UPDATE
The Scheme of Arrangement proposed by Amigo has now been rejected by the court after it was opposed by the FCA.
See Court rejects Amigo Scheme of Arrangement for details.
We do not know yet what Amigo will do. This page will be updated when there is clearer news for customers.
The approval process for the Scheme – that 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 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.
Francis says
Hi Sara
My question is regarding the interest. I put my complaint in a year ago this month. And I have now decided, I am not going to pay them until they deal with my complaint.
I assume the interest will still accrue, do I have an argument for that not to be the case. because I believe they owe me money from my complaint.
Sara (Debt Camel) says
if you win your complaint ALL interest is removed so you only have to repay what you borrowed.
Lorraine says
I have been in communication with Amigo about my complaints (they have rejected two of 3) and they are chasing me for the repayments even though the interest repaid exceeds not just the original loan, but the top up aswell.
I hope the court rejects any further schemes as I think they are only considering their stakeholders and not us (customers).
Marie says
When did they give you this decision
Symes says
Hi Sara,
Just looking for some advise please.
I have an outstanding loan with Amigo. Took out the loan for 10k in December 2019 . I’ve had 6 months worth of payment holidays as I was out of work due to Covid. I cannot afford the loan so have complained about the affordability and Mis-selling of the loan as at the time I had about 10+ active defaults, a CCJ etc and was still given the loan . I’m getting further and further into debt having to borrow from family at the end of the month as the cost of the loan repayments are crippling me (£395).
My complaint was submitting in the January 2021 and then they responded to me at the end of the 8 weeks advising they still hadn’t come to a decision so I submitted my complaint to the ombudsman. As you probably know they responded to advise that they couldn’t take my complaint further at present due to the scheme.
My current balance with amigo says it is £11634 which I’m assuming is because of the payment holidays I took so I have no idea how much I’ve actually paid off the loan.
I was thinking of stopping paying as I simply cannot afford it. I’ve seen your comments saying my guarantor won’t be hurt as this is my loan and not theirs. The last thing I want is to hurt my guarantor but I cannot afford the loan nor can they.
What can you suggest ? Can I stop paying the loan Until there is an outcome on my compliant ? Thank you
Sara (Debt Camel) says
Was this your first loan from Amigo?
What was your guarantor’s financial position when you took the loan in 2019 – could they really have afforded to make all the payments to the Amigo loan at £395 a month and still been able to pay their own debts, bills and living expenses? Your guarantor may be better off than you are but those are very large repayments.
Symes says
Yes this was my first loan with Amigo. I have since had more defaults and another CCJ added to my credit file. So this should add the fact the loan is unaffordable.
In all honestly, no they wouldn’t have been able to afford it as they had bills and debts of their own. They became guarantor to help me and its just been an even bigger problem ever since it started.
What do you think in regards to my claim ? Could I win ? What do you also think in regards to not paying until the complaint is dealt with ? Is it true my guarantors credit wont be affected ? They are a homeowner with excellent credit.
Sara (Debt Camel) says
Yes you could win – I can’t say what the chance is as we really don’t know how Amigo will decide these cases. But if a new Scheme goes ahead make a claim to that and if Amigo fails, make a claim to the administrators.
It sounds as though your guarantor should also make a claim, saying the loan was unaffordable for the, That gives the guarantor two ways to be released as guarantor, if they win their complaint or if you win yours.
If you stop paying your guarantor also needs to cancel their direct debit to Amigo and to phone up their bank and cancel the continuous payment authority on their debit card.
If your guarantor doesn’t pay, this will NOT affect their credit score – if they are unsure about this they can look at their credit report – the Amigo loan doesn’t show there.
Amigo may threaten to take you or the guarantor to court, but with a complaint in they shouldn’t do this. They haven’t over the last couple of years, and anyway going to court is and getting a CCJ is a long slow process – there isn’t time before a new Scheme starts and Amigo has said they will not go to court in a scheme until complaints have been decided. The threats are unpleasant but they are just trying to bluff one of you into paying.
