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%.
S says
Hi Sarah I don’t know if you can help me but I got a guarantor loan topped up a few times put in claim around Oct November time for unaffordable loans I loss my job in all this covid 19 am now on benefits and had too sort my payment’s with them it gone from 329 a month too 25 a week but the loan gone from 6830 too just over 8100 I had too vote which I did I taken it too the financial ombudsman too but got email back saying can’t help because it’s been rejected not sure wot am too do now as it just going up my guarantor is getting nasty too but I dont know how too get him out this mess I asked when put complaint in thankyou
Sara (Debt Camel) says
First the interest being added is not something to worry about. Amigo will never add more interest than they told you at the start, so you don’t need to worry about this debt ending up at £20,000 in a few years!
A loan that has been topped up several times is often a sign that the loans are not affordable and the affordability complaints are usually won. Of course I can’t guarantee that yours will be, but it is probably a strong case.
If a new Scheme goes ahead, you can make a claim to that. If Amigo falls into administration, you can make the same claim to the administrators. In either case if your claim is upheld, your guarantor will be released, interest will be removed so you only have to repay what you borrowed (less any refunds from previous loans) and you will be able to make an arrangement o pay at a genuinely affordable rate.
But there is nothing you can do at the moment to get your guarantor removed.
Do you think the last loan was actually affordable for your guarantor? Could they have made all the payments to it and still paid their own debts, bills and living expenses? Even quite well off people can struggle to have a spare £329 a month! If the loan was unaffordable for them, they too will be able to make a claim – so they they have two ways to be released as guarantor, if you win your claim or they win theirs.
If your guarantor doesn’t pay, this will NOT affect their credit score – the Amigo loan doesn’t show there. Amigo may threaten to you or the guarantor to court, but with a complaint in they shouldn’t do this and they haven’t over the last couple of years… the threats are unpleasant but they are just trying to bluff one of you into paying.
So you could explain this to your guarantor?
S says
Thankyou so much for your help you put my mind at rest I show him the email they just keep ringing him which just a headache, I just keep paying the 25 a week as that wot we agreed on do I get a letter or something when I need too put in claim again thankyou again
Sara (Debt Camel) says
You need to keep an eye on what is happening. If the Scheme goes ahead you can make a claim to that. If Amigo goes bust you can make a claim to the administrators. But at the moment there is nothing you can do.
Francis says
Hi Sara
My question is regarding the interest. I put my complaint in a year ago this month. And I have now decided, I am not going to pay them until they deal with my complaint.
I assume the interest will still accrue, do I have an argument for that not to be the case. because I believe they owe me money from my complaint.
Sara (Debt Camel) says
if you win your complaint ALL interest is removed so you only have to repay what you borrowed.
Lorraine says
I have been in communication with Amigo about my complaints (they have rejected two of 3) and they are chasing me for the repayments even though the interest repaid exceeds not just the original loan, but the top up aswell.
I hope the court rejects any further schemes as I think they are only considering their stakeholders and not us (customers).
Marie says
When did they give you this decision
Catalin says
Legally you should continue to repay your loan, is simple as that. If you dont, you may get other fees and penalties on top of what you have now. Until is decided if you complaints are valid or not, you should pay. You could use the Covid and breathing space that saves you about 5-6 months of repayments, but this is legal and agreed with Amigo and they cannot chase you up on any repayments.
Sara (Debt Camel) says
Hi Catalin,
I don’t think you know much about this situation.
1) it is misleading to say someone “should” pay in this situation. Amigo has a legal right to be paid but that can be offset against a customer’s legal right to a refund.
2) Amigo doesn’t add on fees and other penalties.
3) no-one can claim a Covid breathing space anymore.
Catalin says
Hi Sara,
Apologies for my ‘should’, it was a bit forward. I totally disagree with Amigo approach, delaying decisions and cashing in from current customers. I am in the same situation. I have already paid my loan, I have about 7k over so far and still about 1 year to repay.
Why the repayments are not stopped, until they think and work with FCA for the best solution?
I have used my breathing space with them and indeed the Covid has passed now. When you get into the breathing space, your direct debit is cancelled. I received a phone call from them to reinstate my direct debit. When I asked what is happening with the scheme, the operator got silent, of course no updates on my case. Initially I though they call to discuss my complaint.
It is so unfair what they do and they are very slow in taking actions together with FCA. Makes me believe FCA might have some Amigo shares stacked somewhere. Is nearly 1 month now from the court decision and we are in the same place. Imagine how much cash they receive in one month, how many families are still struggling, not talking about from last year when the complaints started to flow in.
When I said should, i refered strictly to the contract. If I could stop my repayments(£395.25 for 5 years for a 10k loan) without affecting my guarantor I will do it in seconds.
Sara (Debt Camel) says
Sorry I assumed you were an Amigo shareholder!
It is normal debt advice for other sorts of credit to stop paying a lender in this sort of situation where you have a complaint in. But with a guarantor you do need to explain to them why you have such a good complaint and so why it is safe for them to cancel their direct debit to Amigo , and their continuous payment authority.
I find it difficult to think the FCA is comfortable with the current situation. They know you have the right to offset your refund for unaffordable lending against your balance.
Symes says
Hi Sara,
Just looking for some advise please.
I have an outstanding loan with Amigo. Took out the loan for 10k in December 2019 . I’ve had 6 months worth of payment holidays as I was out of work due to Covid. I cannot afford the loan so have complained about the affordability and Mis-selling of the loan as at the time I had about 10+ active defaults, a CCJ etc and was still given the loan . I’m getting further and further into debt having to borrow from family at the end of the month as the cost of the loan repayments are crippling me (£395).
