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%.
Rebecca B says
Amigo confirmed in a final response letter in august 2020 that I was owed £4643 redress. However I never recieved the letter until November. They never sent it to me. In the mean time it went to the FOS as I had not recieved a reply.. by chance I chased up with amigo in January 2021 why I had never had a response, they advised me they sent final response in august and sent me a copy. I accepted the £4643 redress and On 18th January amigo confirmed in writing they would pay me the £4643.
After a month of chasing and being lied to they have emailed me to say they have gone back on the decision and that because it had escalated to the FOS it would need to go through them despite me accepting the final response and the FOS confirming they have withdrawn the complaint because of my acceptance.
I am livid , extremely upset and this has caused my health to suffer significantly.
What does this now mean for me ? Have I lost £4643 compensation through no fault of my own ?
Surely the FOS will rule them to pay as normal due to final response being august 2020. ?
Please help
Sara (Debt Camel) says
Have you spoken to FOS about this? it doesn’t sound reasonable at all!
Rebecca B says
Yes they are looking into but it’s taking ages, I don’t know where I legally stand on this
I agree it’s massively unreasonable on their side, I’m really stressed and unwell over it
Sara (Debt Camel) says
I’m sorry there isn’t anything simple to say here. Of course Amigo should pay you. But whether the FCA will let them get away with not doing it… it’s shocking.
Francis says
Hi
I have a current loan with amigo. I was wondering how do I petition to speak at the court hearing. Amigo put me through to their solicitors who said they would bring up my concerns, very dubious of such intent. Why would they when their sole aim is to see the scheme implemented.
Sara (Debt Camel) says
Amigo’s solicitors have duty to bring any representation from creditors (and all people claiming refunds are creditors here) about the legality of the Scheme or the proposed classes for voting in the Scheme to the attention of the court.
Whatever you may think of Amigo, their solicitors have to do this.
However, what is not clear to me is what the solicitors will do if your statement talks about how you think the Scheme is unfair. It isn’t the job of the first court hearing to consider arguments about fairness. But there may be a legal argument underlying your words that is relevant to the court, you may just not have phrased it very clearly.
One of the things the first court hearing can consider is the adequacy of the Explanatory Statement. This is a detailed document that has not yet been published.
I suggest you may want to wait until you see that. I assume it will be published at least a week before the court hearing date.
Many people’s questions will be around how Amigo will determine whether to uphold a claim and how it will calculate the redress. I hope some of these points will be clarified in the Explanatory Statement.
At the moment I am not optimistic that it will set out a process that is reasonable. Only yesterday someone received an offer from Amigo which still included the unreasonable “deduction for unpaid interest”. But it is better to know the facts than make a vague statement that Amigo’s solicitors will be able to say has been dealt with in the explanatory statement.
Sally says
Final update on my amigo loan ,
In August amigo rejected my complaint , I than sent it to FO , received communication from FO stating that amigo would like to make an offer , upholding my complaint and taking the interest off my ongoing loan , which would have left me owing amigo £514 . Received phone call from amigo today saying they are writing off the balance as a goodwill gesture . Completely satisfied , thanks Sara and this page for all the support .
C says
Hi Sara
Thoughts please, I had a claim rejected and I sent it off to FOS back in Sep.
Since then I noticed Amigo have stopped interest payments, maybe they know they are in the wrong to have rejected it. Anyhow, whilst I await a response that isn’t likely to come back anytime soon, I have £2000 left to pay over the next 3 months! As I hadn’t already asked for a COVID payment break and as my work/salary was affected last year, (all be it, temporarily) I thought now would be the perfect time to ask, which I have done! This should lead up to the May decisions hopefully! Why should I pay them the £2k when they will owe me a lot more (again, very doubtful will ever see that)? Can somebody put my mind at rest that I have done the right thing by asking for a break and not handing over this £2k at least until I know more on the Scheme? They play games with all of us so maybe it’s our turn? A little scared though 😳 ps I have offered a token payment of £50 a month, should I have done that?
Mark says
Hi Sara
My self (guarantor) and loanee have made complaints, mine as a guarantor has been escalated to the FOS as hit the 2 months.
Live others I’ve noticed the last couple of payments have been 100% towards the principal and no interest paid… any idea why they are doing this?
Sara (Debt Camel) says
Not really. How could this help them?
Suppose you had one loan, borrowed 1500, to pay back 3000, so 1500 interest.
If this loan is upheld in the Scheme and you have paid 1000 so far, the balance will be changed to 500 owing, regardless of whether they say the previous payments were “interest” or “principal”. If you have paid 2000 so far the balance would be cleared and you would get 500 going into the pile for cash refunds and get back 55 of something of it. Again regardless of how they have previously catgorised your payments.
So something complicated to do with when bondholders get repaid? Some problems associated with their systems and people who had taken payment holidays? An error? No idea.
Do you think your/the borrower’s complaint is strong? Has more been repaid than the amount borrowed? If Yes and Yes then you should probably just stop paying! Because every pound paid over the amount borrowed is effectively being flushed away, you are going to get very little back of it.
Mark says
I just had a look and not yet – the loan was for £2000, and the borrower paid back £1300, remaining balance is still around £1300. I guess by the time we know if the scheme is going ahead of not should have reached around or just under the original £2000 borrowed.
Sara (Debt Camel) says
then unless there were previous loans, the 2000 borrowed does have to be repaid
Claire says
I’ve been waiting over two years for my complaint to be sorted out!! I got a final disision from ombusman and the beginning of February …Nightmare to get it to that stage.
Amigos have been so differcult to deal with and that as a priority. Once their scheme of arrangement goes to court im sure itll all be in the news papers and I’m sure afew people may get there story told. Worse financial disision of my life!!
Matey says
I have a few questions and ask for advice from you.
On an amigo loan in 2016 £3500 + 6500 replenishment total £10000 pounds I have to repay £23.723 so far I have paid 13,842.50 and there are still £ 9,881.25 pounds to repay. Before I was granted loans, I already had 2 credits of 15,000 pounds and several credit cards and I gambled online and they still gave me 10,000 pounds and then I had to take a few more credits to be able to pay 395 each month, my salary was a lot. low.
I filed a complaint on January 16, 2021 through http://www.resolver.co.uk they said they would review it but I no longer have the financial ability to pay more, what can I do if I can write to the financial department to file a complaint so that they do not stop money from me and My guarantor.
And something else that will happen if Amigolan declares bankruptcy, what happens to our loans. Thank you
Sara (Debt Camel) says
what is your guarantor’s financial position? When the last top up was taken out, could they really have managed to make all the Amigo loan repayments and still been able to pay their own debts. bills and living expenses? They may be better off than you but the monthly loan repayments would have been very large so would they have struggled to pay them?
have your finances been affected by Covid-19? If they have, have you had a 6 month payment break?
Matey P says
Hi Sara, my guarantor also had several credits and several credit cards to pay, the top-up of my credit was two months after I took the initial amount 2016 April 3500 top-up June 6500 total 10000 as I emphasized then I had more credits than to pay and yet they gave me They gave up without any problem. Yes, my finances were affected by kovid19 and I took a 6-month break, then I continued to pay, but there is no possibility anymore, what can I do? if i write to the financial otbutzman can you help me not to take money from my accountant. And if Amigolan declares bankruptcy, what will happen so far? I have paid 13,842.50, as far as I saw from your publications.
Sara (Debt Camel) says
So do you think your guarantor would NOT have been able to make all the payments to the loan and still been able to afford to pay their own debts, bills and normal everyday living expenses?
I know this isn’t answering your question, but it makes a BIG difference to what the answer is.
Sarah says
Hi Sara
I wonder if you could help. My husband had 6 loans from amigo over a very short space of time each being topped up every 6 months or so.
They were all paid back in full and we made a complaint to amigo in December 2019 who about 6 months later refused the complaint.
We initially made a complaint to the FOS on 31st March 2020 and sent them amigos final response when we received it in July 2020.
We have called the FOS multiple times who have advised the cases are taking 4-6 months but our case has now been with them for 1 year!! Obviously now amigo have moved to try and implement the scheme we are unlikely to receive any redress at all.
I am really disappointed that the FOS have taken so long to deal with our case and wonder if you can advise how I can deal with this?
Sara (Debt Camel) says
I have a lot of sympathy here for your husband but also for FOS who have had their hands tied behind their back for much on 2020.
The FCA allowed Amigo to have a “Vreq” to try to resolve the backlog of complaints from May until October. hence you getting a response from them in them in July. But during this time they went very very slow on responding to FOS and often on providing FOS with case files, so it was hard for FOS to progress cases and not many were resolved.
Then as it became clear Amigo were not upholding cases in the way that FOS does, FOS got thousands of cases that should have been sorted in the Vreq.
And after the Vreq Amigo’s complaint handling again reverted to delay / reject / poor offers.
As a result FOS has had nearly 13,000 Amigo complaints between July and December (from yesterday’s FOS statistics, see https://debtcamel.co.uk/amigo-provident-2020-ombudsman-cases/) and is having to prioritise cases for vulnerable people.
I am afraid it is likely that your husband will come out very badly from this. If the Amigo Scheme goes ahead, he may get only about 5% of the assessed refund back (see https://debtcamel.co.uk/amigo-scheme-timetable-approval-how-work/). With 6 loans I would hope his claim is upheld in a scheme, bit at the moment Amigo has a bad habit of only upholding a few loans and then making a deduction for “unpaid interest” that FOS never does. So the amount of redress in the Scheme may also be a lot lower than he would have got from FOS even before it is then reduced to pennies in the pound.