Symes says
Thank you for the info.
How would my guarantor make a complaint also please ?
Sara (Debt Camel) says
He can email hello@amigoloans.co.uk with the Subject “AFFORDABILITY COMPLAINT” and just say the loan was unaffordable for hom when it was taken out so he would like to be removed as guarantor. Keep it short as Amigo aren’t going to fo anything with this – it just explains why he is going to refuse to pay when you stop paying.
Then if a new Scheme goes ahead he can put in a claim there or to the administrators if Amigo goes under.
Paul says
Hi sara
I took out a loan of 2,000 7 years ago
2 top us later the latest loan of 7,500 having paid 25 payments on this agreement i still owe 7,650 had a complaint in since september last year as i had multiple defaults on my credit file and they never checked my finances for any of the loans never asked for proof of income or checks , my claim was with the fos but its since been sent back to amigo for a so called scheme,
Im now refusing to pay 296.44 until my claim is assesed , ive hit my interest cap so not paying any interest now , do you think i have a valid claim ? .
Sara (Debt Camel) says
Having to top up twice and the amounts going up so much is often an indicator that the original loan was unaffordable. If you have been getting more defaults while you have had the Amigo loans then that too suggests the Amigo loans are unaffordable. You have just about repaid the 7500 you have borrowed on this last loan so it probably makes sense to stop paying. Definitely don’t borrow to make these payments or you just get deeper into debt and may get very little of the payments back if your claim is upheld.
Stopping paying hurts your credit record, but it doesn’t sound good anyway and the negative marks will be removed if you win your claim in the new Scheme if one goes ahead or in administration.
You have explained all this to your guarantor? They need to cancel their direct debit to Amigo and also phone their bank and cancel any continuous payment Authority over their debit card. Their credit record will not be affected.
Debbie says
Hi Sara
My loan is due to end on the 1st of October this year so only a few months left to pay! I am so relieved to be nearly rid of them, or so I thought. I took reduced payments during the covid outbreak when I was furloughed and struggling to meet all financial commitments. In 2020 I paid reduced payments of £100 monthly in April, May, June and July 2020, my usual payments being (£213.00). One of those £100 payments had interest taken from it which I did not think was supposed to happen and when I stated I would no longer require a payment holiday or special arrangement as I was back at work, they used those payments of £100 to pay for August, September and part of October, I did not want this to happen! It defeated the purpose of trying to pay less rather than taking a full payment holiday.
On my statement I can also see that payments I made to them in November and December 2020, the whole £213.00 went to the interest and nothing at all to the principal?? This was confusing and made no sense.
I am now still owing £1800.00 and the loan term is extended until march. This is devastating as I can’t afford this, the interest is esentially being calculated on the balance which is only there because of my financial troubles during the Covid outbreak and being furloughed. Is there anything I can do about this?
Sara (Debt Camel) says
This does sound confusing and it is exactly the sort of situation where it is good to be able to get the Financial Ombudsman to see if you have been treated fairly. Unfortunately, that is no longer possible :(
Can you think back to when you took the loan? Was this your first loan from Amigo? Were the payments really affordable before covid-19? A loan is only affordable if you can make the repayments and still be able to pay your other debts, bills and living expenses – so you don’t have to borrow more or get behind on bills to pay Amigo.
Debbie says
Hi Sara
No first and only loan with Amigo, I could afford to pay at the time of taking the loan out but couldn’t a year in as my husband and I split, I carried on paying for fear for my guarantor but I’ve had to take loans elsewhere to meet priority bills and for food etc. I feel penalised for taking reduced payments during Covid, I honestly wish I hadn’t as I now have to keep going until March now, I don’t think I can go on any longer, I had no choice as furlough made financial situation dire! I have tried my best, not one missed payment since 2017. I have paid them £11,263.00 and still have £1800 to go on a £5000 loan.
