up and paid the loan in full. I was told by Amigo that I could take my ex to court to get this money back as it wasn’t my loan to pay..? Could I have some more advice on this please? Thank you
Sara (Debt Camel) says
“I was told by Amigo that I could take my ex to court to get this money back as it wasn’t my loan to pay..?”
when did they tell you this?
Hannah says
Over the phone on the day I paid the balance in full
Sara (Debt Camel) says
That was a very unhelpful comment from Amigo.
You have two reasons to complain that you should not have been accepted as the guarantor:
1) that you were pressured into agreeing to be the guarantor
2) that if Amigo had propoerly looked at your finances they would have seen you could not afford the loan.
1) may be difficult to prove. But if you submit a complaint using the template letter above, it asks for a copy of all your personal information. That will inclue a recording of the phone call they had with you. Listen to that carefully and think whether anything might have suggested you were under pressure – did you sound rushed, flustered, confused, vague, were you just saying yes, did you not seem to know some of the details they wanted, did you just want to get off the phone etc etc. Anything like could be a clue that you weren’t a hoppy guarantor wanting to assist the borrower. there may be nothing there, but it’s worth a check! And the fact he gave so many wrong details about you is some support.
2) is often much easier to prove. As you were living with him, Amigo should have been careful to work out what your finances might be like if he stopped paying, because if he had left you or lost his job, you might be having to pay larger bills yourself.
So I suggest you make a complaint and you ask for a refund of all the money you paid plus 8% interest.
Andy says
Does anyone no how long after payout does guarantor receive there’s ..please
Mrs thame says
I have just been refused a refund for a guarantor loan but the monthly income or outgoing amounts they are saying I had are nothing like what I sent them do I need to go back to them with this and tell them they are wrong or wait for the fos to contact me as I’ve already been in contact with them as I took this complaint out in may with amigo loans ty
Sara (Debt Camel) says
DO you remember what you put on the application? Or have they sent you the copy of your personal information which shows what was on the application?
Julie thame says
Can’t remember what the figures were as it was done over the phone so no personal information application done
Sara (Debt Camel) says
were you the borrower or the guarantor?
if you asked for a copy of your personal infomration, you should have been sent a recording of the phone call.
Julie thame says
Guarantor. I did not ask for a recording of the phone call can I still do this now even though I have been in contact with the fos ty
Sara (Debt Camel) says
yes you can. Email hello@amigo.me with Data Subject Access Request as the title and ask for a copy of all your personal information including copies of all phone recordings.
Cm says
Hello Sara,
If your complaint is not upheld by the ombudsman but they have identified more checks should have been done by the company. Is it worth going to the cab to see what they can do?
This was the final decision by the fos.
Thank you
Sara (Debt Camel) says
in that case it’s not likely CAB can help you I am afraid. Did the ombudsman decide the loan was affordable for you?
are you on good terms with the borrower?
Cm says
Hi Sara,
The decision wasn’t clear to be honest it said they can’t make a fair decision or something to that affect. Ex-partner don’t know where it is and not on good terms at all. Blocked my number, don’t know where he is
Titto says
Dear Sara, you have been so helpful , after finding your web-site in January , that I have been release as guarantor from 2 loans , 1 with bamboo and the other with trust two. The bamboo one, after writing a complaint with your template letter, I was released in February after trying twice directly with them, and after i told them , I was going to write to FOS, they released me, but they offered me half of what I paid . I did not know at the time, that should have been the total amount plus 8%, and I really want it to get out from it, that I accepted their offer.Trust two, did not care so I went to FOS and few days ago, they accepted my complaint through FOS, and I was refunded the full amount plus 8%. Don’t you think is unfair , that Bamboo refunded me only half of the amount ? Thanks for everything and Best Regards.
Sara (Debt Camel) says
Yes I think it’s unfair. But I don’t think you can do anything now, it is a shame you didn’t ask here at the time.
But remember you were probably very happy to be released and get something back, so it’s not all bad!
titto says
yes I was rushed into it, but I felt so much better, after that and with Fos, I have been waiting for 8 months to get out from Trust two.
Thanks a lot again Sara.
Regards
Hannah says
Hi Sara,
I’ve had my complaint upheld by Amigo, and they are offering a redress payment (plus 8%interest) – however they have also put in their response email ‘ You should be aware that if you accept the offer we will add your refund back to the outstanding balance for the borrower, increasing their outstanding balance. In making your decision, you may wish to consider the potential impact on the borrower. You are of course entitled to accept the offer of a refund and use any proceeds to help the borrower pay down their account. However, that will be a decision for you to take. If you do wish to assist the borrower then accepting the redress offer and using the proceeds to assist the borrower will be the optimal path for you both.’
I was of the understanding Amigo had to put aside money to deal with these complaints- how could they add this back onto the loan?!
Thanks
Sara (Debt Camel) says
Has the borrower also complained?
Hannah says
Yes the borrower has also complained. The loan account has been paid off and was closed earlier this year.
Sara (Debt Camel) says
Let me talk about a couple of made-up cases with easy numbers to illustrate what Amigo are saying. I am ignoring the 8% interest. Sorry this is going to be long… [edited to correct some numbers!]
Andy takes a 6k loan, pays 14 payments of £500 a month (a total of £7000) before he can’t pay any more.
Brigid, his guarantor, settles the loan paying £2,500.
So overall payments worth £9.500 were made, which is £3500 of interest that Amigo should not have benefited from as the loan was unaffordable for Andy.
If Andy has made all the payments, he would get £3500 back. But he didn’t. Amigo will offer Brigid, the guarantor, a refund of the £2500 she paid.
If she says Yes, she gets this money and the £2500 she paid is removed from the loan account – because she has no longer paid it.
Amigo then takes off the £2500 refund to the guarantor from Andy’s refund, so he gets £1000.
If she says No, Andy will get the full £3500 refund (I think, I haven’t seen many of these cases in practice)
In total Andy and Brigid and get all the interest back. I think most people think this case sounds fair. But in some other situations it doesn’t…
——————————————
Carrie takes a 6k loan, pays 4 payments of £500 a month (a total of £2000) before she cant pay any more.
Dan, her guarantor, settles the loan paying £7,500.
So overall payments worth £9.500 were made, which is £3500 of interest that Amigo should not have benefited from as the loan was unaffordable for Carrie.
Amigo will offer Dan, the guarantor his £7500 back.
If he says Yes, he gets this money and the £7500 is removed from the loan account.
That means the loan has now not been paid. Interest is removed from it and the payments Carrie has paid so far, leaving £4000 still owing.
The net amount Amigo is paying out is still £3500, the interest paid on the loan. But now the guarantor is paid much more than that which leaves the borrower owing money.
————————————————————
So is this fair to Carrie?
Sometimes it will work out fine. If Carrie has already paid Dan back and they are on good terms, then Dan can just send Carrie the £7500, she can clear the balance with Amigo and end up with £3500.
But what if Carrie has paid Dan back and Dan refuses to give her the money Amigo gives him? This can happen :(
And what if Carrie hasn’t paid Dan back but Dan needs the money to clear the loan he took out to repay the horrible high-interest Amigo loan? Dan may feel sorry for Carrie, but he can’t afford to hand over that money to her.
——————————————————
I think there are a few of theses cases at FOS at the moment. where the borrower has “won” their complaint and ended up owing Amigo more money than they did at the start.
That feels quite wrong to me. I think it goes against the FCA’s main “treating customers fairly” principle. I would argue that a borrower who wins the case cannot be left “worse off”.
But I haven’t yet seen an ombudsman decision on this.
—————————————————————
So what should you do? Assuming you are good terms with the guarantor,
– the guarantor can accept and then refund you the money (this won’t work if they can’t afford it!)
– or the guarantor can accept and you can send a complaint to the ombudsman if you have been left owing Amigo money. I can’t guarantee this balance will be written off, but it is a reasonable complaint to ask FOS to look at. Between the two of you, you could be better off if your guarantor got the large refund and your balance was written off.
Hannah says
Hi Sara,
Thank you so much for taking the time to set that out for me, it is very much appreciated. I’m on good terms with the Borrower so I wanted to make sure I understand the implications of accepting Amigo’s offer. As the loan has been paid off and the account closed, I didn’t understand how they could ‘re-open’ it and impose a financial liability again?
Sara (Debt Camel) says
I don’t think it’s right that you can be left owing money in this situation, but it is complicated.
lauren black says
hi can someone help me please, So my guarantor has been offered a refund for the money he paid wich was one payment, this was a week ago but he aint accepted, what happens if he don’t? iv been told my 3 loans were upheld but Iv had no figures yet, has this happend to anyone else?
Sara (Debt Camel) says
If he doesn’t reply that will be treated as a rejection of the offer, Your refund will then be calculated.
Adam says
Hi Sara,
I complained to Trust Two using your template at the start of this year regarding irresponsible & unnafordable lending & that I shouldn’t have been accepted as a Guarantor. Trust Two did not uphold my complaint to I took my complaint to FOS around Feb/March.
My complaint was assigned to an investigator in June & a couple of weeks ago she emailed me a copy of the letter she sent to Trust Two with her findings. She determined that proportionate checks were not completed (this is a 60 month loan) and also that the loan was unnafordable based off bank statements I sent her.
She has stated that Trust Two should release me as Guarantor & refund me for any payments (of which there are quite a few) plus 8%. So I was just wondering if you happen to know if Trust Two have a good record of accepting these sorts of proposals from FOS or if they are likely to try and fight it?