The 4-6 month timescale is probab
Chris says
Amigo are still processing refunds. My case was upheld last year for 2 out of 4 of my loans which I accepted but took the unfair interest deduction to the FOS. I was prioritised with them and heard back 2 weeks ago from my adjudicator that amigo had offered me all in interest back on all loans. I accepted and called amigo on Monday with my bank details. I pestered them since then with calls and emails and the interest refund was paid in last night so everyone hang in there.
Stewart sadler says
Hi all,
Got an email off amigo today which i’ll paste here, just want to know if i should do anythin about it or if being added to the scheme is just the generic course of action.
I am writing further to our acknowledgement letter and to keep you up to date with the current progress of your complaint.
Over the past year, Amigo has been facing very serious challenges from customers in relation to historical lending decisions. It became apparent towards the end of last year that responding to the level of complaints was not financially sustainable and that Amigo was facing possible insolvency in the longer term. Amigo believes that administration would mean customers getting nothing in terms of redress.
Amigo’s objective with the Scheme is to ensure that all of our customers who believe that they were given an unaffordable loan are treated fairly and no customer receives a benefit that disadvantages another.
As a result, we have not stopped processing complaints, but have stopped paying out redress pending the approval of the Scheme. However, if Amigo were to enter administration, it is then likely that no further redress will be paid out.
We can confirm your complaint will be automatically included within the proposed Scheme and we will update you after the Scheme court hearing on the 30th March 2021
Sara (Debt Camel) says
there is nothing that can be done now.
If the Scheme gets past the first hudle – the court hearing t the end of march, then it moves onto the second one – a vote by the customers. At that point we should all know a lot more about what Amigo are proposing, it is VERY vague at the moment.
What Amigo are not saying clearly now in this message – and that is I think misleading – is that if Amigo goes into administration, all customers with current loans who have a complaint upheld would get the balance reduced and their guarantor released or written off. There may be no cash payouts in adminsitration, but balance reductions/write offs are much more important for people with current loans!
And people may well only get 5p in the £ in the Scheme.
Stewart sadler says
Obv for me an my circumstances im fine with them going bust, im all for my loans an my guarantor to be wiped but i understand some people are owed money. I still owe 12k (so paid about 8) an my end game is to be rid of it, however that happens
isabelle says
I have been in the comaint process for a little over a year now, dates as follows;
04/02/2020- affordability complaint to amigo.
03/06/2020- final response from amigo
25/06/2020- case opened with FOS
14/01/2021- case picked up by FOS adjudicator
22/01/2021- adjudicator decision made in my favour. (Amigo given response deadline of 04/02/2021)
04/03/2021- Amigo agree to uphold complaint and will be in touch shortly with figures.
I have been told that amigo should deal with me directly now. I know its only been 4 days but I’ve had no correspondence from amigo as of yet. I have 2 questions.
Firstly, as amigo have decided to uphold my complaint does that mean I won’t be affected by the scheme now?
And secondly, what is the typical time scale for money to be paid out?
My loan was for £5000 in December 2018.
I have luckily paid it off in full as I had a large backdated disability payment. I paid roughly £2400 in interest. (I’ve been told I would expect this back plus something called simple interest ?)
Sara (Debt Camel) says
Firstly, as amigo have decided to uphold my complaint does that mean I won’t be affected by the scheme now?
Yes I think so. There are no rules about what happens here though as Amigo should no have accepted the decision in theory.
And secondly, what is the typical time scale for money to be paid out?
There are no rules. Some people are paid fastish. Others are still waiting for no clear reason.
I paid roughly £2400 in interest. (I’ve been told I would expect this back plus something called simple interest ?)
Yes. When was the loan settled?
isabelle says
Hi Sara,
Thanks for your quick reply.
The loan was settled on 26.06.2020
Sara (Debt Camel) says
Then you would probably get very roughly an extra 8% on top of the interest refund.
isabelle says
Thanks for your reply Sara,
I’ve received an email from amigo today with the offer.
This was the figures they came back with;
‘Interest paid to be refunded to you: £2,971.70
8% statutory interest awarded: £127.66
20% tax already deducted from 8%: £31.92
Total interest refund due: £3,099.36’
Just wanted to update incase anyone is in a similar situation.
Thanks for your help.
I originally opened the complaint using a template that I found here on debt camel so this site has been extremely helpful for me.
Good luck to everyone else going through the process!
isabelle says
Just to update the money went into my bank today :)
I think the reason my complaint was still upheld regardless of the scheme is because the FOS made it clear to Amigo that my case should be treated as priority as I was struggling to afford to look after myself and my young children. They also took into account the negative impact it has had on my mental health.
Thank you Sara for all your help, I couldn’t have done this without this amazing site.
Siobhan says
Well done. This is so upsetting for me though, FOS made a final decision back in Dec and Amigo have refused to respond to them. They’ve told me they are still looking at it even though it’s a final decision that’s been made. I won’t be seeing a penny
Jimbo says
I’m in this very same position it’s really frustrating
Siobhan says
Jimbo it’s got to the point where I’m being a rude in my emails which I don’t think is helping but it is incredibly frustrating! Especially when I first complained in April 2019 and my redress would be small compared to others. I won’t be voting for any scheme, if I don’t get full redress I’d rather they went bust.
Ricky says
We have had a refund from AMIGO LOANS of £12k last year as we won our complaint.
Does this mean the scheme is no use to us? Sorry only asking because we have even getting emails and texts from amigo about the scheme so we wasn’t sure.
Sara (Debt Camel) says
You had a refund of your third loan, but not the first two.
The Practice Statement letter says that you can’t make a claim under the Scheme because you accepted an offer from Amigo.
Myla says
Hi Sara
I’m planning to file an affordability complaint for a guarantor loan. In my letter can I write that I’m on a DMP after more than a year I took a guarantor loan from Amigo or not.
Many thanks
Myla
Sara (Debt Camel) says
Yes you can add that into the template complaint in the article above.
Has this loan been repaid? If not, what is your current financial situation?
Myla says
Hi Sara
I am still paying it i have requested a lower amount last jan 2020 as i really cant afford it anymore took guarantour.loan feb 2018 of 10,000.00 paying 395 a month, now im paying 220 a month but the interest is extremely high i am not going anywhere in this loan, i was on DMP since Aug.2019 up to present, i cannot include Amigo in my DMP as i have a guarantour, i wish they will remove my guarantour. I just want to pay all my debts with small interest or no interest.
Thanks
Myla
Sara (Debt Camel) says
So this is a very large loan, I understand you don’t want to involve your guarantor, but do you think when you took this loan that your guarantor could really have managed to make all the Amigo repayments and still been able to afford their own debts, bills and living expenses?
Myla says
Hi
You are right with my guarantour but she was not happy i think she regreted she became my guarantour, do you think i will still write a complain.?
Myla
Sara (Debt Camel) says
Yes you should still complaint – what do you have to lose? If you don’t want her to be affected you have to keep paying, but complaining means there may be light at the end of the tunnel even if it takes a while to get there.
BUT also encourage your guarantor to complain as well! Because if she can say the loan was not affordable for her and wins her complaint, she is removed as guarantor and you can just put your Amigo loan into your DMP. So both of you win.
I suggest you send her a link to this page for guarantors https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and explain how it could help both of you if she complains.
Myla says
Thanks Sara for that very inspiring advises, yes i will still continue with the complain and i will speak to my guarantour too.
Thanks so much for your advises
Myla
Ash Alexander says
Get your complaints to Amigo as soon as you can and get the ball rolling you have a good case to complain and I can see it will be upheld and a positive outcome for you both .
Sara (Debt Camel) says
You must have a better crystal ball than me, Ash!
But I agree it sounds like a good cause to complain, and for the guarantor.
debbie says
hi sara could you please advise me i have recently been contacted by the fos that they agree my loan with amigo was unnaffordable this was after the 21st of december i have had no contact from amigo regarding my complaint upto date i am currently still paying them £296 a month as i dont want my guarantor affected she has removed her banking details with amigo, i really dont want to pay them anything until they have dealt with the decision from fos where do i stand if me andmy guaranto do not pay thank you
Sara (Debt Camel) says
Have you been told your case is a priority with FOS?
How much did you borrow and how much so far have you paid to the loan – just the total cash repayments, ignore if interest or repaying the capital.
debbie says
hi sara
no it isnt priority the fos have advised ne they will continue to chase amigo, the loan was £7500 payments made are £5400 balance of £9772
thank you
Sara (Debt Camel) says
ok, then as your case is not a priority it is very unlikely Amigo will accept the FOS adjudicator decison, they are probably just going to ignore it.
If they did accept it, then your balance would be reduced to 7500-5400=£2100, your guarantor would be released and you could make an arrangement to pay at a lower, more affordable rate.
Amigo is trying to set up a Scheme to reduce the amount it has to pay in refunds dramatically.
The good news is if the Scheme goes ahead – it wont be known until May –
The bad news is you have no idea if Amigo will uphold your complaint. We may know more about this in a few weeks but so far they haven’t said anything helpful.
If the Scheme fails, it is very likely Amigo will go into administration.
The good news there is that you would get exactly the same result in administration if your complaint is upheld as you would from the FOS deciaions as balance reductions are being given in full.
The bad news is also the same – will your complaint be upheld?
So how will you (and your guarantor) vote on the Scheme? All customers will get a vote in April. It comes down to whether your complaint is more likely to be upheld in the Scheme or in administration… I have seen quite a few lenders go through administration and in general they seem to do a pretty good job of trying to mimic what the Ombudsman might decide… So my inclination at the moment is that you are more likely to gewt a good result in administration. But as I said, we should know more in a few weeks.
