UPDATES
Amigo’s Scheme of Arrangement was rejected by the court after it was opposed by the FCA as unfair to customers and too generous to shareholders.
See Court rejects Amigo Scheme for details.
Amigo is working on a second Scheme. The recent Amigo results don’t contain anything useful about what the next Scheme might look like. I can’t see a new Scheme starting until late November at the earliest.
This page will be updated when there is news for customers.
Amigo now says people who have made a complaint can stop paying and they won’t ask the guarantor to pay
See Amigo will now let people stop paying – the right of Equitable Set Off for details about this.
The approval process for the first Scheme – this ended in rejection
On 30 March, the First Court Hearing gave the go-ahead for Amigo to organise the creditor voting.
An online page to vote was set up and a creditors’ meeting held.
The FCA has published a letter saying:
The FCA considers that a fair compromise could have, but in this case has not been, proposed to Scheme Creditors to vote upon. Therefore… the FCA has decided that it intends to appear at the Sanction Hearing through counsel to oppose the sanction of the Scheme, even if approved by the requisite majority of Scheme Creditors, on the basis that the Court cannot be satisfied that the Scheme in its current form is fair.
On 19 May the Second Court Hearing took place. The FCA opposed the Scheme going ahead
On 24 May the judgement in the case was published – the judge accepted the FCA’s arguments and did not approve the Scheme.
An overview of the first Scheme as it was proposed
Amigo is proposing a Scheme because it can’t afford to pay refunds to all the customers who were given unaffordable loans. It says it will go into administration if the Scheme is not approved.
Amigo says customers may get a cash refund of about 10% of their proper refund value. I think the amount may be lower.
Customers with a current loan, however, will be able to have the full amount of their refund deducted from their balance and their guarantor released in the Scheme if Amigo upholds their claim. And they can also get this if Amigo went into administration if the administrators uphold their claim.
About a million Amigo customers have been texted or emailed about the Scheme. This includes current customers – the borrowers and guarantors for the current 137,000 loans – and all previous customers whose loans have been repaid. If you haven’t received an email about this, check your spam folder!
Amigo has set up a website with information for customers about the Scheme. This contains the Practice Statement Letter (PSL) which sets out more details. And a longer Explanatory Statement.
If the Scheme starts, all open FOS cases will be sent back to the Scheme.
Under the Scheme, customers can put in a claim if they have affordability complaint or if they have any other complaint about a loan or the way Amigo treated them.
There will be a six month period for these claims to be sent in after the Scheme start date. After that time you will not be allowed to make a claim in the Scheme and will not be able to take a complaint to the Ombudsman either.
Amigo will decide whether to uphold each claim:
- The Explanatory Statement lists a lot of factors that will be taken into consideration in Schedule 4.
- Will Amigo uphold the same very high rate that the Financial Ombudsman (FOS) does? It has not said this.
- Amigo will appoint an independent person to look at any appeals – you can’t go to the Financial Ombudsman.
Amigo will then calculate the redress (the legal term for the refund you would have received if there wasn’t a Scheme) for the claims it upholds:
- for borrowers this is the interest they paid.
- it seems likely Amigo will be applying the “unpaid interest deduction” that it started making in summer 2020. This will reduce people’s refunds, see Amigo should end unpaid interest deductions and remove CCJs for details.
- guarantors the calculated refund will be a refund of everything they have paid.
- where a guarantor is being paid a refund, the guarantor payments are removed from the borrower’s account. If the borrower has also had a Claim upheld, interest will be removed from the borrower’s account. A borrower won’t be left worse off after this, but they may get little or no refund.
If you have a balance still owing to Amigo:
- your balance will be reduced by the refund;
- if you still owe a balance after this reduction, you can make an arrangement to repay it at a more affordable rate and your guarantor will be released;
- if the refund is larger than the balance this extra will be paid from the pot of cash Amigo is putting aside and you will only get a small percentage of it.
If you are owed a cash refund:
Customers whose loans have been repaid will have their cash refunds paid out of the pot of money Amigo is putting aside for this. But there won’t be nearly enough money to pay full refunds.
The pot will be divided up between all the people who are owed a cash refund who will all get the same “pence in the pound” percentage of their proper redress.
Amigo is putting in £15m, which could be increased by up to £20m if the balance reductions are lower than expected – this sounds unlikely to me. Amigo is proposing that it will add 15% of its profits in the next four years into this refund pot. As Amigo is currently loss-making this sounds like some jam in a few years, or possibly none at all.
Amigo says people may get paid 10% of their proper refund in the Scheme. On my figures, it could be even less, possibly as low as 5%.