Thanks so much for your help so far, if I hadn’t found this website I doubt I ever would’ve gotten this far with my complaint to be honest.
titto says
Hi Adam, I was released through FOS by Trust Two as Guarantor and refunded ,last week.
Adam says
Oh that’s good to hear! Did Trust Two agree to it straight away or did it go further? FOS gave TT until the 15th to respond so I assume I should hear something soon.
The borrower hasn’t paid anything since last October, I’ve been making lower payments for a few months and the account is due to default soon, nightmare!
titto says
straight away, but waited 1 month for TT decision.
Vince says
The guarantor of my amigo loan has put in a complaint into amigo, saying they should never of issued any loan to me as my credit was poor and she thought they would make sure that no loan would of been given with a good credit check ( she never knew my poor credit history). Should she stop paying whilst the complaint runs its course or does it not matter, will she still receive what she has paid if upholding the complaint?.
Thanks
Sara (Debt Camel) says
Have you also put in a complaint?
Can she afford to pay and still pay her own bills, debts and expenses?
Vince says
I went bankrupt, you have already instructed that I cannot make a complaint. Although she has been paying it, she cannot really afford it, she is a single woman on tax credits for 3 kids, she loses tax credit For 2 children soon, she never really could afford it, so it was a surprise when Amigo allowed her to be guarantor, coupled with my atrocious credit history.
Sara (Debt Camel) says
actually I said you could complain but any refund to you would go to the OR so the only point was if your guarantor had made payments.
I suggest that you should ask Amigo for a copy of all your personal information. Send an email to hello@amigo.me with Data Subject Access Request as the title and ask for a copy of all your personal information. This could be of assistance to your guarantor on proving that you could not afford the loan and Amigo did not check you properly. Also get you bank statements from the 3 months before and 3 months after the loan and give her those as well.
If she can’t afford to make the payments, she can either just stop or offer a lower amount that she can afford. She should not get behind with bills or other debts to try to pay Amigo. If she has other debt problems it could be a good idea for her to talk to National Debtline on 0808 808 4000.
If she stops, she will get a lot of hassle from Amigo but this loan is not on her credit record and they cannot take her to court while she has a complaint outstanding.
Vince says
In an 18 month period between 2017 and 2018 I had 42 loans from Lending Stream, that does not take into account the massive number of Wong’a loans along with other payday loans as well as a loan with the Halifax And another with Nationwide which paid off the first Amigo loan and another was taken from Amigo and topped up a year later in 2019, I think there is more than enough to justify that they had not done any sufficient checks, they were basing the loan around the guarantors very good credit reference and not about her earnings or mine.
Sara (Debt Camel) says
I still suggest you send Amigo a DSAR request for your information.
Vince says
I sent Amigo a DSAR the same day you replied to me, they sent one reply apologising for the delay coming up to the 30 days timescale for a reply, I still have not received my DSAR, nearly 9 weeks now.
John says
Just want to say thank you to you guys, I put in the complaint months ago and have finally been removed from the loans and also been offered a significant refund.
Thank you so much for all the help!
Mw says
Hi Sara
Had my figures through today seem a bit short.
This is what I worked out roughly.
My payment was £235.26 x 48 = 11292.48
11292.48 – 5000 loan= 6292.48 interest paid
8% interest per year = £503.39x 8.6 = 4329.15
4329.15- tax =3463.32
£6292.58+ 3463.32 = 9755.90 should be the refund.
This what they have offered
Financial Ombudsman Service, we wanted to get back in contact with you today.
We’ve calculated the refund due and I’ve included a breakdown of this below:
Interest paid to be refunded to you : £5,902.93
8% statutory interest awarded : £2,300.54
20% tax already deducted from 8% : £575.14
Refund of fees/charges : £500.00
Total interest refund due : £8,703.47
We will arrange for this to be paid to you as
Mw says
Does their figures seem right loan was started jan 2012.
Dan Harris says
Hello, my partner ‘agreed’ to be a guarantor for an amigo loan for a ‘friend’ 2 years ago.
My partner has autism/aspergers and I must handle the financial decisions (gas, water, mortgage etc) solely because he cannot understand what needs doing so clearly is unaware of what the role of a guarantor truly means. He understands the guarantor pays if the borrower doesnt but does not understand about the rest of it
The loan has been increased twice since then and dont know if my partner knew about that or not.
What can we do to get my partner out of this poisonous loan?
Sara (Debt Camel) says
Use the template letter above to complain. Explain about his autism and that he can’t handle his financial affairs. Also complain if the last loan would be Unaffordable for him – he couldn’t make all the payments out of his own income and still be able to meet his own debts and make his contributions to bill payments and living expenses. Two reasons to complain gives more chance of winning a case!
As part of the complaint, he asks for a copy of his personal information. That should include the recordings of the phone callS with Amigo, one for the each of the three loans. Listen carefully to them, does it sound as though he understood things? What he just saying Yes? Was any detail about his income and expenses wrong? For the top up loanS was it clear in the recording that the loan was getting much larger or did it just refer to the amount of cash top up for the borrower which was often much less, that could be very confusing for someone not good with finance.
Is the borrower currently paying?
Dan says
Yes, the borrower is currently paying but he has now walked out of his job so my partner will have to start paying soon enough
Sara (Debt Camel) says
ok, well the first thing to decide is whether he can afford to make the payments. If doing this would leave you so short you have to borrow or get behind with bills, you may decide it’s better to cancel the DD to Amigo and oput up with getting the harassing emails and letters. Amigo can’t start court action while there is a complaint live with them or at FOS. They may send threatening letters but they haven’t tried to go to court for one of thes complaints. This debt won’t appear of your partner’s credit record so that can’t be harmed unless they eventually do go to court.
The other thing you may not feel like doing… but you could point the borrower at this other page about complaints by a borrower: https://debtcamel.co.uk/how-to-complain-guarantor-loan/ because with 2 tops up in a couple of years he probably has a good case to say the loans he was given are unaffordbale for him. IF he wins interest is removed from the current loan and refunded on the previous loans which would be great for him … and the guarantor is released so your partner would benefit to.
Mariana says
Hi Sara,
Hope you are well. I sent a complaint through to amigo in February and they have just responded rejecting my complaint, I have already sent my case to the ombudsman, about 3 months ago. Do I need to do anything further at this point?
Sara (Debt Camel) says
yes, tell the ombudsman Amigo have rejected your complaint and attach the rejection email. Until FOS have this they are unlikely to start work.
Are you still making payments?
Mariana says
I’ll do that ASAP then. Thank you. Yes I am, I can’t afford them and keep having to borrow money to do this because I’m worried about court action from amigo.
Sara (Debt Camel) says
Amigo should not start court action while you have an open complaint with the ombudsman as you are disputing the debt. You may get threatening letters but so far they haven’t taken these any further than unpleasant letters. It could take months for your FOS complaint to be heard – I suggest not borrowing any more or getting behind with bills to make unaffordable payments to Amigo. You can cancel your DD. You can offer a lower amount that would be affordable.
Mariana says
Thank you for your advice, you have been so much help. I will talk with amigo and see what I can do.
Kind regards,
Mariana
Janice says
So, my complaint for Bamboo is now with the ombudsman. Bamboo have come back with this response
However, taking into consideration the information you have now provided we would be willing to remove you as a guarantor on this agreement once the capital of the loan had been repaid. To date we have received payments totalling £566.93, which means there is £1,933.07 to repay to reach the loan advance of £2,500.00. Once this has been repaid, we will remove you as guarantor from this agreement.
So that another Year and a half.
I’ve responded saying at this stage, I would only accept being removed completely.
I’ll see What the FOS says.
Sara (Debt Camel) says
quite right.
If you should not have been accepted as guarantor or the loan should never have been given at all, you should be released now with a refund of anything you have paid. Bamboo’s “offer” is not in line with the awards FOS makes.
Janice says
Phew. Thanks. I was hoping I had done the right thing.
Sally says
Hi Sara,
I posted in here after submitting a guarantor complaint back on January 13th to Amigo. They still haven’t resolved it! Which is definitely disheartening considering I’ve seen turnarounds here in a much shorter time frame, 8 months is an incredibly long time.
I sent to FOS at the beginning of May, and they said this week that it still hasn’t been given to a case-handler, so I still need to see it assigned on their side (although have submitted evidence to them already).
Any idea how I can go about speeding this up? I’ve not paid any towards it since March, and have told them they don’t have permission to take money (and cancelled my direct debit). But that still wasn’t the push they needed to take the complaint further. Have you come across anyone else who has had to wait this long before? Do you know what average wait times are, I know they can vary?
Many thanks!
Sara (Debt Camel) says
are you saying you never had a response from Amigo to your complaint?
Sally says
They had confirmed that they had received it but haven’t issued a final response.
Thanks
Sara (Debt Camel) says
A few complaints just seem to get stuck.
Here is a comment left recently which you may find interesting https://debtcamel.co.uk/how-to-complain-guarantor-loan/comment-page-53/#comment-381816
Sally says
That does definitely sound like my situation. I’ve been back to them multiple times previously but they just come back with “more complicated complaints take longer”. I will contact FOS and then get back into them to hopefully speed things up. Thank you!
Lucy says
Hi Sara
My complaint was picked up by a case handler at FOS and they agreed with my complaint, they sent this to amigo on 9th April and as amigo didn’t respond within 4 weeks it’s been put in the que to the ombudsman. I have contacted amigo to chase up my complaint, they’ve said it’s waiting for an ombudsman review and I should contact them. Surely they’d want to respond before it gets to a final decision and becomes published? This is so stressful!