So should you continue to pay now?
In any of the cases you still owe £2100. Which is about 7 months payment.
Can you afford to pay these? If you can it may be the least stressful option to do this for a while until it is known if the Scheme goes ahead or Amigo goes bust.
If you can’t, then could you pay a lower amount?
Have your finances been affected by coronavirus? If yes, have you had a 6 month payment break?
If you and your guarantor just don’t pay, then it isnt clear that Amigo will do anything except send you nasty texts and emails. There is no time for them to take either of you to court before either the scheme starts or they go under.
k says
Has anyone had a response back from FOS regarding unpaid interest and charges? Amigo upheld my second loan and not my first in the summer. I accepted the redress for this loan but sent a complaint to FOS for the first loan’s interest and charges as felt these were unfair as I’d paid interest when I topped up with my second loan. Has anyone managed to get the charges refunded? I’m still waiting for FOS to even look at my case. Been with them since August :-(
Rebecca says
Mines been there since July haven’t heard a thing 😕
LEE says
Not that this offer much assurance at all but I escalated to FOS in May 2020 and haven’t heard anything. Same situation, challenging the unpaid interest and also the first three loans which were not upheld
Sara (Debt Camel) says
Hi k,
I have just written a new article on this today https://debtcamel.co.uk/amigo-unpaid-interest-remove-ccjs/. It’s bad news – it looks as though Amigo will be applying the same unfair deduction in the Scheme :(
Claire says
I got my final response beginning of February.
my complaint has been on going for over 2 years!!
Finally today my gauntour had an email to say she was getting a refund… I cant believe it just yet as amigos seem to not do anything they say! She expected to get 12000 so fingers crossed,
She rang with bank details and was told it could take up to 35 days. Anyone else had this? And how long did they wait?
Honestly this has been an absolute nightmare but don’t give up people.
Laura says
Hi Sara,
I’ve seen you say priority cases might still be paid out by Amigo. As yet, they haven’t responded to FOS, and am guessing they won’t now? Is there a rule they’re following that priority cases are being paid if the decision was past 21st December? Trying to figure out what to do.
Thanks
Sara (Debt Camel) says
I have no factual knowledge of what is going on here, I try to piece this together from what people report in the comments.
Several people have reported Amigo accepting FOS decisons or making offers on FOS cases after 21 December. When I have asked, they had all been placed in a priority category by FOS.
But it doesn’t feel as though there are enough of them for Amigo to be settling all FOS prioritised cases.
So my guess is that Amigo has agreed (with FOS? or the FCA?) to settle certain priority cases. But I can’t tell how they were selected, if this was just a few or a lot more and Amigo are working their way through them slowly, or if Amigo hasn’t said it WILL settle these case, just that it will CONSIDER them and they aren’t making offers to all of them.
Sorry, not much help to you.
Your case is that FOS upheld all your loans but Amigo has only made an offer on one of them? Have you provided medical evidence about your health?
Laura says
Thanks, Sara. Totally understand.
Yes, there were nine loans. 1-4 taken out nearly ten years ago and paid off in full. A break of a few year (where I obviously forgot how aggressive they were), and loans 5-9 taken out the last few years. 5-9 were upheld by amigo last year and the balance reduced to 2k – however, they still haven’t removed late marks and continue to add them.
1-4 was upheld my ombudsman this year. Amigo wrote to FOS and over 4K for loan 3 but didn’t mention the others. The only reason I rejected this was because I was so scared I would end up owing them if they applied unpaid interest, that it wasn’t worth the hassle. On loans 1-4 about 12k was paid in interest, so if they said I owed, say, 6k in unpaid fees, I’d be in a worse situation, and that worried me.
From all the comments on here I guess I shouldn’t e pact them to reply to FOS. But right now, that money could help me health a lot and take a lot of stress off.
I haven’t provided any evidence of my illness to amigo. They’ve never asked for it. Do you think this would help? I feel like they’re a wall of silence right now – unless they’re chasing for money.
Thanks
Sara (Debt Camel) says
Well it can’t do any harm. But I have no idea if it is likely to help.
Matey Petkov says
Hi Sara please for advice I have a loan from Amigo of 10000 which I took 4 years ago and I have to repay 23800 so far I have paid 13832, I filed a complaint as it should be but I am waiting for an answer yet. Today I heard from them and explained to them that I and my guarantor do not have the opportunity to pay at the moment because of Covid they sent me a link to fill in their income income and expenses. My question is if I do this in any way will affect my complaint, or not bother to fill it out. My payment date is after 5 days and I do not want to bother my guarantor, and I am afraid that if I continue to make amigo intimidation if it declares bankruptcy they will not return my offer over 10000.Thanks
Sara (Debt Camel) says
have you already had a 6 month Covid-19 payment break?
Matey Petkov says
yes last year, I called them today and they gave me a link to fill in my income and expenses to assess how much and whether I can pay. My complaint is still being reviewed by them. They ask me filling out the form will this affect my complaint and my credit rating. Thank you
Sara (Debt Camel) says
Filling out this form by itself will not affect anything. I suggest you do fill it out, you have nothing to lose in this situation, if you want any help from Amigo you have to explain the situation to them.
What matters is if you should stop paying Amigo and the effect on your guarantor.
You had a top up loan. Do you know the numbers from this?
What would help is how large the first loan was? Then how many monthly payments you made (eg 4 lots of £249). Then you took a 10,000 loan – how much did you get in cash from this top up? And how much have you paid to this top up loan since them?
If you have repaid more to the last loans then you borrowed, then if your complaint is upheld, from this point on you are effectively throwing money away with every payments that you make, as you will onlt get a small amount of it back. And that is assuming you can afford to make any payments…
Do you think when the last top was taken out your guarantor would have been able to make all the payments to the loan and still been able to afford to pay their own debts, bills and normal everyday living expenses?
This may not sound relevant but it is very important.
Matey Petkov says
first I took 3500 pounds in 2017 then I added 6500 pounds in 2017 then I had a few loans 364 = 342 and a few credit cards since my loan installments were over 1300 pounds before they gave me an amigo loan of 10,000 I also had fun installments and played gambling online. I made 35×395 and there are still 25x 395 and there are still 9881.25 to return, but I’m worried that if I continue to pay and amigo goes bankrupt I will not get anything from them. So I considered the option to talk to them and give me a little delay 2-3 months until make a decision on my case. My orders also have difficulties at the moment and I will not be able to pay
Debbie says
I have a vulnerable lady that I am helping. She is guarantor to an Amigo Loan taken out two and half years ago, I presume she must have been working then or could not of become a guarantor? She now lives on income support of £100 per week but when the person who took out the loan doesn’t pay, Amigo pester her for payment. At the time of taking out the guarantor ship this lady was an alcoholic who didn’t really know what she was doing at the time and the person who took the loan out then manipulated her to co-sign. Since then she has managed to give up the booze, but it the loan pressure got so bad last year that she attempted suicide. She has moved bank so they can’t automatically take the money out of her account anymore, but she receives texts and calls from Amigo constantly. I do not believe she was in a fit state in the first place to be a guarantor, do you think it is worth complaining to Amigo. Apparently they got in touch with her to ask about her finances and a budget plan but her circumstances have changed since. I was thinking of using the letter as a template for complaint and then going to the ombudsman and keep fighting for her as quite frankly she can’t take it anymore, the stress of not knowing whether she’ll have pay any missed payments is just too great, and certainly this debt is not enough to lose a life over.
Sara (Debt Camel) says
Amigo does let people who aren’t working be guarantors so this is worth asking her about.
Can I ask if she has other problem debts? Is she in private rented or social housing?
This sounds well worth a complaint. Not just because of her mental capacity but also because of affordability – even if she was in work then, if Amigo had looked at her finances properly they may have seen she could not afford the loan payments.
I always suggest people complaint about all the reasons that are relevant for them. Affordability can be much easier to win a complaint about, but do also complain about her mental capacity.
certainly this debt is not enough to lose a life over.
No debt is worth that. You owe them your money, not your life.
It may help if you can enclose something from her GP about her suicide attempt.
As a guarantor, she is actually in a simpler position than a borrower. If she is on Income Support, sh can’t afford to pay this debt. She can offer them a token £1 a month payment while her complaint goes through.
What are they going to do? They may threaten to take her to court. These threats are not nice for a vulnerable client but
a) she can’t afford to pay them and all the threats in the world won’t change that
b) these are just bluffing anyway. Amigo is not going to take someone with a complaint open to court. And especially not if they have been told she has mental health problems.
Amigo is trying to wriggle out of paying proper compensation, but she still neds to complain now, For her the main thing is to be removed as guarantor. And so she should be ok even if Amigo go bust, as the administrators may be more likely to take a good decision to release her as guarantor than Amigo would.
Debbie says
Thank you so much Sara, just knowing that there is something we can do eases my mind. I would work as her advocate for support. I do believe once we can get this sorted her whole outlook will change. I’m so glad I found your site.
Laura says
Hi Sara,
Me again, sorry. I was just thinking about this scheme, and is it the case if Amigo are granted this, all the others will be? Is it highly unlikely the judge with allow this? I know you can’t say for sure, just wondered if realistically this is unlikely and if it gets rejected at the high court, does that mean amigo have to immediately stick to FOS rules and start paying out again? Unless they go under.
Sara (Debt Camel) says
if Amigo are granted this, all the others will be?