My complaint was submitting in the January 2021 and then they responded to me at the end of the 8 weeks advising they still hadn’t come to a decision so I submitted my complaint to the ombudsman. As you probably know they responded to advise that they couldn’t take my complaint further at present due to the scheme.
My current balance with amigo says it is £11634 which I’m assuming is because of the payment holidays I took so I have no idea how much I’ve actually paid off the loan.
I was thinking of stopping paying as I simply cannot afford it. I’ve seen your comments saying my guarantor won’t be hurt as this is my loan and not theirs. The last thing I want is to hurt my guarantor but I cannot afford the loan nor can they.
What can you suggest ? Can I stop paying the loan Until there is an outcome on my compliant ? Thank you
Sara (Debt Camel) says
Was this your first loan from Amigo?
What was your guarantor’s financial position when you took the loan in 2019 – could they really have afforded to make all the payments to the Amigo loan at £395 a month and still been able to pay their own debts, bills and living expenses? Your guarantor may be better off than you are but those are very large repayments.
Symes says
Yes this was my first loan with Amigo. I have since had more defaults and another CCJ added to my credit file. So this should add the fact the loan is unaffordable.
In all honestly, no they wouldn’t have been able to afford it as they had bills and debts of their own. They became guarantor to help me and its just been an even bigger problem ever since it started.
What do you think in regards to my claim ? Could I win ? What do you also think in regards to not paying until the complaint is dealt with ? Is it true my guarantors credit wont be affected ? They are a homeowner with excellent credit.
Sara (Debt Camel) says
Yes you could win – I can’t say what the chance is as we really don’t know how Amigo will decide these cases. But if a new Scheme goes ahead make a claim to that and if Amigo fails, make a claim to the administrators.
It sounds as though your guarantor should also make a claim, saying the loan was unaffordable for the, That gives the guarantor two ways to be released as guarantor, if they win their complaint or if you win yours.
If you stop paying your guarantor also needs to cancel their direct debit to Amigo and to phone up their bank and cancel the continuous payment authority on their debit card.
If your guarantor doesn’t pay, this will NOT affect their credit score – if they are unsure about this they can look at their credit report – the Amigo loan doesn’t show there.
Amigo may threaten to take you or the guarantor to court, but with a complaint in they shouldn’t do this. They haven’t over the last couple of years, and anyway going to court is and getting a CCJ is a long slow process – there isn’t time before a new Scheme starts and Amigo has said they will not go to court in a scheme until complaints have been decided. The threats are unpleasant but they are just trying to bluff one of you into paying.
Symes says
Thank you for the info.
How would my guarantor make a complaint also please ?
Sara (Debt Camel) says
He can email hello@amigoloans.co.uk with the Subject “AFFORDABILITY COMPLAINT” and just say the loan was unaffordable for hom when it was taken out so he would like to be removed as guarantor. Keep it short as Amigo aren’t going to fo anything with this – it just explains why he is going to refuse to pay when you stop paying.
Then if a new Scheme goes ahead he can put in a claim there or to the administrators if Amigo goes under.
Paul says
Hi sara
I took out a loan of 2,000 7 years ago
2 top us later the latest loan of 7,500 having paid 25 payments on this agreement i still owe 7,650 had a complaint in since september last year as i had multiple defaults on my credit file and they never checked my finances for any of the loans never asked for proof of income or checks , my claim was with the fos but its since been sent back to amigo for a so called scheme,
Im now refusing to pay 296.44 until my claim is assesed , ive hit my interest cap so not paying any interest now , do you think i have a valid claim ? .
Sara (Debt Camel) says
Having to top up twice and the amounts going up so much is often an indicator that the original loan was unaffordable. If you have been getting more defaults while you have had the Amigo loans then that too suggests the Amigo loans are unaffordable. You have just about repaid the 7500 you have borrowed on this last loan so it probably makes sense to stop paying. Definitely don’t borrow to make these payments or you just get deeper into debt and may get very little of the payments back if your claim is upheld.
Stopping paying hurts your credit record, but it doesn’t sound good anyway and the negative marks will be removed if you win your claim in the new Scheme if one goes ahead or in administration.
You have explained all this to your guarantor? They need to cancel their direct debit to Amigo and also phone their bank and cancel any continuous payment Authority over their debit card. Their credit record will not be affected.
Debbie says
Hi Sara
My loan is due to end on the 1st of October this year so only a few months left to pay! I am so relieved to be nearly rid of them, or so I thought. I took reduced payments during the covid outbreak when I was furloughed and struggling to meet all financial commitments. In 2020 I paid reduced payments of £100 monthly in April, May, June and July 2020, my usual payments being (£213.00). One of those £100 payments had interest taken from it which I did not think was supposed to happen and when I stated I would no longer require a payment holiday or special arrangement as I was back at work, they used those payments of £100 to pay for August, September and part of October, I did not want this to happen! It defeated the purpose of trying to pay less rather than taking a full payment holiday.
On my statement I can also see that payments I made to them in November and December 2020, the whole £213.00 went to the interest and nothing at all to the principal?? This was confusing and made no sense.
I am now still owing £1800.00 and the loan term is extended until march. This is devastating as I can’t afford this, the interest is esentially being calculated on the balance which is only there because of my financial troubles during the Covid outbreak and being furloughed. Is there anything I can do about this?
Sara (Debt Camel) says
This does sound confusing and it is exactly the sort of situation where it is good to be able to get the Financial Ombudsman to see if you have been treated fairly. Unfortunately, that is no longer possible :(
Can you think back to when you took the loan? Was this your first loan from Amigo? Were the payments really affordable before covid-19? A loan is only affordable if you can make the repayments and still be able to pay your other debts, bills and living expenses – so you don’t have to borrow more or get behind on bills to pay Amigo.
