UPDATE
In May 2022, the new Amigo Scheme was approved by the court and went live. See Amigo’s Scheme for details about this.
This page on the old Scheme is now no longer relevant. Please leave any comments and questions on that new page.
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%.
Ruth says
Hi Sara,
I wrote to Amigo to say I thought they’d lent me when I couldn’t really afford the repayments. This is their reply..
I have raised a complaint for you to be investigated and I have logged your Data Subject Access Request.
Before the loan was paid out, you completed an income and expenditure form.
You told us that your monthly income was £2,199.07, your monthly bills came to a total of £1,389.53, leaving you with a monthly disposable amount of £809.54.
Was this information you told us correct?
There is a lot of misinformation around repaying loans if you have an active complaint. All customers must continue to repay their Amigo loan.
If you raise a complaint due to the loan being unaffordable, until we’ve investigated your complaint and given a decision, the management of the account will continue as normal. We assess all complaints individually, historic late payment markers may not be removed from your file and arrears could still be place
As you have mentioned that you are not making another payment, I have prevented payments from you, however, this doesn’t mean that a payment isn’t due. If you are experiencing financial difficulty please call us.
I probably lied about my outgoings as I was desperate (but seriously can’t remember what I’d said) I feel obliged to carry on repaying this..
Not sure what they mean by ‘prevented payments’ and I have asked my guarantor to stop any DD or CPA.
What are your thoughts on this from Amigo?
Sara (Debt Camel) says
There is a lot of misinformation around repaying loans if you have an active complaint. All customers must continue to repay their Amigo loan.
which is correct.
BUT Amigo should also consider your complaint. Which they won’t do at the moment, they have logged your complaint but it will be ignored… and you cannot send the complaint to the Finacial Ombudsman at 8 weeks.
As a result, although Amigo may threaten court action if you and your guarantor don’t pay, they are not actually taking anyone to court. because as you have a complaint in, you would be able to ask the court to consider your complaint as a counterclaim, and that Amigo would not want. Also Amigo is treading a difficult line at the moment with the FCA, its regulator. The FCA has allowed Amigo an “informal moratorium” for not looking at complaints. But the FCA may well decide Amigio is abusing that if Amigo takes people who have made complaints to court.
Was this information you told us correct?
It is pointless to reply to this because Amigo won’t read what you say. They are just hoping that you will be worried and give up the complaint. Read https://debtcamel.co.uk/payday-lender-says-lied/ which looks at the issue of “inaccurate” applications. Basically the lender has a duty to verify an application for a loan like yours – large, to a person known to be in financial difficulty, and with the serious implications of a guarantor loan.
I have prevented payments from you
I think this must mean they won’t be trying to collect your payment by direct debit.
See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at the pros and cons of stopping paying Amigo.
Are the payments currently affordable for you?
sue c says
If a debtor hasn’t yet made a complaint – it says now too late to use template for Amigo? – If finances or guarantor’s finances weren’t fully checked at the time can he complain now and stop paying or reduce payments as there are are priority creditors. Thank you
Sara (Debt Camel) says
The borrower and/or the guarantor can make a complaint now, but Amigo won’t look at it :(
See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at the pros and cons of stopping paying Amigo.
Amigo are looking at setting up a new Scheme – but that takes time as it has to be approved by a three stage process (1st court hearing, customer voting, 2nd court hearing. And even when the Scheme is underway, Amigo will still expect people to pay if they have made a claim…
So if the borrower can’t afford the payments because they are getting behind with priority debts, and the guarantor doesn’t want to pay (or can’t afford to pay) then they need to consider stopping. As this is going to go on for some time.
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!
Wjb says
Do you know what will happen in regards to complaints against the interest deductions amigo took off on refunds from upheld complaints?!
Thanks
Sara (Debt Camel) says
There are no details yet of the the amigo second scheme.
In the first scheme they were planning to carry on with the unfair “unpaid interest deductions”. I hope this will change in the second scheme. Also in the second scheme they may uphold an earlier loan, which would remove/reduce the deduction.
wjb says
ohh right ok, ill keep an eye out then.
Ive already had 2 loans upheld. i sort of agreed with the first loan staying as it was the first loan, however i sent a complaint to the FOS in regards to the unfair interest deductions just before the scheme plan, but didn’t get picked up in time by the FOS.
Lisa G says
Hi Sara, I have sent off a complaint to Amigo and I’ve exercised my right to a set-off. I’ve paid well over the amount originally borrowed. They emailed me back and said “I have removed your payment plan and turned your payments off, please be aware you will fall into arrears which will occur late payment markers to your credit file. When the account reaches 15 days in arrears we will need to look to your guarantor to step in as we expect the account to be maintained during a complaint.”
In my complaint I explained that my guarantor has now retired and is on a pension of £1120 per month. Surely they can’t look to take £395 a month from that? This would push her into extreme financial hardship. Luckily she has changed bank accounts and the account amigo holds is closed. Where does my guarantor stand with this? Does she simply ignore Amigo requests for money or does she need to make a complaint also?
Sara (Debt Camel) says
When the account reaches 15 days in arrears we will need to look to your guarantor to step in as we expect the account to be maintained during a complaint.
You need to phone them up and say you want the right of equitable set off. It sounds as though they didn’t read your complaint and sent you a standard resonse.
Sara (Debt Camel) says
Was the loan affordable for your guarantor when you took it out?
