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%.
David says
Hi Sara
I have £6K balance on a £8K loan. My claim is sat with FOS, can you let me know likely timescales for my claim to be assessed and if successful redressed in (or not in) the proposed scheme?.
Thanks
Sara (Debt Camel) says
I have £6K balance on a £8K loan.
Unless your loan was just two years long, you must have paid 8k or more to the loan so far, ir eyou have repaid what you borrowed. If your loan was say 4 years you must have paid c£2400 in interest so far (cash paid minus amount borrowed) – I’ll use that as an example.
If the Scheme goes ahead, I would expect Amigo to put up the page where people can enter a claim in late May. You then have 6 months to do this. I would hope for people with current loans if they decide to uphold your loan they will immediately stop asking you to pay.
If they don’t decide to uphold, they will tell you and there is a time in which you can appeal, that then goes through a manual process. No one knows how long that will take – if there are only a handful it would be quick but if they are rejecting a lot of claims it could be very slow. The cash payout you might get can’t be determined until everyone’s appeals have gone through.
Amigo say the payouts are expected to be in the next 6 months after the time to enter claims has ended. I think people should expect it will be at the end of that 6 months, so possibly May 2022.
Amigo says you might get paid 10% of your refund value. So if the interest you have paid in £2400, that would be only £240. And I think that 10% number may well be too optimistic, it could be half that or less if a lot of people claim.
For people like you who owe a balance, it is clearly more important to get this written off than to get a small amount of cash back… which is why you could potentially be better off if the Scheme doesn’t get approved and Amigo go into administration.
In administration you can make exactly the same claim. You have same “right of set off” that would mean an uphold claim clears your balance that you would in the Scheme. The two differences are (1) there would be no cash pay out in administration and (2) administrators may be more likely to uphold your claim than Amigo are. You know Amigo have rejected your complaint once, they haven’t been at all clear how many claims they expect to uphold in the Scheme. But from my experience administrators try to get quite close to doing what FOS would have done.
So if the administrators are more likely to uphold your claim than Amigo you would be better off voting against the Scheme.
How difficult is it to make the payments at the moment?
David says
I can make payments at a push, I just really don’t want my guarantor to receive negative correspondence from Amigo. I have already taken the 6 month break and I have 3 month reduced payment plan due to end this month, then back up to £495 per month!!!
Thanks for your help.
Sara (Debt Camel) says
Stopping payments can be a hard decision. It is going to be more than a couple of months until all this is resolved – was that why you were asking about the timescales?
It will harm your credit record, but you already have a payment arrangement on there and any negative marks will be removed if you win your claim in the Scheme or in administration.
If you struggle to pay Amigo and default elsewhere as a result (£495 a month – ouch!), then those credit record problem will not be removed if you win the Amigo claim.
It is normal debt advice in this sort of situation that someone with a balance owed and an affordability claim should stop paying if the payments are unaffordable – you could talk to National Debtline on 0808 808 4000 about your finances to see if you have any other options?
But stopping paying means your guarantor will be asked to pay. They too would have to cancel their direct debit (or continuous payment authority if they gave Amigo card details). Their credit record would not be affected as the loan doesn’t show there at all. Amigo may threaten court action, but that takes a long while to even start – no time before the Scheme – and Amigo has said it will not commence legal proceedings until a claim in the Scheme has been decided.
Ms A K says
I just voted against Amigo’s new scheme . I personally dont care if they go into insolvency ive spent the past 4 years struggling financially and stressing to make sure i met re-payment. I should never have been given a loan, had Amigo checked affordibility then it would have been clear. No-one from Amigo ever did request wage slips or bank statements before depositing £4000 into my account ! .
Amigo dismissed my affordability complaint claiming they acted appropriately . My complaint is with FOS but backlogged . If this scheme does go ahead it lets Amigo off the hook and thats wrong.
They are vultures who make a fortune off the backs of people with low credit scores.
I see Provident are also being hit with affordability complaints.
The difference in my experience as a provident customer is a complete contrast . The provident agent checked and photographed my wage slips. Affordability checks were carried out every time.
Sara (Debt Camel) says
Provident are also much nicer to deal with than Amigo if you do get into difficulty.
Peter says
The FOS adjudicated i my favour for both my Amigo loans in November. Amigo have ignored them and mecompletely for over 4 months! And they want people to vote for them!! As if!!
Natalie says
Hi there, I have a loan with amigo loans plus a few top ups, I got a redress where they upheld 2 of my smaller loans and removed my guarantor for them 2, but not the largest amount. I’ve escalated to the financial ombudsman and had a reply, they’re just waiting to get all the information. I’ve not been able to make payment to amigo as I can’t afford it, they’re now threatening default notices and to my guarantor aswell. I’m unsure what to do as my guarantor is quite poorly from having covid and is now registered disabled. I was just looking for more information. Thankyou
Sara (Debt Camel) says
Some of Amigo’s decision last year about complaints made no sense at all :(
The worry of course is how do you know that they would make better decisions in this Scheme?
If you can’t afford to pay them, then in the end no amount of threats will magically change that.
Can you say some more about your guarantor’s situation? If you think back to when the you took the last top-up, could they have afforded to make all the payments to the loan then, and still be able to pay all thier own bills, debts and normal living expenses?
Natalie says
My guarantor was a little poorly when I took the top up out, he’s even more so now he’s had COVID, but they didn’t ask for his information again when I took the top up, they didn’t ask for mine either, they just rang asked me a few questions and then I received the top up. Im obviously worried about the impact on my guarantor as it’s my stepdad and I don’t wanna cause any friction between us, and the obvious is his credit score. I’m going to ring them and I’m willing to pay an amount significantly lower than my payments but I’m not sure if they’ll go for that. It’s always the same woman who threatens the action too!
Sara (Debt Camel) says
It is so difficult having these conversations.
Are you saying he never spoke to Amigo about the top-up? They should have talked to him on the phone so he knew all about it and they should at the very least asked if anything had changed in his circumstances?
If he cancels his direct debit (or the continuous payment authority if has told Amigo he would pay by card) then this will not affect his credit record. If he looks, he will see the Amigo loan is not on there.
The only way his credit record can be harmed is if Amigo takes him and you to court for a CCJ. But that takes a while and there is no time to do it before the Scheme would start (or Amigo would go into administration if the scheme isn’t approved). And Amigo has said that it will not commence legal proceedings when someone has made a claim in the Scheme before the claim has been decided.
Natalie says
They never asked about his circumstances changing they just asked whether they could proceed with the top up. I will tell him to do that. I’ll ring them up and see what they say and I will let you know. I’m hoping they’ll take a lower offer of payment as not really much more I can do
Sara (Debt Camel) says
ok, well to be clear if they didn’t ask if his circumstances were still the same and they had got worse, then he too has an excellent reason to make a complaint and ask to be released as guarantor.
Natalie says
I’ll tell him about that, Thankyou. He’s been released from 2 of the loans but not the most recent top up, I don’t understand why they’ve done that to be honest.
Sara (Debt Camel) says
Trying to pay out less?
Natalie says
Yes probably, because it’s the highest amount that he’s not been released from, but the other two were upheld, it doesn’t surprise me to be honest. I am contesting it with FOS
Sara (Debt Camel) says
I am afraid FOS are stopping work on these cases. It will be decided in the Scheme of in administration if the Scheme doesn’t go ahead.
Richard says
So I’ve had 3 loans with them 2 top ups to the max 10k cant afford them at all but needed the money at the time and am behind on lots of bills I raised the unaffordable complaints last year and if they would have replied within the 8 week time frame they should have my complaint would have been resolved before they proposed the scheme however they never and jow I have to wait for the outcome of the scheme before I can claim is this correct or should the claim be processed as it could have been before the scheme approval also whats best to vote I haven’t really got a clue what to vote and just want it sorting ASAP so I can try and get myself debt free
Sara (Debt Camel) says
is this correct or should the claim be processed as it could have been before the scheme approval
The claim will now have to go into the Amigo Scheme if it is approved or to the Administrators if the Scheme is rejected.
The fact that they delayed replying to you and are now going to profit from this is deeply unfair but there is nothing you can do to get your case looked at now and paid out in full :(
also whats best to vote I haven’t really got a clue what to vote and just want it sorting ASAP so I can try and get myself debt free
You haven’t said much about your situation or given any numbers. But I can make some general points that will typically apply.
1) your vote comes down to whether you would prefer Amigo to go ahead with the Scheme (vote Yes) or for them to go under into administration (vote No).
2) in the Scheme, if your claim is upheld then you will get the balance cleared or reduced, plus possibly a tiny amount (perhaps 10% Amigo says, I think that’s optimistic and it may well be less) of the extra interest you have paid refunded in cash.
In Administration you get much the same if your claim is upheld – the balance cleared or reduced. But there will be no cash element
3) it seems likely you will win an affordability complaint about at least the last top-up in either the scheme or administration. Taking 2 top-ups to such a large amount is normally a sign that you are in financial trouble. You may of course win your complaint about the first top-up as well and indeed the first loan. But what is important here is that you will win the complaint about at least one loan – if you don’t then nothing is going to change in the Scheme or in administration. So let’s assume at least part of your claim will be upheld.
3) we don’t know how Amigo will decide which loans to uphold and which to reject – so will administrators be more likely to uphold more loans than Amigo is? This is very important for you as you will may get a dramatically better result if all three loans are upheld rather than just the last one.
Obviously there is no definite answer! From my experience of seeing other lender administrations, the administrators normally try to use a process that produces roughly the same results as the Ombudsman would.
I am not convinced Amigo will. It won’t give numbers about what it expects its uphold rate to be. It has listed factors that it will look at (Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how they would be applied to a case. So I am worried that it intends to uphold fewer cases. In a three loan case like yours, Amigo has recently often only upheld the last one.
4) You might assume it wouldn’t matter much if Amigo didn’t uphold the earlier loans if you hadn’t made many payments to them, so you hadn’t paid much interest…
But in this situation Amigo makes a deduction “for unpaid interest” where a loan wasn’t upheld but was settled by a top-up loan that was upheld. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred, but other people have had their refunds reduced by thousands, and been left owing a large balance because of this.
The Ombudsman never applies these deductions, so I don’t think administrators would.
The result is, that if Amigo doesn’t uphold all three of your loans, and the administrators upheld the same loansd, you would be faced with a larger balance in the Scheme than you would in administration.
So pulling all those points together:
– you won’t get any cash back in administration but you can get your current loan reduced or cleared
– you may be worried that Amigo won’t uphold many loans
– if Amigo doesnt uphold all the loans, it will charge you for “unpaid interest” which is unfair.
– you are understandably cross at how Amigo has deliberately delayed handling your case.
How difficult is it to make the current payments? Because cases aren’t going to be sorted out soon in the Scheme.
Richard says
Currently very difficult the monthly payments are about 487 last month had to pay double due to missing one which pretty much was all my wage just to stop them mithering me and my guarantor so realistically I think them going into administration would be better for me. I got a reply from them about 4 weeks after the initial 8 weeks saying there was a delay then the next correspondence was to tell me about the scheme in terms of this if I was to just not pay until the scheme was approved or rejected what implications would/ could this have not really fussed about my credit as to be honest its none existent at the minute and can’t really get much worse thanks for the help
Sara (Debt Camel) says
In your situation (payments unaffordable, good affordability complaint) there is a strong case for you stopping payments. Every payment made will just give you a tiny refund in the Scheme. if making the payments means you are getting behind with bills and running up more debts that is bad news as these claims are unlikely to be quickly resolved in the Scheme.
If you stop paying, it will hurt your credit record – which you don’t care about & anyway the negative mark will be removed if you win your claim in the Scheme or administration.
Your guarantor would also need to cancel their direct debit to Amigo (and their Continuous Payment Authority if they are paying by card).
It won’t hurt your partner’s credit record as the Amigo loan does not show on there. But your guarantor will get some mithering from Amigo (living in London now it’s been a long while since I heard that word!)
Amigo may make threats of court but there is no time for them to take you or your guarantor to court before the Scheme starts and they have said that they will not commence legal proceeding until a claim in the Scheme has been decided.
Richard says
Thanks again so would you recommend stopping the payments until there is an outcome? Tk prevent further debt etc?
Sara (Debt Camel) says
how much have you paid to the current £10k loan so far?
Richard says
About 3.5k its still above 10000 with the interest thats added
Sara (Debt Camel) says
So if only the current loan is upheld, you will still owe a large balance – possibly very large if Amigo applies its “unpaid interest deduction”.
In this situation it may be better if you carry on repaying an affordable amount each month, just to keep chipping away at that balance? But not an amount that leaves you so short you can’t pay other debts and bills. Can you afford say £100 – you could talk to National Debtline on 0808 808 4000 if you are unsure?
If you have the current loan upheld you will then be able to make an affordable repayment agreement with Amigo ( or with a debt collector if the loan is sold – debt collectors are usually nicer to deal with then Amigo!) as your guarantor will be released.
Mike says
Does the FCA have the authority to ‘pull the plug’ on this scheme if the court approves it? I noticed the FCA state they reserve the right to oppose it at a later time. But will that have any bearing following the second court decision?
Thanks
Sara (Debt Camel) says
Legally? The FCA doesn’t have to approve a scheme for it to pass.
In practice? Amigo wants to carry on as an FCA authorised lender – it’s not generally a good idea to annoy your regulator, especially one that is currently investigating your affordability & complaints handling and where you want approval for new lending.
Laura says
Hi Sara,
Just a question on this. If FCA don’t agree with amigo scheme, but aren’t stopping it, does that mean they’ll still be FCA approved?
Update: I don’t think it matters if you’re a priority case or not. Amigo have closed the door on all cases. FOS decision was sent to them early feb. No response. :(
Sara (Debt Camel) says
I guess so – bizarre isn’t it!
Laura says
Very. Thanks for all your help.
Holmey says
To my view Amigo have broken the contract that both myself and guarantor agreed to here by making changes to the way they handle complaints, so I feel entitled to tell them where they can stuff any further payments from me or my guarantor.
What’s your view on this being a major breach of contract by Amigo Sara?
Sara (Debt Camel) says
I think it is imaginative but it won’t work…
What they are doing may be unfair, but Schemes are legal.
Have you or your guarantor already complained?
Kelly Stephens says
Also on one of my top up I failed the affordability but they forged it so I could get it ie reduced my outgoings on the system to it would allow it to go through but at the time I couldn’t afford my rent etc because of it and as result lost my home too
Sara (Debt Camel) says
That’s dreadful. You probably thought at the time they were being helpful :(
Natalie says
I had a conversation today with amigo and a very condescending man! Because the reason I rang them was because of my stepfather and the implication non payment may have on him they really went to town and said how it would effect him if I didn’t pay, first they said they could only accept £170 then it went to £110 when I said I couldn’t afford £170. The man I spoke to was horrible!!