Debbie says
Hi Sara
No first and only loan with Amigo, I could afford to pay at the time of taking the loan out but couldn’t a year in as my husband and I split, I carried on paying for fear for my guarantor but I’ve had to take loans elsewhere to meet priority bills and for food etc. I feel penalised for taking reduced payments during Covid, I honestly wish I hadn’t as I now have to keep going until March now, I don’t think I can go on any longer, I had no choice as furlough made financial situation dire! I have tried my best, not one missed payment since 2017. I have paid them £11,263.00 and still have £1800 to go on a £5000 loan.
Simon says
Update.
Rang them to say I cant nor my guarantor repay the loan – I asked for my final response to my original affordability complaint which they sent talking about the scheme.
They then started talking about court action – I just LOLed down the phone at him and said good luck with that to which he had to admit they couldn’t actually do while I had an affordability complaint in – so basically I’m not paying a penny until the complaint is resolved.
I asked when the new scheme would be ready for voting – he said he was just a minion to be fair he was a nice lad who took the call and was trying to be helpful, I feel like he is now having this conversation more times then he thought would be which is why I have took advice from this website.
DO NOT BACK DOWN TO THESE PEOPLE AND THEIR BASELESS THREATS
N Morgan says
Same they are bombarding myself and my guarantor with numerous texts emails and phones. I had one person call me and then an hour later another person.
They seem to just try and bully you until you give in !
I nearly made a payment just to get rid of them but I’ve just read your message so feel much better.
Simon says
I explained that me and my guarantor have severe anxiety and told them that the only contact I wanted was letters which they legally have to send….every phone and text and email would be recorded and added to the complaint…he agreed to not contact either of us
Nicola Morgan says
I’ve already advised them that I have extreme anxiety and talking on the phone just adds to it but they seem not to want to listen. Both our affordability claims were sent back in March.
So I have just receive this back from amigo ! After I advised that I can not afford the loan. I know it’s just one of there tactics but any help with a reply would be fab.
Thanks for your email. I’m sorry to hear you find our message bullying, their not written in this way and sent out as automated messages to update you with the position of the account and to advise you of any risks.
The loan continues to run as normal whilst a complaint is ongoing, I appreciate there is a delay in getting an outcome from your complaint but yourself remain liable during this time.
I would advise you contact us to discuss this in further detail as it will result in leaving the account at a high risk of further action due to increasing arrears on the account.
I’ve set some time on the account for Nicola to contact us but it’s important we discuss this with you both during this difficult time.
We’re open until 7.30pm today on 01202 629161.
Amo says
https://www.thetimes.co.uk/article/big-money-gives-short-shrift-to-amigo-nqv7pt0s0
Nazia Bibi says
Hi sara how long do you think it will take amigos to announce what the next step will be from them ,is it going to be administration or not? as all claims have been paused at the fos.
Sara (Debt Camel) says
I really don’t know!
Helen says
Hi Sara
I took out 4k about 3 years ago, I’ve paid well over the amount borrowed I think probably about 10 or 11k. I’ve stopped paying now and told my guantor to not even look at there horrible emails.
Sara (Debt Camel) says
I assume you have an affordability complaint?
Your guarantor has cancelled their direct debit and phoned their bank to cancel the continuous payment authority over their debit card?
Helen says
Yes she has cancelled any future payments, I have emailed Amigo saying how much I’ve paid compared to original loan. They have said I need to carry on paying. I need to fill out the affordability form, but I’m still going to hold my payments
Sean says
So I’ve stopped paying as I have paid nearly 17k in interest, and have £1500 left that would be written off, I’ve paid much more than the loan amount.
I have just been threatened with a LBA and that a CCJ could be put on both mine and my guarantors credit file?
Is this right? I know they can’t take me to court with an outstanding claim.
Sara (Debt Camel) says
You are right – a lender should not go to court when there is an open affordability complaint it.
If you look closely at the email/text it is likely that you will see that are saying they “MAY” issue an LBA. They are not saying they WILL issue an LBA.
Since these complaints really got going 2 years ago I have seen a lot of people get these threats – very few have received an LBA, and I don’t remember one where Amigo went to court. They are just trying to bluff you into paying.
If you get an LBA come back here…
Craig says
Why would the FCA reject the scheme? Surely they are supposed to be there as a support for us as a customer. Have they rejected because they think Amigos claims of insolvency aren’t valid and therefore could pay us more than the 10% being thrown about as part of their scheme?
I submitted a claim, although I don’t expect much back if anything. I paid my loan quicker than my initial term agreed but I did take an Amigo loan to pay off multiple payday loans and give myself some breathing space for a few months.
Sara (Debt Camel) says
Have they rejected because they think Amigos claims of insolvency aren’t valid and therefore could pay us more than the 10% being thrown about as part of their scheme?
Yes! They think customers should get more and shareholders (including the directors) should get less.
Amigo said before the court case it would go into insolvency if the Scheme wasn’t approved – now a couple of weeks later they haven’t so far so it looks as though the FCA were right.
Sean Brooker says
I had quite an interesting talk with them, the staff sound fed up. So I explained why I wasn’t paying, I have £1000 left and stated that by paying it off, I would receive actually less back. They stated “they may return payment made up to the complaint being upheld”, I quietly blatantly said I don’t believe amigo will give anything back.
My argument was, how is is right for you to chase me for payments, when I have an open claim? By paying off my loan, I’m actually putting myself in a position to be worse off if I do receive any compensation. The account manager couldn’t argue this point. I said by not paying it, I stand to achieve a bigger win as I’m confident I’ll win my claim. And that you can’t and won’t take me to court, again he agreed.