Louise says
Hi Sara,
I sent my complaint to FOS after the 8 week period, which was beginning of July. They only sent an acknowledgement email at the beginning of August, confirming they will be in touch soon – days later I got a rejection from Amigo. I have replied to this and also confirmed I’ve passed it FOS (I sent all the details to them straight away, like you said to)
This is the first month the borrower hasn’t paid and so now they are threatening me with default notices, CCJ’s and property charging orders because I have told them I don’t have the money to pay.
I know you’ve said while I have an open complaint with FOS, Amigo will only go so far as to threaten me but as far as Amigo are concerned, they’ve sent me a final response. Apart from me telling them I’ve passed this to FOS, how will they know I have and so will not proceed with court action? I’m guessing as FOS haven’t contacted me at all, my complaint hasn’t been looked at yet, so they definately wouldn’t have contacted Amigo?
Thank you!
Sara (Debt Camel) says
So you may get a default notice but this will not show as a default on your credit record – if you look at your credit record you will see the Amigo loan is not on there.
If you borrow elsewhere to try to make the Amigo payments then you will be racking up more debt that you will struggle to pay, more interest and that will affect your credit record. That is turning the Amigo problem into an even bigger one.
I looked here at “the worst case” https://debtcamel.co.uk/amigo-complaints-by-guarantor/comment-page-5/#comment-373670, but as I have said so far Amigo have only made threats but never gone to court.
Louise says
Great, thank you.
Amigo’s email to me rejecting my appeal looked like a standard response. There were lots of inaccuracies in there, for example they said they “reject my request for compensation” – at no point in my appeal did I ask for compensation. I don’t want a refund of any kind, just to be released as guarantor. Also, they said my “stated income was verified by a 3rd party credit reference agency”. Apart from my employer how can they confirm my income? The amount quoted is also incorrect. My monthly expenditure was “checked against the ONS”, again this is inaccurate. They asked for my bank statements back when I submitted my appeal but it seems they haven’t even looked at them.
They also asked for police reports and crime reference numbers relating to my claim of abuse from the borrower. I pointed out you cannot report gaslighting to the police. The whole thing just offended me. Do they want the contact number of my therapist? Because I’m now in counselling because of everything.
Anyways, thank you for your help Sara, I don’t doubt I’ll be back here again asking for more advice!
Erica says
I wonder if you can advise me – I am a guarantor gor my daughter in law with tfs- I as yet haven’t had to make any ayments – I complained last year which they rejected – unfortunately because I was having marital problems I missed the deadline to complain. My daughter in law has got into financial problems and missed a few payments but has agreed with ghem a lower payment – which she is paying- however tfs are now chasing me to make payments even though she is paying them – all but at a reduced rate – my question is can I make this a new complaint that I can then take to fos or have I really missed the boat
Sara (Debt Camel) says
You can’t make the same complaint twice.
BUT you could encourage your daughter-in-law to complain… See https://debtcamel.co.uk/how-to-complain-guarantor-loan/.
If she can win her complaint it is good for her as interest will be removed from the loan so she will be a much nearer having repaid it and the negative mark on her credit record will be removed. And you should be released as guarantor. So it’s a win-win for both of you.
Aline says
Hello
I was hoping you could give me some advice
My late husband’s granddaughter asked me to stand as guarantor on an amigo loan in Feb 2019
She rolled the loan over in June 2019 with an increased amount to pay off the original and then pay out the difference to her
She asked me to do this 2weeks after my husband (her grandfather) died even though I said I didn’t want to act as a guarantor and my circumstances had changed
I was grieving and really wasn’t in my right mind
I have no recollection of the call with amigo or what was discussed
She has been paying the loan until Covid started and amigo offered her a payment holiday which she accepted
She worked full time throughout the lockdown and didn’t need the payment holiday, I wasn’t consulted about this payment holiday
Now she is in financial difficulty and has missed a payment and they are asking me to pay
I don’t have the money and I would have to borrow to be able to pay which surely can’t be right that they expect me to get into debt to pay her debt
That doesn’t seem like a responsible attitude
Do you have any advice on how I should proceed?
Sara (Debt Camel) says
I don’t think you should borrow to pay this – you would then owe interest on the other borrowing, makes things worse. If you can’t afford to pay, offer a small amount that you can afford.
I suggest you read the article above and send in a complaint saying they did not check your finances properly for the to-up loan. (It doesn’t matter what happened to the first loan, if you didn’t make any payments to that it is now irrelevant.)
You could also suggest to the borrower that she reads https://debtcamel.co.uk/how-to-complain-guarantor-loan/ and thinks about making a complaint as the borrower. She could [potentially get a refund for the first loan and she has made quite a few payments to the second loan so if interest was removed from the loan she would have a lot less to pay and could make a low payment arrangement.
Aline says
Thank you for the quick answer and good advice
I appreciate your input
Eloise says
Hi Sara,
I recently received an email from amigos saying that since it has now been 8 weeks I can now forward my complaint to the FOS, which I have done and am just waiting to hear back off them. However amigos have now emailed and text me this “Hi Eloise, your account is now 24 days late with an arrears balance of £118.57. Shortly those arrears could increase when a further payment falls due. If the arrears remain then further down the line I may have to issue you with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. It’s important I keep you up to date with the next steps as your credit could become impacted if you were to be issued a CCJ.”
Is this just one of those threatening emails/ texts you told me about or should I be worried about this?
Sara (Debt Camel) says
I would put this in the “threatening” category. You have to take a LBA (Letter Before Action) more seriously and respond to this.
Eloise says
Thank you, how would I go about responding to this? Do you still think that since they have not yet looked at my complaint and thay I have sent it over to the FOS that they will not take any court action?
Sara (Debt Camel) says
I suggest you reply that you await their response to your complaint which is now overdue.
So far, as I have said, Amigo has not started court action when ther have an open complaint or if there is a complaint at FOS/
Chris Bone says
From a tactical viewpoint, a Letter before Action is usually a precursor to a county court claim, is it feasible to tick the box to D on the reply form to “dispute the debt” on the grounds there is an resolved complaint (either with the lender or the Ombudsman)? And therefore there should be a stay on any further action?
The knock on question is why are Letters Before Action being issued when the lender should know if there is a live complaint and court action would not usually be instigated in these circumstances?
And is there a possibility that organisations like Amigo are so submerged with complaints that they are finding it impossible to adhere to 8 weeks so just effectively passing the buck to the Ombudsman Service?
Sara (Debt Camel) says
Morning Chris. Have you seen a client with an Amigo LBA? I don’t think anyone here has reported one for quite a while… I don’t know if they are currently being issued when there is a complaint in. If they are, I recommend C (asking for everything) and D.
If they did start a court case, I recommend applying to get it stayed pending FOS decision.
Amigo has told the FCA it will resolve the complaints backlog by October
Chris Bone says
Hello Sara
I noted there was a threat of a LBA but I have never known Amigo issue one, just a threat to do the same to Eloise, but I suspect it is not happening and even CCJ paperwork is now the exception rather than the rule it seems.
Sadly Pre Action Protocols (PAP) have limited value and can only it seems be used on balance as a holding mechanism to stay proceedings when LBA’s are issued and the defendant wants to see more paperwork or the claimant has not complied with the protocol by issuing the LBA. If the spirit behind the PAP was to prevent more CCJ applications or encourage mediated agreements, in short it has not worked.
Sara (Debt Camel) says
I have seen one LBA from Amigo but none recently, just threats. If they are taking any cases to court, they aren’t ones where there is a complaint in.
I agree that the debt PAP has largely failed. which was what the lenders wanted :(
Lillian says
Hello Sara
This afternoon 29/08/20 my son received an email from Amigo, saying that they are removing him as guarantor on the person’s loan he agreed to be guarantor for. He had made no payments on the loan thankfully, so all we asked them to do with your template was to remove him as guarantor for the loan. The initial complaint was made on 11/06/20, our complaint was resolved relatively quickly.
Thank you so so much for all your help and guidance, without your help I don’t think we could have managed this favourable outcome.
Lillian
EmX says
Hey guys can anyone help me amigo Loan I’m guarentour for that’s been paid off £8,000
£7,276.61 that I’ve paid
Partner paid £1,979.72 £494.93 a month
£995.41 interest paid
Took out September 2017 paid off feb 2018
Amigo offered me £7,276.61
8% Simple Interest £ 1,492.80
Less 20% Basic Rate Tax Deduction on 8% Simple Interest £298.56
Net compensatory interest payable
£ 1,194.24
Grand Total: £ 8,470.85
The main application hasn’t got there redress yet because amigo said we need to know if I accept as guarentour or not
If I accept I get the full amount if I don’t the loan applicant gets the interest paid and I get nothing and they have to pay the full loan about
Anyone know anything to help please
Many thanks
Sara (Debt Camel) says
So the borrower complained, not you?
Has the borrower paid you back or started paying you back?
Did the borrower have other loans from Amigo before this?
Are you on good terms with the borrower?
EmX says
We both complained I complained first I’m guarentour and he complained 4 days later both for irresponsible lending
He’s my partner so we paid of off in 2018
No no loans before this
I had to get out multiple loans and credit cards to pay this loan off as the apr was 49.9%
Yes the borrower is my partner
What do I do for the best amigo isn’t sending my partner his redress untill i accept or decline this offer
Many thanks
Sara (Debt Camel) says
OK so your only interest is that between the two of you, you get the best result?