Sara (Debt Camel) says
Yes, they don’t seem to have got any nicer to deal with.
James says
Clare’s case is similar to my situation. I borrowed 500, then topped up to 1000. I’ve still got 500 balance that is due to be cleared on 1st Jan 22. I submitted a claim in NOV 20, which was refused by Amigo. It has been sat with FOS since December. I spoke to them just now and they said they have paused all claims until the Amigo court case is finalised.
I Have no idea what to do?? Carry on making payments and hope I get interest redress? This seems like I’ll be paying them 250 in interest to receive 25 redress? I believe they automatically refused my claim as they were aware it would get tied up in this impending scheme, and therefore would render them less financially liable.
I made a similar claim with Bamboo loans who upheld my claim without the need for FOS and within 1 week of claiming. They removed 1500 interest and agrred to remove negative marks on mine and guarantors credit file.
Sara (Debt Camel) says
So you have two problems.
The first is whether to vote for the Scheme or vote no because you prefer administration.
– A balance can be reduced/written off in administration, all you would lose in administration is the tiny cash refund.
– Amigo have recently rejected your claim and you may feel that the administrators are more likely to make a fair decision.
– If Amigo does uphold the top up loan but not the first loan, then it would then apply a deduction “for unpaid interest”. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it. The Ombudsman never applies these deductions. So I don’t think administrators would.
The result is, that Amigo only upheld the second loan and the administrators made exactly the same decision (which could well happen as the first loan was so small), you could be faced with some balance still owed in the Scheme but your debt may be cleared in administration.
The second problem is whether to stop making payments. Are they causing you difficulty?
Lewis says
Hi Sara,
I have a couple of questions.
My sister the debtor taken a top up with Amigo on 2018 and there is roughly £5000 outstanding, my dad is the guarantor. She recently had an IVA accepted and they both have on-going affordability complaints.
Borrower – Currently with FOS, paused pending outcome of the scheme.
Guarantor – Just passed 8 weeks with Amigo and they sent a response saying you they apologies for the delay, if you are un-happy send the complaint to the FOS.
Amigo are now contacting the guarantor asking for payments.
I stated to them on the phone, how can they expect the guarantor to make payment for a loan that has two on-going affordability complaints.
We taken the decision that the guarantor is not going to make any payment until we know what’s happening with the scheme and our complaints.
Am I right in saying they won’t report anything to his credit unless taken to court?
Sara (Debt Camel) says
Am I right in saying they won’t report anything to his credit unless taken to court?
Yes.
And although Amigo may threaten to go to court, they should not do so with complaints outstanding. Also as a matter of practicality, there is no time to do this before the Scheme starts (or before they go into administration if it fails). And Amigo has said they will not commence legal proceeding until a claim in the Scheme has been decided. Neither would administrators.
For your sister in an IVA, there is no personal gain from making an affordabilty complaint, except for having her father released as guarantor.
Lewis says
All we’re hoping for is that he is removed and the agreement can be dealt with by her IVA.
Sara (Debt Camel) says
Good, that is realistic. So the question is the, are Amigo more likely to uphold the current loan or administrators? Amigo has listed a lot of things it will look at in Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied to a case – it’s not very helpful. From my experience of seeing other lender administration, the administrators normally try to use a process that produces roughly the same results as the Ombudsman would.
Banijs says
Hello. I got question about Amigo Loans. I still have balance 4000pounds to pay. I have with 2 top up total 4750.i been paying 158 pounds for 3years.i try to claim in Amigo but offcourse they rejected. I apply thru FOS. I received from them i have to wait up to 8weeks they are very busy now. Im got problem with payments every month and my gurantor cant pay she got her on credits and loans to pay. What shud i do?? If i will cancel my payments i will have problems with Amigo??And how will be my credit history?? If they are now in Scheme. And my gurantor if will cancel aswell payments she wont have any affect to hers credit history? Thanks
Sara (Debt Camel) says
The Scheme hasn’t started.
You are being asked to vote on the Scheme – vote Yes for the Scheme to go ahead and No if you don’t want it to, which will mean Amigo goes under and is put in administration.
So you need to know what might happen in the Scheme and in administration. And what might happen if you stop paying.
With a loan and 2 top-ups you probably have a good “affordability complaint”, perhaps for all your loans, but very likely for the current one.
If you win a complaint in the Scheme, the interest you have paid so far on the loans that Amigo decides are unaffordable is taken away from your balance. That may mean you still owe a bit – in which case your guarantor is released and you can pay the rest at a lower more affordable rate. Or Amigo may owe you a refund – in which case you will only get paid a very small amount in case – perhaps 10%, perhaps less of that amount.
Most borrowers in your situation decide they don’t care about the small amount of cash, they just want their balance cleared!
In administration exactly the same happens except the administrators – an independent firm, not Amigo – decide if your complaint is a good one. You may feel happier that administrators would take a good decision, like FOS would. Your balance can be reduced or cleared in administration , but there would be no tiny amount of cash back.
The only other difference between the scheme and Administration is what would happen if your first loan was decided to be affordable. AMigo in the past has often done this. Here Amigo makes a deduction “for unpaid interest”. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred pounds, but other people have had their refunds reduced by thousands, and been left owing a large balance because of this. The Ombudsman never applies these deductions. So I don’t think Administrators would.
You need to think about this and decide which way to vote – do you want the Scheme or not.
Your gaurantor can also put in a claim to the Scheme or to administration saying the loan is unaffordable for them. That gives them two ways to be released from the loan – if you win your complaint of they win theirs.
The question about carrying on paying is the same in the Scheme or in administration.
Your complaint isn’t going to be decided for many months, so that would be a long while to carry on paying when it is more than you can afford – especially when you know you have made a good complaint!
If you stop paying, it will hurt your credit record – but the negative mark will be removed if you win your claim in the Scheme or administration.
It won’t hurt your guarantor’s credit record as the Amigo loan does not show on there.
Amigo will make unpleasant noises and ask your guarantor to pay, so your guarantor will have to cancel their direct debit.
Amigo may threaten court but there is no time for them to take you to court before the Scheme starts and they have said that they will not commence legal proceeding until a claim in the Scheme has been decided.
A debt adviser will usually suggest someone stops paying if they have a complaint in and they cannot afford to pay without borrowing more money or getting behind with bills. If you aren’t sure you could talk to National Debtline on 0808 808 4000.
Sandra says
Hi Sara I had fos contact me about three weeks ago I complained to amigo last June, amigo only upheld my last four loans of six and not the first and second one the Fos agreed first one was affordable but the second top up was definitely not and I give bank statements etc there is debt collector on it gambling etc it was the most I paid back in the second top up the fos agent has said he give amigo till the 31st of March to reply but haven’t heard anything from either side since three weeks ago when speaking to fos, I was wondering will I hear anything at all, thanks
Sara (Debt Camel) says
I can’t guess, sorry.
Are you still making payments to the last loan? Your guarantor has presumably been released?
Sandra says
I stopped paying last July I still owe a balance of £1382 yes my guarantor was released.
Lee says
Can I ask, you’ve made no payments since last July? What kind of pressure has Amigo put on you to restart payments?
Thanks
Sandra says
I had a letter about an outstanding balance just, I don’t think they can do much when you have a complaint in with fos and it’s ongoing.
Sara (Debt Camel) says
Hi Lee, if your guarantor has been released and you have a complaint in, what are they going to do? They shouldn’t take you to court with a complaint in and there is anyway no time to do this beaofre the Scheme starts or they go into administration. In the Scheme Amigo have said they won’t commence legal proceedings until a claim has been decided (and administrators wouldn’t either).
Kyle says
Highly doubt it. I’ve had to email and message FO about how I felt let down by them that they took so long that now I wouldn’t get anything coz of the scheme. I called up amigo and the woman stated that I wouldn’t be included in the scheme as amigo accepted the second loan was unaffordable, it was just the FO said they should pay me the unpaid interest too. So the woman at amigo said they are just doing the numbers and will contact me soon. But I’m not holding my breath, because even my FO adjudicator has been lax with replying ever since this scheme thing came about. I feel they are both dragging their heals until it’s seen if it’s going through properly. Then everyone will be back to square one Waiting for amigo to pick up our cases. So Yh, I wouldn’t hold your breath tbh.
Sara (Debt Camel) says
I agree, there is no sign Amigo is going to change its mind about this unpaid interest.
Your best hope to get your balance reduced is to vote against the Scheme and hope Amigo go into administration – there the administrators normally follow what FOS does in calculating redress, so no unpaid interest.
Jake says
Hello,
If the Scheme goes ahead and my loan is upheld, would I get back my initial loan amount? I borrowed £3500 over 5 years and I am on repayment 49 so all I am paying at this point is interest.
So I am confused as to whether my initial loan amount (£3500) would be fully refunded back to me plus a small amount of interest in the scheme? Or does the scheme include all of it (initial loan + interest)?
Sara (Debt Camel) says
I am assuming this was your first Amigo loan. Your monthly payments are about £138, so you have paid about £6700 so far.
£3500 of that is repaying what you borrowed, which is not refunded in the Scheme.
The other £3200 is interest. It is this interest that you will be refunded maybe 10% of in the Scheme – but I think that Amigo figure is too optimistic, it could be a lot less than that.
But because you are now “only paying interest”, if your claim is upheld in the Scheme (or in administration – exactly the same), the balance is also written off AND you will be refunded IN FULL any payments you make during the Scheme (or during administration – exactly the same).
With a lot of payments to go, getting them back in full is worth much more to you than getting a tiny amount of the interest back! So you may want to consider if you want the Amigo Scheme to go ahead (vote Yes) or you would rather Amigo failed and your claim was considered by the independent administrators (vote No)… I don’t know how many of these one loan complaints Amigo will uphold – it’s possible your complaint is more likely to be upheld by the administrators, who usually try to follow the same approach roughly that the ombudsman does.
PS there is no such thing as a silly question as your later comment said! If you were wondering this a lot of other people reading this page may also be interested in the answer.
Y. says
Hello, I spoke with someone in the complaints team today about why they were not coming back to me with a final response to my complaint and they told me they are no longer sending out final responses. The advisor also told me that it was communicated to the complaints team internally that all open complaints with the FOS are already being returned back to Amigo and the FOS are no longer looking at open complaints as ‘there is no point. Amigo cannot afford to give redress to customers’. I thought this would only happen if and when the scheme is approved.
Sara (Debt Camel) says
FOS has been trying to get some priority cases through. So far as I know they aren’t working on any others.
Do you still owe a balance?
Kelly Stephens says
What counts as priority
Y. says
Hi Sara – yes I am a priority case with the FOS. When I followed up with the FOS today after speaking with the Amigo complaints team, they pretty much confirmed what Amigo had said. They confirmed they have paused investigations into all Amigo cases while the scheme is being considered and will contact those who have complained ‘in due course’ though they couldn’t give a timeframe. There seems to be no where to turn.
Sara (Debt Camel) says
You would have been aware if you were on an FCA priority list – often it is because of serious illness or being about to lose your home.
Lou says
Hi i sent my affordability claim in on Saturday April 3rd. I’ve just recieved a reply from them saying they can’t deal with my claim until the vote?
Should I just hang fire and wait for the vote I’m not sure what to do . Are they fobbing me off
Thanks
Sara (Debt Camel) says
They have decided they are doing this and you won’t be able to get them to change their mind.
Do you have a current balance? How many loans have you had?
Lou says
5 top ups from 1000 to 8k
Current balance is 9.5k
Sara (Debt Camel) says
ouch. how difficult is it to make the payments?
With that many top ups you should have a good complaint for the last loan at least (hopefully more!) in either the Scheme or in Administration if the Scheme fails and Amigo goes bust.
In the Scheme, Amigo will decide whether each of your loans is affordable. If the current loan is unaffordable, they release your guarantor, remove the interest from the balance and you can pay the remainder at a more affordable rate.
If previous loans are upheld, the interest you have paid on them is used to reduce the outstanding balance.
If you have paid enough, your balance may be cleared and you would then get a small percentage of the rest of your refund paid in cash. Amigo thinks it may be 10%, I think that is too optimistic and it may well be less.
In administration much the same happens – your balance can be reduced or cleared, your guarantor released, you can make an affordable payment. Except there will be no tiny amount of cash refunded.
So for you there are three possible differences between the Scheme and administration to think about so you can decide whether to vote for the the Scheme, or vote against and hope the Scheme isn’t approved.
1) the small amount of cash you might get in the Scheme. There won’t be any cash payout to you in administration. You may think this is unimportant compared to getting the balance cleared.
2) is Amigo more likely to think more loans are unaffordable than the independent administrator would? Obviously there is no definite answer to that! From my experience of seeing other lender administrations, the administrators normally try to use a process that produces roughly the same results as the Ombudsman would.
I am not convinced Amigo is aiming to produce the same results as the ombudsman. It won’t give numbers about what it expects its uphold rate to be. It has listed what it will look at (see Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied to a case. So I am worried that in a case like yours it may try to only uphold the last loan or two – it often did this last you with complaints.
3) A big problem for you is, what if Amigo doesn’t uphold all your loans? There may be some loans that only ran for a few months where there wasn’t much interest paid. You might assume it wouldn’t matter much if Amigo didn’t uphold those… But in this situation Amigo makes a deduction “for unpaid interest” where a loan wasn’t upheld but was settled by a top-up loan that was upheld. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it. Some people have had their refunds reduced by thousands because of this Amigo deduction, and been left owing a large balance because of this. The Ombudsman never applies this deduction so I don’t think administrators would.
Lou says
To be honest my ideal outcome is having the guarantor released who is my grandfather
While taking out the last 3 top ups I was in a manic psychotic state. I was sectioned under the mental health act after my last top up. I have put all the information in my complaint so I’m hoping the guarantor will be released.
Sara (Debt Camel) says
Fingers crossed for you.
Kirsten says
Hi Sara,
I’m considering taking Amigo to court and wondering if you think this is worthwhile or pie in the sky thinking?!
I would struggle to cover a loss.
I am the guarantor for a 10k loan for my friend. I’ve made 38 payments, totalling £9825.25. The borrower has made 4. When I agreed to become guarantor, I assumed, as stated on their website, amigo would have completed appropriate checks to ensure affordability for the borrower. It obviously wasn’t affordable. I feel like I’ve been conned. Should the SOA go ahead and I’m lucky enough to receive a small percentage of what they’ve taken from me, whilst continuing to exploit people, is insulting. I’ve had a complaint with the Ombudsman since 10th March 2020 , with no prospect of support now. I don’t think I have anywhere else to turn, but am hesitant to go down this route.
Thanks.
Sara (Debt Camel) says
Bringing a court case is not quick – there is no chance of this being heard before either the Scheme starts or (if the Scheme is not approved) they go into administration, at which point the case would be ended.