He then said you’re obligated to pay the loan, if not it will incur interested…then he said, no it won’t you’ve hit your interest cap. So basically I have paid all the interest on this loan. £7500 I have paid back to date £16500, it’s sickening! 10k interest, plus 6k and this isn’t my only loan, this is the last of 3 top ups, my claim was set to be thousands.
End of the call, he said I’ll make a note you will get letters and it will effect your credit score, again I said when I win, you’ll have to sort that.
Just tell them no!
Sara (Debt Camel) says
They stated “they may return payment made up to the complaint being upheld”,
This is a bit true but it only applies to payments made AFTER the Scehem starts or AFTER administration starts. Not to payments that are being made at the moment.
Donna says
Hi
Found your site through a desperate search for help.
I have an amigo loan, I topped it up. Once, had covid break for 5 mi ths due to losing my job. Never missed a payment but have been late paying as Im a single parent with 4 dependants and currently on state benefits. It’s been absolutely traumàtics as they hound the guarantor who’s also lost there job and had the credit file seriously impacted by me being a cpl (max 7),days late making payment In full. I did complain to fos heard nothing back i did complain. To amigo about the fact they refuse to reduce my payments as they claim I can afford it an I genuinely can’t. It’s an absolute struggle, I can’t tell you the stress it’s caused me an my guarantor with the Co stant barrage of emails phone calls text messages. Even though I raised the poi t I can’t afford the monthly repayments back in January, in April. I got an email from them to say they would look into my complaint and as of yw nothing just constant emails about late payment an text messages. I’m at my wits end with it all. What can I do to help. Matters do I stop paying do I hold out in hope I get a valid claim i would greatly appreciate any advice thank-you so much 😁
Sara (Debt Camel) says
can you think back to when you took the top up loan, before covid – were the loan repayments already hard on the previous loan which is why you needed the top up?
what was your guarantor’s financial situation at the time of the top up loan – could they really have afforded to have made all the payments to the loan and still been able to pay their own debts, bills and living expenses?
what is your guarantor’s financial situation now – do they have a lot of other problem debts? are they buying or renting?
Ryan says
Anyone get a survey from amigo this morning ? About what they think should happen next ? 5 questions .
Sara (Debt Camel) says
Yes some people have. Could you copy out the Qs so everyone can see them?
Michelle says
1) Age
2) Why did you vote against the proposed Scheme
3) Explain your answer
4) How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
5) How would you like to receive updates on the progress
Debbie says
Yes!! Just this minute received it myself!
Lee says
Yes i did the questions are farcical and still looing to shift blame – i have been scathing in my response!
Questions are
1. Age
2.Why did you vote against the proposed Scheme? –
I did not believe this would give customers the best outcome for any compensation claims
I did not understand the Scheme
I was encouraged to vote against the Scheme by a third party
I wanted Amigo to go into administration
3. explain your answer to Q2
4.How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
5. How would you like to find out updates and information regarding the ongoing process?
Michelle says
Yes I have and so has my husband
Ruth says
Yes also got the survey and voted against the scheme!
simon bailey says
Question 1: How old are you?
A
18-35
B
36-55
C
56+
Question 2: Why did you vote against the proposed Scheme?
A
I did not believe this would give customers the best outcome for any compensation claims
B
I did not understand the Scheme
C
I was encouraged to vote against the Scheme by a third party
D
I wanted Amigo to go into administration
E
Other
Question 3:
Please explain your answer
Question 4:
How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim)
Question 5:
How would you like to find out updates and information regarding the ongoing process?
A
Through your Scheme website, I would check this myself
B
Through your social media channels, I would check this myself
C
I would like you to text or email me
D
I do not care about receiving updates
Mike says
Just got that email. I feel they have singled out everyone that voted against the scheme. I gave them the nuts and bolts of why I didn’t vote on it. I had 2 loans they didn’t uphold. One being in the middle of 5 loans. They slap over £2.5k unpaid interest on. Leaves me with a balance of £2k. I said, if they hadn’t put that on, I would of been debt free and wouldn’t of even went to the FOS. I couldn’t care less about getting pennies in the pound compensation, I just wanted the debt gone. It’s their own fault, but I doubt these replies will get read and will just be a check box exercise!
Daniel Green says
Yes and to try and blame the courts for with holding customers money it’s a low blow even for amigo
Mike T says
As the Chief Executive of Amigo, I would like to personally thank you for taking the time to have your say on our proposed Scheme of Arrangement (the Scheme). We are grateful for your involvement in making your voice heard.
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
As a valued customer that voted on the Scheme, we would like to get your thoughts on the ongoing situation to help ensure we are working to represent the voice of all our customers. If you have two minutes, please click here to complete a short survey with five questions in. Your responses are anonymous and will not have any impact on any existing accounts you have with us. Thanks in advance.
P says
Hi got mine too. below is taken from the email
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
questions are
1. How old are you
2. why did you vote against the scheme.
I did not believe it was best for customers
I did not understand the scheme
I was advised to vote against by a third party
I want Amigo to go into administration
Other
3. please explain your answer (then there is space to reply)
4. How do you feel about the objection of the Court and the consequences of this? (Such as a further delay to receiving any cash compensation for customers who have a valid claim) – then space to reply
5. how would you like be contacted.
through scheme updates
will follow on social media
Text or email
I do not care about updates.
I think the 4th question is interesting.
Sandra says
I had Thai email this morning As the Chief Executive of Amigo, I would like to personally thank you for taking the time to have your say on our proposed Scheme of Arrangement (the Scheme). We are grateful for your involvement in making your voice heard.
I appreciate that you decided to vote against the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
I see we are still none the wiser to what is going on with them.