A loan is only affordable for he if she could make all the repayments, still pay her own debts, bills and everyday living expenses. If she had a house, that doesn’t count, she has to be able to pay it out of income.
If she wasn’t retired then, but was close to retirement age, Amigo should have asked if she would be able to afford it when she retired.
If it wasn’t affordable, or soon wouldnt be when she retired, then she to can make a complaint and ask to be removed as guarantor.
Ian Robbie says
Is it too late to submit a complaint? We currently have an Amigo loan to which we pay £197 a month. The original loan was for £5000. We’ve been struggling to pay it for the last 18 months and our financial situation is just getting worse.
My wife is registered disabled (Spinal Stenosis) and I’m her carer so a normal loan was unavailable because out only income is benefits. Our guarantor is my FIL and he is also a carer to his wife (Dystonia) so his only income is benefits and his pension.
Looking at others cases, I believe we shouldn’t have been approved for such a large amount.
If I submit a complaint now, what would happen?
Sara (Debt Camel) says
No it’s not too late to make a complaint. If you complain now, Amigo won’t look at it at until they get a new scheme approved or until they go bust and administrators take over… but if you want to pay less now, it helps to make a complaint so they can see you vare challenging the debt, saying it was unaffordable and should not have been given to you.
A 5k loan is very large for someone on benefits to repay when the interest rate is so high. Amigo should have looked carefully to see if it was affordable for you – and they probably didn’t. A loan is only affordable if you can pay it and still be able to pay your other debts, bills and everyday living expenses, not getting deeper into debt each month.
Does your FiL own a house? Was he working when the loan was taken out? He may also be able to complain and ask to be removed as guarantor if the loan was unaffordable for him when it was given. A loan is only affordable if he could pay it out of his income (having a house doesn’t count!) and still be able to pay all his own debts, bills and everyday living expenses.
It doesn’t sound as though you have yet repaid the amount you borrowed? In this case if you win your complaint, interest is removed so you would owe £5000 less what you have already paid, your guarantor would be released and you could make an arrangement to repay the rest at a lower rate.
The question for you now is whether you should carry on paying, stop paying or ask to pay a lower affordable amount. How much do you think you could realistically afford?
If you want to stop paying or pay less, you need to explain this to your FiL and say that you are making an affordability complaint and that if you win this, he will be released as guarantor. But in the meanwhile he should cancel his direct debit to Amigo and also phone his bank and cancel the continuous Payment Authority Amigo has over his debit card so they can’t take money from him.
This will harm your credit score but not his credit score. Amigo may threaten court action but they are bluffing, they won’t do this if you have a complaint in.
Ruth says
Hi Sara,
I have had a complaint in since August 2020 with Amigo and since October 2020 with FOS.
They have stopped harassing myself and the guarantor after saying we are not making anymore payments until the complaint is sorted, however, they have reported late payments on my file for the last 2 months…are they allowed to do this or can I challenge it? Thankyou
Sara (Debt Camel) says
they are allowed to do this. If you win your complaint, the late payment markers will be removed.
John says
Had this today Sara
Please be advised that the Financial Ombudsman has received the figures regarding your redress for your complaint.
Our offer was to uphold your first, fourth and fifth loans. If this offer is accepted, your redress will be paid in full, outside of the proposed Scheme of Arrangement.
We’ve calculated the additional interest and I’ve included a breakdown of this below, this includes all the loans you have had with Amigo:
Interest paid to be refunded to you: £ 6350.43
8% statutory interest awarded: £ 0
20% tax already deducted from 8%: £0
Unpaid interest on non-upheld loans: £ 2369.27
Total interest refund due: £ 3981.16
This interest refund will firstly be applied to the current outstanding capital balance on your current loan, which stands at £ 5761.47 reduce this to £ 1780.31.
If you would like to accept this offer in full and final settlement of your complaint, please contact the Financial Ombudsman Service to confirm this. As advised above, the Financial Ombudsman Service has been sent these figures for your redress offer. They will then get in touch with us and we will arrange for the redress to be processed.
If you wish to decline this offer, your complaint will be included with the Scheme of Arrangement.
Please let us know if you have any questions.
I will not be accepting it until all loans are upheld
Sara (Debt Camel) says
There seem to be a very small number of customers getting these “tidying up” offers from Amigo – them repeating an offer and asking if you would like to accept this saying “your redress will be paid in full, outside of the proposed Scheme of Arrangement” which sounds like an incentive…
In your case from your previous comment your guarantor has been released and you have stopped paying, I think?
This incentive” doesn’t seem a good one in your case because there is no money being refunded to you in cash. The worst case in the Scheme or administration would seem to be what they are currently offering, as the set offs are always “in full”, not reduced in the Scheme.
In a new Scheme there is a chance more loans will be upheld or the unfair “unpaid interest deduction” pay be removed. In administration I would hope both of those happen!
John says
Hi Sara
That is what I thought. I might as well see it through to the end.
Thanks
John
Helen says
Hi Sara
I currently have a claim going through. My husband had an Amigo loan but paid it off a few years ago. Can he still put claim through if so how does he do it
Sara (Debt Camel) says
yes he can send in a complaint now – but it won’t be considered until a new Scheme is underway and if the loan is paid off, there isn’t much point in doing anything now.
Of course in the new Scheme (whatever it is) he may only get a tiny amount back of the interest he paid, but if he thinks the loan was unaffordable, he should go for it.