Amigo expects the first payments to be made in the first half of 2022. It may be late in that period as Amigo has to allow time for any appeals to be made and reviewed.
David says
Hi Sara,
I have been a ‘customer’ of Amigo Loans since it was FLM Loans (I’m ashamed to say). In fact there hasn’t been a month since I took my first loan out and subsequent top-ups that I haven’t been paying money to Amigo. I still have an outstanding balance of £7000 to pay them on a top-up I took out in May 2018. I calculate that I have paid over £12000 to them just in the past 4 years at £375 per month.
I did make a complaint earlier this year but like so many was too late to do so and their ‘scheme’ was commencing so I’ve been left wondering what to do, whether I just say enough is enough and with-hold payments or continue to pay. Unfortunately I can afford the payments, though it does leave me with less than I’d prefer each month but I am just a little sick of continuing to hand over money to a company who I am 100% confident would have, at the very least, written off my loan had I made my complaint a year earlier.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at the pros and cons of stopping paying Amigo. Can you talk to the guarantor about this?
Borrowing from Amigo over a very prolonged period is usually the sign of a strong complaint.
If you win the claim in Scheme 2.0 or in administration if they go under, then stipping paying now will have saved you money if the refund is more than your balance.
One thing to think about is whether you could stop paying them now but have the will [power to put that money aside every month – leaving you will less than you would like still, but meaning in the worst case if you lose the claim then you can simply pay off the arrears, so no hassle for you or the guarantor at that point.
Susan says
Hi Sara ,
Me and my husband have split up and I’m now struggling to pay my amigo loan , iv already put in a complaint but as we all know nothing will be done anytime soon , can I ask them for a lower payment without affecting my guarantor ? Thanks
Sara (Debt Camel) says
Was the loan “affordable” when you took it out? a lona is inly affordable if you could may it and still pay your other debts, your share of the bills and your everyday living expenses. If your debts have been going up or you are behing with bills before you split up, then the loan may not have been affordable.
What about your guarantor – who is it? Would the loan have been really affordable for them – they may be better off than you are but may not have that much spare money every month to pay Amigo?
Susan says
No it was never affordable in all honesty , I put on my original application for the loan my husband pays everything so I seemed affordable , my guarantor is my son in law who earns good money but has huge debts, a £40k car finance and 2 small children so no way he should of be accepted either ( we have both made complaints ) I was just worried about it affecting his credit if I asked for reduced payments as he rents and needs to keep a reasonable credit score
Sara (Debt Camel) says
Read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at what you and he need to think about.
As that says stopping paying will not affect his credit record now. It would only be affected if Amigo takes him to court and gets a CCJ.
If either you win your complaint or he wins his complaint, he will be released as guarantor.
Martyn Betts says
Hi I am a guarantor for a loan and paid the last 13 payments and its getting harder for me to keep up is there any advice on what to do or a way of not being a guarantor
Sara (Debt Camel) says
The way to get yourself removed as guarantor is
EITHER to win a complaint that you should not have been accepted in the first place
OR for the borrower to win a complaint say the loan was unaffordable for them.
Was the loan really affordable for you at the time it was given? Affordable means you could pay Amigo and also pay all your own debts, bills and living expenses without getting deeper into debt elsewhere.
Will the borrower help you – and probably themselves! – by making a complaint?
What is the rest of your current financial situation like now?
Jean says
I am so annoyed… ok so in July I contacted my guarantor to tell him I’m not paying amigo anymore money until my complaint (that I put in on august 2020) was dealt with. I said I would only do this with his help and approval and told him what he needs to do. To check with his bank that there was no direct debit and also to check that his card wasn’t held either. He came back to me telling me it was all good, the card that was registered with amigo was no longer valid and that there was no DD. I only had 2 payments left but I refused to pay anymore when I knew it wasn’t gonna come back.
All was good until today, when my guarantor told me that amigo have taken 256.56 out of his bank by direct debit. I asked how this happened and he couldn’t answer. He told me I needed to pay him ASAP as he needs to pay his mortgage, thankfully I had the money as I had it saved so I could move next week, so I’ve paid him, but now I have none to take all my stuff to a storage unit which I now can’t pay for.
I can’t believe that he didn’t see they set up a new DD. I really detest amigo so much
Sara (Debt Camel) says
If Amigo has set up a new DD after he cancelled it, he can get the money back from his bank under the DD guarantee scheme.
If Amigo have collected it by CPA on his new card, he should have cancelled the CPA with his bank. If he did, again he can get the money back from his bank. If not, he needs to phone the bank now and cancel the CPA
Jean says
I’ve told him this. It seems they reinstated it on the 27th august, he cancelled it that day but the payment come out today.