You mean all the other lenders who might apply? That isn’t really a consideration for the court. But it matters a lot to the FCA, who could decide to reject the amigo proposal on those grounds.
If the Scheme is rejected by the court it may be that some other variation might get through, eg one that was fairer to customers. Sorry, I am not sure there is much point in guessing! Does it make any difference to what you do now?
Laura says
Yes, that’s true (not much point in guessing). I’m just not sure what to do to get them moving on getting back to FOS or paying out. I know from all these chats they’re doing this to everyone, so not a lot I can do. I guess I was just thinking ahead and wondering if they’re flat out rejected if they’d accept that and pay out, or try some other scheme to avoid it. 🙄
Thanks!
Jemma Walker says
After over a year and bringing In the Fos I’m finally finally getting somewhere.
I’ve been sent an email today and I know I will always owe them money that’s never ever been my issue but what on earth does this mean please?
UNPAID INTEREST FOR NON UPHELD LOAN is that supposed to be there?
breakdown of this below, this includes all the loans you have had with Amigo:
Interest paid to be refunded to you: £11,556.03
8% statutory interest awarded: £0.00
20% tax already deducted from 8%: £0.00
Unpaid interest from non-upheld loan: £865.4
Total interest refund due: £10,690.63
Thanks muchly, this website has been an absolute godsend
Weatherman says
Hi Jemma
It looks like that is “Interest you hadn’t paid on the loan (or part of the loan) that you still owe them after the FOS decision”. They’ve taken that off the total refund amount.
So the original amount they needed to refund you was = £11,556.03
But they’ve kept an amount for interest you *did* owe = £865.40
Meaning the total amount you’ll receive is: £11,556.03 – £865.40, which is £10.690.63
Don’t spend it all at once :)
Sara (Debt Camel) says
This “unpaid interest” is a deduction that Amigo are making when they upheld a top up loan but not the previous loan. It is based on some very weird logic that if you didn’t have the top up loan you would have had to repay the previous loan – which takes no account of the fact that you never had the cash that was used to settle the previous loan, Amigo did this automatically, and now they are wanting to unpick this loan settlement to their advanatge, not yours. FOS would never allow this charge…
Are you still left owing money after this refund or are you going to get any cash back?
Susan says
Hi Sara ,
My question is , is it still worth putting in a complaint with amigo with all the scheme business going on with them or will they just ignore it ?
Thanks
Sara (Debt Camel) says
oh they will almost certainly ignore it.
But if the Scheme goes ahead, they may automatically treat a complaint as a claim on the Scheme.
And if Amigo go bust the administrators may automatically treat a complaint as a claim in administration.
And there could be some other option…
Basically there is no downside to sending in a complaint now, it is very quick to do.
Do you still owe a balance?
Susan says
Yes I have a balance of £5645
Sara (Debt Camel) says
OK, so whether there is a Scheme or Amigo go but will probably make little difference to you – apart from the worry that Amigo may reject your claim in a Scheme and it is possible it may be more likely to be upheld by the administrators if Amigo go under.
are you strugling to make repayments?
are your finances currently affected by covid-19?
Susan says
When I took out the loan in august 2019 I put down my husband pays all house hold expensive rent gas etc on my expenditure form , I’m on a low income ( minimum wage) they didn’t ask for wages slips or bank statements from me or my guarantor, since I took the loan my husband and I have spilt , iv now got all the bills to pay on my own plus the loan repayments leave me without any spare income each month
Sara (Debt Camel) says
what were your guarantor’s finances like when you took the loan out?
what are they like now?
Susan says
He earns good money but had bad credit with huge credit commitments more then his monthly wages , he has worked through the pandemic but his wife has been out of work for a year now due to Covid restrictions so they are struggling
Sara (Debt Camel) says
In that case he too should send a complaint saying he should not have been accepted as guarantor because he could not afford to make all the payments. See https://debtcamel.co.uk/amigo-complaints-by-guarantor/ for a template he should use.
This is important as it gives him two ways to be released from the guarantee – if you win your complaint or if he wins his. If Amigo’s Scheme goes ahead or they go into administration you both want to make claims.
Also as his finances have been affected by Covid-19 he should put in a separate request in writing (email is fine) for a covid-19 payment deferral. This MUST be done before 31 March so it is urgent. Amigo may reject this but it isn’t clear they are allowed to, so just get the request in now.
Kyle the tent dude says
I’m in the same boat atm. My ombudsman investigator sent her findings to amigo about how to put things right, she also included that she didn’t think I should pay the unpaid interest, and that it should all be paid to me. They had till 11th March. I called up amigo today and they said they hadn’t replied as of yet. I was hoping that because I’m priority at the ombudsman that they might still pay me redress back. We shall see if they accept the investigators conclusion with unpaid interest. If not then it’s back to the pile until the ombudsman makes it that they have to.
:( I just want this over. So I shall let you guys know if Amigo accept this finding. It’s scary cos the investigator has no authority to enforce this or enforce them to say they can’t ignore her. That’s what’s so frustrating. My advice if it’s taken something small amount I wouldn’t even bother if you get large amounts. As for me, they are offering me something like £370 coz they are taking something like £2000 in unpaid interest or something.
Chris says
Just looking for some reassurance here. My complaint against Amigo has been with the FOS for a long time but hasn’t been picked up yet. I’m aware of all the stuff happening with the scheme. I’ve stopped all payments to Amigo as it was affecting my ability to pay priority bills. My guarantor is aware of this and they’ve also cancelled their direct debit so that Amigo can’t charge them.
I’ve had en email this morning saying that I’ll be getting a letter before action, and that if we don’t come to a solution, court action will be considered and both myself and my guarantor could end up with a CCJ.
1) Is this just Amigo making empty threats? I find it doubtful they’ll be taking anyone to court while trying to get this scheme put through. And is it correct that while I have an open FOS case they can’t take me to court anyway?
2) Even if it did somehow go to court, is it true that the guarantor could end up with a CCJ? Or is this false since the loan isn’t theirs?
Sara (Debt Camel) says
1) probably just empty threats for several reasons:
– Amigo should not go to court when you have a live complaint at FOS – if they did you can ask for the court case to be stayed (legal jargon for put on hold) until your complaint is resolved. And FOS would give your case priority.
– I haven’t seen Amigo go to court in a case like for more than 18 months. Now, when the regulator is watching them because of the Scheme proposal seems a very unlikely time.
– you will see the email is carefully worded. They havent said they WILL go to court, just that court action will be CONSIDERED.
– going to court isn’t quick. They haven’t even started the process yet. If they send you a letter before action, you can wait 3 weeks then reply saying you are taking debt advice and asking them for more documentation, then the earliest they can go to court is 30 days after they supply you with copies of that documentation. By which time they will probably already be in administration or in a Scheme.
2) yes. The guarantor agreed to pay if you didn’t. That is a formal contract. But what was your guarantor’s financial position at the start of this loan? Could they really have afforded to make all the payments to Amigo out of their income and still paid all their own bills, debts and normal living expenses?
–
Chris says
Honestly, I don’t have the full details of my guarantor’s financial situation so I’m unsure if he was or wasn’t able to afford to pay Amigo. He doesn’t currently have a complaint in.
I know my open complaint with the FOS makes it unlikely for Amigo to take me to court, but is that the case for my guarantor? Does my open FOS case also make it unlikely for my guarantor to go to court?
Sara (Debt Camel) says
I don’t think Amigo is going to be taking anyone to court at the moment.
They shouldn’t take the guarantor to court if the borrower is disputing the debts. But it makes it even less likely if the guarantor is too.
But the most important reason for your guarantor to complain is that it gives two ways for him to be released as guarantor – if you win your complaint or he wins his complaint. I know its a difficult conversation to have, but its in his best interest!
Karen says
Does anyone know what the cap is for amigo interest. I have had three months payment break with amigo they have advised any further break will include interest unless I have hit the interest cap, does anyone know what that cap is.
Sara (Debt Camel) says
Amigo says “the interest will stop once it hits the amount you agreed to when the loan was paid out.”
So basically you shouldn’t worry about “extra interest” being added if you take a further 3 month payment deferral.
If your household finances are still being affected by Covid-19, it is a very good idea to take this extra break – it isn’t going to cost you more in the long run to repay this loan. And your guarantor cannot be asked to make any payments during this extra three months.
Do you also have concerns that the loan was unaffordable for you before the pandemic? The definition of “affordable” is that you have to be able to make the loan repayments and also pay all your other bills, debts and living expenses… so if paying Amigo was causing you problems then the loan may have been unaffordable.
Karen says
Hi Sara
Yes it’s definitely unaffordable I’ve had a total of five loans I would say the first one was affordable but all the others no as after the first loan I was bringing home 1000 a month less. I am thinking of putting in a claim but I was going to wait until the payment break. Thanks for the info about the interest. I have paid over 20k in interest in total over the loans I wouldn’t mind just having a payout of 8500 to pay off the balance of the loan I have left. So I will definitely make a claim. Would putting in a claim now effect the payment break?
Sara (Debt Camel) says
Send in a complaint now! There is no reason to delay at all. It will not affect your payment break.
K says
Amigo rejected the complaint I made, which has now been with the ombudsman for over a year. The ombudsman has been lovely, but suggested Amigo complaints may not be assigned because they will ultimately be handed back to Amigo should they go into liquidation or if the scheme goes ahead.
Do you think there is anything I can do? I am not in financial difficulty, but I do live hand to mouth.
Ps. Based on your earlier advice here, I stopped paying and Amigo haven’t contacted me at all. Thank you for this website!