Bobby J says
Hi Sara My friend complained in 2019 but the complaint was thrown out .He never knew about the FOS so he never appealed .He was the guarantor for the loan and really struggled with the repayments so much so his repayments were reduced to £100 a month instead of £370 .The loan has been transferred to Intrum ,I feel very strongly having reviewed the loan it should of never been granted due to the loanee not being in a position to pay the repayments .And proper checks not being carried out .I have told him to cancel his direct debit ,amigo have been informed and have tried to force him to go through Intrum which he hasn’t done .Can we still appeal to the FOS when the complaints system is opened again ? Amigo have sent the findings to me in relation to his complaint ,I have requested the first loan payments that the loanee made ,before the loan was topped up again as he missed repayments. Upto know I haven’t heard from them .
Sara (Debt Camel) says
Can we still appeal to the FOS when the complaints system is opened again ?
No. All complaints about loans made before December 2020 have to go through the Scheme and there will be no option to go to FOS.
What is the rest of your friend’s financial situation? Does he have other problem debts? Is he renting or buying? How large is the debt to Intrum?
Bobby Jones says
Hi Sara he is renting ,he has his own loans to pay as well .About £10,000 he owes to Intrum ,they keep hounding him with texts and letters .He is left with virtually nothing ,should he respond to Intrum Sara ? What should be our next move know we cannot go to the ombudsman.
Sara (Debt Camel) says
So there is a chance that he will be able to make a complaint to the second Scheme. We won’t know this for definite until the terms of the second Scheme are published.
If this isn’t possible then I am afraid he is stuck with this as a debt. As it is so large, it would be best for him to talk to a debt adviser about his options – one is a debt management plan or, as he is renting, bankruptcy or a debt releief order may be best to try to get a clean start and not have this hanging over him forever. (Unless he has assets to protect, he should probably avoid an IVA.)
I suggest he talks to National Debtline on 0808 808 4000. He can do this now or wait and see what the second Scheme looks like.
In the meanwhile, if he cannot afford the £100 a month, he should explain this to Intrum and say he can only pay £10 or whatever he can afford.
Bobby Jones says
Thank you Sara I will get him to contact Intrum to reduce his payments ,and see what response he gets .If by chance Amigo reply to my question about the loanee payments from the first loan and the missed payments would that open the door for an appeal .
Sara (Debt Camel) says
That will depend on whether Amigo allows people to make a complaint in the econd Scheme if they have already had a complaint and failed to take it to the Ombudsman. There is no specific “right of appeal” apart from that.
Gabor says
Hi Sara,
I stopped to pay anything to Amigo Loan, as you advised, I cancelled CPA as well, they can’t take money from my account. But they keep sending emails, messages, letters, that I am in arrears. I answered them that my complaint is in progress but looks like they just ignore it.I received a message from them: ” I may have to issue you with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered”.
How far they can go with this, they can take me to the court without FOS decision? If so, they can win the case, as they are breaching regulations? Should I answer them in the future for emails like this? (I answered demanding FOS decision from them, that they definitely don’t have).
Thanks,
Gabor
Sara (Debt Camel) says
So they have said “I may have to issue you with an LBA”.
They haven’t said this WILL happen. MAY doesn’t mean they will do this.
If they do, then you have 30 days to reply. You can wait 25 days and then reply saying you intend to take debt advice. Then they have to wait another 30 days before they can issue court papers. With court papers you can reply saying you will defend the case and ask for it to be ajourned until their is a FOS decision or a decision in the Scheme.
Amigo has said it has given the FCA details of its proposed 2nd Scheme last week – that would then take a couple of months to be approved by the courts when the FCA is happy. Once the Scheme has started AMigo will not be able to go to court. And there isn’t time before then.
Amigo knows this, it isn’t going to go to court, it is just hoping to worry you into paying,
Andrew Packman says
Hi Sara. Why wouldn’t they be able to take it to court once the scheme has started? Could they not just dismiss the complaint and then start the court process again? Thanks again!
Sara (Debt Camel) says
Yes, the aim here is to get through to the point where your complaint and your guarantor’s complaint are considered. Within the scheme there will be an appeal process, but after that Amigo will expect payments from the borrower or guarantor to resume.
In your case only 1 of you has to win their complaint for the guarantor to be released.
Gabor says
Hi Sara,
Thank you for the information. Amigo Loan keep calling me every morning at 8.00 am (on Saturday as well), but rang only for a couple of seconds , I haven’t got chance to answer it. But no more email or text from them. This is something abusing method from them, they don’t want to let me sleeping?
In case if the scheme will be approved, who will decide my complaint? As you wrote sooner, will be decided within the scheme and then will be no further opportunity to go to court or FOS. If Amigo Loan will decide it, it doesn’t mean that they can refuse everything just because there won’t be any consequentes? They refused my complaint that is why I sent my complaint to FOS.
Sara (Debt Camel) says
Can you put your phone on silent until 8.15?
if the scheme will be approved, who will decide my complaint?
It will be decided by Amigo. They often made really random decisions before – they must have worked out a more systematic approach for the Scheme and I hope the FCA is making sure it will be roughly in line with what the Ombudsman would have decided. There will be an appeal process within the Scheme, so if your complaint is rejected by the computer it can be looked at by a human.
They aren’t going to refuse everything. But what % they will uphold, I don’t know. It will be interesting to see if they say anything about that when the second Scheme is proposed.
People with outstanding loans may still decide that they would rather take their chances with an administrator if the Scheme is rejected than than let Amigo make this decision.