Also he did cancel the CPA. This payment today was taken by DD. He didn’t even know about til the 27th but cancelled the same day. What if his bank refuse to give him the money back?
Sara (Debt Camel) says
So he had cancelled it before the 27th and they reinstated it on the 27th? They cannot do that, he needs to phone his bank and complain and say he wants to claim under the DD guarantee.
Or he cancelled it on the 27th? That may have been a bit late to stop the payment today :(
Jean says
There was definitely no DD before the 27th, it even says it on the transaction he sent me that it was set up on the 27th. There’s no DD even showing up on his actual DD list that it’s even there.
Thankfully his bank are refunding him but they told him if they dispute it within 28 days then it will be taken again!
Natalie says
Honestly I am so sick to death of amigo!! A lady called kim she’s so condescending, I pay my loan before the date of the direct debit, but because the direct debit isnt completed she keeps messaging me how its ‘failed’ and why has it failed and I should have enough in my account, I’m honestly sick of her thinking she can talk to me the way she does! Can I complain about a member of staff?
Sara (Debt Camel) says
I don’t think they pay any attention at all to complaints about anything at the moment. Why don’t you ask if you can bring the sate of the DD forward to one that suits you?
Eunice says
I’m so sick and tired of amigo I’ve constantly complained to them that I can’t afford the repayments at the time of getting the loan I had a gambling issue I originally applied for 5grand but due to the gambling they offered me 3.200 despite them seeing the gambling ashamedly I asked my son to be a guarantor (he didn’t know about the gambling) and amigo never informed him of that I then had to go into an IVA now I had to tell my son about the gambling he’s furious that amigo never told him as he would never have agreed to being a guarantor now they are chasing him for the money which he will not pay and has complained to them about this but they are just not bothering all they care for is getting the money back and are not addressing the gambling issue they won’t take any responsibility for not informing him what can we do.
Sara (Debt Camel) says
I am afraid there isn’t anything you can do to speed up this process. You have made a complaint, it will be considered in the new Scheme – which can’t be before late November, or in administration if Amigo goes under.
Can I ask if you have a house with equity? own a car?
Eunice Balogh says
Hi Sara
I don’t have any equity
I am on benefits as I’m disabled
This morning they called my son threatening ccj we are pulling our hair out my son complained to them on the 18th August and still no response he cannot afford repayments and we don’t know what to do this is making me ill
Sara (Debt Camel) says
So you are renting? is there a reason your chose an IVA and not bankruptcy?
Amigo did not have to inform your son about your gambling – that is not something to focus on. the points you and your son should focus on are
a) the loan was unaffordable for you
b) they should not have loaned you money at all as they knew you had a gambling problem
c) the loan was not affordable for your son at the point you took this loan (is that correct?)
If you or you son have any of those points upheld in a Scheme or in administration he will be released as guarantor.
But there is nothing you can do to speed this up I am afraid. It is going to be many months before your complaints are considered.
What is your son’s current financial situation like? Could you say something about this?
A C says
Good evening Sara,
Thank you very much for your helpful advice on your website thus far. Given the stance that the FOS has taken on the issue of customer complaints regarding missold loans, how useful would it be to initiate legal proceedings against Amigo via a demand letter to recover all the monies that they have received from their customers who are essentially stuck in limbo now until next year?
Sara (Debt Camel) says
Unfortunately taking someone to court is a slow process. If Amigo defends the case – which they would – it may take more than 9 months to actually come to a court hearing. Long before that happens, Amigo will either have set up a Scheme or entered administration, and in either of those two events the court case would be stopped.
So I think it’s most likely that you would just lose the fees you would have to pay to make a money claim and never win your case :(
Do you have a current loan?
A C says
That is clear, thank you Sara. I do have a loan and it is the third in a series of consolidation loans which I first took out in 2017. Aside from the fact that the loans were unaffordable, I have medical grounds to take them to court on account of my military service. I have made them aware of it but their response has been the token, copy and pasted response to its customer that have a complaint against them.
Sara (Debt Camel) says
If this is your third loan from Amigo, top ups often show the previous loan was causing you problems do the new larger loan be even more difficult :(
I suggest you read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ because there is nothing you can do at the moment to speed up Amigo looking at your complaint.
A C says
Understood. Thank you Sara.
Helen mills says
Hello
I’ve cancelled all payments and direct debits. I don’t answer them anymore. I emailed previously to say I’m not paying anything until things are sorted. I’ve paid well over the amount borrowed with interest. My mum has done the same
It’s Daniel at Amigo. It’s important to me that you have the facts regarding the CCJ that we could apply for if we’re unable to come to a resolution regarding the missed payments. When the loan was paid out, we could accept Sonia because of the strong credit score they had built. A CCJ may impact that score and set their own ability to obtain credit back years.