Then you say Yes to the refund offered.
This means he will be left owing money once your payments have been removed – but not as much money as interest will also be removed. So you can just pay off what he owes.
EmX says
Appendix
Date of Payout 13/09/17
Loan Amount £8,000
Term (Months)
Monthly Payment £494.54
Total of payments made £ 7,276.61
8% Simple Interest £1,492.80
Less 20% Basic Rate Tax Deduction on 8% Simple Interest
£ 298.56
Net compensatory interest payable £1,194.24
Grand Total: £ 8,470.85
This means the refund due to you at the date of calculation (including 8% interest) will come to a total of £8,470.85, plus any additional interest that accrues prior to you accepting our offer.
You should be aware that if you accept the offer, we will add the capital element of your refund, back to the outstanding balance for the borrower to pay. This will increase their outstanding balance. In making your decision whether to accept our offer, you may wish to consider the potential impact on the borrower. You are able to accept the offer of a refund and use any proceeds to help the borrower repay the capital. However, that is a decision for you
Sara (Debt Camel) says
Had the borrower made any payments to the loan themselves? Do you know what these add up to?
Are you both basic rate taxpayers?
EmX says
Yes we’re both basic rate tax payers
Yes he paid £1.979.72 at £493.53 per month (4 payments)
Paid £995.41 in interest including the payments I made.
do I accept the offer for me or not I just don’t understand it
Do I accept it and we pay it again but without the interest but I don’t know how much that is without me accepting my redress
Whether he would have to pay £8,000 back or would it be less as the interest £995,41 and £1979.42 will be deducted off the £8,000
Many thanks
EmX says
Sorry he made 4 payments of £494.53 totalling up to £1,979.72
And all together the interest for it including the payments I made were £995.41 interest
Sara (Debt Camel) says
ok, so what I *think* will happen if you accept the offer is that the borrower will have the loan account changed so that you payments are not on it and there is no interest.
So that would be changed to 8000 – 1979 = £6021 still owing.
You are getting 8,470.85 refund and you can also claim back £200. So if you now clear that balance he owes Amigo you are about £2640 better off between you.
——————————————————
If instead you reject this offer, I *think* he would get a refund of the interest paid overall of £995 plus a much smaller amount of 8% interest, about £200.
——————————————————-
The reason you are better off between you is because you are getting 8% interest on all the money you paid and that comes to a lot more than the 8% interest he could get on the interest paid.
I can’t be sure Amigo’s calculations will be the same as what I think – but it is hard to imagine any scenario when it would be worse for you to accept the refund.
——————————————————
But should his loan be reopened and he be left with this large amount owing? You feel this is unfair, he could take his complaint to the Ombudsman after you have had your refund.
If he won that and the large balance Amigo will say he owes is removed you would be much better off.
BUT I haven’t seen this sort of complaint go through FOS so I do not know what FOS would say.
If he had never complained and you weren’t living together and weren’t going to help him out, he would have a very good reason to complain in my opinion and I hope FOS would uphold this.
His case though is not nearly as clear cut. he may well not win this at FOS. yes the loan was settled, but by complaining he asked for the loan to be looked at again. And FOS usually says someone should repay what they borrowed.
EmX says
Ok thank you
So your saying take the Refund and hopefully he will have to pay £6 grand back
Which I would help with but there would be no interest added
Is this correct ?
Many thanks
Sara (Debt Camel) says
yes that is right. He can ask for an affordable monthly payment. What is the rest of his financial situation like? If it is terrible even without this new debt, he could look at say bankruptcy or a debt Relief order to get a clean start.
Of course you could just repay the 6k he will owe immediately from your refund – however you may want to use that to clear off the credit card and other debt you accumulated because you repaid Amigo, because interest is being charged on that.
EMX says
Yes we can pay monthly set up a payment plan I’m not paying it back all at once they’ve had enough money off us
He’s got no other debt just me paying all this off but if I get the offer I’ll pay the debt off and still have Money left over
And we could pay together and it doesn’t have interest
Is this correct Many thanks
Sara (Debt Camel) says
that sounds fine to me. Any negative marks on his credit record should also be removed.
And we could pay together and it doesn’t have interest
it is his debt, but if you want to help him pay it, that is fine.
Amigo cannot add interest onto this.
Jack says
Hi Sara,
I took out an amigo loans a few years back and for £2500 and raised a complaint with amigo for irresponsible lending. I sent this to the financial ombudsman to look and and agreed with amigo that is was affordable so was not upheld. Even though amigo didnt check my bank statements they would have seen i have in debt and had several payday loans. I think this was at the time when very few guarantor loans were being upheld but things have now moved on.
My question is this. If my brother who was the guarantor sent a complaint to amigo loans and was found to be unaffordable for him. Would that change my status in regards to my complaint?
Would the guarantor loan be then constituted as a single loan which as a result wouldn’t have been affordable for me? if that is correct could I send a new complaint to the financial ombudsman?
thanks
Jack
Sara (Debt Camel) says
did your guarantor make any payments to the loan?
Do you think it was affordable for him?
Jack says
Hello, They didnt make any monthly payments and to be honest i dont think it was affordable for him.
Sara (Debt Camel) says
It sounds as though the loan has been repaid? If it has, the guarantor doesn’t have a reason to complain if he never made any payments, as he did not lose any money because of this.
Sorry, but I don’t think this will work for you.
Erica says
So I’m a little confused – I complained to Amigo who turned the complaint down – so it’s currently with fos who have emailed me to say that it will take 3 months to look at it due to increased workload. In the meantime Amigo have relooked at my complaint – specifically where they made me use my credit card – they have admitted that they shouldn’t have done that and are offering me £100 compensation – bit of a joke when the payment was nearly £400 + interest.
My question is surely this should be a decision from fos or do I add this onto it – I had sent the email from Amigo regarding using my credit card to fos with my initial complaint.
I’m not sure why Amigo have relooked at it.
What do
Sara (Debt Camel) says
When did you make this payment? Was it the only payment you made? What was the interest rate on your credit card?
Erica says
I made the payment at the beginning of last year and you advised me that they shouldn’t have done that so I included this in my complaint to fos.
The apr on credit card is 39.9% so the ‘goodwill’ payment of £100 for the customer service I received’ doesn’t go anywhere near to what I had paid. When my son went bankrupt I had to make all the payments and he only contributed occasionally.
Sara (Debt Camel) says
Then I suggest you reply to Amigo that you are happy they have agreed they should not have pressured you to make repayments on a credit card, but as the interest rate on the card was 39.9% their offer of £100 in compensation is clearly inadequate.
Say you will be forwarding their email to FOS to add to your case and that you are asking FOS to direct a refund of all the payments you made plus interest at 39.9% instead of the normal 8%.
EmX says
Hi I had a loan with buddy loans that I was guarantor for that’s now been paid off they sent the final response in August 2019 I didn’t sent to FOS I complained again in July 2020 they send the final Response of 2019 and said they wouldn’t be re looking in to this again then I sent an email for an update and I got an email back that I’d get a final response by 9/9/20 what if they send the same final response from last year can they do that ?
Sara (Debt Camel) says
Your first complaint, did it just say you could not afford the loan? Or what else did it say?
EmX says
Just that I had less income and I couldn’t afford the payments as I was already in debt they didn’t do the right checks didn’t ask for bank statements or proof of income
Sara (Debt Camel) says
ok so that is a complaint YOU could not afford the repayments.
As I said before, you cannot make the same complaint twice – you will just be told it has already been settled.
But can you get the borrower to complain (not you) that they cannot afford the loan?
EmX says
Yes he’s done that also waiting to hear back will be in 2 weeks time
But I don’t get how they can send the same final response when you put a new complaint in but then I get an email back saying I’ll find out 9.9.20
EmX says
Ok will try that thank you
Many thanks
Amos says
Hi I’ve recently had my complaint denied for affordability and pressured to do the loan and I have mental health problems and amigo loans emailed me and said that they are not taking me off the loan as a guarantor because I knew what I was doing at the time when I didn’t know what it was all about because I am dyslexic and they said that their operators are trained to know if someone is being pressured over the phone so now my complaint is with the fos and all I keep getting now of amigos is with contact the borrower if she doesn’t get in touch we will give her another breathing space with interest which is not helping my anxiety every time they text me. And I looked on my bank statement today and amigo loans have taken 1p pending from my bank I am struggling with options now if I don’t get off this loan I may have to leave this world
Sara (Debt Camel) says
You have done the right thing to send your complaint to FOS.
So far the borrower has been paying? If you can’t afford to make the payments, you can simply cancel the DD to Amigo with your bank. Then you won’t be constantly stressed worrying if money will be taken from your bank account.
While you have a complaint open at the Ombudsman Amigo cannot take you to court. They may send letters or emails saying they may start a court case but they do not follow through with action.
Do you have other problem debts as well at the moment?
Amos says
Yes I have other debts to pay and the borrower hasn’t paid they haven’t started hassling me for money yet it’s just that the borrower told me she’s not paying and done a runner
Sara (Debt Camel) says
Are you managing the payments to your other debts?