Gabor says
Hi Sara,
I received a text message(no email) from Amigo Loan, which says “As there is no resolution in place, soon you may be issued with an LBA, this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. In Court, an order for the full balance will be sought. A CCJ may be issued against you, where it will stay on your credit file up to 6 years…”
I didn’t receive anything from FOS that they would refuse my complaint, they just wrote in july “We have therefore made the difficult decision not to take your complaint any further forward at this time.”
They will definitely go to court, despite my complaint is still in progress? FOS didn’t close my complaint, just they don’t take it forward at this time.
This is again just threatening, empty words, as they are using the word “may”, and they will not do it?
Thanks, Gabor
Sara (Debt Camel) says
They will definitely go to court, despite my complaint is still in progress? FOS didn’t close my complaint, just they don’t take it forward at this time.
This is again just threatening, empty words, as they are using the word “may”, and they will not do it?
As you say, they have used the word MAY again. This is not saying they will definitely do this, they just want you to think that.
Amigo has sent details of a second Scheme to the FCA, hopefully everyone will hear something soon.
MC says
Hi Sara, just wondering on your thoughts on the second scheme if for some bizarre reason the customer panel agreed to the deduction of unpaid interest Amigo were applying to previous decisions, what ramifications that would have? or if you think the FCA would object to the second scheme proposal on this point and force them into administration?
Sara (Debt Camel) says
I have no idea if the customer panel was even told about this issue – which Amigo likes to pretend doesn’t exist. I think we need to wait and see what happens.
Neve says
Hi Sara,
Apologies if you’ve already answered this somewhere but just wondering if it’s still possible to claim in any potential scheme if you already received a refund through FO? I accepted a low offer refund in 2019 on loans 4 and 5 that I had with Amigo because I was desperate at the time. I’m still paying off this debt (my amigo loan that my sister paid off) and wondering if I’d be eligible to still complain as part of the scheme? Amigo have sent me all the emails about it and asked me to vote in the first proposed scheme. Any info would be much appreciated.
Sara (Debt Camel) says
It depends on the terms of the second Amigo scheme. You could do this in the current, approved, Provident scheme. But you couldn’t in the first, rejected, Amigo Scheme. Just another way Amigo made things unfair….
But if your guarantor couldn’t have afforded the repayments ( perhaps she had to borrow herself to clear the balance?) then she may be able to even if you can’t.
Neve says
Thanks Sara, that’s really helpful. Thank you for everything you do.
Andrew says
Hi this is a really useful website and I appreciate you doing this.
I have a question. I got myself into a pickle and applied for a loan when I didn’t have a job. I was on benefit at the time but was expecting things to be ok with work so my guarantor (sister) wasn’t told I was out of work then. What a stupid thing to do. My initial 1700 was topped up to 3500. Then lockdown hit and everything went udders up. I’ve been out of work for accumulative 2 years now and still making repayments.
My sister told me she was on 1800 pm but that transpired to include mostly overtime which wasn’t guaranteed. Neither of us had our bank statements or wage slips checked. Is it a strong case? I guess I’m asking whether one would be surprised if the complaint was not upheld all else being equal. Thank you.
Sara (Debt Camel) says
They let you top up a loan quite soon?
Andrew says
Hi Sara. Yes within 12 months or so. I appreciate that this would add to my case but is the fact that I was found eligible for the loan whilst claiming universal credit (£750pm and no additional income) not the bigger issue? Thanks as ever.
Sara (Debt Camel) says
so a top in only a year usually means the complaint for the top up is pretty strong. And for your guarantor that is all that matters – she will be released if the top up is found to be unaffordable.
There isn’t really much point in me guessing how Amigo will decide the first loan – it’s very likely FOS would have decided it to be unaffordable.
Andrew says
Ye logic dictates this too but logic doesn’t always apply! Thanks Sara.
One other thing, if you wouldn’t mind. I am a bit confused as to the current state of affairs. The FOS is no longer considering complaints, which leads me to wonder what avenues of recourse are there should amigo reject my complaint. Is it simply a pause which will be picked up again some time in the spring or is there an alternative avenue? Many thanks and stay well. You should be receiving a Damehood.
Sara (Debt Camel) says
One of two things can happen. Amigo will get a second Scheme approved, in which case you claim will be decided within the Scheme. There will be an internal appeal process in the Scheme but no appeal outside to FOS or to the courts. Or they will go under and administrators will be appointed, in which case your claim will be decided by the administrators, again with an internal appeal process but no possibility of an alternative avenue.
Kirk says
Hi Sarah,
I asked about the set off and was told as I hadn’t paid back the full amount of the initial loan that I couldn’t do it.
From what you have written my understanding is that anyone that has put a complaint in should be able to do this regardless of the outstanding money as long as I believe I am due a redress?
Sara (Debt Camel) says
Well I think they should. But I can’t make Amigo be reasonable. And you can’t take a case to FOS where they are not being fair.
So if they refuse to let you have this set off, then your choice is whether to carry on paying Amigo, or for you and your guarantor to stop paying. See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/
Jean says
Hi Sara
So I had 2 payments left to Amigo and in August I emailed them and told them until my complaint is dealt with I am not paying them a penny. My guarantor took off what he needed to on his bank (although the reinstated a DD but he got the money back from his bank) and I have received this email this morning …..
Jean ,
As there is no resolution in place, soon you may be issued with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. However, if we can’t find a way to get your repayments back on track, we’ll assess your account for Court. In Court, an order for the full balance will be sought. A CCJ may be issued against you and Stevan, where it will stay on both of your Credit Files for up to 6 years.