Sara (Debt Camel) says
Is the borrower prepared to help you with this complaint?
because if she could make a complaint that the loan was unaffordable for her, then you have two ways of being released as guarantor – if she wins or if you win. This is well worth trying if she will co-operate – it won’t do her any good or any harm as she has gone bankrupt.
re not paying – well if you win your complaint then you won’t have to pay any more and will get very little back from the payments you have made, so not paying is a good idea.
The only problem is if you don’t win- then you have three payments to make, but presumably you can then do that. Not paying won’t hurt your credit record unless Amigo take you to court for a CCJ and that’s very very unlikely in this situation.
clare says
Good afternoon,
I complained to Amigo back in July about my 3 loans that I said were unaffordable. They agreed the third loan was unaffordable and paid me just over 7k. they didn’t agree to the first two loans and deducted 2.3k in unpaid interest.
In October I escalated to FO, I have chased a bit but not much and not really got anywhere so wrote the idea off in my mind.
Today Amigo have contact me out of the blue apologising for the delay but telling me they sent my file to FO in January and would like to update asap.
Is this random, or they doing this to everyone? Wishful thinking perhaps, I am just hoping this is a sign that things will soon be resolved.
Sara (Debt Camel) says
First I have heard of it. Are they asking you to call them?
Clare says
I have just checked my email again, now I have an email from FO upholding both loans 1 and 2, telling me I will receive a figure from amigo ASAP and I should Accept ASAP. Don’t give up people. Sara, your help is so valuable.
Sara, can you help with figures please?
Loan 1 was for £3500
I made 7 payments of £170.76
Settlement was £3213.78
Loan 2 for £5000
I made 20 payments of £197.62
Settlement for my third upheld loan was £4373.67
Loan 3 was for £7500 but that has already been upheld with an unpaid interest deduction of £2300
Sara (Debt Camel) says
Settlement for my third upheld loan was £4373.67
Do you mean that was the amount from your thirst loan used to settle the second loan?
Clare says
That was the settlement at the end of loan 2.
The unpaid interest issue has not been mentioned not sure if that is helpful to Other or not
Also, in addition to asking you to help with my figures Sara, do we know if Amigo are still paying out when they are upholding claims?
Sara (Debt Camel) says
Then the interest you paid on the first two loans which should now be refunded is
loan 1 903
loan 2 3313
As the first two loans are now upheld, you should be getting a refund of the 2300 unpaid interest figure.
So together that comes to £6516 (plus some 8% interest that i can’t guess at but it will be smaller than you might expect.)
Do you still owe a balance?
Clare says
I don’t owe them anything, so that figure would be so great. I am just worried now that they are not paying out, could they move this acceptance of my complaint into the scheme?
Sara (Debt Camel) says
Yes they could but in that case why would they be messing around accepting the FOS decision?
This is all uncharted waters. I THINK you will be OK. But don’t make plans for what to do with the money until it’s in your account.
Sara (Debt Camel) says
I can’t imagine why they would make you an offer at this point if they are not going to pay you in full now.
Clare says
Hi Sara,
Just spoke to Amigo, they say they gave FO my offer sometime ago and that they should be telling me what it is? He advised me to ring them.
The plot thickens
Sara (Debt Camel) says
oh. that doesn’t sound so good.
Clare says
I will get to the bottom of it eventually and keep you posted. I have to say tho, the amigo guy I spoke to this morning was trying to be as helpful as possible.
Either way the complaint has been upheld so that’s a start in the right direction.
Clare says
I just had a call from my investigator at the FO and he was really informative and helpful.
So my complaint is fully upheld. He gave me my figures which pretty much match yours Sara.
What he says is Amigo are upholding cases of late and settling them. He said he can in no way guarantee they will pay but he can’t see any reason why not.
Kelly says
What do you mean they are upholding cases that are late
Clare says
Sorry Kelly I don’t mean cases that are late. Just certain cases of late.
I have just had a call from Amigo. They confirmed what FO said that all my loans are upheld and that all interest will
Be refunded to me as I have no balance owing. She said I will receive the figure in due course and that it will
Be paid out seperate to any scheme that may be put in place. All sounds positive so just hoping it’s all going to go to plan
Ryan says
Hey Sara hope you are well
I’m just writing to you to ask you a quick question so my guarantor has agreed with me to stop paying the loan as we both have complaints in with them we both have lost jobs over this pandemic an nothing seems to be getting easier my guarantor sent amigo her last pay slip to prove that her payments she’s got wouldn’t cover the cost of the loan an wouldn’t even cover her own bills she asked for the 3 month break an still amigo loans took a payment from her credit card today which leaves her in more debt how does she go about getting them to stop taking payments from this card she wrote to them asking for them to cancel the CPA an wants proof that they have does she just contact her credit card company an ask them to block the payments coming from them ?
Sara (Debt Camel) says
Yes, she needs to ask the credit card company to cancel the Continuous Payment Authority to Amigo.
Ruth says
Hi Sara,
I made my complaint to Amigo in August 2020, but was one of the unlucky ones that never got a response. I sent to FOS as soon as the scheme was announced in December and in the queue. Just wondering if there are any successes with a similar situation? I have a balance owing to Amigo but my potential redress would clear all remaining. PS not holding my hopes up but thought I’d ask!
Sara (Debt Camel) says
At the moment the late cases going through seem to mostly have been classed by Amigo as priority. I doubt Amigo has even sent your case file to FOS and they can’t start work without that.
At least you are on a Covid-break at the moment.
With a balance owing, you also won’t be so badly off if Amigo go bust. Indeed it is possible there may be more chance of your claim being upheld in administration than in an Amigo Scheme.
Kelly says
I’m in exactly the same boat as you .December raf send me a text saying they were working on getting my final response ASAPand that it was at the final stage then 2 weeks later they announced the scheme of arrangement. I’m livid with them for getting my hopes up and doing this .I sent it to the ombusmun in January
darren says
My mum made complaint about amigo letting her be a guarantor and also to the FCO as she has no home rents only on a pension and no assets. I have also complained as i was offered top ups and have a long history with poor credit rating and also have the FCO looking into my complaint over 6 months ago
A letter by myself and guarantor has been sent to amigo but started today to sending my guarantor threats she will be given a CCJ if she doesn’t start paying are amigo allowed to keeps hassling her when we both have a case being investigated by the FCO ?
Sara (Debt Camel) says
Is the letter a Letter Before Action? It may be headed something like “Amigo Loans Ltd: claim for £xxxxx.xx debt”? Does it have a Reply Form attached?
Darren says
No just says your good credit rating may be harmed if we issue a CCJ
Thank you
Sara (Debt Camel) says
ok then that is not a Letter Before Action.
It is just another threat.
Here is my previous reply to you https://debtcamel.co.uk/how-to-complain-guarantor-loan/comment-page-66/#comment-410683 and it sounds as though nothing has changed.
Joseph says
Hi Sara
A while back you gave me some calculations regarding amigo redress.. I have finally recieved payment from amigo but as you said I was being robbed because amigo never upheld loan 5 or 7 and deducted nearly a thousand pounds for unpaid interest. I asked for your advice regarding my redress and you advised that I was being robbed but should probably accept my offer from amigo because if I don’t my claim will likely end up in the scheme meaning I could end up with nothing. I have recently seen an article online that the FCA are now looking into whether amigo have treated there claimaints fairly and in my situation, ie. Not upholding loans 5 or 7 and deducting unpaid interest… I don’t think they have been fair so my question I want to ask you is.. Even though I’ve accepted my redress and been paid, can I still now complain further to FCA that amigo haven’t been fair with my claim and have played dirty in the sense of backing customers into a corner, offering a pathetic redress sum knowing that most will accept out of fear of entering the scheme and not receiving anything? Thanks
Sue says
Hi Sarah
Are amigo still picking up and dealing with complaints ,
I sent mine off this morning to their email address with the thought in mind that they with just ignore me because of this scheme business going on , but they sent me a email this afternoon saying they’ve have received my complain and a member of the team with be in touch in 3-5 days to investigate?
Thanks
Sara (Debt Camel) says
That may just be an automated email. I would be surprised if they actually look at your complaint.
Sue says
That’s what I thought but she did mention a few things in the email I wrote in my complaint , ie I will keep your payments active as you have requested in your email
Sue says
And they have just text with link to access my requested SAR already ?? Confused ha ha
Jamil says
Hi Sara, I’ve had a complaint filed with Amigo on 3rd December 2020. They have sent the sar & have acknowledged. I did then make a complaint to the FOS in February after the 8 weeks had passed. Speaking to the FOS yesterday they have been waiting for nearly a month to get information back from Amigo. Meanwhile am now in arrears for a little of last months payment (paid most of it) & all of March payment is due. They have taken payments from my guarantor. Not a threat of an LBA has been sent from them. The FOS suggested emailing Amigo to ask them to freeze payments until the complaint has been dealt with by the FOS. Is this feasible do you think? Massive affordability issue for me currently due to personal circumstances & causing anxiety in my relationship with the guarantor who understandably is fearful of the LBA & proposed credit file damage & court action. Thank you.
Sara (Debt Camel) says
What is your guarantor’s financial position now?
What was it like when the loan started – could they really have afforded to make all the loan repayments and still paid all their own bills, debts and living expenses?