Sara (Debt Camel) says
So this is Amigo’s careful words, designed to sound very worrying without actually saying anything…
A CCJ may impact that score and set their own ability to obtain credit back years.
That is true. But note they are NOT saying they will go for a CCJ, just what would happen if they did.
If you haven’t read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/, read this now.
I hope your mum has cancelled the Continuous Payment Authority Amigo has over her debit card.
Luke Obrien says
Hi there Sara,
Just a question I borrowed £5000 from amigo in January last year when I was struggling with debts, however they didn’t even check if I could afford it properly and my cousin is my guarantor. I pay £198 a month towards this loan and to be honest I would off been better off in debt like I was because I am in more debt due to losing my job. I have had 3 months breathing space which ended in February so I am constantly borrowing money every month from family to pay this off.
I have a complaint in place, however nothing is being dealt with is there any chance I can stop paying them until they actually pull there finger out and deal with my complaint? Will I get sent a ccj because off this?
Regards
Luke
Sara (Debt Camel) says
Read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at this situation.
If you win your complaint you will still owe a balance as you haven’t yet repaid the 5k you borrowed.
What was your guarantor’s situation like at the time you took the loan? Could they have afforded to pay £197 for 5 years and still pay all their own debts, bills and living expenses?
Luke Obrien says
Hi there again,
Thank you so much for your prompt reply I really appreciate the quick response.
If I won my complaint I would be happy to eventually pay back the 5k that I borrowed however I would have to get an iva or debt help just to do this but at the moment I can’t do this right now due to me having a guarantor.
My guarantor has said to me a number off times that I need to pay this because she physically can not afford to pay this amount every month as she house shares with other flat mates as she has been affected by covid just like I have. I just don’t agree with paying over 10k when all I have borrowed 5k. I understand I borrowed the amount but I was desperate.
I just keep getting fobbed of by amigo loans saying there are looking at my request blah blah. I just can’t keep relying on my parents and partner to bail me out every month to pay this loan off and they are getting fed up.
I would much rather put this money towards food every month so I can actually eat properly and in a few months time start paying it again once I have settled properly.
Regards
Luke
Sara (Debt Camel) says
What was your guarantor’s situation at the time you took the loan? Could she really have afforded to pay it then? If not, then she too can make a complaint. It won’t speed things up but it gives two ways for her to be released as guarantor – if you win or if she wins.
I am afraid there is nothing you can do to speed up when Amigo will look at your complaint. It is unlikely be before 6 months and it could be 9 months.
PS if you do win your complaint, you should not be soncdering an IVA unless you have assets to protect. It has exactly the same bad effect on your credit record as a Debt Releief Order or bankruptcy, but you make payments for much longer in an IVA and 30% of them fail…. So take good debt advice at that point, not from some IVA firm offering to write off 81% of your debt but from a proper debt advice agency such as Citizens Advice or National Debtline.
Lloyd says
Hi Luke
Just to let you know once you stop paying amigo will then set up a direct debt from your guarantors bank account.
Even if your guarantor has checked there bank and card and have no direct debt or card payments set up they will still take it.
They state they only set up a direct debt once the person accountable stops payment.
This has happened to myself and many others on the page.
Sara (Debt Camel) says
Many (most?) guarantors have a DD set up from the start of the loan.
The customer should be sent written confirmation of the DD Direct Debit within three working days of agreeing to it or alternatively no fewer than 10 working days before the first collection.
Amigo can’t sit on a DD mandate for years and then send it to the bank and immediate payment. If they do, the customer can claim back that money from the bank.
There are also some accounts of Amigo “reinstating” a DD after a customer has cancelled it. Again the customer can reclaim money from their bank if Amigo do this.
And many also a Continuous Payment Authority.
Sam says
Recieved this email today
Dear Samuel,
We wanted to get back in contact with you today, following previous contact that we have received from you.
Previously, you have emailed Amigo, regarding your active loan and a complaint that you have made. Currently, we do not have an update regarding your complaint, as this is still paused, as this business considers it’s options regarding the Scheme of Arrangement.
In the previous contact we have received from you, you have queried about the option to not make payments to your current Amigo loan, whilst your complaint remains outstanding. We’d like to confirm that this process, Equitable Set-Off, is now available for eligible customers, if they wish.
If you are interested in this, and wish to discuss this process further, please let us know, and we can provide you with details of our dedicated team.
If you do not wish to stop payments, or need to discuss any concerns with struggling to make any future payments, please contact our Collections team on 01202 629161 .