If you’re in a position to do so, please arrange payment of the arrears. Call me on 01202 629161 or make a payment now Easypay: https://amigo.me/T3V364V6.
Tomas, Amigo Account Manager
Amigologo.png
Sara (Debt Camel) says
soon you may be issued with an LBA
There may be an earthquake tomorrow. That doesn’t mean it is at all likely. Amigo is not saying it WILL do this, just that it MAY, it is just trying to scare you.
There is no time for them to go to court before a second scheme starts. Sending an LBA is only the start of a long process. And Amigo has said that in a Scheme it will not go to court until a complaint is decided.
For you with only two payments to go, the answer is simple. Save up those payments so that if you lose the claim in the Sche (or in administration if they go under) you have the money to simply pay off the arrears.
Soe says
Hi,
I just want to ask, could all the borrowers send a formal letter to FDA and Ombudsman suggesting our own scheme?
What do I mean by that: if we could get together on one platform and agree to offer amigo to respond to those whose claim would be approved and pay refunds by instalments over a course of a year or so? Also to stop borrowers payments to Amigo and to stop drowning people in debts even further.
I can’t believe that the court would overrule a basic human right to the information about the outcome of their complaint. I would not have expected this. It literally makes me think that someone powerful from Amigo has good connections in legal departments of the Courthouse to be able to pull this.
I, for sure, don’t want any black marks on my credit file as I wish to buy a house one day.
Surely, there are better ways how to win this?
There is absolutely no way that Amigo will refund us the money. All those schemes are garbage and they simply want to buy time. I truly believe that my complaint is successful and they would owe me over 5k in refund at this very moment. I would gladly agree to repayment by instalments from them.
…
You guys, we need to act together. I wish to attend that court hearing when they will be proposing second scheme.
All of the Amigo seniors should be in jail for such mass financial fraud
Sara (Debt Camel) says
I can’t believe that the court would overrule a basic human right to the information about the outcome of their complaint.
I’m not sure what you are referring to here?
Gail says
Do we have any more news regarding resolution of complaints/redress/timescale?
Sara (Debt Camel) says
Amigo has sent details of a proposed second scheme to the FCA in late September. Since that statement, nothing.
Julie Collier says
I wonder how long Amigo can keep proposing new schemes?
Sara (Debt Camel) says
oh I think this is their last chance.
Gabor says
Hi Sara,
I received message from Amigo Loan:
” It’s important to me that you have the facts regarding the CCJ that we could apply for if we’re unable to resolve the recent missed payments. When the loan was paid out, we could accept you because of the strong credit score you had built. A CCJ may impact that score and set your own ability to obtain credit back years.”
My question is, that do they know that a complaint is still in progress at FOS? Or the FOS when said they are not investigating at this point, it’s mean that the case is closed? Amigo Loan just ignore it, like it wouldn’t exist my complaint at FOS. Should I answer anything for this message? The borrower wasn’t affordable for the loan, it shouldn’t be issued at all, doesn’t matter my credit score. I think they are twisting facts.
Thanks,
Gabor
Sara (Debt Camel) says
My question is, that do they know that a complaint is still in progress at FOS? Or the FOS when said they are not investigating at this point, it’s mean that the case is closed? Amigo Loan just ignore it, like it wouldn’t exist my complaint at FOS.
The FOS complaint will turn into a Claim in a second Scheme, if that is approved. Or in administration if Amigo go under.
They are ignoring the complaint.
But they are using very careful language
“the CCJ that we COULD apply for”
they are not saying
“the CCJ that we WILL apply for”
I added the capital letters to make the point clear. This is just a nasty threat that they don’t intend to carry through at the moment. Nor during the Scheme until the borrower’s claim is resolved.
If the borrower loses their complaint – and you lose yours if you are also making one – then you will have to come to some arrangement to repay the loan. But this is not imminent. If you are worried about that, then you could start to save up money now in a separate savings account, then if the owrst happens, you have it there, ready.
Leer says
Hi,
I am a guarantor, the borrower has entered a ive/Trust deed I have now received a notice from amigo stating that I have to pay the outstanding on the loan. Is there a way for me not to do this? Payments would be a lot higher than I can manage or could manage at the beginning of the loan.
Thanks.
Sara (Debt Camel) says
Has the borrower made an affordability complaint before this IVA? Trust deed?
Have you made an affordability complaint?
Can you say more about your current situation – id this your only problem debt? Are you in work? buying or renting?
Leet says
The borrower has made a complaint before the iva/trust deed was accepted. I have not yet made a complaint as I have only just heard about it all and I am worried about the situation and my options.
I have no mortgage etc. But only work part time and cannot afford repayments.
Sara (Debt Camel) says
ok so the general situation about Amigo is that at the moment they are not considering complaints at all but are insisting they wait until a second Scheme is approved – if one isn’t them Amigo will go into administration. So complaints will be either be handled by Amigo in a Scheme or by the administrators.
As the borrower has complained, if his complaint is upheld, you will be released from being the guarantor.
You too can make a complaint on two grounds (from what you have said) – first that the loan was unaffordable for the borrower when it was given. Secomd that it was unaffordable for you at the time it was given. A loan is only affordable if you could make all the payments and still pay your own debts, bills and living expenses and not be left so short of moeny you had to borrow more to get by.
If your complaint is upheld, you will be released as guarantor.