Jamil says
The guarantor was probably in a good position when the loan started back in 2017 and when I had a top-up in 2019. As for current times, it is unknown really as the relationship is somewhat strained between us currently although I would hazard a guess & say it is not easy for them to be paying. Our communication is fractured right now. All I get is forwarded emails & texts that they inevitably receive from Amigo. Unfortunately, there is a lack of understanding from their perspective about my affordability complaint & to some degree fear of their credit file being affected & court action, as per the recent ‘threat’ from Amigo. Hard for me to navigate the guarantor to some clarity & the fact that there is a complaint filed with Amigo (also FOS now) & that is likely a strong one to be upheld on the basis of affordability. The guarantor has previous bad experience with this type of thing historically adding the whole fear factor for them.
LEE says
I’m getting pretty fed up with this whole Amigo situation (like many I’m sure!) Amigo lumped on over £2k’s worth of ‘unpaid interest’ to my outstanding balance. In queue with FOS. I’m making affordable reduced payments to clear the outstanding balance (should be cleared in a year from now) but I wish that there was a clear line about this unpaid interest. I feel like I’m just paying this money back when actually it could be deemed unfair at some point and, should the SOA be agreed, I’d see very little of it again as it’d be too late. I note that some people have stopped paying amigo entirely, I’m considering doing that! What’s the worst they can do?
Sara (Debt Camel) says
Your guarantor has been released?
LEE says
They have, released last year. I know FOS are inundated but am thinking that if I keep paying off the remaining balance (which includes the unpaid interest) I won’t see very much of it if at some point should the case be reviewed post implementation of the SOA and upheld
Sara (Debt Camel) says
I agree.
The worst they can do is take you to court for the money. They shouldnt do this now as you have an open FOS case and anyway they don’t have time to do that before the Scheme starts. During the Scheme you can put a claim in and they would have to resolve that before suing you.
Could you put the money aside just in case you don’t win the claim in the Scheme?
We don’t yet know if the Scheme calculations are going to include this unpaid interest. If they aren’t then you should win a claim in the Scheme.
Claire says
There is hope people my complaint has been ongoing for over 2 years and I’ve littrally been like a dog with a bone!!! I got a 12 grand payout yesterday from amigos..we’ll my gauntour did.
clare says
HI Claire, congratulations on getting yours resolved. May I ask for a rough timeline of firstly being told it was upheld, then how long it took to get your figures, then the actual pay out itself?
Amigo have informed me my complaint is fully upheld, but now I just seem to be waiting for figures?
Peter says
Hi Sara
I put in a complaint with amigo and had this response today “ All irresponsible lending claims are being put into the scheme please visit amigo.co.uk to find out more , you will receive initial response in five working days “ any idea what they mean by a initial response ? Does that mean they will look at it or just a automated they have received my compliant blah
Sara (Debt Camel) says
I think it will be automated.
Tom says
Hi Sara/All,
My complaint against Amigo Loans has today (19/03/2021) been upheld by the FOS Adjudicator, with Amigo Loans having until 31/03/2021 to respond as to whether they agree or disagree with the decision.
Based on the calculations of FOS and my own calculations, I have already paid the balance of the loan in full (and a further several hundred pounds in interest).
My concern is that my next payment is due on 21/03/2021 for £317 (by card, so can be stopped as opposed to a direct debit for which it would be too late) and I am very concerned that I do not want to make payment as Amigo looks like they are entering into this arrangement scheme which effectively means if I pay my £317, I probably won’t ever see it again.
Please can you advise on what, if anything, I can do in this situation? I have already phoned Amigo who were no help, but need to know if there is anything specific I can say to them?
Thanks,
Tom
Sara (Debt Camel) says
You are right that if you pay that money now you will only get a tiny amount of it back.
I don’t know if Amigo will accept the FOS decision, Or if they will make you claim through the Scheme.
But as you presumably have a good case it is probably best to cancel that payment.
Do explain to your guarantor what is happening so they too can cancel their DD to Amigo.
Zafar says
My wife was conned into becoming a guarantor by her nephew who took out an amigo loan to consolidate his debts.
I found out about this a few weeks afterwards. When I explained to my wife the legal and financial implications and the extortionate interest rate (49%), she was devastated and couldn’t sleep with the worry. This got so bad that I had to arrange a loan (3.5%)in my wife’s name to pay off her nephews amigo loan.
The nephew had agreed to pay off this loan which was over five years. After being Erratic with his payments for two years, (we had to keep at him every month), he stopped paying and we had to pay off the balance of this loan which was his debt. The original amount borrowed off amigo was £10k, after making three payments totalling £1200, we still had to borrow £11k to settle it. So effectively this amigo loan was increasing despite the monthly payments being made ontime.
Where do we stand ?
Mark says
I won my FOS case in December last year but they are refusing to honour or even reply to the FOS. Amigo dragged their heals with this from May last year missing deadline after deadline. They are refusing to answer my legitimate complaint that my case would have been resolved in August last year if they hadn’t kept missing their own complaints deadlines. Now they keep sending me this standard ‘Scheme’ response. The FOS ruled in my favour and have told AMIGO that they should take the past payments at full value and ignore the interest, also returning anything over this amount (Which I make out to be around £3K owed to me). AMIGO are refusing to answer me and are insisting I continue to pay – sending their trademark threatening emails and phone calls to my guarantor. Any help or advice as I can only see this ending badly for me if I continue to pay whilst their hide and liquidate their money and then claim poverty once their ‘scheme’ kicks in. I lost £4K to WONGA when this happened and my finances are in a continual downward spiral as I can’t get it straight whilst I am paying so much out – any help or advice on what to do?
Sara (Debt Camel) says
Did you have a decision from an Ombudsman or an adjudicator?
Keeth teeth says
I’m in the same position. Decision in my favour and amigo just ignore me everytime I contact them it’s disgusting
Sara (Debt Camel) says
This is an adjudicator decision?
Do you still owe them money?
Keeth teeth says
Yes an adjudicator decision.
No my loans are now settled so I don’t owe them anything.
Sara (Debt Camel) says
I am sorry but unless you have been given priority at FOS because you are vulnerable, then it is very unlikely Amigo will accept the adjudicator decision and pay you now your proper refund.
At the moment it looks to me as though people may get as little as 5% back. They call this being fair to everyone – but in practice it is the customers taking all the pain and the directors, bondholders and shareholders will do very nicely out of it.
There is also the problem of knowing if a claim from you will be upheld in the Scheme – after all Amigo didn’t uphold your claim the first time around. So far there is no indication of how they will make these decisions.
You will have to cross your fingers and hope that (a) Amigo improve the Scheme a lot so that the refunds paid are larger AND (b) that you claim is upheld in the Scheme.
Philip says
Hi I made a comment last year about a friend of mine being put forward as a guarantor by her boyfriend after they had split up and he moved out suddenly without telling her and took out a loan and put her as gaurantor and later phoned to say she had a problem with the joint account (she had closed it as he had moved out) and to pay the loan directly into his (she had no idea he had took this loan or made her gaurantor) last summer she received a letter from debt collection they were sending bailiffs to her house this was her first knowledge she got scared and put herself into debt borrowing from friends upto £2000 to pay this a few calls to amigo didn’t do anything to help her they said it was her signature on the online document, so I was wondering under GDPR rules can a call to amigo asking for a full DSAR find out who signed her name and correspondence they supposedly had with her as she neither wanted to be a guarantor or would have been for someone who had just walked out on her and is struggling to pay back the money she borrowed from friends and family she now has a serious illness and has asked me to try and tackle this for her, can I speak to this company on her behalf? any help would be amazing.
thank you in advance
Philip
Sara (Debt Camel) says
does she have other debts as well as this one?
has she got a CCJ for this debt?
Philip says
No CCJ she panicked when bailiffs turned up at her door threatening to take her stuff if she didn’t pay she managed to call the place who were trying to get payment who have her 48 hours to beg and borrow the money amigo said she had confirmed everything herself over the phone including to pay into a different account that was the actual lenders and not hers but she had proof she took him off the tenancy for her rented house weeks before as he walked out on her while she was working but they said that means nothing and wouldn’t give her any more info she pays the debt or lose her belongings and as far as I am aware she is on a debt management account so much of her wage is secured to pay bills etc and the rest is released to her
Sara (Debt Camel) says
Ok dear, she was bluffed into paying this. Unless there is a CCJ that was not a bailiff, it was a debt collector. And a debt collector that turns up at her house has no more right to take her stuff than the postman has… even if there was a CCJ, a real bailiff has no right to enter her house if she doesn’t let them in.
She is in a debt management plan? Who is the DMP firm? How large are the debts in the plan and how much is she paying a month?
Is she in private rented property or social housing?
Philip says
Her DMP is paid up but she continues to use the service as it helps her to make sure bills are paid etc and I’m not to sure who it is with till I get to talk to her tomorrow after her hospital visit and I told her they had no right to anything but she was scared and borrowed the money from friends etc to pay them she privately rents so from the templates I don’t know which to use to put a complaint in as there isn’t one for someone fraudulently making her the garauntor without her knowledge
Sara (Debt Camel) says
use the template above and change it so it is clear that she never agreed to this loan. Amigo should have the recording of the phone call they always have with a guarantor. The template above asks for a copy of all her personal information – that should include a recording of the phone call Amigo always have with a guarantor – it will be interesting to hear what that says!
Chris says
Good afternoon,
I’ll be completely honest, I’m a little confused by the whole situation. I currently have a loan with amigo, the balance is currently just over £9k, the original loan was for £8k then a top up to £8.75k. I complained about the unafordability 7 weeks ago. Are they still accepting complaints or can I expect to not receive a response before the 8 week deadline? I would like to know if I do receive a response and my complaint is upheld will anything happen regarding freezing interest before any of the court cases? Also I have no idea what way would be best for me to vote as an existing customer, do you have any suggestions?