Simon says
Update.
Rang them to say I cant nor my guarantor repay the loan – I asked for my final response to my original affordability complaint which they sent talking about the scheme.
They then started talking about court action – I just LOLed down the phone at him and said good luck with that to which he had to admit they couldn’t actually do while I had an affordability complaint in – so basically I’m not paying a penny until the complaint is resolved.
I asked when the new scheme would be ready for voting – he said he was just a minion to be fair he was a nice lad who took the call and was trying to be helpful, I feel like he is now having this conversation more times then he thought would be which is why I have took advice from this website.
DO NOT BACK DOWN TO THESE PEOPLE AND THEIR BASELESS THREATS
N Morgan says
Same they are bombarding myself and my guarantor with numerous texts emails and phones. I had one person call me and then an hour later another person.
They seem to just try and bully you until you give in !
I nearly made a payment just to get rid of them but I’ve just read your message so feel much better.
Simon says
I explained that me and my guarantor have severe anxiety and told them that the only contact I wanted was letters which they legally have to send….every phone and text and email would be recorded and added to the complaint…he agreed to not contact either of us
Nicola Morgan says
I’ve already advised them that I have extreme anxiety and talking on the phone just adds to it but they seem not to want to listen. Both our affordability claims were sent back in March.
So I have just receive this back from amigo ! After I advised that I can not afford the loan. I know it’s just one of there tactics but any help with a reply would be fab.
Thanks for your email. I’m sorry to hear you find our message bullying, their not written in this way and sent out as automated messages to update you with the position of the account and to advise you of any risks.
The loan continues to run as normal whilst a complaint is ongoing, I appreciate there is a delay in getting an outcome from your complaint but yourself remain liable during this time.
I would advise you contact us to discuss this in further detail as it will result in leaving the account at a high risk of further action due to increasing arrears on the account.
I’ve set some time on the account for Nicola to contact us but it’s important we discuss this with you both during this difficult time.
We’re open until 7.30pm today on 01202 629161.
Amo says
https://www.thetimes.co.uk/article/big-money-gives-short-shrift-to-amigo-nqv7pt0s0
Helen says
Hi Sara
I took out 4k about 3 years ago, I’ve paid well over the amount borrowed I think probably about 10 or 11k. I’ve stopped paying now and told my guantor to not even look at there horrible emails.
Sara (Debt Camel) says
I assume you have an affordability complaint?
Your guarantor has cancelled their direct debit and phoned their bank to cancel the continuous payment authority over their debit card?
Helen says
Yes she has cancelled any future payments, I have emailed Amigo saying how much I’ve paid compared to original loan. They have said I need to carry on paying. I need to fill out the affordability form, but I’m still going to hold my payments
Sean says
So I’ve stopped paying as I have paid nearly 17k in interest, and have £1500 left that would be written off, I’ve paid much more than the loan amount.
I have just been threatened with a LBA and that a CCJ could be put on both mine and my guarantors credit file?
Is this right? I know they can’t take me to court with an outstanding claim.
Sara (Debt Camel) says
You are right – a lender should not go to court when there is an open affordability complaint it.
If you look closely at the email/text it is likely that you will see that are saying they “MAY” issue an LBA. They are not saying they WILL issue an LBA.
Since these complaints really got going 2 years ago I have seen a lot of people get these threats – very few have received an LBA, and I don’t remember one where Amigo went to court. They are just trying to bluff you into paying.
If you get an LBA come back here…
Craig says
Why would the FCA reject the scheme? Surely they are supposed to be there as a support for us as a customer. Have they rejected because they think Amigos claims of insolvency aren’t valid and therefore could pay us more than the 10% being thrown about as part of their scheme?
I submitted a claim, although I don’t expect much back if anything. I paid my loan quicker than my initial term agreed but I did take an Amigo loan to pay off multiple payday loans and give myself some breathing space for a few months.