Mike T says
It looks like you get different questions depending on whether you have an active complaint or not and whether you voted for or against the scheme or not. I’ll send the rest in a mo
1) How old are you?
2)Why did you vote against the proposed Scheme?
A) I did not believe this would give customers the best outcome for any compensation claims
B) I did not understand the Scheme
C) I was encouraged to vote against the Scheme by a third party
D) I wanted Amigo to go into administration
E) Other
3)
Mike says
I wonder why they are targeting those who voted against it when they were keen to point out the vast “majority” (in their eyes) were for the scheme – odd!
Sara (Debt Camel) says
it may be that people that voted for got a different email but so far everyone here has voted against?
Alex B says
I really don’t understand why anyone thinks the company going into administration would be a good thing. The compensation paid when other companies have gone into administration has been much less than the 10% Amigo is proposing.
Not everyone’s loan is unaffaordable but it would be too costly for every single case to be thoroughly investigated. The interest on an Amigo loan is much less than what some companies charge 118 118 Money and Everyday Loans spring to mind. Try getting a loan from 118 118 – absolutely no chance for the majority of us!
I was fortunate enough to have my complaints against Amigo upheld on 4 out of 5 loans before all of this kicked off and received approx. £15k back (reduced by £7k to pay off my last loan).
I received just of £500 from the £9k mentioned by Wageday Advance and £82 from the £2k from the Money Shop (this is all approximate so no messages if my calculations aren’t accurate)
Please think carefully before wishing a company would go into administration. What we should be asking is that there is a cap on interest rates of, say, 30% for poor credit loans. This is still high but much less than some of the non-guarantor loans and log book loans.
Sara (Debt Camel) says
Well let’s look at the numbers for your Amigo loan if say you had complained to the proposed Scheme or in administration.
Your redress was calculated at 15k, less 7k balance. So you got 8k in cash.
In the rejected scheme Amigo said people may get paid 10% of the cash value – so you would get your 7k balance wiped and about £800 in cash.
In administration, your 7k balance would have been wiped and you would receive no cash.
So you are a bit better off in the Scheme… but for people who didn’t have so many loans upheld, they would get very little cash if anything – it is the balance being wiped and their guarantor being released that is the most important thing and they can get that in administration.
AND would you have the same number of loans upheld by Amigo in the Scheme? Or would they uphold a lot less? Because their “10%” estimate just looks wrong, way too optimistic unless they plan to reject a lot more loans in the Scheme.
See their comment reported here https://debtcamel.co.uk/amigo-silence-possible-scheme-2/ – if they are only planning to uphold 4 in 10 loans in the Scheme then their 10% estimate may be about right.
In which case what would you prefer, administration where the administrators aim to do roughly what the Ombudsman does and so you get your large balance wiped but no cash, or a scheme where you have a 50/50 chance of getting a mere £800 in cash and a 50/50 chance of more of your loans being rejected and possibly even still owing money, especially if Amigo deducted money from your redress for £unpaid interest”?
It isn’t as clear-cut as you think!
And as Amigo refuses to say what percentage of loans it expects to uphold in the Scheme, it isn’t surprising that people are worried about that.
Kevin says
Hi there I voted for the scheme and have had no formal communication from amigo.
Only information I have seen has been through the media.
It’s shocking that amigo seem to be targeting people who voted no to the scheme.
I have not put a complaint in myself but I am currently in a DAS arrangement and was at the time of my original loan and when I got it top up.
I am giving serious consideration to not paying but am unsure if this is a possibility open to me
Sara (Debt Camel) says
You were given a loan and top up when you were in a DAS?
OMG…
I think you should talk to a Scottish adviser about stopping paying as you are in a DAS. I suggest you ask on https://www.advicescotland.com/home/debt-arrangement-scheme/ – you don’t need to use your full name in a comment.
Kevin says
Apologies its actually a DMP I’m in not sure if this makes a huge difference compared with a DAS
Sara (Debt Camel) says
a DMP is much more straightforward – a DAS is a complicated Scottish legal arrangement.
Being in a DMP and then having to top up suggests the loans were unaffordable to you probably have a good complaint.
How large was the last loan? How much have you paid to it so far?
How much are you paying to your DMP at the moment?
Kevin Millar says
My original loan was for £10,000 I had a outstanding balance of £9308,71 when I did a top up in February 2020 which put my balance back to £10,000.
I have paid £3925.50 and my balance is now £11350,50.
I missed payments through covid which was agreed with amigo but still got charged interest.
My DMP is £100 per mth.
Sara (Debt Camel) says
So it sounds unlikely that if you win your complaint your debt would be cleared. As you will still owe a balance, it may be best to pay something affordable to them to keep chipping away at it, rather than stop completely? You could say put the debt into your DMP and increase the payment to your DMP to £150 or £200 a month?
But if you do this your guarantor will still need to cancel their direct debit to amigo and phone their bank to cancel the continuous payment authority over their debit card. Will your guarantor be happy to do that if you explain your situation? It won’t affect their credit record and although Amigo may threaten to take you both to court, these seem like trying to bluff you into paying as Amigo is not taking people to court who have a complaint in that has not been decided.
Sara (Debt Camel) says
Apparently people who voted for the Scheme are also being sent a survey:
“I appreciate that you decided to vote for the proposed Scheme and wanted to take this opportunity to tell you as much as I can about what we are doing at Amigo now.
We previously said that without the Scheme, we would likely go into insolvency. This means there would be no cash compensation available for customers who were mis-sold an Amigo loan. This situation is still a very real possibility. Giving his decision in the High Court to not approve the Scheme, the judge stated that we should look at whether there was another scheme that could meet the concerns of our regulator, the Financial Conduct Authority (FCA). We have listened to the judge and are following his request by looking at all other options.