If you or the borrower win the complaint and you have made any payments, you would be likely to only get a tiny refund back in a Scheme – Amigo thought 10% in the first Scheme. And you would be likely to get nothing back in administration.
As you anyway can’t afford them, there is no point in you getting into debt or behind with bills trying to. If you haven’t already, you should think about cancelling your direct debit to Amigo and phoning your bank up and cancelling the conctinuous paymenst authority over your debit card. Otherwise Amigo will help take a payments and you will be left too short of money to manage.
Amigo will probably threaten court, but (a) you can’t afford to pay them and (b) they are just bluffing at the moment – there is no time for them to take you to court before a new Scheme starts, and then they will have to detgermine your complaint, not sue you.
If in the end the borrower loses their complaint AND you lose yours, you will need debt advice on your options. You can talk to National Debtline on 0808 808 4000 now about what your options would be – if you have problem debts at the moment this would be a good move for you now. Otherwise you can talk to them now or decide to wait until you know the outcomes of the complaints.
Stephen says
Amigo are an absolute joke, I entered into the equitable set off scheme last month. I was the told Amigo would not expect any payments from myself or your guarantor. You will not receive any texts, emails or letters. But low and behold today I’ve received a letter to say in 4 days late on my loan payment after numerous emails saying how this would affect my mental heath they still send threatening letters. This company is ridiculous.
Debbie says
Same for me me too! My guarantor is receiving these letters too! I have just over a thousand pounds to pay, I have paid absolutely thousands back on a £5000 loan and this is how they treat you after exercising my right to equitable set off! It’s ridiculous and embarrassing for me to have to keep explaining what’s happening to my guarantor when he receives these threatening letter! And like you, it’s affecting my mental health also!
Jean says
I’m glad I’m not the only one feeling the same about being embarrassed having to explain to my guarantor EVERY SINGLE TIME.
The sooner this company goes under the better. How the staff there aren’t just leaving is beyond me.
We all in this together just remember it will be over soon
Cj says
Is it to late to complain I borrowed 4000 I’ve made 20 payments of 158.10 and I still owe 3500.. prob is I dont want my guarantor to have to pay or even be asked to pay
Sara (Debt Camel) says
You can complain but Amigo will not look at your complaint at the moment – it will wait until a second Scheme is approved – which seems impossible before January now.
Is this your first loan from Amigo?
Cj says
Yes first from amigo but had several other loans for several other lenders and large overdraft at the time
Sara (Debt Camel) says
OK then if your claim is upheld in the Scheme, you will have the interest removed from the balance. You haven’t yet paid more than £4000, so you would still owe a bit. In this situation if you complain now and ask for Equitable Set Off, Amigo will say no and say you have to keep paying or they will go after your guarantor. Once you have paid over 4000, you can ask for Equitable Set Off and they wont go after your guarantor.
NB this is Amigo’s choice about what to do. Legally you can use Equitable Set Off as a defence in court in your situation even though you haven’t paid over 4000. But it’s impossible to reason with them about this.
So to answer your question:
– you can complain now but Amigo will ignore it and not allow you to stop paying.
– at the point where you have paid over 4000 you can complain and ask for Equitable Set Off and stop paying. This will save you money if your claim is upheld and they will not go after your guarantor.
– if you haven’t complained before a second scheme is agreed, then definitely make a claim to the Scheme.
Lastly you will be no better off in a Scheme than if Amigo goes into administration – you will be able to make a claim to the administrators.
Lisa P says
Hi Sara, please advise what to do.
I have made a complaint to Ombudsman about the Amigo loan. I claimed that I was pushed to take the loan for my ex-partner and act as his guarantor. Therefore, I was in a coercive control relationship. They have looked at my situation, but they have decided not to take my complaint further as Amigo would not pay them even if they won because of Amigo new scheme.
Today, I keep paying my ex-partners loan, £50 a month, as I am a full-time student. I have been paying his loan for two years. So probably, I have paid £4000 so far. He works, he drives a fancy car. I have emailed him to say that I am a student and the money is tight. Whether he could pay £50 a month towards his loan, He is ignoring.
I am thinking to get legal advice and taking him to court. First, however, I want to argue that I must be withdrawn from the agreement with Amigo. There is duress in the contract. I have undoubtedly been forced to be his guarantor. And now, he could pay, but he doesn’t, and Amigo is pursuing me and not him.
I am not sure what to do.
Sara (Debt Camel) says
I am thinking to get legal advice and taking him to court.
You may have a case for something called “undue enrichment”. But this may not be straightforward, especially if he can afford to pay for a solicitor and you can’t.
I suggest you see if there is a Law Centre near you where you may be able to get some help with this: https://www.lawcentres.org.uk/about-law-centres/law-centres-on-google-maps/geographically. If there isn’t, you could try asking on the Legal Beagles forum.
First, however, I want to argue that I must be withdrawn from the agreement with Amigo.
The problem here is that there is nothing you can do to MAKE Amigo look at your complaint at the moment. Any second Scheme cannot start until January at the earliest now. Every month you pay out, you will get back only a tiny amount of that if your claim is upheld in the Scheme.
So you have to decide whether to just stop paying them until your claim is decided. This cannot affect your credit record – the loan doesn’t show on your record. And if you stop paying Amigo may also start sending the borrower nasty texts and emails…
If you could afford to put aside the money you are currently paying Amigo, then if, worst case, you lose your claim, then you have it there. If you can’t afford this, then you probably can’t afford the repayments anyway. If you have other debts it would be good to talk to a debt adviser now about your options – call National Debtline on 0808 808 4000.