Sara (Debt Camel) says
Have they rejected because they think Amigos claims of insolvency aren’t valid and therefore could pay us more than the 10% being thrown about as part of their scheme?
Yes! They think customers should get more and shareholders (including the directors) should get less.
Amigo said before the court case it would go into insolvency if the Scheme wasn’t approved – now a couple of weeks later they haven’t so far so it looks as though the FCA were right.
Sean Brooker says
I had quite an interesting talk with them, the staff sound fed up. So I explained why I wasn’t paying, I have £1000 left and stated that by paying it off, I would receive actually less back. They stated “they may return payment made up to the complaint being upheld”, I quietly blatantly said I don’t believe amigo will give anything back.
My argument was, how is is right for you to chase me for payments, when I have an open claim? By paying off my loan, I’m actually putting myself in a position to be worse off if I do receive any compensation. The account manager couldn’t argue this point. I said by not paying it, I stand to achieve a bigger win as I’m confident I’ll win my claim. And that you can’t and won’t take me to court, again he agreed.
He then said you’re obligated to pay the loan, if not it will incur interested…then he said, no it won’t you’ve hit your interest cap. So basically I have paid all the interest on this loan. £7500 I have paid back to date £16500, it’s sickening! 10k interest, plus 6k and this isn’t my only loan, this is the last of 3 top ups, my claim was set to be thousands.
End of the call, he said I’ll make a note you will get letters and it will effect your credit score, again I said when I win, you’ll have to sort that.
Just tell them no!
Sara (Debt Camel) says
They stated “they may return payment made up to the complaint being upheld”,
This is a bit true but it only applies to payments made AFTER the Scehem starts or AFTER administration starts. Not to payments that are being made at the moment.
Donna says
Hi
Found your site through a desperate search for help.
I have an amigo loan, I topped it up. Once, had covid break for 5 mi ths due to losing my job. Never missed a payment but have been late paying as Im a single parent with 4 dependants and currently on state benefits. It’s been absolutely traumàtics as they hound the guarantor who’s also lost there job and had the credit file seriously impacted by me being a cpl (max 7),days late making payment In full. I did complain to fos heard nothing back i did complain. To amigo about the fact they refuse to reduce my payments as they claim I can afford it an I genuinely can’t. It’s an absolute struggle, I can’t tell you the stress it’s caused me an my guarantor with the Co stant barrage of emails phone calls text messages. Even though I raised the poi t I can’t afford the monthly repayments back in January, in April. I got an email from them to say they would look into my complaint and as of yw nothing just constant emails about late payment an text messages. I’m at my wits end with it all. What can I do to help. Matters do I stop paying do I hold out in hope I get a valid claim i would greatly appreciate any advice thank-you so much 😁
Sara (Debt Camel) says
can you think back to when you took the top up loan, before covid – were the loan repayments already hard on the previous loan which is why you needed the top up?
what was your guarantor’s financial situation at the time of the top up loan – could they really have afforded to have made all the payments to the loan and still been able to pay their own debts, bills and living expenses?
what is your guarantor’s financial situation now – do they have a lot of other problem debts? are they buying or renting?
Ryan says
Anyone get a survey from amigo this morning ? About what they think should happen next ? 5 questions .
Sara (Debt Camel) says
Yes some people have. Could you copy out the Qs so everyone can see them?
Michelle says
1) Age
2) Why did you vote against the proposed Scheme
3) Explain your answer
4) How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
5) How would you like to receive updates on the progress
Debbie says
Yes!! Just this minute received it myself!
Lee says
Yes i did the questions are farcical and still looing to shift blame – i have been scathing in my response!