Amos says
To amigo loans my debts are my own. She not paying for amigo loans and Amigo emailed me back and said they were not taking my complaint any further and not taking me off as my mother unaffordable and pressuring on my complaint
And amigo loads said they don’t put Loads to a normal loan with a single person on because I asked the question to them yesterday that all I want is my name off the loan because it did unaffordable for me and the lady said it doesn’t work like that we don’t create it as a normal loan
Sara (Debt Camel) says
The reason I am asking about your other debts is that if paying them is a struggle the “simple” option may be to talk to StepChange about a DMP for all your debts including the Amigo one. That would mean one affordable payment from you to StepChange a month and they divide it all up betwen your creditors, they don’t charge for this.
Your FOS case will continue. If you win it – and obvuously I hope you do and a lot of people are winning these cases at FOS! – then the loan is removed from the DMP and you are refunded any payments you have made.
I know you are very stressed which is why I think it would help to talk to StepChange about this as an option – they can explain the pros and cons. It could be huge weight off your mind. https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Amos says
Thank u but at the moment the amigo loan has not yet got to me yet as it’s still with the borrower but I am she not going to pay it Cos she done a runner and still on a covid 19 break with them but I know soon enough they will be knocking at my door for payments this is y I put a early complaint in knowing I can’t afford the payments and that I was pressured to do this alone but amigo Emailed me and said they denied my complaint that’s why it’s with the fos just hope I do win Cos this is putting a lot of stress on me
Erica says
Please be aware that if they have your current card details they will take the money from them- they did that to me when I cancelled my dd – I ended up cancelling all my cards so they couldn’t take any payments.
Sara (Debt Camel) says
They can’t do this if you cancel the DD with your bank. If they do, it is a bank error and your bank should refund you.
Jordan says
Hi Sara,
I commented a few months ago about how I the loan money was stolen from my account after I wanted to immediately repay it back to Amigo loans.
I made a complaint to Amigo which was not upheld and it is now awaiting FO decision. I’ve made a police case and provided the reference number to both FO and Amigo following my complaint. The officer has said over the phone that he believes me and what has happened. In the time between I discovered the loan holder has been arrested for other charges and deported.
Do you think their is something that I could get from the police to get me to removed from the loan Or any other areas I could try?
Sara (Debt Camel) says
You can explain this to the Ombudsman. I understand why you feel really aggrieved about this theft. But as I said before 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 ??)
It may be easier to win your complaint against Amigo on the grounds you could not afford the loan repayments when the loan was given. Your situation has now got much worse, but £275 a month for 5 years is a lot for anyone to be asked to pay, even if they are in employment. Could you really have afforded to repay this and still paid all your other bills, debts and normal living expenses?
Keith says
Hello, hoping for some advice. My mum is currently a guarantor for her ex partner (just recently split up) on an amigo loan. The loan was taken out to settle some other debts of his and my mum agreed as they were together at the time. My mum is staying in rented accommodation and works full time and he was living there when he took the loan out. They have now split up and he is threatening to not make the repayments unless my mum contributes half of the monthly instalments, he says if she doesn’t then he won’t pay anything and my mum will need to pay the full amount. She has recently had her days cut at work and can’t even afford the half payments which he is holding her ransom for. What can she do in this case? She has screenshots of text with these threats and also a handwritten letter.
Thanks.
Sara (Debt Camel) says
How long ago was the loan taken out? was this the first Amigo loan he had?
Keith says
It was December 2019, it was his first amigo loan, but he has a Satsuma loan he is paying as well. I dont like the way he is holding my mum to randsom, is there anything we can do?
My mum will definitely not be able to afford the full payment, I have asked her to pretend to help out the now and I will give her money to pay a bit towards it until we can get something sorted out, and get her off this.
Thanks Sara.
Sara (Debt Camel) says
does your mum have other problem debts as well?
She can put in an affordabilty complaint to Amigo saying she could not have afforded to pay the whole amount when the loan was taken out so she not not have been accepted as guarantor. She can do this now, she doesn’t have to wait until he deafults.
I don’t see why she should give him money . Nor do I see why you should help out. If he stops paying and Amigo ask her to, she can explain her income has now been reduced and she can’t afford to pay more than a small amount. Amigo can’t make her pay more than she can afford and that sounds like a LOT less than half.
She could also tell him that if he is in difficulty, he should send Amigo a complaint saying the loan was unafordable and he should not have been given it. There is a different page & template letter for the borrower to use, so she could send him a link to this: https://debtcamel.co.uk/refund-doorstep-loans/. If he wins that, all the interest is removed and he will be able to pay at a much lower rate and it won’t affect his credit rating. So that would be very helpful for him and she would be released as guarantor which would be good for her.
Keith says
She has just recently taken out a £5000 loan to settle off card debts (17.9% apr) with a company called livelend.
She also has car finance with a sub prime finance company, she was in a trust deed from 2014 to 2018 due too.
I’ll get her to contact amigo first to say that she couldn’t afford payments. Anything else can be done?
Thanks.
Sara (Debt Camel) says
To be clear she needs to put in a complaint, using the template above, if she thinks she could not have afforded to make ALL the payments to Amigo when the loan was taken out.
This is different from saying she can’t afford to pay them anything now. She doesn’t need to do this at the moment as Amigo haven’t yet asked her to make a payment.
If her ex stops paying, it will affect his credit record immediately but it will not affect hers… hers can only be affected if Amigo take her to court, and they can’t do that while she has sent them a complaint or while she has a complaint at the ombudsman.
So giving her ex money isn’t necessary to protect her credit record – it just protects his… And at the moment he may just be bluffing and trying to con money out of her. That’s why I am saying she should not pay him. Of she does, he has no incentive to pay it all himself and no incentive to make an affordability complaint himself.
I also suggest she talks to National Debtline on 0808 808 4000 – they have specialist Scottish advisers. It sounds like she has major debt problem even apart from this Amigo guarantor loan.
Eloise says
Hi Sarah,
Please help me. Amigos have just sent me this:
Eloise,As there is no resolution in place, soon you may be issued with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. In Court, an order for the full balance will be sought. A CCJ may be issued against you, where it will stay on your Credit File for up to 6 years. If you’re in a position to do so, please arrange payment of the arrears. Call me on 01202 629102 or make a payment now Easypay
Is this another threat? What do I do? I replied to their original message stating how I was still awaiting on them to deal with my complaint, and they replied saying that didnt matter this could still happen?!
Sara (Debt Camel) says
They haven’t responded to your complaint yet?
A Letter Before Action looks like this: https://debtcamel.co.uk/letter-before-claim-ccj/. keep an eye out for one, but I think this is just one of Amigo’s unpleasant threats. The regulator isn’t going to like it if they start taking people to court with open complaints.
I suggest you send the same reply as before.
Eloise says
No they still haven’t. Theyve said that they realise that it’s now been over 8 weeks and I can now take it to the FOS, which I now have, but they said it could take up to 4 months.
I’ve emailed the FOS saying what they’ve sent me today, as they asked to be updated if they try any legal action. I am just worried they will try court and a CCJ due to the arrears getting bigger since I’ve cancelled my DD and the borrower has an IVA so is no longer liable?
Sara (Debt Camel) says
This is stressful for anyone and mental health problems make it harder.
That is why Amigo are doing this :(
But that doesn’t mean they will follow through with actually going to court. I haven’t seen Amigo or any other lender actually do this and since 2016 when affordability complaints became common I must have see thousands of people’s comments.
This is what I wrote before https://debtcamel.co.uk/amigo-complaints-by-guarantor/comment-page-5/#comment-373670. As that says, going to court is a long slow process. And FOS will give your case priority if Amigo tries it – which I don’t expect them to!
Have you told FOS about your mental health problems and how thus is affecting you ?
Eloise says
This morning amigos sent me this by both email and text:
Eloise,
It’s only fair to remind you that soon you may be issued with an LBA (Letter Before Action).
If the arrears are not paid, or an arrangement agreed, soon we will begin assessing your case and if we think appropriate, start preparing for court.
If you would like to discuss how we can prevent this from being necessary, please call me on 01202 629102. Remember we’re not open late at night or on Sundays, so it might be quicker and easier to reply to this message.
Ryan, Amigo Loans
Would you say that this is yet another threatening message? Or would you say this is legitimate and that they will do this? :(
Sara (Debt Camel) says
It says they MAY issue you with a LBA. That doesn’t mean that they will…
It says they MAY begin assessing your case – that may make them decide because of your complaint it’s NOT appropriate to start preparing for court.
As I said before, even if Amigo do decide to go to court it will take a VERY long while before there is a CCJ. See the stages I set out here https://debtcamel.co.uk/amigo-complaints-by-guarantor/comment-page-5/#comment-373670.
And FOS has said go back to them if Amigo do go to court. FOS should then prioritise your case and you should get a FOS decision long before the case actually comes to a court hearing.
Joanna says
Hello,
THANKS VERY MUCH FOR THIS WEBSITE, I WON THE CASE !!! Amigo will pay my money back.
I still owe money for TSB loan 15k. I planning to pay 5k of amigos to tsb loan, and i have in savings 3k (could get the rest money 7k of my partner if I need, to pay off everything completely).
My big question now is it is worthed to pay full TSB loan whitch been default 14 month ago, or I should just offere 8k to write off rest of the loan.
My biggest wish is to get mortgage asap, hopefully next year.
So applying for mortgage is it better then I pay default loan in full, or is no difference if they accept offer of 8k and writ off the rest of money. As far as I know when you applying for the mortgage they asking if default been pay off in full.
And in general do I have chance to get mortgage with my partner (perfect credit core)?
What is the best way to do that? When we can try to apply?
Sara (Debt Camel) says
You normally have to have settled defaults at least a year before a mortgage application.