Kind Regards,
Amigo Loans
Sara (Debt Camel) says
Interesting!
I suggest you contact them and ask about this.
Catherine says
I’ve received the same email today.
Sam says
Perhaps pressure from the FCA following the complaints???
Good afternoon Sam,
Thank you for confirming, and getting back in contact with us.
As it may be easier for you, I’ve provided some information below about Equitable Set-Off, and what this means, to allow you to consider if you’d like to exercise your right to this.
By exercising your right to for Equitable Set-Off, you agree:
That you will not be making any payments to your loan, due to your ongoing complaint. You believe that you will have a redress payment that you can set off in the future, against your Amigo loan balance.
That Amigo will not be expecting payments from either you or your guarantor, if you agree to this.
That payments on your account will continue to fall due, and the account fall into arrears.
That negative information may be reported to your credit file.
That contact will be minimised to you and your guarantor, however, you will still receive certain important communications.
That any future complaint or Scheme outcome isn’t guaranteed, and that if a complaint isn’t upheld, that any outstanding balance and arrears would be payable.
If you wish to exercise your right to Set-Off, please let us know. We will then enable the option for you to confirm this, via a form on your online account.
If you have any questions, or want to speak to an agent directly about this, please let me know, and we can arrange a call-back to you.
Kind Regards
Amigo Loans
Sara (Debt Camel) says
Sounds good – do you have any concerns?
Sara (Debt Camel) says
PS you posted this twice so I have moved one of the comments over onto the “Should you stop paying Amigo?” page.
Victoria says
I’ve received a slightly different email from Amigo today saying my complaint with the FOS has been upheld and they say they made an offer of redress to the FOS but they have not responded (FOS not told me either). It says ‘
Our offer was to fully uphold your complaint. If this offer is accepted, your redress will be paid in full, outside of the proposed Scheme of Arrangement.’ I have spoken to FOS and they say they haven’t received any correspondence of a decision or offer from Amigo???
Sara (Debt Camel) says
I suggest you go back to Amigo and say this.
aden says
Hi
can amigo put a charge on a home without going to court first. I recieved this email today.
As we get closer to your case being issued with an LBA (Letter Before Action), I will continue sending information relevant to both you and guarantor . If CCJs are issued and the orders aren’t kept to, a charge could be applied for on guarantor home. If they were to sell or remortgage their home before the debt is cleared, any proceeds would go to clearing what is still owed.
Sara (Debt Camel) says
No, there has to be a CCJ first before a creditor can apply for a charge.
But there is some news today. See the comments above from Sam… I suggest you contact Amigo and ask to be able to stop making payments until your complaint is decided as you think you are entitled to Equitable Set Off.
Kaz says
Hi. I was wondering if I can still make a complaint for my Amigo loan and other guarantor loans I have. I am really struggling every month to pay them all. I did ask Amigo before if I could cut my payments down but was told if they did it for me then they may still make my guarantor pay the short fall so I didn’t fill in the expenditure form as I don’t want my guarantor to have to pay anything else for me. Any advice?
Sara (Debt Camel) says
If you have other guarantor loans then complain about them now!
For Amigo, do you think you have a good affordability complaint?
Kaz says
Well I had my first loan with them when they were FLM and have taken out a top up a few years ago, I cannot remember the exact date I took my very first one but I have emailed them to ask for a statement from when I took my first loan out as I cannot go back that far when I log into my account, they haven’t yet emailed me back. I had previously been made bankrupt back in 2009 which is before I took my first loan out with them.
Sara (Debt Camel) says
I suggest you read the comments by Sam (there are two) posted earlier today above. The reply from Amigo he posts explains how this will work. You have to decide if that sounds good for you,
You could contact Amigo and say you want to stop paying because you have the right of Equitable set Off between the balance you owe on the current loan and the possible refund for unaffordable lending that they owe you.
Kaz says
Thank you, I will look into it but do I have to have an active complaint first? I will also write to my other guarantor loans providers to put a complaint in.
Sara (Debt Camel) says
You can send Amigo a complaint now, just a short email will do.
Luke says
Hi Sara,
Sorry to bother you again may I ask what equitable set off means please sorry for the silly question
Sara (Debt Camel) says
No such thing as a silly question! I am not a lawyer but I have had the advantage of seeing thousands of other complaints…
In layman’s terms, equitable set off means A owes B £80 and B owes A £200, so after equitable set off, B just owes A £120.
Here you owe Amigo the balance on the loan, but IF you win the complaint, they will owe you a refund for this loan and possibly also previous loans. So once those are netted off, you will owe them only a small amount or they may owe you a cash refund.