I am afraid your choice at the moment comes down to voting to approve or reject the Scheme. Then sending in a claim to the Scheme or to the Administrators.
Are the payments affordable for you?
Kirsten says
Thanks Sara, I suspected it was a lost cause, I’m just so insensed with all of this. I’ve voted against the Scheme because I don’t think they should be allowed to continue to exploit other people.
I stopped payments in March – they told me they’ll take me to court, (a few days ago, despite saying otherwise at the hearing) but I’m not too worried about that.
Thank you again for all your help with this.
Kyle says
I received a response from My Senior FO adjudicator. She has informed me that the FO as an organisation has taken the decision to halt all complaints about amigo because amigo have stated they will go into insolvency if the scheme is not put through and they need to work out what that means for everyone. She had also stated that before this she asked one of her colleagues that is in contact with the higher ups in amigo to chase my case to no avail. So I’m sorry to say this to anyone waiting on a response from ombudsman or amigo but it ain’t gonna happen. I guess we all need to wait to see what happens after this scheme is put through or not. Sorry to everyone who’s been let down by the system.
Sara (Debt Camel) says
Let down by the FCA really… I understand FOS’s dilemma, what is the point if them beavering away and getting your hope up if Amigo are going to ignore whatever they say?
Kyle says
Yes let down by the FCA too. They had stated that they wouldn’t even challenge the scheme, even though they could have done. If it goes through then they are letting customers down and setting a president for other companies to take the Micky. So I do believe FO have let people down. And for not taking any action when companies ignored them, no sanctions or anything.
Sara (Debt Camel) says
FOS has no powers, no sanctions when it is ignored. Blame the FCA for that too.
Hugh says
Hi Sara
I made a complaint to Amigo who conveniently said they had no details of my loan. I raised it with the ombudsman and after investigating it appears that data was found. The ombudsman ruled in my favour on 18th November 2020 with a chance for Amigo to respond by 2nd December. They have not responded to this day , not even rejected the ombudsman decision. As this all happened before their proposed scheme where does this leave me?
Sara (Debt Camel) says
So Amigo dragged this out by denying it had the data first, then ignored the FOS adjudicator decision to save money… your claim will now have to be decided in the Scheme if that goes ahead.
Amigo has not said that they will uphold complaints like yours where there is already a FOS adjudicator decision in your favour. It sounds as though you only had one loan – these are the cases that I am concerned may be completely rejected. And of course even if it is upheld, you will only get back a very small amount of the interest you paid. Amigo says possibly 10%, I think it could be a lot lower.
Russell says
Hi Sara, can you help me on the following. I’ve had a amigo loan and then top up which started in 2019. I’ve just raised an affordability claim as I had defaults and taken out multiple pay day loans before taking the loan and during at the point of tatting a top up. My financial position has just changed and the payments are now affordable so would my claim be upheld based on when taking the loan out?
I’ve also nearly paid back what I’ve borrowed (maybe 3 more payments) so will just be left with about 3.5k of interest. I’d like that wiped before I start paying interest so which would likely wipe that interest off, scheme or administration? Thanks
Sara (Debt Camel) says
would my claim be upheld based on when taking the loan out?
Yes. (Nice to start with a simple answer!)
You already know, so I am just repeating for other people reading this, that you can make a claim in the Scheme for unaffordable lending and also in administration. And that with a current loan, the balance can be reduced or cleared if your claim is upheld.
So you are right to focus on whether this is more likely in the Scheme (vote Yes) or administration (vote No).
For you, with a loan and a top-up, two things matter.
First will Amigo uphold your complaint?
I am not convinced Amigo is aiming to produce the same results as the ombudsman would have – the Ombudsman is upholding 88% of Amigo complaints. Amigo won’t give numbers about what it expects its uphold rate to be. It has listed what it will look at (see Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied to a case.
From my experience of seeing other lender administrations, the administrators normally try to use a process that produces roughly the same results as the Ombudsman would.
So you may feel you have a better chance of the administrators upholding your case.
Second, what if Amigo doesn’t uphold the first loan? If the first loan only ran for a few months there wasn’t much interest paid, so you may think this doesn’t matter. But in this situation Amigo makes a deduction “for unpaid interest” where a loan wasn’t upheld but was settled by a top-up loan that was upheld. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred, but other people have had their refunds reduced by thousands, and been left owing a large balance because of this.
The Ombudsman never applies these deductions. So I don’t think administrators would.
The result is, that if Amigo only upholds the second loan and the administrators did the same, you would be faced with a larger balance in the Scheme than in administration.
Russell says
Hi Sara, thanks for the info. I actually missed a key word off one of my question which I was wondering which would wipe the interest faster. If the scheme takes say 12 months to agree before my balance is cleared I’ll end up back paying nearly 3k of interest. If Administration would happen straight away and my claim agreed quicker, then administration would be better for me I guess or if they would end up taking roughly the same amount of time then the scheme would be better as I’d get a cash refund too although only a small one
So which would likely wipe that interest off FIRST, scheme or administration? Appreciate how long it would actually take for both is unknown but a best guess would be great so I don’t wastefully pay interest I wont get back
Thanks.
Sara (Debt Camel) says
That is really crystal ball-gazing.
Because Amigo has been working on this for a while, administration may be much simpler, eg they can just use the same page for people to enter claims that Amigo has already got ready for its Scheme. Administration doesn’t have to put the large amount of work into sorting out cash refunds. And my guess is they will be upholding more claims so there will be fewer appeals to get through.
BUT
Once the Scheme is going OR administration is going, if your balance at the start of the Scheme/administration would be cleared by the calculated redress once your claim is decided, you will get all the additional payments you have made during the Scheme/administration repaid IN FULL.
Hardly anyone knows this, it comes as a big & pleasant suprise to people in administrations when they get two payouts, one the tiny % of their refund and another much bigger one of all the payments they made during the administration.
As a result, the timing of the Scheme / Administration is not the important thing for you – that is whether Amigo Scheme will clear your balance. Because it seems more likely that this will happen in Administration than in the Scheme, see my previous reply.
Chlooo says
Hi
I took out a £5000 loan in December 2019 I have been paying back £197 a month with small breathing over Christmas last year. My account is still saying I owe £4988. I havnt put in a complaint yet or voted yet and I don’t what is best to do? If I havnt put in a compliant or voted what will happen if they go into administration?
Sara (Debt Camel) says
That looks like a 5 year loan. How much have you paid them so far? If your balance is “only” £4988, that looks like you have paid more than the £5000 you borrowed, is that correct? is the start date correct as the numbers don’t seem to add up?
Has it been hard to repay the loans and has doing this meant that you have had to borrow more elsewhere or you have got behind with some bills? If yes, then you have “an affordability complaint”.
You can then make a claim in the Scheme for unaffordable lending. If the complaint is upheld your balance would be cleared (as you have repaid more than you borrowed) and you would get a very small cash refund, possibly £100 or so.
In administration pretty much the same happens – you can make a claim for unaffordable lending, if it is upheld your balance would be cleared. But there sould be no tiny cash refund.
For you it is obviously more important to get that balance cleared than the chance of a tiny amount of cash. So what matters if whether your complaint is more likely to be upheld by Amigo in the schemen (so you would vote Yes) or by the administrators (so you would vote No).
It is impossible to be certain about this! We know that the Ombudsman has been upholding almost all Amigo complainst – 88% of them
I am not convinced Amigo is aiming to produce the same results as the ombudsman would have – Amigo refuses to say what it expects its uphold rate will be, even though it has to have extimated this number – you may concule that it is disappointingly low…
Amigo has listed what it will look at in a case (see Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied. You may feel you have no idea how Amigo will decide your case – I think “one loan” cases are most at risk for being rejected by Amigo.
From my experience of seeing administrations, the administrators normally try to use a process that produces roughly the same results as the Ombudsman would.
So you may feel you have a better chance of the administrators upholding your case than Amigo.
Chlooo says
Hi
Yes I borrowed £5000 over 5 years at 197 per month I’m December 2019 I had a 2 month breathing space for December 2020 snd January 2021. Meeting the repayments are a constant struggle I’ve had to borrow money from family or not paid my rent to meet the payments.
How do I put in a complaint with out voting or would I have to vote?
Sara (Debt Camel) says
you don’t have to vote. Putting in a complaint is completely seperate.
You can just wait until the end of May – then if the Scheme is going ahead, Amigo will put up a page where you enter your complaint. Or if the Scheme doesn’t go ahead the administrators will put up a page for complaints.
Kelly says
Ok I finally spoke to someone from amigo who actually knew what they were talking about today .this is what she told me . I have a current balance of 3300 at the moment I have paid 4700 on this loan and before this I have had several other loans and top ups with them . So for argument sake now say I’ve paid 10000 in interest if they gave 10% back they would only take 1000 of the current balance and if I’ve already paid the loan they would give me 1000 cash redress . So they are only giving the percentage back on outstanding loans which I’m shocked about for the people with outstanding balance as I was under the impression if I was owed 10k and I would have my whole 3500 wiped and that would have been it . Which I would have been happy in this situation to get my balance wiped , but if be very very lucky if I got 1000 off it and also we all know it ain’t going to be 10% . I have voted no to this scheme as they are an absolute joke . I’ve gone and paid 1000s in interest around 14k in total and id be lucky to 500 if that now . This is so wrong
Sara (Debt Camel) says
Actually they didn’t know what they were talking about.
I was under the impression if I was owed 10k and I would have my whole 3500 wiped and that would have been it
What you were told was wrong.
Say your redress comes to 10000 and your balance is 3500 and Amigo are paying out 10% of the refund (as you know it could be a lot less).
What would happen is the 3500 balance is cleared, reducing the remaining redress to 6500. You would then be paid 10% of that – 650 in cash.
If Amigo went into administration, you would also get the balance completely cleared but you wouldn’t get any cash refund
The risk for you in the Scheme is how many of your loans Amigo would uphold… This is a real problem, last year people were getting bizarre decisions from Amigo, eg upholding loans 2 & 3 and not the larger and later loans 4 & 5.
And Amigo also adds on a deduction for “unpaid interest” if it upholds a top up loan but not the previous loan. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred, but others have had their redress reduced by thousands, and been left owing a balance because of this.
The Ombudsman never applies these deductions. So I don’t think administrators would.
The result is, that if Amigo only upheld a few loans and the administrators did the same, you would be faced with a larger balance still owing in the Scheme than in administration.
Kelly says
Thats odd cause she said my balance wouldn’t get wiped cause only 10% for example would only be given so ie 10k intest 10% would be 1000 off outstanding balance of 3500 . Everyone i phone them nobody seems to give the right info. On this current one I’ve paid 4700 and 3300 left . I don’t see the point in carrying on paying them now . Would i be better off stopping now
If i carry on paying off this 3300 balance by the time this scheme goes through next year if approved I would have cleared my balance and I am paying dead money basically
Sara (Debt Camel) says
Honestly she was wrong- but it doesn’t inspire confidence, does it…
Is making the payments very difficult? Could you talk to your guarantor about them cancelling their direct debit, explaining about the fact with so many loans you have got a good complaint?
The answer on stopping paying is different depending on your answer to those questions.
Kelly says
My mum is my guarantor and she is happy to stop the payments. The situation im in is that I lost my home because I couldn’t afford amigo and the rent and ended up heavily in debt cause I prioritised amigo so my mum wouldn’t get into trouble so I topped up a number of times just to get by for few months but in the end got to the point I lost it all and had to move into my mother with 2 children and my partner and I can’t move out again until amigo is cleared as I tried last year but wasn’t do able . As I’m home now I’m just trying to clear my debts but it is hard
Sara (Debt Camel) says
Ok, there is a much longer answer if you can easily afford the repayments (it does happen to some people who have a good affordability complaint, eg if they have had a good pay rise!) but you can’t so this is simple. Especially as your guarantor knows what is happening and will stop her payments.
It is better for you to use the money to clear other debts that you may be paying interest or charges on.
If you stop paying, it will hurt your credit record but I guess that is already pretty poor. Also the negative mark will be removed if you win your claim in the Scheme or administration.
It won’t hurt your guarantor’s credit record as the Amigo loan does not show on there.
Amigo will make unpleasant noises but there is no time for them to take you to court before the Scheme starts and they have said that they will not commence legal proceedings until a claim in the Scheme has been decided.
Exactly the same happens in administration. No one is going to take you or your guarantor to court until your claim has been decided.
Simon says
Do we know on what date Amigo are likely to enter the scheme if it is approved?
I hear the court date is set for the 17th May.
Sara (Debt Camel) says
The second court hearing is on the 19th May not the 17th,
Amigo says in its Explanatory Statement that
“The Scheme should come into force within a week after it is approved by the Court. This is expected to be around late-May 2021”
Kelly says
Is it right the won’t be paying out till next year minimum
Sara (Debt Camel) says
Yes. Amigo hopes the Scheme will start in late May. They will put up a page to make claims on – this will be up for 6 months.
They can’t work out how much to pay anyone until all the claims have been settled. this includes going through the appeal process.
Amigo says they expect to pay in the first half on 2021. I suggest people should plan that this will be towards the end of that period.
Lee says
Hi
Sorry if this has been covered I just want to be really clear in my head how this all works I am getting confused what would happen if upheld
Loan 1 : £5000
made 25 payments @ £197.62 – totaling £4940.50
cleared balance in full early (in 2015) – £4371 (struggling to pay and parents cleared balance for me)
total paid – £9311.50
Loan 2: £3500
made 15 payments @ £138.34 – totaling £2075
balance stands at £3219
thank you so much for your help.
Sara (Debt Camel) says
ok, so what would happen in the Amigo Scheme if both your loans are decided to be unaffordable…
– Loan 1 you paid £4296 in interest.
– the current loan you have so far paid 2075 – that is less than you borrowed, so if the interest is removed from this loan you would owe £1425.
– The 4296 in interest from the first loan will be used to clear the balance left on the current loan, so the calculated refund would then be £2871.
– But you would only get a small amount of that – Amigo says possibly 10%, which would be £287 – I think it could be a lot less.
If the Scheme doesnt go ahead, you make the same claim in administration. If they too uphold both loans, much the same happens – your balance is written off, but then you wouldn’t get the small amount of cash.
But what if Amigo only upholds the second loan, not the first? Then you would be left owing a balance of £1425 still to Amigo.
The administrators may be more likely to uphold both loans than Amigo are. Administrators usually try to do what the Ombudsman might have done, and the Ombudsman is upholding 88% of Amigo cases!. But Amigo hasn’t said it will be trying to roughly do what the ombudsman does…
Most people with a current loan think getting a small amount of cash back is much less important than maximising their chance of getting the current loan cleared.
When you vote, you are basically deciding if you want the Scheme to go ahead (vote Yes) or not (vote No).