Thanks
Chris
Sara (Debt Camel) says
You should expect to not receive a reply to your complaint, Amigo will want it to go into the Scheme.
Are you managing the repayments OK?
Do you know mow much you paid in monthly payments to the first loan? How much you received in cash from the top up? And how much you have paid to the top up loan in total so far?
Chris says
Hi Sara,
Thanks for getting back to me. I believe I made 8 payments of £310 on the initial loan I received £687 from the top up loan and have since made 10 payments of £326 and 6 payments of £126 as I was on reduced payments due to covid. I am just about managing the payments however it is tight.
What I am also concerned about is that the interest seems to be higher than the monthly payments at the moment and the balance seems to keep going up a little each month. Is this normal?
Thanks
Chris
Sara (Debt Camel) says
ok so on those numbers, you have paid £2543 in interest on the first loan. On the top up loan you have only paid a toal of £4016, so less than what you borrowed.
If Amigo uphold both loans in the Scheme (or the administrators do if Amigo go under) you would then owem £2191, your guarantor would be released and you could arrnage an affordable repayment.
If Amigo only uphold the second loan, then you would be left owing £4734, or even more if Amigo carry on with their unfair “unpaid interest deduction”
In your situation what is most important is which loans are upheld. You may well feel that you would rather trust administrators to take this decision rather than Amigo. In whiochy case you should vote against the Scheme.
“the interest seems to be higher than the monthly payments at the moment”
Amigo cap their interest at the amount you were originally quoted. So at some point this will stop, not escalate forever. It is happening because you got into arrears in the cov-d-19 payments break.
If you win the complaint about the second loan, this will all be removed as all the interest goes.
Kyle says
Hello,
2 weeks ago I put through a complaint to Amigo after a SAR request. I went through everything and laid it out in a timeline showing and explaining why these where unaffordable. Ive read a lot of these comments today and im wondering if I will get any response from Amigo? As it seems they only want to use the scheme of arrangement from previous comments. I still do currently owe, infact the balance of the loan is now higher than when I took it out 3 years ago. Ive recently been made redundant and want to know if the above will be upheld with the current situation, if I would be eligible for the 6 month covid break, or can I cancel the continous payment authority for myself and my guarantor?
Sara (Debt Camel) says
im wondering if I will get any response from Amigo?
That is very unlikely. They will want your complaint to have to go into the Scheme.
Ive recently been made redundant and want to know if the above will be upheld with the current situation, if I would be eligible for the 6 month covid break
If you haven’t had a covid-19 payment break before, yes you should! You only have until the end of March to ask for this so do it today. You will first get a 3 month break then at the end of that you can ask for another 3 months if you are still out of work.
The big plus for getting a covid-19 break agreed rather than just stopping paying is they cannot go after your guarantor during this period.
Kyle says
Thank you for the swift reply Sara. If ive only put my complaint through to them recently, will it even be considered if they are pushing for the scheme of arrangement?
Sara (Debt Camel) says
That is VERY unlikely. Don’t hope it will work. Get yourself into a safer place by asking for a payment break (I am assuming you haven’t already had your 6 months worth of breaks).
Kyle says
Thanks Sara, I have got the payment break in place now. Is there anything I can do about my balance with Amigo? My first loan was in 2014 for £750, which I paid back in full. I then got another in October 2017 for £2500 for 36 months, 3 months later £3500 was approved over 48 months, then on November 2018 I got £4250 approved over 60 months. I am still currently paying this off 3 years later and the amount i currebtly owe is still higher than the £4250 borrowed.
Sara (Debt Camel) says
That is what you get with a very high APR I am afraid. If your complaint is upheld in the Scheme or in administration if they go bust, then the interest is removed so you wouldn’t owe them anything at all. There is nthing you can do to speed this up.
Tom says
Hi sara, my claim went to the FOS early December. Will this mean regardless of their decision my claim will fall into this scheme?
Sara (Debt Camel) says
That is VERY likely if the Scheme goes ahead.
Do you still own Amigo any money? If yes, are the repayments affordable?
Tom says
Thank you for the reply, no the loan has been paid back in full. I had to lend money from family to clear the dept with amigo and make it a little more manageable.
Sara (Debt Camel) says
then you are likely to only get a very small percentage back. It is annoying that you would do better if you had not cleared the loan, as then your balance would have ben repaid from the refund. But you are where you are and can’t change that now.
Jack says
Hi Sara
I put in a complaint with amigo last July, like many others been put on hold now I owe £550 which is 2 more payments, in assuming they know they borrowed me without correct checks etc ,what does this scheme entail? Should I keep paying or what ? Will I get anything back I have had 3 loans with them.
Sara (Debt Camel) says
If the last loan is upheld, the balance should be cleared (good!) and you would get a tiny percentage of what you have paid in interest in the Scheme (bad!).
In your situation you will be better off if you stop paying them now. Most people with three loans have a very good case for AT LEAST the last loan to be upheld. If you stop paying them now, at least that is £300 you have saved. If you pay it, then you may only get a tiny percentage of it back.
You owe so little that you could cancel your direct debit and tell your guarantor to cancel theirs. This won’t harm your guarantor’s credit record as the Amigo loan doesn’t show on it. You can explain this to your guarantor and say that if you don’t win your complaint (which seem unlikely) you will pay Amigo all the money so they don’t then go after your guarantor.
Also if a Scheme isnt set up but Amigo go into administration, you would still be very likely to get your balance cleared.
clare says
HI Sara,
Good news today. Last week I heard from the FO that the second part of my complaint had been upheld and I was to wait for figures from Amigo. Today they sent them through and it was exactly what you had calculated.
Loans 1 and 2 upheld and the unpaid interest charge that had been deducted from loan 3 fully refunded.
I feel so happy that it’s over and can’t thankyou enough for your help.
In fairness both Amigo and FO have been great with the handling of my complaint.
I don’t have any outstanding balance with them and no guarantor complications so the full redress is being paid to me.
Thanks again for all your advice, you are helping so many people.
Clare
Kelly Stephens says
I made a complaint in September I was told In December they were working on sending a final response to me in December then 3 weeks later they announced the scheme, I borrowed 4500 48x 192 and have already paid 4700 prior to this I had multiple top-ups , if I vote for scheme will my remaining balance be wiped or no
My balance is currently 3400 às it stands as the interest has now stopped. I have also escalated the complaint to the ombudsman in January
Sara (Debt Camel) says
if I vote for scheme will my remaining balance be wiped or no
Yes if your complaint is upheld in the Scheme. No if it isn’t.
The problem for you is that you may be better off if Amigo go into administration as the administrators may be MORE likely to uphold your complaint and clear the balance than Amigo is… I am writing another article about this today – look out for it.
Do you think your case is clear cut – if Amigo had really looked at your situation would they have decided you couldn’t afford the repayments and still be able to pay your other debts, bills and living expenses?
Have your finances been affected by Covid-19? If they have, have you had a 6 month payment deferral?
If your claim is upheld, in the Scheme or in administration, you will be better off if you stop paying them now. As the current payments you make you will only get a tiny percentage back from in the Scheme. But this would mean your guarantor also has to cancel their DD to Amigo and they will get some hassle about this.
clare says
Hi Sara, sorry to bother you again.
I messaged yesterday as my second complaint was upheld by FO/Amigo and I got my offer yesterday. Just looked at it again and I note there is not mentioned of the 8% stat interest, is this because it’s my second lot of redress?
They offered full interest refund and they are refunding me my unpaid interest too?
Sara (Debt Camel) says
Then there should have been some 8% interest unless you still owed a balance, in which case it may be correct there isnt any. I suggest you ask about this.
clare says
Update – they paid me today Sara, I didn’t receive any Stat interest.
But I have no balance now and have received over 11k back, so not sure if I should pursue still.
Sara (Debt Camel) says
that’s up to you. You may be sick of the whole thing!
Ali says
If your complaint is upheld and you are provided some form of redress however you still have an outstanding balance which you need to repay back, will interest be added to the repayments at the normal rate (49.9%)? Or will all future repayment be interest free on the outstanding balance?
Sara (Debt Camel) says
If your claim is upheld anyway (at the ombudsman, in the proposed scheme, in administration if Amigo go bust) then interest is removed, you can make an arrangement to pay at a lower more affordable rate and no further interest is added.
Ali says
Thank you for confirming, I’d be happy for them to give me some form of redress and going forward interest free payments.
It would be a life saver!
Sara (Debt Camel) says
Have your finances been affected by Covid-19? If they have, have you taken 6 month payment breaks?
Remember you are likely to get exactly the same result in administration as a Scheme – in fact administration may be BETTER for you if the are more likely to uphold your complaint. I am writing another article about this today.
Ali says
I haven’t taken a payment break cause I didn’t want mine or my guarantors credit file being impacted additionally I didn’t want them adding 6 months worth of interest added just incase my complaint isn’t accept although it should be.
Sara (Debt Camel) says
Then you should seriously think about asking for one now. You only have until the end of March to do this!
A covid-19 break is not shown on your credit record.
The Amigo loan doesn’t show at all on your guarantor’s credit record!
In a covid-19 payment break Amigo cannot ask your guarantor to pay.
For the first 3 months they don’t add any interest either, so there is no reason not to take this. They do for the second 3 months.
Ali says
My other worry is, my salary has significantly increased, could this be used against me in the future and if I was to go to financial ombudsman?
I know it’s commen sense, my present and future earnings have no impact on the way they provided previous loans when salary wasn’t great
Also my salary is decent but after making all the payments I’m struggling, will I still be able to get payment holiday?