We will be working with all of our customers to ensure fair and equal compensation for all valid claims, to achieve a solution as quickly as possible. We will share a further update as soon as we can.
As a valued customer that voted on the Scheme, we would like to get your thoughts on the ongoing situation to help ensure we are working to represent the voice of all our customers. If you have two minutes, please click here to complete a short survey with five questions in. Your responses are anonymous and will not have any impact on any existing accounts you have with us. Thanks in advance.”
Philip says
Hi question if you make a complaint and amigo dismiss it you don’t have to go to the ombudsman why can’t you just issue a court summons against amigo and fight the case ur selfs you don’t have to wait or make a complaint to the ombudsman and you might win before they go bust as at the moment they have assets
Sara (Debt Camel) says
Because Amigo will defend the case and it will take a VERY long while to go to court. Average time was 9 months in 2019 and the backlog is likely to have got longer with the pandemic.
Kayla says
I voted against, I’m a current customer,complained last October, believe I have a valid claim and iv not received a survey. Not sure why unless it’s because there is an agreement in place for them not to contact me due to anxiety. No idea, feel a little left out haha
Russell says
Hi Sara, so looking at claims being on hold is down to a DISP waiver which I guess Amigo got approved and looks like it was done in December. I’m no expert but are DISP waivers time limited to 6 months? In which case Amigo may have to start dealing with complaints again in July or could they and most likely just get another one for a further 6 months? My concerns is another scheme won’t start to next year (just my gut feeling) and by the time my complaint is looked at I’ll have repaid the full or most of the loan and lose about 2k. I’ve only just about or close to paying off the amount borrowed but I don’t want missed payments on credit report in case my claim is rejected as it’s getting on track so really don’t want to stop paying and right now I can afford it. I’ve tried to look this up but is complicated but I’m hoping they will need to start reviewing claims from next month which would then speed up a decision on new scheme being approved or administration. Im correct is saying any payments made after date of administration or scheme start date paid will be refunded in full if claim is upheld?
Sorry if this has been covered before but I can’t see anything providing answers and I’m hoping you have a good idea. Thanks
Sara (Debt Camel) says
Amigo has not got a DISP waiver and has withdrawn its request for one. I have heard it suggested that the FCA will only grant a DISP waiver if a firm passes a solvency test and that causes most firms in difficulty to not ask for a DISP waiver – I don’t know if this was the case with Amigo.
Instead Amigo seems to have some informal agreement with the FCA that it can ignore the DISP rules…
There is no sign that they are going to start reviewing claims next month, or indeed at all before either a new Scheme or insolvency.
I’m correct in saying any payments made after date of administration or scheme start date paid will be refunded in full if claim is upheld?
yes that is correct – so it is just the payments before then that are a problem.
It sounds as though you clearly understand the options you have. If you continue to pay and later have your claim upheld, you will get back very little of the payments before the Scheme/administration. If you stop now, your credit score will be harmed (but not your guarantor’s) although this will be repaired if you win your claim.
Russell says
Thanks for the info, will just have to suck it up for the next couple of months and see what happens. For me I can see why Amigo can’t deal with complaints now, and have the agreement to hold redress. Seems like the FCA are just allowing Amigo to claw in as much money as they can. They could have a much better idea on what redress is going to be needed by now to support the case if they hadn’t just started piling up complaints.
Anna says
Hi Sara
back again with this Amigo crazy thing that is draining me every day… I have made an affordability complaint to them and I am not paying until they will give me a response. I have canceled the direct debit I had this month a day before the DD, I was told by the bank I can’t recall the amount before the DD day, but still my DD was canceled anyway. On the DD day I was told I will see the money back in to my account the next day if I already canceled the DD. I did check today and nothing. When I spoke with the bank today they said I didn’t recall the amount but told them I couldn’t and that I was advised I will have the money back the next day but didn’t happen. This is what they said, I doubt Amigo will make any refund.
“As I have checked I can see that it has been cancelled but has not been recalled for you. So as it has already been past the due date we will have to raise an indemnity claim.
Before I can process your claim we need to understand the error that has occured?
If no error has taken place and we refund you the amount of the Direct Debit, we may have to re debit your account in the future.
Please be advised if any refund provided could result in the company contacting them to arrange for alternative payment for any funds legitimately owed.”
I’ ve got one more message from the bank but couldn’t post it as I’ve reached my comment limit.
Thank you
Jim says
Hi I have had 3 loans with amigo and the last one was for 15000. I still owe 17300 but I have paid 10100…it has become unaffordable as my payments are 595 a month…if I make a financial complaint can I stop paying the loan until the court has made a clear decision on the outcome???
Sara (Debt Camel) says
do you know the numbers from your loans … – how much did you borrow? how many monthly payments did you make (eg 11 payments of £298) how much did you receive in cash if this was a top up loan?
Your guarantor – at the time the last top up was taken, could your guarantor really have afforded to pay £595 a month out of their income and still been able to pay their own debts, bills and living expenses? The guarantor may have been better off than you, may have owned a house, but that is a huge amount to be able to pay each month?
Jim says
Hi Sara,
I am not sure of the numbers but it was a first loan of 5000 then topped up to 10000 then topped up to 15000. I have paid 10100 so far. The payme.ts aren’t affordable. My guarantor only lives on pension and savings….
Should I male a complaint and stop paying the loan??
Sara (Debt Camel) says
So I can’t be sure but you may well not have repaid as much as you borrowed, especially If Amigo decide the first loan was affordable…
In this case may be better if you can make some payments so you are chipping away at any balance that may be left, how much do you think you can afford a month?