Lee says
Super thanks one voted No to the scheme don’t see why they should profit from other people’s misfortune. Thanks for clarifying
Lee says
So my loan payment was due out yesterday. They didn’t call for the direct debit as usual. And I have not cancelled it.
Myself and guarantor got a message saying I was in arrears and needed to pay the missed payment.
What’s this all about? And anyone else had same issue.
SaraB says
Hi Sarah
Can I just ask about those of us who have paid of loans. I had a £5k loan in 2013 and topped up again in 2017. I was then (2019) lucky enough to be offered a consolidation loan with a credit union through work at 4%. as opposed to Amigos 49%. At the time I was running my life on payday loans in a desperate attempt not to default on this loan and bring my guarantor into this situation. The credit union was a life saver.
I have a claim in to Amigo as of January this year which is now with the ombudsman.
Am I correct in understanding that if I vote no. They go into administration and we will receive nothing . ? Why is that .. ? Amigo must have millions in the bank from charging 49% interest .
Is the line that voting ‘no’ means you get nothing actually true or a potential bluff by the management of Amigo in an attempt to keep this business bringing in the money. ?
For those of us with loans paid off (but in my case I still have a loan just not with them) is the voting decision as stark as
Vote yes and get 5-10% of what I’m owed.
Vote no and guaranteed to get nothing .
Sara (Debt Camel) says
You are asking me to predict the future. All I can do is guess what may happen. I hope this is an informed guess because I have been following Amigo complaints and other lender administrations for several years, but it is still a guess.
Am I correct in understanding that if I vote no. They go into administration and we will receive nothing? Why is that? Amigo must have millions in the bank from charging 49% interest .
If the Scheme as proposed does not go ahead, then Amigo says they will go into administration. There are other options possible, such as proposing a change to the Scheme that would give customers more money.
If Amigo goes into administration, customers whose loans have been repaid will get nothing. Customers with current loans can have them reduced or cleared, but that isn’t relevant for you.
They have a lot of money in the bank, well over £100million. But much of this is money they borrowed which they have to repay.
Is the line that voting ‘no’ means you get nothing actually true or a potential bluff by the management of Amigo in an attempt to keep this business bringing in the money?
That is hard to tell. people with repaid loans will get nothing in administration but as I just said there are other variations on a Scheme that could give customers much more. I can’t tell whether these are likely, Amigo wants you to think they aren’t to get people to vote Yes – I don’t know if this is a bluff.
Vote yes and get 5-10% of what I’m owed.
It definitely isn’t as simple as that!
First there is the question of whether Amigo will decide either your first loan or the top-up or both were unaffordable.
If they don’t you get nothing. Amigo is being very vague on how it will make these decisions. It has listed what it will look at (see Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied to a case.
That’s like someone who wants to buy a house saying they will look at the price, the area, the number of bedrooms and how large the garden is – all sensible things to consider but it doesn’t give you, who are trying to sell your house, any idea if that buyer is going to be at all interested in buying your house.
Then there is the problem of how Amigo works out the refund if it only upholds the second loan, not the first. You would think that is just arithmetic… but in this situation Amigo makes a deduction “for unpaid interest” on the first loan. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred, but other people have had their refunds reduced by thousands.
The Ombudsman never applies these deductions – it was invented by Amigo last summer to try to save it money. I had hoped it would be scrapped as unfair in the Scheme but they are going ahead with it.
So there is a chance you will get nothing. And there is a chance your refund will be assessed at a LOT lower than the ombudsman would and then you only get a tiny percentage of that.
SaraB says
Hi Sarah,
I’m very grateful for your excellent, clear and logical explanation. Yes you are right. This is crystal ball gazing.
However for me, it will be between a tiny percentage of my correct redress or nothing at all if this is left to Amigo to decide. Compared with nothing if they go into administration.
It may be cutting my nose to spite my face .. but I would rather the ombudsman oversea this bunch of cowboys who (in my view) are trying to manipulate all the regulatory protections by blackmail.
I will call their bluff and vote no.
Thanks for helping me make a decision by providing clear facts rather than telling me how to vote. I appreciate others will do better from voting yes.
SaraB
Emmanuel says
Hi Sara,
Thank you for all you’re doing via this website. My Amigo History involves a Loan of £1,500 in June 2018, topped up by £1000 in October 2018 and then paid off. A new loan of £1,750 in October 2018 which was paid off in October 2019 and finally a loan that I am still paying off for £4000 which was taken in February 2020. I think I have a case for unaffordability for these loans but I am most concerned about clearing the balance on my current loan. The monthly repayments I have made so far add up to around £2500 so there will still be some of the principal left to pay, but whilst we are not able to make complaints to Amigo what would be the best way of me making a claim that stops interest being added to this loan?
Lewis says
When are the details of the vote released?
Sara (Debt Camel) says
At a guess, in the second court hearing.
Catherine says
Hi Sara. I put in a complaint with amigo last year around June. Got a decision in august they upheld my 1st 2 loans with them and not my other 2 and offered me just under £4000 which would have left me still around £3000 to pay off my current loan. I decide to turn the offer down and sent it to the FO. The FO has had my case now since last and have done nothing with it and now of course have paused doing anything until after the vote. I’m not happy the FO have dragged their heals and now looks like I’m gonna get next to nothing of my case is upheld. What I’d like to know if I get the readdress it should be around £14000 but if I get only 5% of that it’ll be around £700 which will come off my current loan I’m still paying but will still leave me around £6000 left to pay. Will I still be expected to pay that £6000 even though it was upheld that I’d been miss sold the loans.
Scott says
Hi Catherine,
If the Scheme goes ahead then your best case scenario will be that Amigo stick with their original offer and refund the interest from loans 1 & 2. This will be deducted in full (not a percentage) from your current balance and you will still be expected to pay the rest.
Worst case would be Amigo revisiting your complaint as you rejected their offer and deciding that no loans were unaffordable and leaving you to pay your current balance in full.
Please remember that no matter what Amigo are saying about the Scheme, this is not being done for the benefit of the consumer, it is being proposed in order to save Amigo money and to allow them to continue trading and causing more hardship for the financially vulnerable.
As you have an outstanding balance, in my honest opinion you would likely have more chance of the Administrator’s upholding your other loans than Amigo changing their original decision to uphold more.
If the Administrator’s uphold all your loans you would not receive any funds back but your last loan would at least be cleared. The Administration seems to be more ethic driven when making decisions rather than profit driven.
Scott
Catherine says
Oh I know it’s not for us it’s entirely for them that’s why I’m voting no to the scheme. I think it’s disgusting what they are doing. I can’t see how they can’t say my loans were unaffordable then change their decision. I also think it terrible the way the FO have handled the amigo cases. I just wish I’d have accepted the offer and it would all be over now x
Scott says
Hi Catherine,
The frightening thing is that if the Scheme is approved, they can do whatever they want as there will be nowhere to escalate the complaint to.
I personally don’t have anything with Amigo but I hope everyone votes against the scheme rather than thinking they may get a good deal with a token payment from Amigo. As I said if Amigo don’t uphold a complaint, there will be nowhere to go with it.
Scott
Alex says
Hi Catherine / Scott,
I am an interested observer and do not have a vote. It is horrible that people have trouble getting into debt with loans and interest rates that they can’t afford. It is clear that Amigo has done the wrong thing for many people in providing them loans that they shouldn’t have.
But it is incorrect to say that there will be no appeals process. In the hearing it was said that they will be appointing an independent scheme adjudicator – most likely an independent accounting-type firm separate to Amigo – to handle appeals.
And on independence, I think it is worth pointing out that Amigo appointed a separate firm of lawyers for the court hearing, independent from Amigo’s lawyer, to highlight issues and concerns that had been raised by creditors and media, including Money Saving Expert and Debt Camel.
If Amigo hadn’t, it would have been only Amigo’s lawyer arguing for the scheme and only those creditors/guarantors who had the opportunity to speak in court. That seems to show Amigo trying to be fair in the process. Why would you appoint a lawyer to highlight potential problems and concerns with the scheme to the judge, other than to be fair?
I think the FCA should be doing a better job than they have, but they also don’t want to be on the hook for putting Amigo into insolvency. If the FCA penalises Amigo and they go insolvent and creditors get a bad outcome (ie no compensation) then it will be their fault.
A
Sara (Debt Camel) says
But it is incorrect to say that there will be no appeals process.
People posting here want a genuinely independent appeal process such as the Ombudsman who can look at all aspects of a complaint.
to highlight issues and concerns that had been raised by creditors and media, including Money Saving Expert and Debt Camel.
And who significantly misquoted what I said… not impressive.
Why would you appoint a lawyer to highlight potential problems and concerns with the scheme to the judge, other than to be fair?
To give the appearance of being fair?
If Amigo really wanted to be fair it:
– would be asking the bondholders to be part of the Scheme so there would be more money for customers
– would provide for customers to receive much more from future profits than the current miserly proposal
– would not have rigged the vote weighting in the ballot against customers with a current loan
– would not be carrying on with its unfair “deduction for unpaid interest”
– would be proposing to set aside CCJs where the loan is found to be unaffordable
– would be open about the percentage of complaints it expects to uphold instead of secretive.
There is nothing fair about what they are proposing at all.
–
Vicky says
Hi Sara.
My son has gone into a iva and has a amigo loan which was included and agreed by them but amigo have contacted me for full monthly payment. When I become guarantor my credit score was low and so was my wages. They based the loan on my partners wages even though he not named on it. Can I put in a compliant about this. I also think my son should never have been accepted as he had a low credit score
Sara (Debt Camel) says
Yes, you can complain that the loan was unaffordable for you and that it was unaffordable for him. It tends to be easier to win a complaint that it was unaffordable for you BUT complain about both points.
It would also help you if your son will also complain. It won’t get him any money back, it would just reduce the balance he owed in the IVA, but if he wins his complaint you would automatically be removed as guarantor. Would he be prepared to do this?
Amigo is currently trying to get approval for setting up a “Scheme” that will mean it pays massively smaller refunds, only giving people a tiny percentage (they say 10%, I think it will be a lot less).
Your complaint to Amigo will have to wait until the Scheme is approved in late May. At that point you can send a Claim to the Scheme OR if the Scheme is not approved, Amigo will go bust and you can send a claim to the administrators.
You will be able to be removed as guarantor in the Scheme or in administration if your claim is upheld. What matters for you is whether Amigo is more likely to uphold your claim or the administrators are…
I have seen a lot of lenders go into administration and in my experience, the administrators usually try to follow roughly what the ombudsman would have done – and the ombudsman has been agreeing with the customer in 88% of Amigo cases. I don’t think Amigo is planning to do that.
You (and your son) can now vote on that Scheme – you need to think about whether you will be better off if the Scheme goes ahead or if it fails.
The other thing to think about is whether you should start paying Amigo now, before the Scheme starts. If you do, you will only get a tiny amount of your payments back even if you win the claim.
This Amigo loan doesn’t show on your credit record, so not paying them won’t harm your credit score. Amigo may threaten to go to court for a CCJ but there is no time for them to do this now before the Scheme starts and Amigo has said it will not commence legal proceedings until a claim in the Scheme has been decided. So any threats would just be unpleasant bluffs.
Vicky says
Thank you for the reply
I will get my son to put a compliant in aswell as me. Amigo wants payment from me as from this month do you think I should pay it or stop the direct debit.
Thank you
Sara (Debt Camel) says
can you afford it, or would paying this mean your other debts get larger? If you can’t afford it, then it’s sensible to stop paying until your complaint is decided. you don’t want to end up with larger credit card or overdraft balances as those will cost you more in interest and charges.
Apart from getting some cross emails and texts from Amigo, there isn’t a downside for you in cancelling the direct debit (and any continuous payment authority with your bank.)
Obviously if you lose the claim in the Scheme or in Administration, you would need to start making payment, but even then they should only be what is affordable. You can talk to a debt adviser now about this, or leave it until your complaint has been decided? Because with your son also complaining, it is very possible you will win this case, especially if Amigo go into administration.
Gail says
How are amigo doing with payouts at the moment? I accepted an offer they gave to my adjudicator 3weeks ago, both me and adjudicator have chased this up but they havnt even replied or asked for my bank info, anyone have similar experiences or timescales on how long they take to pay?
Sara (Debt Camel) says
Are you being treated as a priority case at FOS? What does your adjudicator say?
Gail says
Yes, a priority case. The adjudicator chased them up and advised me to do the same.
They surprisingly made me an offer to refund all payments I made and the adjudicator said they should pay within 28days.
Has anyone actually been paid recently though?
Sara (Debt Camel) says
oh ok, if they have agreed to refund then you will be ok. But there are so few of these still going through that I have no idea how long it will take.
Gail says
It’s a strange one my case say maybe they had to, basically when the borrower complained they refunded me my payments on one loan, the borrower then won with the ombudsman but they never refunded my other payments even though they admitted that they shouldn’t have loaned to the borrower, so this long road was just putting that right
A says
Hi Gail,
Did you receive your refund in the end?
Tom says
Hi Gail,
I would also be curious to know whether you managed to receive your payment within the time frame.
Hope it goes well, I’m also waiting for an email from Amigo.
All the best
Tom
Kyle says
In similar boat at the moment. I called Amigo and they said I wouldn’t be in the scheme as they made an offer and accepted before it. They said that they will be in contact with me soon with figures and such. But I don’t hold my breath.
Stacey1377 says
Hi Sara
I was hoping you could advise me, my complaint has been with FOS and has been getting assessed by an investigator since late last year. I was understanding this was a priority case due to personal circumstances. I have been advised today from the assessor that it is no longer being dealt with due to Amigo and the court application for the scheme. Can FOS do this with a priority open case I am so worried as Amigo rejected the first time hence it going to FOS and the likely hood of them doing it again well we know the outcome that.
Thanks
Sara (Debt Camel) says
I’m sorry to hear that.
As your mum is on Universal Credit and is renting a Housing Association property, I would hope she would win a claim to be removed as guarantor in either Amigo’s Scheme or administration. You may think this is more likely in administration given the way you have been treated so far, in which case you should both vote against the Scheme.
But if she doesn’t, then once you have stopped paying and she is being asked to pay, she can apply for a debt relief order (DRO) that will wipe out her debt. Obviously she would rather not do this, but is a very simple and final way to remove the problem for her if necessary.
Stacey1377 says
Hi Sarah
Thanks for the reply, but could you let me know if the FOS should still be working with my case as it was priority. They have said they will not continue now due to scheme application by Amigo. I was only days/weeks away from an adjudicator decision
Thanks
Stacey
Sara (Debt Camel) says
I think Amigo has said it will not payout on any further FOS adjudicator decisions – so FOS has stopped as it would be pointless. Some priority cases were progressed and paid out but that now seems to have stopped.