Up until now, Amigo have been trying to make you keep up the payments on the full BL slice, effectively ignoring your claim which if you win it gives you the right of Equitable Set Off between what you owe them and what they owe you.
Now, at long last, Amigo seems to be acknowledging this.
Is that clear?
Susan says
Sorry can anyone explain what the equitable set off means?
Sara (Debt Camel) says
See my reply to Luke just above.
Have you had an email fro Amigo offering this?
Tom says
Hi Sara
I just wanted to check now that there is mention of Equitable Set Off. Can this be applied in cases where the refund payment is less than the balance due? In my case I have already paid back the amount that I borrowed and since January I have been paying interest. Meaning in a scenario where my case was looked at and upheld tomorrow I would stop paying and be due a refund of about £1500 but the amount I owe is £2300. Therefore do I have the option to ask for Equitable Set Off to be applied? Although the amount they owe me is less than the amount I owe them, an upheld claim would mean that I wouldn’t owe another penny anyway as I have paid back more than I borrowed to begin with.
Thanks!
Sara (Debt Camel) says
Amigo hasn’t set out what their “criteria” are for them allowing this.
But legally equitable set-off just means what A owes B (you own the loan repayments) can be set off against what B owes A (the refund you should get from Amigo). So it would apply in all cases where someone has made a complaint that would affect what they owe.
So yes this should be applicable in your case and indeed in most people’s cases!
I’ll be writing an article about this
EDIT here it is: https://debtcamel.co.uk/stop-paying-amigo-set-off/
Tom says
Thanks Sara! Much appreciated! I’ll email them now and keep an eye out for thst article!
Stuart h says
Hi Sara
I stopped paying amigo 3 months ago. I previously posted on here as I had made a complaint re affordability which seems very strong and you agreed.
In the past when I’ve made late payments they’ve harassed me. This time they have made no contact. No letters or emails and no Phone calls. What do you make of this? Should I be concerned or does this appear a good sign?
Thanks
Sara (Debt Camel) says
There seems to be a random element at the moment. Some people get harassed and threatened with court, some people don’t.
I don’t know if this is a good sign for you – it could just be random. Oe an error.
Have you made an affordability complaint about that overdraft?
Stuart h says
Hi Sarah
No the overdraft default was 5 years ago so it’s now statute barred so can’t be pursued. And in one year it will be off my credit file
I just need to deal with amigo now and I’m just wondering what to do next whether to sit quiet or try and get some sort of closure from them but feel the latter is unlikely.
Sara (Debt Camel) says
they aren’t going to decide anything until they get Scheme 2.0 sorted. If they start hassling you, say you want to not pay because of Equitable Set off.
Atif says
Hi Stuart and Sara
I also made a complaint against amigo 9 moths ago and they have stopped sending any letters or hareasing me like they usually do.
Thanks
Luke Obrien says
Hi Atif,
When you stopped paying did they ever contact your guarantor regarding them paying because you haven’t paid.
Because I don’t want to pay as my complaint hasn’t been dealt with properly I’ve had a complaint for the past 6 months.
Regards
Luke
Stuart h says
Hi Luke
They have stopped contacting both me and my guarantor.
Atif says
HI Luke,
They did initially chase me and my guarantor I made it clear I will not be paying until my complaint has been dealt with, after a few chasers I have not heard anything since.
As Sara has mentioned just cancel direct debit CPA for both you and your guarantor and they can not do anything, it’s scary trust me I know but don’t let these idiots get away with robbery
All the best 👍🏼
DM says
Hi Sara, spoke with my guarantor last week (brother) on update with Amigo as was asking why it has not been resolved yet as he is waiting to remortgage his own property to do some work and believes he is paying an additional 1% on his mortgage rate as had to declare he was a guarantor (sister in law works for a finance broker). Short story is I have had four top ups since 2011 and am paying £374 a month with the last top up to £9k in 2018 so have cleared the principle balance and waiting for response from complaint from Aug last year (voted no on scheme of arrangement in the last round) Have been reading all the posts including ‘should I stop paying Amigo’ however am struggling but can continue to make payments and postpone making progress on other debts as had agreed to continue to make payments to not impact them (took the COVID break whilst waiting on original scheme outcome). Have two questions 1) is it factually correct they have to declare being a guarantor on a mortgage application and does it affect the interest rate they pay and 2) looking at the comments on the right of offset do you think there is any possibility to negotiate with Amigo on the basis that I will withhold payments on the basis of right of set off unless they agree to release my guarantor and will agree to continue payments until a scheme of arrangement or administration is in place
Sara (Debt Camel) says
1) is it factually correct they have to declare being a guarantor on a mortgage application and does it affect the interest rate they pay
That depends on the lender and what they ask on a mortgage application. I suggest he could talk to a different broker.