Questions are
1. Age
2.Why did you vote against the proposed Scheme? –
I did not believe this would give customers the best outcome for any compensation claims
I did not understand the Scheme
I was encouraged to vote against the Scheme by a third party
I wanted Amigo to go into administration
3. explain your answer to Q2
4.How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
5. How would you like to find out updates and information regarding the ongoing process?
Michelle says
Yes I have and so has my husband
Ruth says
Yes also got the survey and voted against the scheme!
simon bailey says
Question 1: How old are you?
A
18-35
B
36-55
C
56+
Question 2: Why did you vote against the proposed Scheme?
A
I did not believe this would give customers the best outcome for any compensation claims
B
I did not understand the Scheme
C
I was encouraged to vote against the Scheme by a third party
D
I wanted Amigo to go into administration
E
Other
Question 3:
Please explain your answer
Question 4:
How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
Question 5:
How would you like to find out updates and information regarding the ongoing process?
A
Through your Scheme website, I would check this myself
B
Through your social media channels, I would check this myself
C
I would like you to text or email me
D
I do not care about receiving updates
Mike says
Just got that email. I feel they have singled out everyone that voted against the scheme. I gave them the nuts and bolts of why I didn’t vote on it. I had 2 loans they didn’t uphold. One being in the middle of 5 loans. They slap over £2.5k unpaid interest on. Leaves me with a balance of £2k. I said, if they hadn’t put that on, I would of been debt free and wouldn’t of even went to the FOS. I couldn’t care less about getting pennies in the pound compensation, I just wanted the debt gone. It’s their own fault, but I doubt these replies will get read and will just be a check box exercise!
Daniel Green says
Yes and to try and blame the courts for with holding customers money it’s a low blow even for amigo
Mike T says
As the Chief Executive of Amigo, I would like to personally thank you for taking the time to have your say on our proposed Scheme of Arrangement (the Scheme). We are grateful for your involvement in making your voice heard.
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
As a valued customer that voted on the Scheme, we would like to get your thoughts on the ongoing situation to help ensure we are working to represent the voice of all our customers. If you have two minutes, please click here to complete a short survey with five questions in. Your responses are anonymous and will not have any impact on any existing accounts you have with us. Thanks in advance.
P says
Hi got mine too. below is taken from the email
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
questions are
1. How old are you
2. why did you vote against the scheme.
I did not believe it was best for customers
I did not understand the scheme
I was advised to vote against by a third party
I want Amigo to go into administration
Other
3. please explain your answer (then there is space to reply)
4. How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim) – then space to reply
5. how would you like be contacted.
through scheme updates
will follow on social media
Text or email
I do not care about updates.
I think the 4th question is interesting.
Sandra says
I had Thai email this morning As the Chief Executive of Amigo, I would like to personally thank you for taking the time to have your say on our proposed Scheme of Arrangement (the Scheme). We are grateful for your involvement in making your voice heard.
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
I see we are still none the wiser to what is going on with them.
Mike T says
It looks like you get different questions depending on whether you have an active complaint or not and whether you voted for or against the scheme or not. I’ll send the rest in a mo
1) How old are you?
2)Why did you vote against the proposed Scheme?
A) I did not believe this would give customers the best outcome for any compensation claims
B) I did not understand the Scheme
C) I was encouraged to vote against the Scheme by a third party
D) I wanted Amigo to go into administration
E) Other
3)
Mike says
I wonder why they are targeting those who voted against it when they were keen to point out the vast “majority” (in their eyes) were for the scheme – odd!
Sara (Debt Camel) says
it may be that people that voted for got a different email but so far everyone here has voted against?
Kevin says
Hi there I voted for the scheme and have had no formal communication from amigo.
Only information I have seen has been through the media.
It’s shocking that amigo seem to be targeting people who voted no to the scheme.
I have not put a complaint in myself but I am currently in a DAS arrangement and was at the time of my original loan and when I got it top up.
I am giving serious consideration to not paying but am unsure if this is a possibility open to me
Sara (Debt Camel) says
You were given a loan and top up when you were in a DAS?