Scott says
Hi Alex,
Never in my 53 years have I ever heard such utter tosh. Perhaps you are one of the non direct employees of Amigo spreading the same bile about how fair Amigo are trying to be as has been seen elsewhere online. Obviously trying to pull the wool over people’s eyes in order to get this scheme approved.
It is amusing that you never commented on any of the other pages i.e Wonga, Sunny, Quick Quid or even provident who are also proposing a similar scheme.
The fact remains that this scheme is purely for the benefit of Amigo and their directors and shareholders and is of no benefit to the thousands that have suffered as a result of Amigos ethics in the past.
I’m pleased that Sara has addressed your obviously pathetic points and think it time that the troll either goes back under the bridge and waits for the Billy goat Griff’s or slides back under the stone that they crawled out of.
Siobhan McMurdo says
Sara I have finally had an email from Amigo this morning to say they will be processing my redress outside of the scheme due to the length of my complaint process. Amigo contacted FOS two weeks ago to offer my redress but I’ve not heard a thing from FOS so have emailed them this morning to say I accept the offer.
Thank you for all of your help and support. Finally two years later there is an outcome! I will make a donation when the redress is received.
Kelly says
Did you get an offer before the scheme ?
Ian says
So they are still doing some redress outside the scheme?
That’s good news unless this is a one-off as I got the impression everything not already resolved is automatically going into the scheme.
Sara (Debt Camel) says
They have been processing some claims that FOS was treating as priority. I thought this had now stopped, it’s good see one still getting through.
Siobhan McMurdo says
My case has been ongoing since April 2019, FOS made their decision before the scheme was announced (about a week before) but Amigo had ignored them up until 1st April.
Catherine says
Mine was supposed to be set as a priority but it’s still now been paused. It’s ridiculous that the FO have dragged their heals since I referred it to them last august and now because of this it’s not been sorted. Same with my provident one.
Angela says
Catherine vote NO to both amigo and provident l say let them both go bust if you vote yes they win giving customers small refunds and they get to carry on giving out loans and ripping customers off time to erase them
Tom says
Hi Siobhan,
I’m in a similar position to you wher Amigo have said they will settle with me outside of the claim. I’m just curious to know whether you’ve received your payment yet? My concern is they have 4 weeks to pay, but 4 weeks from when I received their offer would put me just past the second court date and I’m dreading them announcing going into administration before I manage to recover my payment. I have spoken with two advisors at Amigo and they have confirmed that recieved my acceptance of the offer, and someone would be in touch soon to get my bank details.
Ian says
Who is counting the votes by the way?
Is it being overseen by the FCA, as I’m not sure we can trust Amigo.
Also what percentage of yes votes are required to carry the scheme and how are votes weighted? I notice you said current loans have a low weighting.
Sara (Debt Camel) says
Amigo is. I don’t think the FCA actively oversees it!
There are two sets of voting – one by “number” where all votes count the same and the target is to get over 50%. Second a weighted count where the weighting is how much cash refund you could receive where the target is to get over 75%.
But these votes are just indicative, the actual decision of whether the Scheme should be implemented is taken at the second court hearing.
Ian says
Unbelievable that Amigo can ‘count’ themselves without any oversight!
The 75% threshold vote appears to favour completed/old loans which are more likely to be regarded as an unexpected ‘windfall’ by past clients and thus get their votes.
Not ideal to put it mildly!
wb says
Ive had a complaint in with Amigo for the unpaid interest in which they deducted from my redress. Ive been waiting for a response from the FOS in regards to this for months now.
I decided to ring the FOS today for an update, to which they’ve said, due to the scheme they can’t do much, and its probably something they would have looked into anyway.
Thankfully i accepted the redress prior anyway, but wasn’t satisfied with the unfair deduction. Im still hoping that this gets look at as its around £1500.
Does anyone know if this sort of complaint would still fall into the scheme or could i still claim this amount as such through other means and does having accepted the redress originally make it hard to achieve.
Thanks
Sara (Debt Camel) says
If the Scheme goes ahead, I don’t think you will be able to make a claim about this as you have already accepted a settlement from them. In provident’s Scheme you could – but this is one of the many little ways Amigo has sought to make it harder to claim on the Scheme.
If the Scheme does not go ahead and Amigo goes into administration you probably would be able to make claim to the administrators. But I think you don’t currently owe a balance? In administration, there won’t be any cash to distribute, so there would be no point.
Wb says
Oh right ok, well I’ve emailed amigo again today just to ask for a full explanation and just chance my arm in the hope they have a change of heart really. Which I don’t expect at all.
But worth a try. Thankfully for me the main complaint is done and dusted.
Thanks for the reply.
Siobhan McMurdo says
Hi Sara
Can you help me with this.
This is what FOS has sent me about the redress
if your guarantor accepts the refund, as follows:
Total interest paid: £1,706.78
Total fees paid: £399
Plus 8% simple interest (less tax): £169.35
Total settlement due: £2,275.13
Less amount paid towards loan by guarantor (if accepted): £1,814.22
Your current loan has been settled. If your guarantor accepts the refund, you will receive £460.91 as settlement.
Please note, there may be slight variations in calculations when Amigo apply the refund to your loan account due to simple interest being owed up to the date of settlement.
My mum is my guarantor so I’ll be getting it back if she accepts. If she doesn’t what happens? Does amigo keep the money she has paid? If they put the amount she paid back on as my debt it’ll be going into my DMP.
Do the figures look right on a £2k loan?
Thanks
Loan was taken out 2008 and paid off in 2011.
Sara (Debt Camel) says
I can’t say the figures are correct, but they don’t look wrong.
If she accept doesn’t what happens?
the figures would be reworked without the Less amount paid towards loan by guarantor (if accepted) line, so you would be paid more.
Does amigo keep the money she has paid?
No, it would be treated as though you had paid it.
If they put the amount she paid back on as my debt it’ll be going into my DMP.
So far as I can see from those numbers, you shouldn’t end up owing anything. Your mum get back £1814 + quite a bit of 8% interest. You get £460.
It’s up to you and your mum, but it may be a lot simpler & quicker to take what they have offered and sort it out between the two of you, rather than get Amigo to rework all the numbers.
Siobhan McMurdo says
Yes I think that’s what we are going to do. Neither of us are convinced that my mum made that many payments but at least I now have the outcome I wanted! Thank you
Sean says
Hi Sara
Amigos share prices are increasing. They have just announced a high yield bond, JP Morgan have bought a 5.2% stake. Does this point towards the fact Amigo know the vote is going there way, or was never that important to start with? What I mean by that Is, even if the scheme fails they aren’t going in to administration and will settle claims using investment, and reopen trading at the same time?
Sara (Debt Camel) says
You have proposed two opposite reasons. That’s the trouble with trying to read much into short term share price movements, which could anyway be just noise or ill-informed.
Sean says
I was looking more are the high yield bond announced…it was more a question than an observation. I’ve voted no, and happy I did so.
Matey Petkov says
Hi Sara , please ask for advice before taking action.
I took out a loan of amigo 3500 after 3 months I added 6500 in total and I have to repay 23,715 pounds, I followed your advice and filed a complaint 3 months ago I waited 8 weeks, I had no answer from them and I filed a complaint with FOS. My loan was unaffordable and still they gave it to me, I have proof of that, I am no longer able to pay and my guarantor too, what are my options? If I stop the direct debit and my guarantor also stops it, will there be an effect on my and his credit information? what can they do to me? So far I have paid 14,000 and if I file the complaint will they return me the 4,000 I overpaid and if they go bankrupt is it true that the sale will lend us to other companies and we will have to continue to pay. thank you
Sara (Debt Camel) says
what are my options?
there is nothing you can do at the moment about your complaint, all you can do is decide is whether to vote for or against the Scheme.
If the Scheme goes ahead, you submit your complaint to Amigo to be decided in the Scheme.
If the Scheme doesnt go ahead, you submit your complaint to the administrators.
If I stop the direct debit and my guarantor also stops it, will there be an effect on my and his credit information?
It will affect your credit record but if you later win your complaint in the Scheme or in administration if the Scheme doesn’t go ahead, then the negative mark on your credit record will be removed.
It won’t affect your guarantor’s credit record. If they check they will see the Amigo loan does not appear there.
what can they do to me?
they will send you and your guarantor cross emails and texts. they may threaten to take you to court but there is no time to do that before the Scheme starts and they have said they will not take people to court in the Scheme until they have decided your complaint.
if I file the complaint will they return me the 4,000 I overpaid
before the Scheme you would have got the 4000 back. If Amigo uphold your complaint in the Scheme, you will only get a very small amount of it. Amigo says perhaps 10% (so £400) I think it could be less than half of that amount (so £200).
There is also the problem for you that Amigo may decide to only uphold the top up loan and not the first loan. As you only made a few payments you may think it wouldn’t matter much if Amigo didn’t uphold those…
But here Amigo makes a deduction “for unpaid interest” where a loan wasn’t upheld but was settled by a top-up loan that was upheld. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
Some people have had their refunds reduced by thousands, and been left owing a large balance because of this.
if they go bankrupt is it true that the sale will lend us to other companies and we will have to continue to pay.
The technical term for a company going bankrupt is “going into administration”.
If Amigo goes into administration, your loan doesn’t disappear. But you can then make your complaint to the administrators.
If the administrators uphold your complaint, the balance of your loan would be cleared.
If they don’t uphold your complaint then it is likely the loan would be sold to a debt collector (who are generally much nicer to deal with than Amigo!)
Administrators normally try to follow roughly what the Ombudsman would have done – the Ombudsman was upholding 88% of Amigo complaints. Also the ombudsman never applies that “deduction for unpaid interest” so I don’t think the administrators would.
For you the important thing is to get the large balance wiped out – that matters far more than any small cash refund.
I can’t say what Amigo would decide in your case in the Scheme – they haven’t given any details. But because of the deduction for unpaid interest, you could well be better off if the Scheme doesn’t go ahead and instead the administrators get to decide your complaint.
Matey Petkov says
Sara :))) For you the important thing is to get the large balance wiped out – that matters far more than any small cash refund?
1What they meant
2 that is, if I continue to pay when it becomes clear what will happen to the scheme in maybe 1 year I will still pay another 4-5000 pounds and what I can get if I win my complaint against them I will receive 10% of the overpayment. to pay will have an effect on my credit history and in both cases we are at a loss. Please sara for advice what to do in my situation? .I already voted against the scheme because I think it does not work and to stop this benefit on their part of people who are in difficulty, please give me a compliment .Thank you
Sara (Debt Camel) says
so you are asking if you should stop paying?
are the payments affordable for you or causing you a lot of problems?
Matey Petkov says
Sara I have paid the amount I took 10,000 and I have paid interest of 4000, I do not have the opportunity to pay more, because of them I had to take more loans from banks and friends so that I can pay them and I no longer have the opportunity.Thanks
Sara (Debt Camel) says
If you can’t pay then this is simple in your case as you have paid more than you borrowed.
You should stop paying and suggest that your guarantor cancels their direct debt (or continuous payment authority if they have given Amigo their card details).
Borrowing more from banks and friends isn’t a good idea. And this wouldn’t just be for a month or two – it will take many months for your complaint to be decided in the Scheme (or in administration if the Scheme fails to go ahead).
Stopping paying will harm your credit record but not your guarantor’s.
Amigo may make threats, but they can’t go to court now (there isn’t time) or in the Scheme until after they have decided your complaint.
If you would like to talk through your situation with a debt adviser, phone National Debtline on 0808 808 4000. Tell them you have made an affordability complaint and explain your situation.
Pam says
Hi,
The FOS contacted me yesterday to say amigo have offered me a refund. (My complaint was from the guarantor perspective as I’d basically had to make all payments myself after being horribly scammed). I’m not sure what to make of it as with everything going on I hadn’t expected to hear from them.
Is it possible this could actually be true and I may see the refund? I’m wondering if anyone else in a similar situation has had this?
My pessimistic side is not holding my breath to actually receive anything; but very out of the blue to get the email from my FOS handler.
Thank you in advance
Sara (Debt Camel) says
It is possible – was FOS treating your case as a priority? I suggest you accept it asap!
Pam says
I think they may have as I remember them saying it had been taken to the highest level at FOS and AMIGO but I assumed they were telling everyone that to be honest.
I have accepted and hope to have this whole stressful time sorted soon!
I always come here to seek advise and appreciate all that you do for everyone going through this mess.
Thank you
Sara (Debt Camel) says
Another guarantor contacted me yesterday to say the same – that Amigo has told FOS they are offering a full refund paid now, outside the Scheme.
Tom says
Hi Pam,
Great news for you, similar situation here. Just wanted to check in and see if you’d received your payment yet?
Pam says
Hi Tom,
Nothing yet. I’ve tried calling and emailing to ask amigo directly what is going on but no joy yet. I hope this is genuine from them but I’m sure you’ll agree it’s been a rollercoaster and I’m not going to believe it until I see it! Hope you get a positive outcome ASAP
Tom says
Hi Pam,
Thanks for replying.
I’ve spoken with them after calling to see if they are completing refunds within the time frame, and they said they were currently managing to work their way through the list within the 4 weeks that the ombudsman gives them to contact the claimant.
For me it’s going to feel like the longest wait as although they’ve confirmed that I will be receiving the sum of money outside of the scheme, I have this horrible feeling that given the end of my 4 week period is just after the next court hearing, they will announce administration and ill be left with nothing again. I’m not sure whether them entering administration does affect those who they have made an offer to, or whether the offers they have made to claimants are factored in to their budget should the scheme not go ahead. (If Sara reads this maybe she could provide some insight as to how it would work for people they’ve offered funds to in the event of administration)
I’ve waited so long for FOS to look at my claim, and for amigo to respond. I’d basically written off any hope of getting anything back with their announcement of the scheme several months ago, so here’s hoping they stick to their word.
I hope you have some luck and you’re not waiting too much longer. I’ll let you know if I hear anything in the meantime.
SJ says
I wonder if someone can clarify the payments for existing customers?
If I am due to finish paying in June 2022 with a loan I took out in July 2018, how does it work for a refund on payments I make AFTER the scheme/administration commences? Do I get those payments back in full regardless and any payments made outside of the scheme/administration are refunded on the optimistic 10%?
As an example, a £6,000 loan taken out over 48 months in July 2018 would be finished in June 2022. The monthly payments are approximately £250 and are deducted on the 28th of each month. The capital of the initial loan would paid off after June 2020 payment. Everything between then and the start of the scheme/administration (let’s say 1st June 2021, so 11 payments) totals £2,750. There would be approximately 13 payments left totalling £3,250.
In the above example and if a complaint was to be upheld in the scheme or administration, am I correct in thinking the £3,250 would be refunded in FULL and the £2,750 would be subject to the (overly optimistic) 10% redress, i.e. £275?
Sara (Debt Camel) says
In this case you have already paid more than the amount you borrowed.