If you stop paying it will hurt your credit rating, but the negative mark will be removed if you win your complaint in a Scheme or in Administration.
Your guarantor would need to cancel their direct debt to Amigo and also phone their bank to cancel the continuous payment authority Amigo has over their debit card. This will not hurt their credit rating – the Amigo loan does not appear on there.
Amigo may threaten you both with being taken to court for a CCJ, but that should not have as you have an open complaint in. Amigo has actually said it won’t go to court in a Scheme until claims have been resolved.
It sounds as though your guarantor can also make a complaint that the loan was unaffordable for them. They have to be able to pay this out of ioncome, unless they had told Amigo they were happy to pay it from their savings.
LB says
Hi Sara
I am the guarantor for an Amigo loan and a while ago put in an affordability complaint on behalf of myself.
The person who I was guarantor for has not yet done so, but would like to do this now.
Are they still accepting affordability complaints from the borrower and if so how does he go about this?
Sara (Debt Camel) says
He can email it to hello@amigoloans.co.uk with COMPLAINT as the subject. Assuming he is complaining that the loan was unaffordable for him when it was given, he can just keep the email really shot – I want to complain that my loans were unaffordable and I would like interest removed and my guarantor released. No point in going into great detail as Amigo will not be considering this complaint.
the advantage of him making a complaint is if he cannot afford to pay and you don’t pay then with both of you with a complaint in it is clear that Amigo can’t take either of you to court (whether their threatening emails and texts say)
RS says
I am aware of the current Amigo situation but my query relates to a loan and top up loan that I was guarantor for (the loans were for my partner). They were repaid in full a number of years ago although I ended up paying for a couple of months. I want to submit an affordability complaint but does my partner also have to submit one at the same time for the same loans or will they review the complaints separately?.
Sara (Debt Camel) says
is your complaint that the loans were unaffordable for you, the guarantor?
RS says
Yes, exactly that.
Sara (Debt Camel) says
Then your partner should also make a complaint if the loan was unaffordable for them.
Atif says
Hi Sara
Once again thank for all the brilliant advise you provide here.
I put in a affordability complaint in January still ongoing no final response – I votes against the scheme
2010 – took out 3K topped up to 5k – total paid to Amigo was 11.5KL
2018 – 2K, topped up to 3.5K then again top up to 5K – current balance is 6.5K – I am in arrears
My credit score has also been very low numerous defaults and CCJS / missed payment on credit file – for past 15- 20 years, I can even get accept for a visa debit card always used a basic account. no way should I have been given the loans
My current guarantor (different to guarantor in 2010) has good credit and is on universal credit mother of 3 children she also can not afford the payment or ever could have , I have stopped all payments both me and my current guarantor wont be paying until the complaint is deal with, I have received notification the may issue LBA of course we now understand MAY doesn’t really mean anything at this stage and they are not taking people to court with a current complaint not dealt with.
A question for you – from your know ledge and from what I have told you you think I will have a good chance in winning my complaint?
Many Thanks
Atif
Sara (Debt Camel) says
I think 2 tops on a loan since 2018 probably is a good complaint, especially if your credit record was very poor.
what I can’t guess is how likely amigo is to uphold this – if they only uphold the recent top up loan, then they will probably deduct something they call “unpaid interest” which is adding on extra money you have to pay for the previous loan, even though it was settled with the top-up.
But at least if the last loan is upheld your guarantor is released… and I think you should then take some debt advice – 20 years is too long to have problem debt and you need advice on your options and help.
from what you have said your guarantor also may have a good complaint – it’s very hard to see how anyone on UC can afford the repayments on the last top up. In a Scheme or in administration they too should complain – it gives them 2 ways to be released as guarantor, if they win their complaint or if you win yours.
DM says
Just wondering the logic in sending out a feedback survey to people who have rejected the scheme when there is thousands of claims that have not been assessed or responses sent. Yet another delaying tactic to claw back as much as they can before any scam / scheme is proposed and more delays for court dates. For the customers they have assessed and not sent the details over that would have the balances cleared under the current unfair method of assessment they are effectively stealing people’s money whilst they continue to pay to keep their guarantors from being hassled whilst they sit in limbo. I am not filling out the survey as Amigo have already demonstrated they can’t treat customers fairly and don’t really care about the impact they have on people’s lives. Also would love to know how much they have claimed from the government in furlough payments for staff many of whom know they will be dropped whether or not a dodgy scheme goes ahead or have to leave as a consequence of going into administration ( I hope!)
Charlene says
Can anyone advise me on amigo loans, I took a loan out with one guarantor then took another out with a second guarantor paid off previous using new loan I received £1700 and 3 years later I still owe £3000 my guarantor wasn’t working at the time and was a single parent in a council house, my guarantor pays £110 pm and I have an iva which they take some off that to pay amigo what do I do?
Sara (Debt Camel) says
when you took the top up loan – were the payments at that point affordable for you? That means could you pay Amigo and still pay all your other debts, bills and living expenses without getting further into debt?
Same question about your guarantor at the point the top up loan was taken – was it affordable?
What is your guarantor’s current financial position?
Your iVA, how large were the debts that went into it? Did you have any assets to protect (house with equity, car)? how large are your monthly payments? how well is it going so far and when does it end?
Soph says
I won my case against amigo back in December with the FOS,I was told that as the loan had been repaid,I’d get back interest,fees and any other charges. I still haven’t received my refund and all the fos do is say they’ve emailed amigo and nothing has come of it. Is there anything I can do at all? Or are amigo deliberately ignoring cases due to the scheme they are trying to impliment?
Sara (Debt Camel) says
This was an adjudicator decision for FOS? Or an Ombudsman decision?