Sara (Debt Camel) says
No.
But it seems very unlikely your case can go to the ombudsman. It will either be considered by Amigo in their proposed Scheme or by the administrators if Amigo go under.
have your finances been affected by Covid-19?
Ali says
Not due to covid but the loan has become unaffordable due to more responsibilities
Sara (Debt Camel) says
Unless the “more responsibilities” are covid-related, you may find it hard to get a covid payment break then.
Ruth says
Hi Sara,
Out of interest, what happens if the hearing doesn’t give the go ahead for the creditors meeting? Apologies if you’ve already explained this.
Sara (Debt Camel) says
I guess that depends if a few changes are needed – in which case a short delay. Or a bigger rethink.
In which case no-one knows if Amigo have a plan B up their sleeves.
Joe says
Hi Sara,
I am a guarantor for a loan and believe it was not loaned responsibly for numerous reasons plus the balance is still higher than the original debt 5 years later!
Is it worth complaining now before this goes through or wait?
Joe
Sara (Debt Camel) says
Is the borrower still making payments? Have you made any payments?
Are you sure there hasn’t bee a top up loan?
Joe says
Hi Sara,
Yes the borrower is making payments still however is looking at entering an IVA. I have also made some payments.
There were too ups but the total amount borrowed is still less than the current balance.
The interest charged monthly is higher than the payment amount!
Joe
Sara (Debt Camel) says
The top-ups will explain the high balance. Also has the borrower taken a covid-19 payment break?
Are they buying or renting – too many people are being mis-sold IVAs at the moment. Can you suggest they should take good debt advice ie not from an IVA firm. National Debtline on 0808 808 4000 are very good.
It is going to be important for you that the borrower puts in an affordability complaint to the Scheme or to the administrators if Amigo goes under. You may have your own reasons to claim, but this gives you twice the chance of being released as the guarantor.
If the borrower goes for some form of insolvency (IVA, DRO, bankruptcy) then them making a complaint wont do them any good, but it will really help you.
Stephen says
Hi I made a complaint back in October had an email in February to say sorry its been more than 8 weeks you can now refer your complaint to the FOS which i did in February . I have Already had the 6 month payment break. First loan was in 2016 for £3700 11 months later had a top up to £5750 recieved £1500. Payments are £227 per month. Bear in mind my credit was shocking at the time, but was on a decent salary due to working continental shifts. This soon stopped and have struggled to make payments ever since. Basically robbing Peter to pay Paul every month. My twin brother is my guarantor who has also been impacted by covid and has now entered into an IVA due to hes own financial difficulties. It has also impacted us both mentally and have both been on medication. I have spoken to amigo but they have been no help whatsoever. For example I am 4 days late this month and have made a promise to pay on Friday the 26th. Only to be text and emailed constantly to both myself and my guarantor. The worst thing is I’ve never missed a payment yet I still owe as of today £5900. Looks like I’ve been put on the back burner awaiting the scheme hearing. Its so annoying and they are so unprofessional.
Sara (Debt Camel) says
Is this Amigo debt listed in your brother’s IVA?
Stephen says
Hi Sara no its not listed on the Iva as he wasn’t sure if he could. Would it have been better for him to add it ?.
Sara (Debt Camel) says
Yes. Did he tell the IVA firm about this?
And does he have a house with equity? Why did he opt for an IVA not bankruptcy?
Stephen says
Hi sara not sure why he opted for an IVA i think he went through stepchange. Also he only rents so no equity. Would this debt not be able to be added now ? And what would be the benifits if it was added.
Sara (Debt Camel) says
Tell him to talk to StepChange about trying to get this added now.
The benefit of doing this is it means you can just stop paying Amigo as they won’t be able to chase your guarantor for the money, they will just get paid a tiny amount from his IVA.
Also tell him to send Amigo a complaint that he cant afford the loan repayments, see https://debtcamel.co.uk/amigo-complaints-by-guarantor/ for a template he can use. This is a belt and braces approach as it will take a while to get his IVA sorted.
And he should then cancel his direct debit to Amigo and check with his bank that Amigo don’t also have a Continuous Payment Authority which would also need to be cancelled.
Then you can offer to pay Amigo a lower affordable amount while your complaint goes through.
Ruth says
Hi Sara,
Not sure if you’ve seen this?
https://www.moneysavingexpert.com/news/2021/03/fca-raises-concerns-over-amigo-s-new-redress-scheme-but–won-t-b/
Sara (Debt Camel) says
thanks!
Frida says
Hi Sara,
I had been pressured to be a guarantor with amigo guarantor loan. The borrower didn’t pay a single penny back since the loan been taking out. I was really scared to say no to him as he was threatened to hurt my family in my home country. He was very violent and taken money regularly from my bank account. Do you think if I send them an email I have a chance to win this case? So far I paid all the repayment to the loan but it’s causing me using my overdraft regularly. Also, when they allow him to take the loan, he wasn’t even in the country for a year with on and off from jobs…. he was definitely not been able to repay it and since left the country. Thank you for your help.
Sara (Debt Camel) says
what is the rest of your financial situation like?
Were you living with the borrower then? Are you still?
Frida says
Hi Sara, I wasn’t living with him, we just knew each other for long time. He started to work in the same place as I and then the abuse started. I don’t have any other debt other then being the guarantor for this loan, but my salary with all my expenses are not covering the cost of the repayments. The borrower made it clear he won’t pay a single penny back and we are not in good terms. Amigo is taking the money from my account, DD is cancelled…
Sara (Debt Camel) says
If Amigo is taking the money from your account when you have cancelled the DD, they must have set up a Continuous Payment Authority. Phone your bank up and insist you want this cancelled.
And send Amigo a complaint using the template above. From what you have said, you are complaining about points (a) , (d) and (f). They may not look at this now but put yourself in the right by sending it as this explains why you are not paying.
Have your finances been affected by Covid-19?
Frida says
Hi Sara, I sent them a letter yesterday when I found your blog. Thank god I did it as before I didn’t know there is a such a thing as releasing the guarantor. My finances was impacted I was on furlough for one month, then on less salary due to not been able to work out my hours, then I lost my job in November and till I found a new one, I used all my savings. We had 2x of 3 month of loan break from March till end of September, but repayments started in December. I called my bank yesterday as this month they took 2x the money, despite the fact I explained them that I’m really struggling to pay it off and I’ll end up using my overdraft.
Tom says
Dear Sara/All,
I have received a decision from the Adjudicator regarding my Amigo loan, which is being upheld in my favour.
I am trying to understand if Amigo will respond (they have been given until 31/03/2021) or not? I appreciate that they say they are putting all complaints on hold, but does that mean just new complaints and complaints that currently sit with them? Surely they can’t ignore the decision of the FOS if that decision was taken before the Scheme existed…
It’s the only loan where I may get any redress (I have had success with others but had not overpaid, so balances reduced/written off instead of redress payments) and may be refunded to the tune of around £3.5k if they do agree with the decision.
Just hoping someone may be in a similar position and can shed some light or whether you have any further knowledge Sara?
Thanks,
Tom
Sara (Debt Camel) says
Unless your case is being given priority by FOS, it is very unlikely that Amigo will accept it. They are intent on ignoring these.
Do you still owe a balance?
Tom says
Hi Sara,
Is there anything I can do to be given priority by FOS? I have gone directly to the CEO via LinkedIn, long shot, but absolutely worth it in my view. I have explained that my decision was made prior to the update given by them and therefore I feel they should honour it.
Yes, I do still owe a balance. The original loan was £6500, of which I have paid about £9500 and have approx £2200 to pay. It should be completed in October 2021. If I don’t hear back, what should I do? My next payment is due 21/04/2021 and I really don’t know where to go from here in terms of what I would be expected to do/not do. Would I still be expected to make payments?
Thanks,
Tom
Sara (Debt Camel) says
You can talk to your adjudicator, but the answer may be No.
If Amigo do not accept the decision, they will expect you to continue to pay until your case is decided again in the Scheme. Which is incredibly unfair…
Could you explain to your guarantor that you have a very good case – you can show your ombudsman decision, and explain you want to stop paying as you will only get a tiny amount of the payments from here on back. But your guarantor would also have to cancel their DD to amigo and they will get some hassle from Amigo about this? Their credit record won’t be affected. And threats from Amigo of being taken to court are just unpleasant bluffs – it isn’t going to happen with this Scheme coming up.
Tom says
Hi Sara,
Thank you for this.
I have asked my Adjudicator whether this is possible, I don’t hold my breath, but it must be worth a go…
Yes, it is incredibly unfair, I agree. I haven’t complained about any of these companies really throughout this whole process as I played as much of a part as them in getting into this situation, but this loophole that allows Amigo Loans to do this to people that have received valid decisions is ridiculous.
The deadline FOS gave them was 31/03/2021 and the court case is 30/03/2021 so I may as well wait until these dates pass (just in case) and then speak to my Guarantor about the situation you recommended.
Thanks again, if I hear anything further I’ll update for anyone that is interested or in a similar position.
Tom
Siobhan says
My case has been going on two years. Fos made a final decision. Amigo have ignored that. I am on verge of losing my house because of covid and my partners business being closed. I asked for Fos to push this and make me a priority and they refused.
I hope Amigo go under. Disgusting company! I’ve also made a complaint to fos about the handling of my case.
Sara (Debt Camel) says
what date was your FOS final decision?
Siobhan says
A couple of days before the scheme was announced, I think it was 18th/19th December.
Sara (Debt Camel) says
and this was a Final Decision from an Ombudsman? Not from an adjudicator?
do you still owe them money?