OMG…
I think you should talk to a Scottish adviser about stopping paying as you are in a DAS. I suggest you ask on https://www.advicescotland.com/home/debt-arrangement-scheme/ – you don’t need to use your full name in a comment.
Kevin says
Apologies its actually a DMP I’m in not sure if this makes a huge difference compared with a DAS
Sara (Debt Camel) says
a DMP is much more straightforward – a DAS is a complicated Scottish legal arrangement.
Being in a DMP and then having to top up suggests the loans were unaffordable to you probably have a good complaint.
How large was the last loan? How much have you paid to it so far?
How much are you paying to your DMP at the moment?
Kevin Millar says
My original loan was for £10,000 I had a outstanding balance of £9308,71 when I did a top up in February 2020 which put my balance back to £10,000.
I have paid £3925.50 and my balance is now £11350,50.
I missed payments through covid which was agreed with amigo but still got charged interest.
My DMP is £100 per mth.
Sara (Debt Camel) says
So it sounds unlikely that if you win your complaint your debt would be cleared. As you will still owe a balance, it may be best to pay something affordable to them to keep chipping away at it, rather than stop completely? You could say put the debt into your DMP and increase the payment to your DMP to £150 or £200 a month?
But if you do this your guarantor will still need to cancel their direct debit to amigo and phone their bank to cancel the continuous payment authority over their debit card. Will your guarantor be happy to do that if you explain your situation? It won’t affect their credit record and although Amigo may threaten to take you both to court, these seem like trying to bluff you into paying as Amigo is not taking people to court who have a complaint in that has not been decided.
Sara (Debt Camel) says
Apparently people who voted for the Scheme are also being sent a survey:
“I appreciate that you decided to vote for the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
As a valued customer that voted on the Scheme, we would like to get your thoughts on the ongoing situation to help ensure we are working to represent the voice of all our customers. If you have two minutes, please click here to complete a short survey with five questions in. Your responses are anonymous and will not have any impact on any existing accounts you have with us. Thanks in advance.”
Philip says
Hi question if you make a complaint and amigo dismiss it you don’t have to go to the ombudsman why can’t you just issue a court summons against amigo and fight the case ur selfs you don’t have to wait or make a complaint to the ombudsman and you might win before they go bust as at the moment they have assets
Sara (Debt Camel) says
Because Amigo will defend the case and it will take a VERY long while to go to court. Average time was 9 months in 2019 and the backlog is likely to have got longer with the pandemic.
Kayla says
I voted against, I’m a current customer,complained last October, believe I have a valid claim and iv not received a survey. Not sure why unless it’s because there is an agreement in place for them not to contact me due to anxiety. No idea, feel a little left out haha
Russell says
Hi Sara, so looking at claims being on hold is down to a DISP waiver which I guess Amigo got approved and looks like it was done in December. I’m no expert but are DISP waivers time limited to 6 months? In which case Amigo may have to start dealing with complaints again in July or could they and most likely just get another one for a further 6 months? My concerns is another scheme won’t start to next year (just my gut feeling) and by the time my complaint is looked at I’ll have repaid the full or most of the loan and lose about 2k. I’ve only just about or close to paying off the amount borrowed but I don’t want missed payments on credit report in case my claim is rejected as it’s getting on track so really don’t want to stop paying and right now I can afford it. I’ve tried to look this up but is complicated but I’m hoping they will need to start reviewing claims from next month which would then speed up a decision on new scheme being approved or administration. Im correct is saying any payments made after date of administration or scheme start date paid will be refunded in full if claim is upheld?
Sorry if this has been covered before but I can’t see anything providing answers and I’m hoping you have a good idea. Thanks
Sara (Debt Camel) says
Amigo has not got a DISP waiver and has withdrawn its request for one. I have heard it suggested that the FCA will only grant a DISP waiver if a firm passes a solvency test and that causes most firms in difficulty to not ask for a DISP waiver – I don’t know if this was the case with Amigo.