James Harrod says
Hi Sara,
After reading about the equitable set-off, I decided to email Amigo to exercise my right for it.
They replied with saying there is a form I can read, so I know the full details of it. After reading the form, I have a few questions.
1. I have paid more than both the principle loan amount and the interest applied, at the time I took out my second top up loan. Does that put me in a good position to apply for the set-off?
2. Even if I choose the set-off, they state they still apply interest to the balance. As the interest is applied to the balance daily, would that not still mean I pay more than when the set-off occured, as the balance increases each month, because of the interest?
3. I’ve had a response from FCA, saying they will not uphold my complaint due to the scheme being discussed. However, FOS said they won’t be dealing with my complaint, due to the ongoing scheme discussions.
In light of the above, I do want the set-off, but I’m worried by claim won’t be upheld, either in a scheme or insolvency, and as such, they would want the whole balance paid.
Hope you can help!
Sara (Debt Camel) says
1. You need To ask Amigo They are making up the rules here. Their rules do not correspond to when some one could use Equitable Set Off as a defence in court to a claim.
2. This Equitable Set Off is NOT giving you an immediate set off, it is saying as you could argue in court that you have this right, they will allow you to pause payments and not ask your guarantor to pay. So when you wrote “ when the set off occurred”, this doesn’t actually happen until the complaint is upheld.
So interest is still applied. This makes stopping paying Amigo the same as stopping paying any non guarantor loan.
In Amigo’s case, the interest applied is capped – you can never have to pay more than then quoted you at the start.
If worst case your claim is rejected, then you will need to start repaying or they will go after your guarantor. (Unless your guarantor can also make a claim the loan was unaffordable for them? In a scheme or in administration it’s important the guarantor also makes a claim if the loan was unaffordable for them as it gives them 2 ways to win and be released as guarantor.)
Can you afford the repayments now? If you can, then your best option is to stop paying them but save up the repayments so they are there if they are needed in the worst case.
If you can’t afford them, well carrying on paying a disputed loan and getting more into debt elsewhere is not normally a good idea! If you win your case in a scheme you will only get back a small, possibly a very small, refund, much less than you would have normall, so you will still be left with all the rest of your finances in a mess.
Victoria phillips says
I have commented before about my amigo loan for £4000 I have paid them over £7200 and I stopped paying for financial reasons I’ve had a complaint in since last November. I had a DRO approved last week and now they won’t take that into consideration and are expecting my guarantor to pay He also has a complaint in as he lives on pension credit and should never have been allowed to be guarantor in the first place. They have sent bullying emails and letters to myself and guarantor over the weekend as they now know I entered into insolvency. It is causing friction between me and my dad who is guarantor in reality I have paid the loan and more I dong know what else they expect. What am I to do now? I really don’t know 😕
Sara (Debt Camel) says
Have you asked for equitable set off?
Your dad needs to cancel his direct debit to Amigo and also phone his bank and cancel the continuous payment authority over his debit card.
This will not affect your dad’s credit record. His complaint will be considered in any second scheme or in administration if Amigo go under. He can complain both that the loan was unaffordable for him and that it was unaffordable for you – you can supply information to him about your finances eg your bank statements that will support that.
He is probably in a pretty strong position. Not many people on pension credit could afford to make all the repayments on a loan that large at such a high interest rate. It is unfair and annoying that they are trying to bully a pensioner, but there isn’t anything you can do to stop this except offer him moral support.
Now you are in a DRO you are legally not allowed to make payments to this loan.
VICTORIA says
I have asked them lots of times they just simply ignore my requests. As the actual loan amount of 4000 has been repaid In total over £7200 has been paid to these cowboys and im at a loss to even speak to them. They have no.interest whatsoever and ignore my emails when I remind them about equitable set off. Really had enough now of them its caused friction in my family and I am trying my best and had to apply for a DRO for my family’s sake and now all this bullying to my dad when will it stop? and when are we to expect to hear about amigos new scheme? they really just need to go.i solvent themselves. Is it true they can’t take anyone to court who has a claim in and has paid their loan and more off?
Sara (Debt Camel) says
Who knows what is happening with the new scheme… It can’t be approved before January now.
Is it true they can’t take anyone to court who has a claim in and has paid their loan and more off?
I don’t remember Amigo going to court when someone had an open complaint with them or with FOS. It would be a stupid thing to do as the customer could just defend the case – better to resolve the complaint. And going to court takes a long time – a defended court case takes on average more than 9 months to get to a hearing!
Bee Fitz says
Hi Sara similar to last question. I borrowed £8000 in Oct 2018 at £342.20 per month. I have paid over £12,319 . I still apparently owe £3k . I am really struggling due to ill health now and on benefits Any tips on how I could stop paying Amigo please?
I’ve told my guarantor, who is also on a reduced income having split from their partner, obviously they worry about their credit rating etc Any advice welcome. I haven’t made any complaints to anyone yet, I’ve just struggled with payments but getting behind on essentials like council tax , utilities Ty
Sara (Debt Camel) says
Was this your first loan from Amigo? Was it unaffordable from the start? A loan is only affordable if you can pay it and still be able to pay your other debts, bills and everyday living expenses without getting further into debt?
As you have repaid more than you borrowed, if you make an affordability complaint (this can just be an email saying you are complaining that you should never have been given the loan as it was unaffordable) you can ask for Equitable Set Off – this lets you pause paying Amigo until you claim is settled in a new Scheme or administration.