2) looking at the comments on the right of offset do you think there is any possibility to negotiate with Amigo on the basis that I will withhold payments on the basis of right of set off unless they agree to release my guarantor and will agree to continue payments until a scheme of arrangement or administration is in place
I would be very surprised if they agree to that. The guarantor is Amigo’s best security.
Tania Taylor says
Hey Sarah, I’ve read your post about the pros and cons of stopping paying amigo and I’ve told amigo I won’t be paying them anything more until my complaint is considered. My guarantor agrees with me especially because I’ve told her it can’t affect her credit score.. but now I’ve received several emails saying that if they were to get a CCJ it will effect my Guarantor too which is really worrying her. Is it true that they can get a CCJ against my guarantor and how likely do you think it is that they will do that?
Sara (Debt Camel) says
https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ explains why although Amigo is threatening court, this isn’t something that they are going to do, against you or against your guarantor, until after your complaint has been decided in the next Scheme.
AND some people last week were told they could stop paying until their complaint was decided because they have the right of Equitable Set Off. Read back through the recent comments above about this. Then phone Amigo up and ask about this.
Sara (Debt Camel) says
see new article https://debtcamel.co.uk/stop-paying-amigo-set-off/
Meh says
Surely though the interest is being added on all the time and therefore the amount owed is getting higher? What might be £8k now could be £10k in a few months. Is simply stopping paying wise or am I missing something or overthinking it.
Sara (Debt Camel) says
Amigo caps the interest that can be added at what was quoted when you took the loan out, so if you lose the complaint, overall you won’t pay any more interest. If you win the complaint, all interests removed anyway.
Can you afford to make the payments?
How much did you borrow and how much have you repaid so far?
Meh says
Son is guarantor, borrowed £10k, overall repayment I think could be £23k so int £13k!
Paid approx £3k and still waiting on complaint from Sep 19.
Worry is if he stops paying and doesn’t win, he’ll have accrued hundreds more and if does win, he’ll only get back a portion but the int won’t be refunded separately will it.
Sara (Debt Camel) says
That is a large loan. Amigo should have checked VERY carefully that it was affordable for him at the time the loan was taken. What was his fainacial situation then?
If he loses his complaint, interest has been added but he won’t end up having to pay any more interest as this is capped by Amigo at what he was originally quoted. So as he pays it off, towards the end interest will stop being added as it will have reached the cap.
If he wins his complaint all interest is removed – so it won’t matter that they have continued to add interest now, it will all go.
He has repaid a lot less than 10k so he will still owe a balance even if he wins. But then with his guarantor removed he can look at other debt solutions – a debt management plan or insolvency. What is the rest of your son’s financial position like? Does he have a lot of other problem debt?
Meh says
He is the guarantor and at the time his ex took out the loan, he was continually overdrawn. She had 3 top ups in less than 12 months and everything points to him having a good case but its dragging on and on.
Sara (Debt Camel) says
Can he get her to make a complaint as well? 3 top ups in 12 months is a very stong case.
Sara (Debt Camel) says
NEW ARTICLE As discussed in some comments above, Amigo now says people who have made a complaint can stop paying and they won’t ask the guarantor to pay
See https://debtcamel.co.uk/stop-paying-amigo-set-off/ for my article explaining this with all the details.
Meh says
Never going to happen, she will never do anything that might remotely help him out
Sara (Debt Camel) says
He can point out that he has already complained saying the loan was unaffordable for him and point out that if he is removed as guarantor, Amigo will be going after her… so she may as well make a complaint and try to get her debt reduced as low as possible.
Alex says
Hi sara, I’m really unsure what to do and whether to go for the equitable set off. I took out a loan in Nov 14 for 5000, topped up in Nov 16 to 7500 (around 2500 pay out), topped up again in sept 18 to 10,000 (3153 payout). Working it out now I have paid around £25000! At the time of top ups I had more money going out than coming in most months, some months maybe £100 left after outgoings. I’m now in a better position and am able to make the payments, however I feel like I’m throwing money down the drain. My worry is I’m just starting to build my credit score up again and I know I will get negative marks. What do you think the chances are of my complaint being upheld? Thank you
Sara (Debt Camel) says
From what you have said, 2 top ups and more money going out than coming in most months sounds like a good complaint to me but of course it is uncertain.
You have a difficult decision here between losing a lot of money if you continue to pay and your complaint is upheld to be weighed against the damage to your credit record if your complaint is not upheld.
As you can make the current payments, you could put that money aside and if, worst case, you lose the complaint, you can simply repay the arrears. So it’s only the damage to your credit record that matters.