See https://debtcamel.co.uk/dmp-partial-settlement/ which looks at the issue of partial settlements and mortgage applications.
Brian says
Hi Sara. Niece had 4k bamboo guarantor loan which fos found was inappropriate and should not have been granted. Recommended that debit interest etc repaid. Bamboo countered with closing loan off immediately (1 month to pay) and clearing credit file but not to repay debit interest as the guarantor had made most of the payments. Fos said guarantor should claim. Is there much mileage in that?? What dya think? Ta
Sara (Debt Camel) says
Who is the guarantor?
Has she repaid the guarantor?
Brian says
Hi Sara. The guarantor was her mum and the num has not been repaid. Does that help?
Sara (Debt Camel) says
OK, so if the guarantor complains, they are very likely to get a refund of EVERYTHING they paid, not just the interest, but the principal as well plus 8%.
The bad news is that Bamboo may then try to reopen borrower’s contract, saying there is now more money owing in it. This should be LESS than the amount the guarantor was paid as the guarantor would have got extra 8% interest
The borower may be able to go to FOS and argue this is unfair. there are a few of these cases waiting to be decidied.
So I am saying that yes the guarantor should be able to complain and get a refund, very possibly large. That may need to further complications for the borrower.
Rosie says
Hi Sara my mum has passed away and she has left behind a debt with amigo there was a claim made for refund prior to my mum dying it is with the fso at the minute the balance is 9000 my mum took Alzheimer’s 2 years ago and died of cancer 8 weeks ago my son is her gaurentor and he can not afford to have this in his credit file or afford to pay it I was going to offer 5000 pound am wondering can I ring the fso to explain the situation to see if special considerations could be given to this am so lost I suffer mental health myself and am at my wits end
Sara (Debt Camel) says
The claim for a refund – was it made by your mum (or in her behalf)? How long ago was this loan taken out?
Did your mum leave any money, or just this and other debts?
This sounds like a large loan with large repayments… Your son cannot afford the repayments – has he looked at whether he could ask make a complaint? See the article above for complaints by the guarantor.
If he can’t afford the repayments he can just not pay them while his complaint goes through.
This debt cannot harm your son’s credit record unless Amigo go to court for a CCJ. If he looks at his credit record at the moment, he will see it does not even show there…
If he has made a complaint, then Amigo isn’t going to start court action while the complaint is with them or with the Ombudsman. Amigo may write threading letters but so far they have gone to court in this situation that I know of, and the regulator’s rules say they shouldn’t.
It seems a better idea to wait until your mum’s and your son’s complaints have Gone through Amigo and then the Ombudsman necessary than for you to rush in and use your savings to resolve this. If either your men’s complaint is upheld OR your son’s is, then he will be released as guarantor and you won’t have to pay anything.
Rosie says
The loan is just two and half years old mum lodged the complaint via alligent claims team the forwarded it to fso. There were 2 top ups they upheld 1 whatever that means no my son never complained as mum made all the payments on time so he has never had to be involved we have had no acknowledgement from fos that they have the claim in their hands yet this has been since may 2020
mummy left no money at all and a few smaller debts also
Sara (Debt Camel) says
You need to talk to Allegiant about this. If they have upheld 1 loan out of 3, which was it? If it was the last, your son should be released as guarantor. 1 out of 3 probably is a very poor offer so this should go to the Ombudsman, Allegiamaybhave done this.
As your son hasn’t yet complained, I think he should do this now. Is he making payments or is he just worried he will be asked to?
Rosie says
Mum died last month and I payed the monthly payment alligent sent us email saying it was forwarded to obudsman around 6 weeks ago we have not had any confirmation from ombudsman that they have received it we are wondering should we ring ombudsman explain what has happened my mum should never have applied for the loan as she was early stage Alzheimer’s which at the time my son was unaware of this has all been so sudden we do not know who to call and if we contact amigo we do not know what to say to them either sorry if this sounds silly I am just all over the place at present thank you for reply .
Sara (Debt Camel) says
I’m sorry but you need to find out what offer amigo made to your mum. Are you the executor or her next of kin? If yes, then talk to Allegiant about this – they should tell you.
It is good that your mum’s case has been sent to FIS but you still need to know what this offer is – has the current loan been refunded? This makes a big difference to your son.
Your son also needs to send in a complaint saying that HE cannot afford the loan and also that the borrower cannot afford the loan.
This gives him an extra chance to released as the guarantor which is the important thing.
I know this must seem very difficult, especially just after your mum has died. But it will get clearer when you find out a bit more. But I can’t see any reason for you to rush in and offer to settle this, because it may well all be sorted and your son released as guarantor without you using your savings.
I
Rosie says
Thank you they never made an offer at all I am thinking alligent must have refused what ever they offered because they were the ones that sent it to the ombudsman I will try contact them tomorrow and keep you in touch with what happened thank you so much
Sara (Debt Camel) says
And get your son to send in a complaint. Get this underway, there is no reason to delay. As soon as there us a complaint in it is much easier for him to not pay as he can’t be Rajendra to court until the complaint has been resolved at the Ombudsman.
GG says
Hi Sara,
My current situation is that the borrower has contacted the AVI and they are proceeding this loan case, but the loan companies are emailing me (guarantor) for the money and the late payments. I have a question can the loan companies still email the guarantor for the money if the case is in process with a AVI? Furthermore, in the emails they are mentioning a court case but, can they take me into court whilst the case is still in process with the AVI?
Thank you
Kind regards,
GG
Sara (Debt Camel) says
Have you sent in a complaint as well? What is AVI?
GG says
Yes I have and I am sorry it was a typo it is a IVA.
Thank you
Kind regards,
GG
Sara (Debt Camel) says
So you are the guarantor and the borrower has started an IVA? In that case the lenders will definitely expect you to be paying…
But if you have sent in affordability complaint then the lenders should not take you to court while you have an open complaint with them or (if they reject it) you send your complaint to the Ombudsman. They may threaten this but It seems just bluff at the moment.
Vince says
Amigo have sent an email to the guarantor in regards to the 8 week wait for their reply in regard to their claim, they have just asked them to wait a little longer , but suggested they can still contact the FOS if they require. Is it worth the guarantor still putting their case with the FOS now instead of holding on?.
I am still waiting for my access data report to help the guarantor, which is over 30 days now, I have followed up with an email, with no reply.
Sara (Debt Camel) says
I would send thus through now. I see no benefit in waiting.
Adam says
Hi Sara. My investigator with the FOS wrote to Trust Two at the beginning of August regarding my complaint, and basically agreed I shouldn’t have been accepted as a guarantor on the grounds that the loan is unafforable and not enough checks were carried out. She told them I should be released and refunded plus the 8% interest, and gave them until August 15th to respond.
I got in touch with her again at the end of August and she said she’d not heard from them yet and would chase it up. Do you think its worth chasing this up again as I’ve still heard nothing, and do you know if its normal for a business to take this long to respond to FOS? The borrower is months behind on payments and TT are starting to chase me for money again.
Hoping for good news soon but the wait is killing me..
Sara (Debt Camel) says
I think you should call FOS at the end of September.
But email chioma.nwachukwu@everyday-loans.co.uk now and ask why it is taking so long for them to accept the adjudicator decision issued at the start of August – attach the decision.
Adam says
Thanks – I’ll send that email today.
When I call FOS, should I contact my case handler/investigator directly? We have been communicating via e-mail so far, but I do have a contact number for her.
Hopefully, when next I hear from them it will be to tell me TT are agreeing to settle, fingers crossed!
David Onaz says
I guaranteed a loan for my company which has now gone into liquidation. I am being chased to make the payment. I cant afford to pay as I have been made redundant in my job due to covid and and lost all my savings when my company collapsed. Liberis did not check if i could afford the repayment when they gave my company the loan, can I challenge to be removed as a guarantor for the loan?
Sara (Debt Camel) says
I suggest you talk to Business Debtline https://www.businessdebtline.org/ about this. This page is for consumer debt and is not relevant.
Jo says
Hi,
Could you please advise.
I have put in a complaint to 1 plus 1 loans and they have replied saying that I need to fill in an online consents form for them to have access to my bank account.
They have said the claim maybe rejected if I don’t fill this in within 14 days.
I’m unsure about giving someon else access to my baking details.
Do I have to fill this out.
I sent copies of bank statements when I made the complaint.
Many thanks in advance
Sara (Debt Camel) says
No you do not need to give anyone access to your bank account. If you have supplied your bank statements – 3 months before and 3 months after the loan was given is best – what else would they want to see?
If 1 plus 1 reject your complaint send it straight to the Ombudsman.
Jo says
Thank you, I will see what they come back with.
Adam says
Hi Sara,
Still waiting for TrustTwo to get back to my case handler at the FOS & (hopefully) agree with their settlement. Problem is, the loan is due to terminate today if they don’t receive £125 mininum by close of business. This is when they say they’ll start court action against myself & the borrower. I know they can’t do that while I have a complaint with FOS, but should I pay it anyway?
If I win my case I should get that money back anyway? I know the borrower isn’t going to pay it, it’s just a scary position to be in..
Sara (Debt Camel) says
I understand it is scary but unless you have received a Letter Before Action, they cannot go to court. If you haven’t yet missed a payment you won’t get that letter for weeks, then you can reply to the LBA after 3 weeks and get another 30 days. And that is before a lender can start court action… if you then defend the case it will take 9 months + to go to court…
If I win my case I should get that money back anyway?
yes, unless the lender goes into administration. I have no reason to think that is imminent with Trust Two.