Instead Amigo seems to have some informal agreement with the FCA that it can ignore the DISP rules…
There is no sign that they are going to start reviewing claims next month, or indeed at all before either a new Scheme or insolvency.
I’m correct in saying any payments made after date of administration or scheme start date paid will be refunded in full if claim is upheld?
yes that is correct – so it is just the payments before then that are a problem.
It sounds as though you clearly understand the options you have. If you continue to pay and later have your claim upheld, you will get back very little of the payments before the Scheme/administration. If you stop now, your credit score will be harmed (but not your guarantor’s) although this will be repaired if you win your claim.
Russell says
Thanks for the info, will just have to suck it up for the next couple of months and see what happens. For me I can see why Amigo can’t deal with complaints now, and have the agreement to hold redress. Seems like the FCA are just allowing Amigo to claw in as much money as they can. They could have a much better idea on what redress is going to be needed by now to support the case if they hadn’t just started piling up complaints.
Anna says
Hi Sara
back again with this Amigo crazy thing that is draining me every day… I have made an affordability complaint to them and I am not paying until they will give me a response. I have canceled the direct debit I had this month a day before the DD, I was told by the bank I can’t recall the amount before the DD day, but still my DD was canceled anyway. On the DD day I was told I will see the money back in to my account the next day if I already canceled the DD. I did check today and nothing. When I spoke with the bank today they said I didn’t recall the amount but told them I couldn’t and that I was advised I will have the money back the next day but didn’t happen. This is what they said, I doubt Amigo will make any refund.
“As I have checked I can see that it has been cancelled but has not been recalled for you. So as it has already been past the due date we will have to raise an indemnity claim.
Before I can process your claim we need to understand the error that has occured?
If no error has taken place and we refund you the amount of the Direct Debit, we may have to re debit your account in the future.
Please be advised if any refund provided could result in the company contacting them to arrange for alternative payment for any funds legitimately owed.”
I’ ve got one more message from the bank but couldn’t post it as I’ve reached my comment limit.
Thank you
Jim says
Hi I have had 3 loans with amigo and the last one was for 15000. I still owe 17300 but I have paid 10100…it has become unaffordable as my payments are 595 a month…if I make a financial complaint can I stop paying the loan until the court has made a clear decision on the outcome???
Sara (Debt Camel) says
do you know the numbers from your loans … – how much did you borrow? how many monthly payments did you make (eg 11 payments of £298) how much did you receive in cash if this was a top up loan?
Your guarantor – at the time the last top up was taken, could your guarantor really have afforded to pay £595 a month out of their income and still been able to pay their own debts, bills and living expenses? The guarantor may have been better off than you, may have owned a house, but that is a huge amount to be able to pay each month?
Jim says
Hi Sara,
I am not sure of the numbers but it was a first loan of 5000 then topped up to 10000 then topped up to 15000. I have paid 10100 so far. The payme.ts aren’t affordable. My guarantor only lives on pension and savings….
Should I male a complaint and stop paying the loan??
Sara (Debt Camel) says
So I can’t be sure but you may well not have repaid as much as you borrowed, especially If Amigo decide the first loan was affordable…
In this case may be better if you can make some payments so you are chipping away at any balance that may be left, how much do you think you can afford a month?
If you stop paying it will hurt your credit rating, but the negative mark will be removed if you win your complaint in a Scheme or in Administration.
Your guarantor would need to cancel their direct debt to Amigo and also phone their bank to cancel the continuous payment authority Amigo has over their debit card. This will not hurt their credit rating – the Amigo loan does not appear on there.
Amigo may threaten you both with being taken to court for a CCJ, but that should not have as you have an open complaint in. Amigo has actually said it won’t go to court in a Scheme until claims have been resolved.
It sounds as though your guarantor can also make a complaint that the loan was unaffordable for them. They have to be able to pay this out of ioncome, unless they had told Amigo they were happy to pay it from their savings.