Steven says
Hi , i put in a complaint to amigo 9 months ago and am working out wether it’s worth me doing the off set thing ? I have a 10k loan and have apparently paid 9.5k . I have a couple of questions?
Providing my complaint is upheld what is the best outcome from amigos next court date? Going under or coming up with a approved new scheme?
And also if you had to guess how long do you think it will take for the court and payouts to be sorted please? As if it’s going to be months I might as well offset now?
Thanks
Sara (Debt Camel) says
Some people have reported that Amiugo are saying you can’t unless you have repaid the amount borrowed. This doesn’t sound right to me – there should be no reason why you can’t have this equitable set off right even if you would be left with a balance.
So there are two points for you – should you ask for the equitable set off? And if you are told No, should you stop paying anyway?
The only real gain from the Equitable set off option compared to just stopping paying is that your guarantor won’t get harassed by threats from Amigo that seem to be pretty much unfounded – Amigo aren’t going to take anyone to court at the moment and have said they won’t in the new Scheme until complaints have been decided.
How good do you think your complaint is – what were your finances like when you took this large loan?
And what are your finances like at the moment?
Steve says
My finances at the time of the loan were bad, I was in a payday loan circle and if anyone looked at my acc at the time they would of seen I had a massive gambling problem , I remember filling out the application and getting to the bottom and it saying no so I just had to change a few things to get it to say yes without even pressing submit !! Absolute joke so surly they can’t say I wasn’t miss sold?
They have say they are investigating loans I had with them before this one too which I haven’t considered in the amount I have paid back so not sure what to do really?
My finances now are a lot better but only because I earn quite a lot more.
I have worked hard to get my credit report half decent so don’t want to mess that up again but also don’t want to carry on paying £400 a month if I don’t need to.
Thanks
Sara (Debt Camel) says
The problem with carry on paying £400 a month is that when you have already repaid more than you borrowed, you will get back very little of that in any Scheme – Amigo thought about 10% in the first Scheme, hopefully the second will be more generous but it wouldn’t be sensible to be too optimistic about that!
Providing my complaint is upheld what is the best outcome from amigos next court date? Going under or coming up with a approved new scheme?
If your complaint is upheld in the Scheme and in administration, then the balance reduction you will get would be the same. But with the Scheme you may also get back a small part of any extra interest you have paid.
The hard thing to assess is whether Amigo are as likely to uphold your complaint as administrators are. In the first Scheme I was very sceptical about how many complaints Amigo expected to uphold as their numbers only added up with a very low uphold rate. I hope they will change that in the second scheme.
And also if you had to guess how long do you think it will take for the court and payouts to be sorted please? As if it’s going to be months I might as well offset now?
I don’t know how long it will be until the Amigo second scheme is announced. A guess at the fastest likely timetable for approval would be 2 weeks from Announcement with a new Practice Statement Letter to first court date, then 4 weeks for voting and then 2 weeks until the second court hearing. So a couple of months at a minimum. Could easily be longer.
Once the scheme is approved though, from that point if you make extra payments when you have already paid what you borrowed, those will be refunded.
Your problem now is to weigh up the chance of harm to your credit record – which will be temporary if you win the complaint – against the amount of the payments you will be losing if your complaint is upheld.
Steve says
Ok I think I will off set and stop paying if they are going to take that long to sort it. I don’t think they can say I wasn’t miss sold ? Does it sound to you like I have a good case with what I have told you about it ?
Thanks this is very helpful
Sara (Debt Camel) says
A large loan when you have a lot of payday loans usually means your application should have been looked at very carefully. And if that would have shown a big gambling problem, then a lender should normally have declined.
Kaz says
Hi.
I also have a Gurantor loan with George Banco and have just logged in to get my account number and found this message on there…
After a particularly challenging period, NSF Group’s Guarantor Loans Division has been placed into a managed run-off as we prepare to close down the business.
We are still open and the decision to stop offering new loans to our customers will not impact how we are supporting our existing customers. Our customer service, accounts management and complaints team remain available to support you.
No further borrowing will be approved, and all existing loans will be paid off by customers at their scheduled maturity dates or early, as prepayment.
The managed run-off process will have no impact on any existing borrowing and our customers should continue with their agreed repayment schedule as normal.
You can still access your account here. Our complaints procedure and contact details can and also be found here.
We know that many of our customers have questions for us, the most frequent of which can be found here.
I was not informed by them of any of this happening and was only logging in as I am also making a complaint against them.
Sara (Debt Camel) says
Yes, they decided this over the summer. The parent company, Everyday loans, is still trading using other brand names. And they are still handling complaints and they can still go to FOS. So I suggest getting on with it!