If you can pay it easily, you may decide to. But don’t leave yourself short or have to borrow elsewhere.
GG says
Hi Sara
This is GG, the borrower has applied for an IVA, but the loan company has contacted me stating that this does remove me as a liability from the loan. Furthermore, they are still trying to get me to repay the payments even though the IVA is in process, also they are threatening a CCJ. I am really worried and I am not sure if the loan companies can still threaten court action whilst the IVA is still in process? Could you please advise me on what to do?
Thank you
Kind regards
GG
Sara (Debt Camel) says
Have you put in a complaint as the guarantor?
GG says
Yes I have!
Moreover Sara, Amigo has replied back stating that the loan was affordable at the time, so I lost the affordability complaint.
Kind regards,
GG
Sara (Debt Camel) says
Have you sent the complaint to the ombudsman?
As I said when you asked the same question 10 days ago, a lender will definitely go after the guarantor if a borower goes for an IVA.
GG says
No I have not yet sent the complaint to ombudsman, would you advise to make a complaint with the FOS? And why are the lenders coming after the guarantor even though the borrower has an IVA in progress?
GG
Sara (Debt Camel) says
I think you said you were only working part-time when you were approved as guarantor & couldn’t afford the payments? In that case take your complaint to the Ombudsman.
The IVA gives protection to the borrower, but the lender can still ask the guarantor to pay – that is the whole point of a guarantor loan.
Graham Mitchell says
Hi Sara. You might recall I contacted you some time ago regarding my garentour to my stepdaughter loan?. I need your advice again please. My complaint to the loan company and the ombudsman have been overturned, my stepdaughter complained on the same basis and hers was upheld??. I’ve tried contacting the ombudsman many times to get further advice as they recommended I get my SD to complain but they not answering my emails and yesterday they cut my phone call off??? Very Rude… I’m now being chased for owed payments from everyday loans, George Banco didn’t even check thier records when they contacted me and I’ve now received a letter from Everyday loans of which I’ve contacted them to put them in the picture.. I’ve also had to send complaint refferance numbers to geaoge Banco because they are saying that they didn’t have a record of the complaints. I’ve contacted the FCA with my concerns but it getting to a point were I’m going to get a dept collector on my doorstep because no ones answering my emails of phone calls… I don’t know what else to do????? Please advice if you can…. Sorry its long winded
Sara (Debt Camel) says
Was your Ombudsman decision from an adjudicator or the second Ombudsman level? Was it about your financial problems or your stepdaughter’s financial problems?
On the plus side, the fact the borrower has won her case means interest will be removed from the loan so that will be a lot less to pay.
Graham Mitchell says
Mine was about the lack of proffesional research done to prove that she had the financial income to support the loan payments, her complaint was made about the same reasons as was mine yet they admitted they didn’t complete sufficient checks to prove she could afford the payments. Yet they’ve just taken a random payment from her account…
Someone was assigned go deal with my complaint. Either way all I know is that the ombudsman dealt with my complaint.
They made there final decision on the 17th July. I wasnt given any information regarding two stages?
Sara (Debt Camel) says
So when you say this was a “final decision” was this from a different person to the one that first gave you the decision? Can you go back and look at this decision – what exactly does it say if you disagree?
Graham Mitchell says
I was in contact via emails and on a couple occasions by phone to one lady, There decision was not based on the complaint I addressed but on my financial ability to afforded the loan in the event my Stepdaughter couldn’t? Not sure how that covers my complaint????
Her response was long winded but I can copy and paste it to the feed if that’ll help you help me?
Sara (Debt Camel) says
You need to go back to FOS and say you want this complaint reopened as they never considered whether the borrower could afford the loan, which was what you had complained about, and George Banco have now upheld her complaint that the loan was unaffordable, so you want to be released as guarantor.
Graham Mitchell says
Thanks Sara, Unfortunately no matter what I do to contact the ombudsman there not answering me, everyday loans are threatening to send out dept collectors even tho I’ve emailed them with the information about the compliant. Ill try again to contact the ombudsman but I seem to be be given the ignorance card.
Sara (Debt Camel) says
Try again tomorrow. If you think you arent getting anywhere, ask to speak to a manager or you will be putting in a complaint.
Scott says
Hi Graham,
I’m a little bit confused, you mentioned George Banco and Everyday Loans.
Is this a case where you were a guarantor for your stepdaughter with George Banco and that the Everyday Loan was taken out by yourself?
Scott
Sara (Debt Camel) says
Everyday Loans are the parent company of George Banco.
Graham Mitchell says
Hi Sara. I’ve emailed the ombudsman again demanding of sorts a urgent response.. It seems that the head doesn’t know what the ass is doing… Both George Banco and the ombudsman are not taking this seriously as they should and this worries me for my situation and for those who are in a postion to need help from the FOS.. I’m trying to keep hopeful? 😞
Graham Mitchell says
I’ve emailed again with emphasis on urgency to get this resolved. Everyday Loans won’t hold off from wanting there back payments (not that the loan was mine in the first place) but could end up with a dept collection company knocking my door?. They said mine & My stepdaughter complaints were different but they were actual based on the same complaint. Really not sure how much longer I can keep waiting for the FOS to reply… 😔
Sara (Debt Camel) says
A debt collector has no right of entry to your house. And they maynot even turn up – a lot more creditors talk about this than actually send someone round.
Emma says
Thank you so much. I used the template for guarantor loan I was stuck in and just had a response from Amigo today to say I have been released of all liability! I have not been given any redress but I made no payments myself and honestly, being released is good enough for me.
Thank you again x
Sara (Debt Camel) says
what a relief!
Brian says
Hello Sara, very interesting to read all this advice info etc. I agreed to be guarantor for a relative for a £10k loan (George Banco) in December 2019 (for 5 years). Clearly his debts were more than I was led to believe, as in July/August this year he was bankrupted and obviously I am being asked to meet the quite large monthly repayments which I have so far. After reading these very useful comments, I wondered if the fact that he was made bankrupt so short a time after getting the loan, is of itself, reason for me to make a complaint that he should never have received the loan, and is this possible under Scots Law. His trustee says if it wasn’t for this loan he would have probably been able to arrange a Trust Deed (or similar). Also I will be making these payments until a year after I retire, is that ok (presumably it is as long as I am able to afford it)?
Sara (Debt Camel) says
Would the borrower be prepared to help you with a complaint? As he has gone bankrupt it is hard to see how it could harm him but equally, he would not get any benefit from it?
Brian says
He wouldn’t have any problem (feeling a bit guilty?). What kind of info would I need from him?
Sara (Debt Camel) says
The info that would help you is:
– copy of his current TransUnion Statutory Credit report
– a copy of his bank statements from three months before to three months after the date of the loan application
– a copy of all the personal infomration GBeorge Banco have about him. he should email customerservices@georgebanco.com with “Subject Access Rewquest” as the subject line. Say he would like a copy of all his personal infomration held by George Banco, including but not limited to details of any credit checks and affordability assessments GB made before giving him a loan. He needs to give his GB reference number, full name, date of birth and postal address. And the email should ideally come fro the email GB would recognise for him.
All this could come in useful if your case has to fo to the Ombudsman. But don’t delay sending your complaint to GB now – these things take a long while, so you don’t want to delay the start.
And do read the article above. If you can argue you cannot afford the repayments from your income and still pay all your own debts, bills and normal living expenses then it is better to have two reasons to complain (he couldn’t afford the loan AND you can’t afford the loan) than one.
Lucy says
Hi Sara
My complaint has been waiting for a final decision from ombudsman’s for 6 months now, when asking timescales for this they respond it could be several months.
Do you have any idea how long people have been waiting for final decisions?
It’s affecting my mental health would like it sorting as soon as.
Sara (Debt Camel) says
who is the lender?
Lucy says
Amigo, the case handler at FOS agreed the loan was unaffordable. Amigo didn’t uphold the complaint therefore it’s in the que for final ombudsman decision
Emma says
I have been waiting since December 2019 with Every day loans complaint and they still can’t give me a specific timescale however that isn’t for guarantor loan it is an affordability complaint on my own loan. Seems to be no end in sight! I get an email every month or two from FOS reminding me they’re still looking at it.
Greg says
Beaware if waiting for redress with Amigo and the account was sold to Intrum, youll be waiting awhile. Coming up to 4 weeks from outcome with Amigo/FOS. Amigo are buying loads of accounts back from Intrum, but seem to be struggling to get them back.
I have been on at Amigo for 3 weeks now. been given a few bits of contradictory information.
Never mentioned redress being affected in terms of paying out because of buying account back and never said the hold up was buying more accounts than just the one im dealing with.
Lucy says
Afternoon Sara
I had quite a nasty phone call earlier off amigo saying my guarantor has agreed to restart payments after Covid break this Friday at 6pm, but if he doesn’t make the payment you’ll be responsible and it’s down to you.
I can’t really comfortably afford these payments, I have a complaint at the financial ombudsman awaiting final decision as amigo didn’t agree with the adjusticators decision.
I have exams in two weeks time and don’t need this added stress.
Would they threaten court if I didn’t make payment as I have a complaint waiting?
Thanks
Sara (Debt Camel) says
You are the guarantor? so it is the borrower who has agreed to restart payments?
And the adjudicator decision was in your favour, that you should be released as guarantor?
Have you cancelled your DD to Amigo?