Here your guarantor won’t be asked to pay, unless in the end you lose your complaint – if that worst case happens (probably in the second half of next year), you will both need to take debt advice about your options.
This will harm your credit record at the moment but not your guarantor’s. The Amigo loan does not appear on your guarantor’s credit record.
Getting behind with council tax and utilities is a disaster. Do you have other loans and credit cards as well?
Bee Fitz says
Hi Sara Ty for replying I had a previous Amigo loan which was paid off. Same guarantor. When I took the 2nd loan in October 2018 , Amigo made no real checks as I recall on either myself or my guarantor. In November 2018 I had a car accident and subsequently lost my job 6 months later after being on SSP (STATUTORY-SICK-PAY-SSP) I then went onto esa and have survived barely , always paying Amigo 1st. I now have debts with council tax and rent arrears. I’ve told my guarantor who is fine about this as long as Amigo don’t take the money off him. He’s now a single income, single parent so struggling too. I have sent the email to Amigo and cancelled my DD. Should I tell my guarantor to do the same? Ty
Sara (Debt Camel) says
ok, can you think back to October 2018 – what was your financial situation at that point? Were your debts going up? were you in difficulty already before your car accident?
And what about your guarantor – at that point could he have afforded to make all the £342 a month repayments to your loan and still paid his own debts, bills and expenses? he may have been better off than you, but that’s a lot of money for someone to find.
If you make an affordability complaint now and stop paying, you can ask Amigo for “equitable set off” as you have repaid more than you borrowed. This pauses their debt collection until your complaint is decided ina new Scheme, probably the second half of next year.
If Amigo agrees to this they should not take money from your guarantor, but it’s still sensible for him to vancel his direct debit to Amigo and phone his bank and cancel the continuous payment authority over his debit card. Much better to be safe than sorry.
If eventually you lose your complaint you will then agian have to start paying and at that point both you and your guarantor will need debt advice.
But as you have priority debts, i think you should tyalk to a debt adviser NOW. Don’t wait. Phone National Dbetline on 0808 808 4000 – tell them about the Amigo loan and what you are doing and ask for advice on this and the rest of your finances.
Bee Fitz says
Hi Sara tbh as he is a very close relative he agreed as guarantor for that reason only. He couldn’t afford to pay but at that time , he had no reason to believe that I would have difficulty. I have taken debt advice but religiously paid Amigo which has exacerbated my other debts by using credit cards to pay everything but eventually they get full . I have emailed Amigo regarding the affordability complaint and asked for EQUITABLE SET OFF. I will continue to put money away incase I lose my complaint. As you’ve suggested I’ve told my guarantor to cancel any Direct debit, though I certainly don’t remember him signing anything, and I will also remind him about the CPA . I notice my Amigo account also has my debit card listed so I’m guessing they might have a CPA on that ?? Any further advice greatly appreciated Ty
Sara (Debt Camel) says
He couldn’t afford to pay
In that case he too needs to make an affordability complaint. If he wins that he is removed as guarantor and from then on this Amigo loan is just a normal unsecured loan for you and you can make a low payment arrangement.
re your debit card – phone up your bank and ask – it’s the only way to be sure.
Kyle says
Hey, I have a question not related to amigo. I have a loan out with George banco. When I took it out I was in debt and used some of the loan to pay off that debt which they knew about. My outgoings were leaving me in the overdraft constantly, and I shouldn’t have taken it out basically. I offered them to pay the remaining of the loan and asked them to take off all the interest, to which they replied and said they used a credit checker and it came back fine so there was no reason to ask for bank statements and such. They say their checks were adequate. But I also said to them that the loan was unaffordable even more so now that I had lost my job in May. I sent them the run down of my outgoings and they were not enough for my daily bits. So I said to them a mate would help me pay the little remainder of the loan and that they wipe off the interest. But they said no. Question, when I send it to the ombudsman, do I have to keep up with the payments if I have filled out a debt help thingy with that charity that shows my outgoings cannot cover everything? Coz I can’t physically pay them now. Where do I stand whilst this gets investigated by ombudsman?
Sara (Debt Camel) says
who is your guarantor and do they know about your difficulty? what is their financial situation like?
Kyle says
My guarantor is a friend of mine, they do know about my difficulty. Their financial situation is stable, but wouldn’t be with the extra £144 coming out.
Sara (Debt Camel) says
what was your guarantor’s situation when you took the loan – at that point was it likely they could repay all the payments and still pay their own debts, bills and everyday living expenses without getting further into debt?
Bethany says
Hi Sara,
I am a guarantor for a amigo loan for my partner, he believes the loan to be unaffordable so made an affordability complaint some time ago. He then lost his job and fell in to arrears in June. I was also unable to make the payments and keep up with other bills.
I made an affordability complaint in June and did get a reply email acknowledging my email.
At first we received lots of phone calls/ letters borderline harassing about making payments but through reading advice on here we ignored those knowing we had made that complaint.
We haven’t heard from amigo for almost 3 months now and today have received a call asking me as guarantor to start making a payment so they don’t have to escalate the case.
Am I still within my rights to wait for a scheme of arrangement to be announced until we think about payment?
Thanks in advance
Sara (Debt Camel) says
Nothing has changed from the previous situation. Amigo may threaten to go to court but this is a long slow process. They are hoping a new Scheme will be approved and there is no chance they can get a court decision through before then if you defend the case. So why would they spend money on doing this? And also probably annoy the FCA?