If we assume that your claim would be upheld in the Scheme AND also in administration, then exactly the same happens to the payments made in the Scheme and administration – they should stop being taken and the ones you have made will be refunded to you IN FULL.
If making the payments isn’t causing you a problem, this is the easy option for you.
If making the payments is causing a problem them it is better to stop making the payments and wait for your claim to be decided.
There remains the question about whether your claim is more likely to be upheld in the Scheme or administration. Amigo haven’t said anything useful in letting you guess which complaints they will uphold. In administration, from my experience administrators usually try to roughly do what the ombudsman might have done. And in Amigo’s case the ombudsman is upholding 88% of Amigo cases.
SJ says
Thanks for the reply, Sara.
And your summary is exactly the issue for me – I do not trust Amigo or this “independent complaints company” they claim will be investigating to treat complainants fairly.
For me it’s an easy choice and I’ve voted against. It’ll be interesting to see where it goes.
Paul Ellison says
Hi Sara,
I originally put in my complaint to Amigo in March of 2020 for 7 loans in total. They upheld loans 1-6 and loan 7 was upheld by FOS in November.
I haven’t received any payout out as of yet and receive no response to email to Amigo and FOS state nothing they can do.
I was under the impression I would still be paid out as they where upheld prior to December 2020. But I am now struggling to find out where I stand. Any help/information would be grateful.
Thanks
Paul
Sara (Debt Camel) says
So the Amigo decision to uphold loans 1-6 – did this clear the last loan or did they say you still owed money?
loan 7 was upheld by FOS in November.
was this from an investigator/adjudicator at FOS? or a second level “Ombudsman” decision?
Paul Ellison says
They upheld those loan but with no actual calculations. Loan 7 still has an outstanding balance which has been put on hold.
Will there originally decision be honoured? And what happens with the 7th.
Thanks for replying
Sara (Debt Camel) says
If your FOS decision was from an “Ombudsman”, Amigo is paying out in full before the Scheme.
My guess is your decision was from an adjudicator/investigaotor. there Amigo is only paying out now if it has accepted the decision. It sounds as though they haven’t.
So where does this leave you in the Scheme? Or in administration if the Scheme does not go ahead?
It will be easier for me to say something useful if you can give me all the details of your loans – as you had 7 there are rather a lot of numbers I need to know.
For each loan – how much you borrowed, if it was a top up how much you received in cash, how much you paid in monthly payments (eg 3 x £193), any other settlement payment you made to it (not counting the settlement from the next top up loan.
Those are just cash payments, ignore whether Amigo says they were interest or capital.
Paul Ellison says
Unfortunately I don’t hold any of the details of what I paid into each loan. But they all refinanced the previous loan.
Will I atleast receive the original uphold decision from Amigo for loans 1-6? The 7th Loan was an Adjudicator decision to uphold as this was the 1st loan in the chain. However FOS found that Amigo put in a higher income than I had so I would pass affordability.
Sara (Debt Camel) says
The 7th Loan was an Adjudicator decision to uphold as this was the 1st loan in the chain.
was that the very first loan you had? Or had you paid off loan 6 in full and then there was a gap to the current loan?
Paul Ellison says
Yeah that was the first loan I had. The 1st 6 have been paid in full with the 7th still having a balance.
I have question FOS on what happens next and this is the response I have received. Doesn’t fill me with much confidence.
Dear Mr Ellison,
The original loans that were upheld may fall under the scheme also, they haven’t confirmed anything, as it wasn’t accepted in full and final settlement.
Generally a business doesn’t make any payments under a complaint is resolved in full.
As advised we have put all complaints on hold, so therefore we wouldn’t contact Amigo either about any outstanding complaints with us.
I would advise you contact Amigo directly, but unfortunately we have put all complaints on hold.
kind regards
Mr g says
Hi. If I stop paying my loan now at 415 a month,how will this affect me moving forward till this shambles is resolved. I’m only worried about my guarantor an not myself. Thanks haz
Sara (Debt Camel) says
I can answer this better with a few more details
was this your first loan from Amigo?
how much did you borrow and how many payments have you made?
are the payments causing you a lot of problems (£415 – ouch!) or are you mainly worried about only getting a tiny amount back at the end?
Gaz says
Hi sara. My current loan balance is at 9000 paying 415 a month. I’ve topped up about 8 times over the years an not sure what I’ve borrowed to be honest. Amigo have stopped interest on my loan so the 415 is coming of the balance. I had a current claim with the ombudsman an have paid thousands in interest. I’m still paying the loan every month as I dont want my guarantor to be hasseled but yes it is impacting my finances badly but have made every payment since the beginning. Thanks
Jaz says
Hi Sara
I have just received this email from the FOS about the redress that Amigo is offering. I have already paid my guarantor who is my mom, and they ready to confirm this, or is it better if she takes the offer, which way would be better off.
The offer explained
Amigo is making an offer on all the loan(s) you took out with them.
The offer will include:
– Amigo refunding the interest that you paid on the loan(s); and
– Amigo removing any negative information that has been recorded on your credit file concerning the loan(s).
As your guarantor made some payments towards the loan for you, Amigo has said it will first offer them a refund of all the money they paid towards your loan. Your guarantor will be given the option to accept or reject this offer. Should your guarantor accept the refund, Amigo says it will add this balance back on to your loan before applying the refund described above to your loan account.
What this means for you
Amigo has given us the details of what your refund will look like if your guarantor accepts the refund, as follows:
Total interest paid: £2,097.52
Total settlement due: £2,097.52
Less amount paid towards loan by guarantor (if accepted): £4,689.34
Your current loan has been settled. If your guarantor accepts the refund, your loan will re-open and you will owe £2,591.82.
————————
She is happy to pay the money back to me, I just wanted to know how does it works, if my mum tells them I’ve paid her back how would they calculate paying me back, or if I just let them pay my mum will the payout be the same as just giving me the money if I said I paid my mum, I’m just a bit confused on how they work this out, and which one will be better off to do and why. Thanks again Sara for helping and hearing me out.
Sara (Debt Camel) says
Between the two of you, you are probably very slightly better off if she is paid the refund and your account is then put into debt, which you can then clear from the money she gives you (this is because she gets 8% interest on all the money, you would only get it on the interest).
And as importantly you can just tell Amigo you accept this now & she is paid. Simple. The sooner this is over the better!
Jaz says
Hi Sara
Thank you so much Sara I was wondering if you can tell me how much amount would my guarantor be looking at with the 8% interest and how much would I have to owe and pay back.
Thanks a million Sara for your advice
Sara (Debt Camel) says
The numbers you have been sent say:
“If your guarantor accepts the refund, your loan will re-open and you will owe £2,591.82.”
so that is how much you would owe.
Also:
“amount paid towards loan by guarantor (if accepted): £4,689.34”
so your guarantor would get that plus 8% interest – how long ago was the loan settled?
Jaz says
Hi Sara
The loan was settled in 2012, could you tell me what does this means.
Total interest paid: £2,097.52
Total settlement due: £2,097.52
Sara (Debt Camel) says
oh that was a long time ago. Then your guarantor should be offered 60-70% more than what she paid as the 8% interest.
Total interest paid: £2,097.52
Total settlement due: £2,097.52
That is their refund calculation for you – it doesn’t have any 8% interest as you would end up owing them money if your guarantor takes the refund. If your guarantor doesn’t take the refund, they have to go back and add 8% interest to that. But the refund amount will also change…
they haven’t given you all the figures here, which is why I said it’s easier if your guarantor accepts, as otherwise Amigo has to do a new calculation for you.
Jaz says
Hi Sara thank you so much for you information, I’m gonna tell my mum to accept the refund could you tell me what interest she is looking at.
Thanks again for everything Sara
Sara (Debt Camel) says
Amigo said “amount paid towards loan by guarantor (if accepted): £4,689.34”.
So I think they should be adding over £3000 statutory interest on top of that.
Jaz says
Hi Sara thank you for your help I really appreciate everything you have done on this site to help each and one of us, I could not done this without you thanks a million, for all your support and help.
Jaz says
Hi Sara Amigo is offered £2,200 to my guarantor for her 8% far from my calculations £4,689 paid out + 8% loan was from 2012 to 2021 so the 8% should be £375 x 10 years = £3,750, could you tell me if this is correct please Sara, I really appreciate it.
Sara (Debt Camel) says
It does depend when in 2012 the loan ended, but your calculation is roughly what I did. I suggest you go back to them and query it.
Lisa G says
Hi Sara, some advise please…. I was going to put in a claim against Amigo but obviously now can’t and will have to make a complaint through their scheme.
I took out a 10K loan in March 2018 and have made 32 payments of £395 totalling approx 12,640K.
The balance on my account is still 9K-ish. I took a few months payment break during COVID last year. Obviously you’ll know it’s compound interest although I do think they put a hold on interest for a couple of months.
I’m wondering if I should try and make additional payments to clear my balance and try and get it paid quicker accepting that I’ll not get much / if anything at all back once the scheme is running or they go into administration, or should I pay my contracted amount and hope the scheme uses any payments I’ve made to clear the original loan (even though that’s cleared already) which would stop any future payments. I have 28 payments left. But in that time the interest can really add up.
I guess it all depends on how quickly the scheme is up and running and they deal with complaints? Which judging by TMS etc it can be a long while?
Paying it off early I’d save a few thousand on interest but paying it off with only contract payments will allow me to save that additional money quicker for a house deposit.
I hope this makes sense?! Essentially, should I pay the Amigo loan off ASAP or just let the contractual payments run? I’m a bit stuck at which way to go.
Sara (Debt Camel) says
You have paid £2640 of interest so far, if your refund was calculated today. Amigo says you may get 10% of that amount back in its Scheme if your complaint is upheld – I think that is optimistic and you may only get 5% back.
The points for you to think about are:
1) how good your complaint would be. Amigo is encouraging people to vote for the Scheme saying “Vote for your money” – but if Amigo rejects your complaint you aren’t going to get any at all! So what was your situation in March 2018? Your finances may have improved a lot since then, but for a complaint it is whether the loan was affordable at the time you took it out that matters.
2) how much would you save by settling the loan now? This may be much less than you expect as the early part of a high interest loan doesn’t reduce the capital owed by much.
This will also be less because of the extra interest they will have added if your payments break was over 3 months – but this extra interest is “capped” so you will never pay more than the £13,715 interest quoted at the start. Effectively the extra interest only hits you if you are settling early, not if you let the loan run to completion.
You can ask Amigo what it would cost to settle it now – that will give you more information.
3) Timing. If the loan repayments are affordable for you then this matters less than you would think! If your complaint is upheld you will receive a FULL refund of all the payments you have made in the Scheme. And you can obviously cancel your direct debit to amigo as soon as the claim is upheld, even though it will be many more months until the cash payouts are worked out.
Sara (Debt Camel) says
Also the final point is whether you would be better off if the Scheme does not go ahead but Amigo goes into administration.
For you the imporant thing is to get the huge balance cleared, not the tiny amount of cash you may get back.
Administration works much the same as the scheme – you put in a claim, if its upheld your had your balance reduced (or in your case written off as you have reapid more than you borrowed) and you get a refund of any payments you have made in administration.
The only two significant differences are:
– in the Scheme Amigo decides whether to uphold your claim – in administration it is the administrators (who normally try to do what the Financial Ombudsman would do) who make the decision.
– there will be no cash payout in administration.
So it is possible you would be better off if the Scheme fails if the administrators are more likely to uphold your complaint and wipe your balance than Amigo is.
Tom says
Hi Sara,
Earlier on this year I sent off all my financial info to the adjudicator to make a decision on my claim with Amigo. They upheld all of my loans, but as Amigo didn’t reply in the time frame they passed the case onto the ombudsman for a decision. The scheme then appeared in the news and it became apparent that I’d likely not recieve anything like the 1000’s initially calculated.
Several moths have passed, and today I woke to an email from the FOS saying that Amigo has responded to my complaint and upheld all of the loans!!! Totalling £11,831…I was assuming that I’d never recieve my response from them since they seemed to have stopped complaint handling with the scheme being floated around.
I’m hoping all is well and I’ll recieve my refund, but given Amigos time scale for accepting and paying out I’m not going to get excited until the money is in my account.
Tom says
After speaking with an Amigo advisor earlier I would be curious to know whether anyone who’s claim was upheld by the adjudicator/ ombudsman after the 21st December last year has recieved an offer from Amigo?
They implied to me when I called to ask a time frame that although FOS has sent me a settlement offer from Amigo that I may not recieve a payout and would be grouped with the scheme to be paid pennies on the pound at a later date. I’m confused as to why after all this time Amigo would send through a figure for refunds if they have no intention of paying out…surely they’d just not reply, and group me with the scheme when/if it goes forward???
Sara (Debt Camel) says
I am wondering if the person you have just spoken to was mistaken? I can’t think why they would accept a FOS decision if they aren’t going to pay out on it now, before the Scheme.
Tom says
I thought that too, she said in my notes there was no record of a final decision being made even though I explained that out of the blue amigo sent FOS a response, so she said she would contact the team directly dealing with complaints and would email with further details…but she stressed the importance of ‘managing my expectations as it’s likely I won’t recieve a payout’…but again begs the question as to why they outlined the figures they have no intention of paying.
After accepting eith FOS they said Amigo will sort payment directly and to contact them if I don’t get anywhere, so I’ll wait the time frame and get in touch with FOS if necessary.
Was mainly posting here to see if anyone has had a similar outcome!
Tom says
Hi Sara,
Had some clarification from Amigo yesterday and they said I am on a list of cases that will be settled outside of the scheme. FOS passed my acceptance to them on Monday and said to get in touch with them if I don’t recieve any communication from Amigo within 4 weeks. So all being well and fingers crossed, I will recieve nearly £12,000 as a refund. This will allow me to be 100% debt free, with some left over to help family, as well as set up a small business after having lost my job to the pandemic.
I hope Amigo comes through, as this really is a life changing sum of money for me.
Sara (Debt Camel) says
Fingers crossed!
Tom says
Hi Naz,
I sent my complaint to the FOS in December 2019. I wasn’t allocated an adjudicator until around October/ November 2020. The adjudicator came back to me in January, I believe, to say that he agrees all of the loans were unaffordable. He then gave Amigo around 4 weeks to respond with their view, but Amigo didn’t get in touch within the time frame so the complaint was passed on to the ombudsman. I had been waiting a further 4 months for this to be looked at by the ombudsman, when out of the blue, this week I awoke to an email from my case handler saying Amigo had made an offer on my claim.
I have since passed my acceptance to the FOS which hopefully they have forwarded onto Amigo, and I’m now waiting for Amigo to contact me directly to arrange payment.
Nazia Bibi says
Hi Tom thanx for replying back was your complaint a priority
Tom says
Hi Nazia,
Apparently yes, my case is being treated as priority. Currently waiting for Amigo to contact me to arrange payment…here’s hoping it goes without any issues!