Lucy says
Yes I’m the guarantor and the borrower has agreed to restart payments.
Yes the adjudicator decision was in my favour but amigo didn’t respond within any of the timeframes given, only when total it would go to the ombudsman for a final decision did amigo respond saying we don’t agree with the complaint.
I’ve cancelled my DD, but just don’t want to get into trouble for not making payments of taken to court.
Sara (Debt Camel) says
Amigo shouldn’t start a court case while there is a complaint open at the ombudsman. They seem to bluster and send threatening emails but not actually go to court.
I think they would be mad to do this as they have already lost at the adjudicator level! Court cases take a VERY long while to go through (unless you do an ostrich act) and long before then FOS will have reached a final decision on your case.
Good luck with the exams!
Adam says
Hi Sara
Just wanted to let you know that TrustTwo are upholding my complaint through FOS! They’ve agreed to release me as guarantor and refund me every penny I paid in to the loan.
Thank you so much for what you do, didn’t think I ever had a chance before I found this website!
Claire says
Hi,
I agreed to be a guarantor for a friend around 2 years ago with Amigo. I have thought about both me and my friend complaining to Amigo for the following reasons.
My friend took out the loan to repay other debts he had.
My friend couldn’t afford the loan in the first place and after 2 months has reduced the loan and is currently paying £50 a month on a £7500 debt (which is rapidly increasing due to interest) Amigo haven’t asked me for money as he is deeply embarrassed that he got me involved in the first place.
I was not asked for any proof of incomings or outgoings.
I wasn’t aware that the balance to be paid by the borrower could be reduced so vastly thus leaving me in this for the long haul.
My friend has a terrible credit score and I didnt have one at all (this wasn’t checked)
I was in a state of bereavement at the time and suffering with mild depression and I was agreeing to almost anything anybody asked me.
Should I write a complaint about the checks amigo didn’t carry out and should my friend complain that they shouldn’t have been allowed the loan in the first place?
Sara (Debt Camel) says
If there is no way your friend could pay the loan from the start, then yes, he should complain. If he wins his case, yiu are removed as guarantor AND the interest is removed, leaving him owing what he borrowed less the small amount he has paid so far. He can then take debt advice – it may be a debt management plan would be a good option for him. So this is good for you and him.
At the time the loan was given, could you have afforded make all the payments and still be able to pay your own debts, bills and normal living expenses?
Lisa says
Hi I used a company to make a complaint against amigo loans.
I was a guarantor for amigo loans and ended up paying the majority of the loan amount.
Amigo loans offered me a refund I expected and a week before payout dead line date they said it shouldn’t have been offered yet because it is a guarantor loan complaint they need too look into it more to see if the amount can go back to the original borrower
And for that reason they have sent it to the fCA and put it on hold
I’m just wondering what the outcome is likely to be in the end
Sara (Debt Camel) says
Has the borrower complained too? Has the borrower repaid you any of the money?
Lisa says
Borrower haven’t complained far as I know but we are not on good terms at the minute she’s ignoring me and she’s paid hardly any back to me neither
Sara (Debt Camel) says
ok well these cases are on hold. Although some of them look to be easy to resolve – eg borrower complaints where the guarantor only made a few payments and is happy to say they do not need a refund – yours probably is in the difficult category, as Amigo’s previous refund policy would leave the borrower again owing money and borrowers are understandably objecting.
Sorry, I don’t know how long this will take and I can’t guess what the result will be. If the loan was unafordable for you, you obviously have a good case.
Lisa says
Hi im just wondering even though I was the guarantor and I settled the loan how do I stand with getting the money off her dose she still owe me that money by law and if my claim falls through is it worth taking the girl to court or something I really don’t understand it
Sara (Debt Camel) says
Well possibly – she may have used a to settle other debts – not much point in suing someone who doesn’t have ant money to pay you.
Lisa says
Yeah I thought about that but if I do take it to court she won’t have a choice in paying it she will have to
Sara (Debt Camel) says
If she doesn’t have any money, a CCJ doesn’t change that fact. there are wasys to “enforce” a CCJ – if she has a mortgage you can get a charge over her house. If she has a well paid job you can ask the court for an attachment of earnings. You can try bailiffs but if she knows her rights she won’t let them in.
I suggest you come back again and talk about your options if you don’t get refunded, because a refund is pretty likely!
Bob says
Hi-I’m a guarantor on an Amigo loan, and wrote to them in August requesting I be removed as a guarantor.
I had a reply from them a week or two back, turning me down flat.I understand that the next port of call, but reading things through they never
addressed a number of points including their failure to respond to an earlier SAR, requested in June.
I believe that they only looked at part of my complaint purely relating to being removed as a guarantor- do I now simply turn the whole thing over to the FOS, or do I go back to Amigo in the first instance, pointing out the bits that that they missed, and asking them to respond?
Sara (Debt Camel) says
What did the bits they ignored relate to if it wasn’t being removed as guarantor?
Bob says
The complaint went in 2 months after the SAR (sent to them in June)- I still haven’t received this, 4 1/2months down the line.
They took a double payment from my account over a weekend, leaving me under considerable financial stress, meaning I had to borrow money from a relative to cover direct debits going out on the Monday.I was’nt able to contact them to discuss this, as nobody was picking up the [hones.
I’ve also advised them on several occasions that the debtor isnt resident at my address (and hasn’t been for over a year), and that they need to contact him to check his current home address. They’re still sending all letters to my home address.
Sara (Debt Camel) says
did they resolve the double payment issue?
can you afford the current payments or are they causing youproblems?
Emma Stewart says
Hi Sara
The FOS has recently agreed to look into my complaint which is an historical complaint from 2010 with UK Credit (I was the guarantor), the complaint was originally submitted in May 2019 so it has taken a while to get to this point. The FOS is now asking for bank statements from Dec 2010 to March 2011, the issue is that I am no longer with the same bank as I had to change banks due to setting up a DMP in 2011, I have contacted the bank for the statements and they have advised that they only keep statements for 7 years, so I cant provide the statements. The FOS has advised that without the statements the complaint will be denied. I have provided a credit report file from 2011 which clearly shows | was in debt and also a copy of the DMP from 2011 which shows my incomings and outgoings. I have also provided a credit report from 2020 which shows I still have a poor credit rating. Surely this information should be enough for the FOS to make a decision? Can you advise?
Thanks Emma
Sara (Debt Camel) says
Is this with an adjudicator or an Ombudsman?
Emma Stewart says
it is with the adjudicator
Thanks Emma
Sara (Debt Camel) says
Then I suggest you back and say FOS know that such old bank statements are usually unobtainable and you think the detailed info from 2011 that you have provided should be enough to show that on the balance of probability the loan was unaffordable in 2010 and that UKC would have realised this if they had properly checked your application and credit records.
Emma Stewart says
Thank you, I will do that.
Sally says
Hi, I had a reply from FOS explaining that Amigo have made an offer to remove me as guarantor and refund what I have paid – finally! Thanks for all your help in previous months!
I wonder how long people have to wait (on average) for their refunds? With how they’ve reacted to the complaint I can’t imagine it being weeks away, but it’d be nice to have a rough idea. Thank you
Sara (Debt Camel) says
Great! You should also be paid statutory interest (8%) on the payments being refunded to you. Amigo don’t usually get this wrong but do check.
The 8% part of your refund is taxable. You may be able to reclaim some of the tax Amigo deduct, see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Sally says
Thank you! I will get in contact with them and see what the hold up is. When I get the confirmed refund amount I’ll double check interest/tax. Thanks again!
Erica says
Some good news today – trust two have released me as guarantor and stated no evidence of proper checks being carried out – fortunately it wasn’t one where I paid anything for and I didn’t have to go to FOS on this one – so pleased to be released – I’m encouraging the borrower to also make a complaint and I have pointed her in your direction for borrowers section – thank you Sara
MA says
Hi Sara,
Back in February, I made a complaint to Amigos using the advice from your website. It took them 6 months for me to get a final decision. During this time, I rang them up explaining my situation as my ex did the loan and took the money from my account which I told them. Also, I told them that my outgoings do not match what he put therefore, I have no money left per month to pay them. Also, I work part time, I have been on furlough and I have lost 10% of my hours and I am struggling as it is. I feel like Amigos have been no help whatsoever and they already know how this has impacted my mental health as I have been on medication and I have therapy. I am really unsure what to do next as I feel they will not remove as guarantor and it is extremely stressing me out. Thanks
Sara (Debt Camel) says
So Amigo have rejected your complaint?
Are you being asked to pay at the moment?
MA says
Yes they rejected it and yes, but I have no money to pay it
Sara (Debt Camel) says
Have you asked Amigo for a payment break because of Coronavirus?
Sara (Debt Camel) says
You should send your complaint to the Ombudsman.
But the really urgent thing is that if you are nor currently on a Cornavirus payment break with Amigo you should email them TODAY and say you want to be put on a payment break. Because the current payment break scheme is ending today and you can’t ask for one after today.
Amos says
Hi Sara
I would like to say thank you because the ombudsman Have sent me a email saying the loan was unaffordable for me and ask amigo to release me as a guarantor from the loan but on the email it does say that they have to give amigo two weeks to reply to see if they agree is this a good sign for me Cos they could come back and say no they don’t
Sara (Debt Camel) says
It is a huge step forward. Amigo do seem to accept most adjudicator decisions – fingers crossed they accept yours! If they don’t, it has to go to be looked at by an Ombudsman which means another delay.