LB says
Hi Sara
I am the guarantor for an Amigo loan and a while ago put in an affordability complaint on behalf of myself.
The person who I was guarantor for has not yet done so, but would like to do this now.
Are they still accepting affordability complaints from the borrower and if so how does he go about this?
Sara (Debt Camel) says
He can email it to hello@amigoloans.co.uk with COMPLAINT as the subject. Assuming he is complaining that the loan was unaffordable for him when it was given, he can just keep the email really shot – I want to complain that my loans were unaffordable and I would like interest removed and my guarantor released. No point in going into great detail as Amigo will not be considering this complaint.
the advantage of him making a complaint is if he cannot afford to pay and you don’t pay then with both of you with a complaint in it is clear that Amigo can’t take either of you to court (whether their threatening emails and texts say)
RS says
I am aware of the current Amigo situation but my query relates to a loan and top up loan that I was guarantor for (the loans were for my partner). They were repaid in full a number of years ago although I ended up paying for a couple of months. I want to submit an affordability complaint but does my partner also have to submit one at the same time for the same loans or will they review the complaints separately?.
Sara (Debt Camel) says
is your complaint that the loans were unaffordable for you, the guarantor?
RS says
Yes, exactly that.
Sara (Debt Camel) says
Then your partner should also make a complaint if the loan was unaffordable for them.
Atif says
Hi Sara
Once again thank for all the brilliant advise you provide here.
I put in a affordability complaint in January still ongoing no final response – I votes against the scheme
2010 – took out 3K topped up to 5k – total paid to Amigo was 11.5KL
2018 – 2K, topped up to 3.5K then again top up to 5K – current balance is 6.5K – I am in arrears
My credit score has also been very low numerous defaults and CCJS / missed payment on credit file – for past 15- 20 years, I can even get accept for a visa debit card always used a basic account. no way should I have been given the loans
My current guarantor (different to guarantor in 2010) has good credit and is on universal credit mother of 3 children she also can not afford the payment or ever could have , I have stopped all payments both me and my current guarantor wont be paying until the complaint is deal with, I have received notification the may issue LBA of course we now understand MAY doesn’t really mean anything at this stage and they are not taking people to court with a current complaint not dealt with.
A question for you – from your know ledge and from what I have told you you think I will have a good chance in winning my complaint?
Many Thanks
Atif
Sara (Debt Camel) says
I think 2 tops on a loan since 2018 probably is a good complaint, especially if your credit record was very poor.
what I can’t guess is how likely amigo is to uphold this – if they only uphold the recent top up loan, then they will probably deduct something they call “unpaid interest” which is adding on extra money you have to pay for the previous loan, even though it was settled with the top-up.
But at least if the last loan is upheld your guarantor is released… and I think you should then take some debt advice – 20 years is too long to have problem debt and you need advice on your options and help.
from what you have said your guarantor also may have a good complaint – it’s very hard to see how anyone on UC can afford the repayments on the last top up. In a Scheme or in administration they too should complain – it gives them 2 ways to be released as guarantor, if they win their complaint or if you win yours.
DM says
Just wondering the logic in sending out a feedback survey to people who have rejected the scheme when there is thousands of claims that have not been assessed or responses sent. Yet another delaying tactic to claw back as much as they can before any scam / scheme is proposed and more delays for court dates. For the customers they have assessed and not sent the details over that would have the balances cleared under the current unfair method of assessment they are effectively stealing people’s money whilst they continue to pay to keep their guarantors from being hassled whilst they sit in limbo. I am not filling out the survey as Amigo have already demonstrated they can’t treat customers fairly and don’t really care about the impact they have on people’s lives. Also would love to know how much they have claimed from the government in furlough payments for staff many of whom know they will be dropped whether or not a dodgy scheme goes ahead or have to leave as a consequence of going into administration ( I hope!)