Lisa says
I submitted a claim in August 2020 and was passed back and forth continuously. I received the paperwork for myself and my guarantor (who made 1 payment back in 2010). My original complaint was for six loans over 10 years and was “unofficially” told that my complaint had been upheld. I was advised in November that all of my paperwork had been received and that I should expect a final redress figure within four weeks. I was contacted by a journalist who was running an article on Amigo’s shambolic running of the complaints system and she was in contact with Amigo on my behalf. I received a response via Gary Jennisons press department on the article she ran and it confirmed that should the case have been dealt with differently then I would have received in excess of £14,400. They knew that they had handled my case wrongly as I have a written agreement that all of my payments have been frozen until the decision has been made my the scheme. My question is, do I have anywhere to turn? If they have voluntarily frozen my payments, and any action towards my guarantor, and have a written confirmation email from Gary Jennison confirming that they messed up my complaint, surely I could be considered for payment out with the scheme?
Sara (Debt Camel) says
I think you could try emailing Gary and asking for Amigo to use their discretion and pay out on your case now.
aden says
Hi Sara
I took out a loan with amigo back in 2018. At the time i was in desperation and I was in an existing DMP. However all payments were made painstakingly as i did everything i could including working 3 jobs, to not effect my guarantor and that has resulted in years of playing catch up with essential bills such as council tax. To put things into context I had calculated that to date I have paid £10 276 and they have charged me £9437 in interest therfore I have only paid back £838 over last 3 years. I feel this number is soul destroying. I have not put in a claim before and will be doing so when given the opportunity.
Sara (Debt Camel) says
How large was the loan? It doesn’t sound if they checked your situation very carefully giving you such a large loan when you were in a DMP.
K S says
Hi Sarah,
My sister has a amigo loan she can not afford to pay it and is currently suffering with mental health and has been in and out of hospital with it recently. She has asked if she can put a payment plan together whilst she gets herself together but they insist talking to her on the phone because she suffers with anxiety she is unable to do this. Me as her sister has offered to speak to them but as I’m her guarantor they won’t let me.
I’m not sure what to do as she has managed to set up payment plans with all her other debtors but amigo are being extremely difficult.
Sara (Debt Camel) says
To be fair to Amigo, you as the guarantor may not always have the same interest as your sister, so it would be better if someone else could speak for her.
HOWEVER Amigo should NOT be insisting on speaking to her on the phone at all if she has explained she has mental health problems and would rather sort things out by email.
Is she actually able to make any payments at the moment? How many other debts does she have arrangements with and are these low “token” arrangements?
What were her finances like when she took the loan out – was it her first loan from Amigo?
What were your finances like when she took this loan out – could you have afforded to make all the loan repayments and still paid your own bills, debts and normal living expenses?
(I am asking these questions because Amigo failed to properly check that many borrowers and guarantors could really afford the loans – if this applies to either of you, this may be a very useful route out of her current situation.)
K S says
Hi Sarah
Thank you for the reply ! Yes they are insisting she calls or gets somebody else to call but she doesn’t have anyone else she trust. She was already In debt when they loan was given and she already had a ccj when the loan was given which I wasn’t aware of otherwise I wouldn’t not have accepted being her guarantor.
She has offered to a pay a minimal amounts until she has sorted herself out.
I was already struggling also with my bills but that wasn’t checked either.
Thank you for your reply any help would be greatly appreciated
Sara (Debt Camel) says
Your sister’s immediate problem:
I think she should reply by email saying:
– that her mental health means she cannot manage a phone conversation with a creditor as it would make her extremely anxious and she doesn’t feel she would be able to respond accurately as she finds it hard to focus on financial details and can easily forget something or not realise it is important (assuming that is correct of course! otherwise change it so it is).
– due to her mental health she is particularly susceptible to harm, so Amigo should be treating her as a vulnerable customer, allow her to choose how she needs to communicate with them and that her preferred communication channel is email. (Those words may sound slightly odd, but they are the phrases the FCA who regulates Amigo uses. So Amigo should recognise them.)
If she hasn’t already sent details of her mental health problems she should do this now. Details of hospital stays, current mediation etc. Also details of any benefits she is getting and a recent bank statement.
Sara (Debt Camel) says
Going forward, whatever Amigo say, if she can’t afford to pay more than a very low amount, she should stop paying. Worrying all the time and trying reduce what she spends to an impossibly low level to pay Amigo a bit more will not do her any good. Financial worries and mental health problems are a toxic mix, each making the other harder to resolve.
She will be able to make a claim in the Scheme Amigo is trying to set up for unaffordable lending – that the Amigo repayments were too high for her to manage and if Amigo had really checked her situation it would never have given her the loan.
If she wins this complaint, interest is removed from the balance so she only has to repay what she borrowed, you are released as guarantor and she can make a lower affordable payment arrangement.
You can also make a claim in the Scheme that the loan was unaffordable for you. If you win this you are released as guarantor and again she can then make an affordable payment arrangement. But here interest isn’t removed for her.
So it’s best if you both make these complaints, gives you more chance of one of you winning.
You can both make exactly the same complaints if the Scheme doesnt go ahead and Amigo goes into administration. You will get the same result EXCEPT
1) here there will be no cash refund in administration – but she would never get a cash refund unless she has already paid more than she borrowed (has she?). And the refund wuill anyway be tiny, Amigo thinks 10% of the interest peiople have paid, I think probably even less.
2) in the Scheme your complaints are decided by Amigo. It isn’t clear if Amigo will be rejecting complaints the Financial Ombudsman would have upheld. In administration your complainst are decided by the adminsitrators, who (in my experience) usually try to decide claims in roughly the same way the ombudsman would have done.
So if you want to vote on the Scheme you may want to think if you want it to go ahead or you would prefer administration.
Kelly says
I’ve got 3300 left to pay on a 4k loan I’ve already paid 4700 interest if I pay off the loan now would I be paying 3300 or would it be lower settlement figure?
Sara (Debt Camel) says
It would be a lower settlement figure – but it may not be as low as you would expect. Ask Amigo what the settlement value would be.
Do you think you have a case for saying the loan was “unaffordable”? That is you could only make the repayments by getting deeper into debt ealsewhere, behind with bills or having help from relatives?
Kelly says
I’ve already put in a complaint with them last September but they lied to me so many times saying I would get my final response and then few months down line filed for the scheme so now I’m at a loss . So just thinking of paying it of and be done with it
Aliya says
Hi Kelly, I myself am in the same position.
I am not sure how long it will take Amigos to give us our final response after the 12th May but I am very much so considering paying off the loan just be done with it.
Have you decided what action you will take?
Kelly says
Yer I’ve paid it off to be done with it . I’ve had enough so borrowed of my family
Sara (Debt Camel) says
Ask Amigo for the settlement figures so you have the facts.
If you win your claim in the Scheme or in administration, then the balance would be cleared. If you have settled the laon then you will only get 10% (Possibly less) back of the settlement amount in the Scheme.
It’s not an easy decision.
Michelle says
Hi Sara ,
Wondering if you can help , I had a 6 month Covid payment break with amigo , when I took it I was on the understanding the missed payments would be added onto the end of the term , they are now demanding I pay a extra £100 a month to clear arrears otherwise they will contact my guarantor?? Any advice
Thanks
Sara (Debt Camel) says
I was on the understanding the missed payments would be added onto the end of the term
were you told that by Amigo?
Are the current loan repayments affordable for you?
Michelle says
Yes was told that by amigo and found a letter confirming that’s what happens
Sara (Debt Camel) says
Good! Then go back to them and show them that. They can’t change their mind.
Christina says
Hello,
My unaffordability claim was previously rejected by Amigo so I started a claim with the FO Nov 2020 (haven’t received any news back and won’t until Amigo go to court I suppose). I voted against the scheme. I took out the loan in February 2019. I’ve been making the monthly payments (borrowing from family since the beginning) and have worked out that May 24th 2021 would be my final payment (if my claim would be accepted and all interest cleared). I was wondering what are the implications on myself and my guarantor if I stopped paying on May 24th?
Thank you
Sara (Debt Camel) says
Are the repayments so high they are causing you a problem?
AR says
Good morning Sara
I was wondering if you could help me as I have received figures I don’t believe are correct for a redress.
I was provided a loan in April 2015. The loan was for £3,000.00, to be repaid in 60 instalments of £117.25. The total amount to be repaid was £7,035.00, which included interest of £4,035.00.
There is £319 currently outstanding as I was on a £50 a month repayment scheme last year & account has been on hold for a year since I complained via the Ombudsman.
Can you kindly help please?
I would really appreciate it
Many thanks
Sara (Debt Camel) says
Can you add up how much you have paid Amigo so far? Is thus your only loan from them? I assume your guarantor didn’t make any payments?
What redress have you been offered?
AR says
Yes I think it’s 6,716 paid so far and it was a single loan. No guarantor payments made
the offer is 4334 – but I assumed the 8% would be higher – looks like they’ve just added 8% to total paid rather than over time? Or is that how some firms do it?
Sara (Debt Camel) says
So you have paid 3716 in interest – I assume that is what Amigo are saying? So 4334-3716= £618 is the 8% amount? Is that before tax or after tax?
8% of 3716 = £297. so they aren’t just offering 8% of the interest refund.
A very rough way to look at the 8% (this isnt what a lender does) is to think that you had to repay Amigo 3000 with no interest – so when would that be? It would have taken 26 months of £117 payments. So after that point in August 17 all the money you were paying Amigo has been refunded and it is this money you are entitled to 8% interest on. But you have only paid this extra £3716 slowly – £117 a month at the start and then in the last year £50 a month. If you think you have repaid it over about 4 years, then that is roughly the same as having paid the money half way through the 4 year peiod – you paid half earlied and half later. So you should get about 2 years of 8% interest on it.
I can’t say it looks significantly wrong.
AR says
Ah that’s fantastic – thank you
The way you’ve explained it makes a lot of sense – I was working it out based on total amount paid from the start thinking I’d paid off interest first. Thank you for clarifying for me.
Mike says
Hi Sara,
I’ve been following for the last few months as I had a case with the FOS.
I had a balance of around £8k left and complained to Amigo, they agreed on 4 of the 6 loans with them. I told them I would accept the decision partially but didn’t agree with unpaid interest.
I then went to FOS in October 2020. I was left with over £2k on my account and the unpaid interest was £2.8k. I only started the process in the hope to clear the balance!
During the 6 month break I’ve been paying £50 a month, they now want £335pm reinstated back on my account. I have managed to change my payment date to the 10th of June in the hope I can get this sorted without forking out more to them when I feel the un pains interest is totally unjustified!
I have actually voted against the scheme, but worried if the scheme goes ahead are they still going to want me to pay all the unpaid interest?
Sara (Debt Camel) says
I had hoped that with their trumpeted “change of management” would come a rethink on things like this unfair “unpaid interest deduction”. But no…
Unless they change their mind, you may lose your claim in the Scheme. there is an internal appeal process set up within the Scheme but I have no faith it would work in a case like this where Amigo are claiming that they calculated the refund on your complaint correctly.
In administration I would be very surprised if the unpaid interest deduction was not removed, leaving you owing nothing.
So should you carry on paying, and at what rate? If your last loan was upheld and your guarantor removed, then you should be able to arrange to repay at an affordable rate? Do you have other problem debts?
Mike says
Thanks Sara,
That’s what I thought. Really are let down if this is the case, it’s like me saying they owe me money as I would of paid my loan off early if I won the lottery.
I can make payments financially, I will lower the amount though, but perhaps wait till the scheme starts while they work through it. Least if it’s in my favour I’ll get it back then.
I’ve spent the whole of lockdown back at my parents to get back on track and used the time to clear everything I owe.
With my plan I’ll be debt free august this year (not including this loan) and can start to actually look at buying a home next year!
Something that I wouldn’t of dreamed of 18months ago with a rolling debt of around £22k. But thanks to this site, budgeting and hitting the reset button I’m nearly into the black!
Sara (Debt Camel) says
Least if it’s in my favour I’ll get it back then.
yes. Good plan.
Michael says
Quick question…and I’ll try to simplify,
Loan is for £4k, already paid back £4.5k and DD still set up for the rest. I have a current unaffordable complaint made with the necessary authorities.
Could I simply cancel my DD and tell my guarantor not to pay a penny either? As far as I see it, the outstanding loan amount will be wiped no matter when the scheme starts and considering I’ve already paid more than the loan amount, it’s just going to cost me more money the longer I keep paying my monthly amount. At the same time, Amigo keeps lining their pockets with my cash.
If I pay another 3 months (to make it easy, let’s say that is £500) then that’ll be £500 more to them and £500 out of my pocket. If then the scheme starts or they go into admin, the balance is wiped and I’m only getting back £50 of that £500 if I’m lucky. Whereas, if if I cancel the DD and don’t pay the £500, the balance still gets wiped, but I’m £500 better off.
Make sense?
Sara (Debt Camel) says
This may seem irrelevant but it’s not – are the current repayments affordable or causing you hardship?
Michael says
Hi Sara
Can I firstly thank you for the absolute fantastic job you do here on the website. In my opinion, it is people like you who should be getting honours in the new year, not a bunch of people who get paid millions for being lucky enough to be born with a talent for being good at sport etc. On the behalf of the tens of thousands of people you help, thank you…thank you…thank you!!
Anyway, to answer your question; It isn’t really affordable. I’ve managed to keep payments up all through Covid, even though I was Furloughed and then made redundant. I didn’t want to cause my guarantor any grief and that’s why I did everything I could to make the payments before now.
Sara (Debt Camel) says
If you stop paying now, and your claim is upheld, then the loan will as you say be wiped. In the Scheme you will get back a tiny amount, say 10% (I think it could be a lot less than that) of the £500 intetrest paid. Your credit record will also be repaired, so the missed payments are removed.
In administration, exactly the same happens except there will be no cash payout.
Your guarantor will be asked to may and will get some hassle if they cancel their direct debit/continuous payment authority but (a) their credit record cant be harmed as the loan isn’t on it and (b) threats from Amigo of court action (a CCJ would harm their credit record).
So it’s up to you if the level of hassle for your guarantor is worth it for you. If the payments are unaffordable and meaning you have to borrow elsewhere or struggle with bills, then it normally is worth stopping if yoiu think your guarantor will understand what is happening.
Once the Scheme/administration is going, if your claim is upheld (which could take well over 6 months if you have to appeal) then you are refunded the payments you have made in the scheme/administration in full, not at the low % payout. So you won’t be worse off because of making the payments but this doesn’t apply to payments before the scheme/administration AND you will still have had 6months or more of stress from paying an unaffordable amount each month.
So stopping paying is a question with no simple answer – could you discuss it with your guarantor?
The other important thing for you is whether your claim is more likely to be upheld in the Scheme or in administration? Obviously, there is no definite answer to that!
From my experience of seeing other lender administrations, administrators normally try to use a process that produces roughly the same results as the Ombudsman would – and the ombudsamnnis upholding 88% of Amigo cases.
I am not convinced Amigo is aiming to produce the same results as the ombudsman. It won’t give numbers about what it expects its uphold rate to be. It has listed what it will look at (see Schedule 4 of its Explanatory Statement https://www.amigoscheme.co.uk/docs/ExplanatoryStatement.pdf) but not said how these factors will be applied to a case. That’s like someone who wants to buy a house saying they will look at the price, the area, the number of bedrooms and how large the garden is – all sensible things to consider but it doesn’t give you, who are trying to sell your house, any idea if that buyer is going to be at all interested in buying your house.
So I am worried and cases like yours, with only 1 loan, may be difficult. If you feel you may get a better decision from the administrators, you may want to vote against the Scheme and hope it fails.
Michael says
Sara
Thanks again for all the info.
This isn’t the only loan I’ve had from Amigo, it is in fact the 4th one. All others were paid through top-up loans with the monthly repayments increasing every time.
I wonder what response I’d get if I emailed Amigo directly and asked them what options are available prior to them going to the wall or going into a scheme. In the meantime I’ll think about what is what. I guess Amigo will be doing nothing about going to court about any unpaid loans until after their own case is heard.
I’ve now voted ‘no’ in the hope they do go to the wall. I’m not too fussed about getting any compensation for previous loans, I’d just like it if the current one gets wiped and I don’t have to pay anything more to this bunch of ******s.
Regards
Sara (Debt Camel) says
OK, with 4 loans it is MUCH more likely the last one will be upheld. That’s the good news.
But the bad news is if they don’t uphold all of them, Amigo makes a deduction “for unpaid interest” where a loan wasn’t upheld but was settled by a top-up loan that was upheld. They are trying to say the previous loan was never properly settled (even though it was) and so they charge you the extra interest on it.
For some people these deductions are only a few hundred, but other people have had their refunds reduced by thousands, and been left owing a large balance because of this.
The Ombudsman never applies these deductions. So I don’t think administrators would.
Sara (Debt Camel) says
I guess Amigo will be doing nothing about going to court about any unpaid loans until after their own case is heard.
there is literally no time for Amigo to do this. If you default on a payment, they have to send a Default Notice. then wait until that has lapsed then send a Letter Before Action. Then wait for another 30 days (longer if you repay saying you are taking debt advice). They cannot get through this legal process and start a claim before the scheme is underway. And Amigo has said it will not start legal proceeding in the Scheme until a claim has been decided.
Yt says
Sara I’ve cancelled my dd and cpa because I’ve already paid over £15000 on £10000 loan and they are fobbing off my claim and refusing to remove my guarantor(even though she’s a pensioner and was when I took out loan) and my bank has paid it out and saying I can’t get a refund because it’s a loan company is there anything I can do it seems that they changed their name slightly which enabled them to take it?
Sara (Debt Camel) says
did the bank pay it out under the DD or CPA? Did you phone your bank to cancel the CPA?
T says
I complained to Amigo back in August 2020 and my complaint was rejected, to which I have referred to the FOS in November, although I am still waiting on the FOS to even notify me that my complaint has been assigned to one of their adjudicators, does anyone no what the timescale for the FOS actually is as I have tried to call to chase but never seem to get anywhere I understand that their staff are working from home and there have been goodness knows how many complaints to them about Amigo and various other companies but have been waiting over 5 months now without anything from the FOS
I have also yet to vote on the scheme but I am unsure on if I should vote yes or no basically
Sara (Debt Camel) says
So far as I know FOS are no longer working on Amigo cases with the exception of a very small number that are treated as priority. You need to assume the FOS case won’t progress and FOS will return your complaint to Amigo if the Scheme goes ahead or to the administrators if the Scheme fails.
Your decision about which way to vote depends on whether you think you may be better off in the Scheme (vote Yes) or administraion (vote No).
From your previous comments you only had one loan from Amigo and you are concerend that Amigo has extended your loan payments despite you not missing any.
This sounds like one of the cases where Amigo has added on an unreasonable amount of extra interest because you moved the first payment date when the loan was taken out. I would have expected you to win this sort of complaint at FOS as the T&Cs allowing them to do this look to me to be unfair.
Whether you would win the case in Amigo’s Scheme is a different matter. They are essentially being allowed to decide on the fairness of their own T&Cs which I think is unreasonable.
You may feel that there is more chance of the administrators upholding the complaint if the Scheme doesn’t go ahead – administrators usually try to follow roughly what the Ombudsman would have decided.
You think your loan should have ended last month. You may want to consider stopping the remaining payments Amigo says you owe. You can explain this to your guarantor – if you say that you will put the money aside so that if you lose the claim in the Scheme or administration you can then repay the extra payments, then your guarantor would not be affected if they cancel their direct debit / continuous payment authority to amigo. the Amigo loan doesnt appear on a guarantor’s credit record so they don’t need to worry about that.
T says
Hi Sara
I sent a chasing email to the FOS highlighting my financial situation and also that my Guarantor is now in ill health and would not be able to make payments on my behalf and am unable to find a replacement I also took a 3 month payment break between November and January so the end date according to Amigo is now in September so there is a light at the end of the tunnel in that respect but am still struggling with other debts
I also voted against the scheme out of principal that I would rather they went into administration and not be able operate than see them get away with partial refunds to many so they can continue lending to people who can’t afford it which may sound harsh but in the long run high interest lenders need to be shut down for the good of all
Nazia Bibi says
Hi T
I sent my complaint to the fos in August 2020 it has still not been allocated to a adjudicator everytime i ring them they say shouldnt be too long now as we have too many complaints to go through but we can assure you that it is in the que nearly 9 months now dont lnow what else to do
Sara (Debt Camel) says
Like many other people, there is nothing you can do to progress your case at FOS. You are in limbo waiting for the Scheme to go ahead or for it to fail and for Amigo to go into administration.
The only things you can do are
a) vote for or against the Scheme
b) decide whether to keep paying as the payments are unaffordable for you from what you have previously said
As a borrower with a current loan, you can get the balance reduced (or possibly cleared) and your guarantor released in administration in the same way as can happen in the Scheme.
As you have already had one strange decision by Amigo on your case, you may feel there is more chance of winning your complaint from the administrators as they usually try to rough;y follow what the ombudsman would have done.
In the Scheme you would get back a tiny amount of the interest you have paid – Amigo say perhaps 10%, I think maybe a lot less. You wouldn’t get any cash back in administration.
So for the vote, you have to decide which is more important to you. The chance of getting a small cash refund on all the interest you have paid (Vote Yes)? Or increasing the chance of winning your claim and getting your balance cleared, but no cash back, in administration (Vote No)? Not an easy decision.
For payments, I suggested before that you explain the situation to your sister and suggest that you need to stop paying Amigo as you can’t afford it so she also needs to cancel her direct debit to Amigo? This will NOT affect her credit record – the Amigo loan is not on there. There is no time for Amigo to start a court case before the Scheme starts. And Amigo has said it will not start a court case in the Scheme until your claim in the Scheme has been settled. And administrators would also want to resolve your claim before considering any further action.
T says
Hi all.
I’ve seen a fair few posts from people who are waiting for their refunds from Amigo outside of the scheme. Maybe it would be useful for us all if we could let others know what stage they are at with recieveing their refund in the same comment thread? The FOS has explained that Amigo have agreed to honour the offers recently made to claimants, but so far the majority seem to still be waiting for any contact from Amigo.
Please post under this message if you have a priority case and have recently received an offer of redress from Amigo via FOS, and are either still waiting, or have received your refund.
Thank you all!
Siobhan says
I’m starting to think Amigo are offering redress knowing they’re going to enter insolvency.
My guarantor has accepted the redress figures this morning and has been told it will take up to four weeks which coincides with scheme dates.
Not holding out much hope on getting a penny. They seem to be making quite a few offers outside of the scheme for some reason
Tom says
Hi Siobhan,
The same thought also crossed my mind. The 4 week window in which they have to pay is set by the FOS if I’m not mistaken. For me, the end of the 4 week period is next Friday just before the next court date.
I can’t imagine a logical reason why they would make offers on priority cases and not on others if they had no intention of paying out…surely you either make an offer to everyone who has an active complaint, or don’t make an offer to anyone if they can’t afford the payments or have no intention of paying.
Saying that, though, I have a sneaky feeling that come next Friday when my 4 weeks is up I won’t have heard from them, then the scheme doesn’t get approved and they announce insolvency meaning no one gets anything.
Time will tell.
Siobhan says
Hi Tom
Sorry I saw you had responded to one of my comments a week ago, only just noticed.
They contacted me today for my bank details. I’m really hoping they’re not going to be sneaky. I’m hoping that they’ll keep to their word and pay redress but we’ll see. How long ago did you give your bank details?
Wonder if anyone has had redress paid recently.
Tom says
Hi Siobhan,
If they’ve contacted you for you bank details I’d like to think thats a good sign and you shall recieve your payment soon. I’m still waiting for them to ask for my details. They’ve recieved my acceptance of the offer. The 4 week window they have is to contact you to give the final settlement figure so its good they’ve actually messaged you for these.
Keep me updated, be good to hear if you recieve them shortly!
A says
Hi Siobhan,
I accepted the offer from Amigo a few weeks ago and I’m now waiting for Amigo to get in touch withing the 4 week period to confirm bank details.
Can I ask whether Amigo stated when the redress will be paid after you confirmed the bank details?
Siobhan says
Hi
No they didn’t mention when, my guarantor spoke to them and gave them her bank details. Then someone high up emailed me asking me to ring them with my bank details, the advisor then said they would get my redress processed.
I think they’ve had a gutsful of my ranty email to be honest. I’ve emailed every senior manager and director for the past two years to get this sorted
Tom says
Let’s hope it gets sorted ASAP then for you and your guarantor. I found the ops directors email address but had no luck with a response. I’ve been struggling to find another email address other than the hello@amigo one where email seem to get lost in their inbox.
If you have an address you don’t mind passing on that would be appreciated? I still have the rest of this week plus next week before my 4 weeks is up…but having been made redundant a little while ago the money would be incredibly useful.
A says
Fingers crossed you’ll receive payment soon.
Please do keep us updated
Pam says
Hi all,
Got the email from amigo today formally offering the redress and asking for bank details.
Now just to wait for the money to land! Honestly cried when I saw it. Years of battling and one step closer to it nearly being over.
Surely they can’t offer this; take bank info and then take it away?!
Hope everyone else’s are moving forward nicely!
Pam
Tom says
Hi Pam,
That’s great news! At least you’re one step closer. When did you originally receive the notification from Amigo/FOS saying they wanted to make an offer? I’m just curious to know whether the email you received today was sent to you within the 4 week period they have to get in touch with you.
It’s good news for sure that they are still progressing with the offers made recently, and thank you for taking the time to update us :)
Pam says
Hi Tom,
Original email from Fos was 14 th April. So got the email from amigo just after 3 weeks. They claim the money can take 15 days to go in!! So still a waiting game but I do feel this will actually happen and I get the feeling they are trying to clear the priority cases before the scheme. That’s just my personal gut feeling. Genuinely not sure what’s going on though. In theory you should hear imminently! Fingers crossed! Pam
L says
Hi guys,
I’m sort of in the same boat, complaint initially went in Feb 2019, received their final response June 2019 which was rejected. Sent to FOS and an adjudicator made a decision to uphold 2 of 4 loans in November before scheme was announced. However amigo missed deadline in replying then the scheme was announced. I received an email last week from FOS to say Amigo agree with them and should hear about redress in 4 weeks. I contacted them, I then received an email to say they’ve contacted my guarantor, as she had payed one payment! It’s my mum and I paid her back straight away, so if no response they will contact me within 5 working days of 19th May with the figures! Very dubious about the 19th May as the scheme vote will be announced. Not hopeful at all! I’ve asked for clarity that this is being settled outside of the scheme.
Siobhan says
I have just sent a quick email asking when the redress will be paid. Within two minutes it was in my bank so presume my mums has gone in too. She doesn’t do online banking so will have to wait until Monday to see. Fingers crossed for everyone, this has been a long painful process and I feel slightly guilty for the hundreds of ranty and sweary emails I have sent to them but finally it’s finished
Pam says
That’s great news Siobhan!
Thanks for the update. Gives the rest of us hope this is genuine from amigo at least!
I’ll chase them regularly too in an attempt to speed the process up.
Really glad you can draw a line under the stressful situation.
Pam
Tom says
Hi Siobhan,
That’s amazing news for you and your mum, its good to see they are actually dealing with it and paying out swiftly.
I emailed them yesterday to chase and explained some personal issues and how the money would help me immediately hoping for an answer. They responded this morning saying that someone would contact me directly as soon as possible. I don’t anticipate that this will be today now, but I’m hoping this is all resolved by the end of next week so I can get on with my life and not worry about it any more. Over 2 years of waiting and stress with Amigo, it’s really not worth anymore of my time.
Thanks again for the update, it gives those of us waiting a little bit of hope!
I hope you plan on celebrating 🍾
A says
That’s amazing news. 1
There maybe hope for us still.
Tom says
UPDATE
Had an email from Amigo formally detailing the offer of redress and asking me to contact them to provide bank details, which I have now done. I emailed back to ask whether they could process today and am now waiting to see.
🤞
Tom says
Hi Pam,
Haven’t heard anything further from Amigo after giving bank details this afternoon. I know they’re open tomorrow until early afternoon, but whether the relevant department operates on a Saturday I’m not sure. I will also drop them another email tomorrow, but I imagine payment will be received next week at this rate.
Siobhan says
Do what I do and keep emailing. Or ring. I’ve been the biggest pain in the bum to them!!
Money is going to towards wedding so at least it’s going to something good. It’s a bit sad that the total redress was for double of the loan I had.
Good luck guys xxx
Tom says
Hi Pam,
Just wanted to let you know I have received my refund in full this morning. Hopefully yours isn’t far behind. I did follow Siobhans advice and sent a couple of polite emails saying I needed the funds urgently for other payments and it seemed to do the trick. Within half hour of them saying they’d request the payments team to see if they can pay faster than 15 days, it was in my bank account.
Fingers crossed for you to get yours shortly as well.
Louisa says
Thanks for all your advice. Amigo offered to uphold one loan out of 3 in Jan and I declined. They then offered to uphold 2 of them in March and I again declined. I then went on a 3 month Covid break which is due to expire in June. I’ve still got 2 months left to use but they’re saying they can’t offer me any more breathing space as they don’t believe Covid is impacting my finances enough so me and my guarantor are cancelling CPA’s and direct debits and I am not paying another penny. Ive voted no to the scheme in the hope my balance will get wiped out. Keep up the great work!