Soph says
It was an adjudicator decision. The case worker originally working on my case passed it on to someone else,and they then passed it on for adjudication within a few weeks.
Sara (Debt Camel) says
Then I am sory but unless FOS was giving your case priority for some reason, then Amigo may be going to carry on ignoring this decision. It wanted these complaints to be considered in its proposed Scheme – that would have meant you got 10% (possibly less0 of your proper refund amount.
The Amigo Scheme has been rejected by the court as unfair – it seems that Amigo may propose a new Scheme but we will have to wait and see if it is more generous to customers.
L says
This is hilarious. The DISGUSTING AND ABUSIVE way Amigo treated customers who were BEGGING for help, and they think they have a right to moan?! Are they actually deluded? Christ, I hope this company goes under.
https://www.google.co.uk/amp/s/www.thisismoney.co.uk/money/news/article-9690103/amp/Amigo-investors-vent-fury-City-watchdog.html
Marie says
Hi sara so I’ve had a complaint with amigo since September last year with no final response despite them telling me numerous times it would be any day which was before last year. Anyway I’ve had loads of top ups etc with them also lost my home because I couldn’t afford both and didn’t want my guarantor to get in to trouble who is my mum by the way . Any way I was owing 3400 in December I had already paid all the interest so that had stopped but with the scheme I panicked and borrowed 4000 from dot dot to pay amigo 2000 to get them off my bank and my mums ao it would buy me some time . I couldn’t afford to pay amigo and obviously I’ve just taken a 4k loan out bit with interest is now 9000 . I am in deep trouble basically . I’ve told amigo I’m not paying now until this is resolved and obviously by paying them that 2k I’m in credit which will run out next year. How long do you think all this will take to get resolved as I now have amigo and dot dot owing plus about 5k in credit card and payday loan debts . And the mother of all gambling addictions on top and I’m on anti depressants and have been off work for few months because of it
Sara (Debt Camel) says
this dot dot loan – it’s not a guarantor loan?
You probably have a good affordability complaint against dot dot?
Your mum – could she afford to pay the AMigo loan or is it unaffordable for her?
Marie says
I literally only took out the dot dot loan 2 months ago ,I have no idea how I was allowed to have it, its not a guarantor its all in my name . I did through clear score its said I was pre approved for 4k once I accepted it was in my bank pretty much straight away they didn’t ask me any information and I didn’t have to send them anything. It was literally click the button . My credit score is terrible. And as for amigo my mother from day 1 could never afford the loan if I didn’t her income is way too low
Sara (Debt Camel) says
If the Scheme gets underway OR Amigo goes into administration, you need to talk to your mum and get her too to make a complaint that the loan was unaffordable for her. This gives two ways she can be released as guarantor – if she wins her complaint or if you win yours.
So you have, as you say, bought some time by paying Amigo this money. it seems VERY likely that by next year either a Scheme will be underway or Amigo will be in administration and you and your mum will both have submitted claims. You can review your situation at that point?
It may be enough of your loans are decided to be unaffordable that your balance is written off. We won’t know for a while what a new Scheme may look like – come back then and ask if you should vote for it or against it? The old rejected scheme was worrying for people like you with a lot of top ups as it was unclear how many Amigo migh uphold and how large an amount they would deduct for “unpaid interest” when they upheld a op up loan but not the loan before which top up had settled. because of this you may well have been better off in administration rather than that Scheme, but we don’t know if that will apply to a new Scheme.
In the meanwhile, can you afford the repayments to dot dot? What other debts do you have?
Marie says
I have 5 credits cards 2 defaults on vanquis and provident 1 pay day loan . I owe 1200 to amigo and now 9k to dot dot plus another loan for 8k but that’s in my mums name. I’m up to my neck in it basically . Last December I got promoted so my income is high now but wasn’t when I took the loans out with amigo years ago. But even though my income is high its gone with all my debts which leave me with nothing every month
Not to mention before I had amigo I had just come out of bankruptcy but I’ve got my self in to a right mess this time
Sara (Debt Camel) says
So can you actually repay dot dot and all your other loans? And still have enough to live on?
You need to stop getting your mum involved in your finacial mess – as guarantor for Amigo and taking that other loan out in her name for yoyu. This only seems to help temporarily, actually it causes more problems as the debt situation is then harder.
Marie says
I can pay them all but left with nothing to live on
Sara (Debt Camel) says
Then I suggest you talk to StepChange about putting all your loans except the Amigo one, which doesn’t have to be paid for a few months, into a debt management plan, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Simon says
Sara.
quick question If I may.
My guarantor is getting text messages from Amigo saying if she doesn’t pay the loan then she will be defaulted on her credit file, its already been made clear on here they cant do that so why are they allowed to send this type of correspondence?
Sara (Debt Camel) says
I don’t know, If your guarantor checks her credit record, she will see that the Amigo loan doesn’t show on there.
Faye says
Hi Sara,
Apologies for the delay I’ve only just seen your reply.
I would have had to borrow more to pay for my guarantor loan should it have come to it when I initially became a guarantor. I would not have been able to afford the repayments then and even less so now.
Sara (Debt Camel) says
So you can make a complaint to Amigo that the loan was unaffordable for you and you want to be released as guarantor. At the moment Amigo would just ignore this complaint and as you are not currently being asked to pay there isn’t much point. But if Amigo sets up a new Scheme or they go into administration, then you can make a Claim and ask to be released.
As you can’t afford to pay, I suggest you cancel your direct debit to Amigo and also phone your bank and say you want to cancel the continuous payment authority over your debit card. This will stop Amigo taking money you cannot afford if the borrower stops paying.
do you have other debts you cannot afford at the moment?
Faye says
Hi Sara,
Thank you so much for the advice. I will do that very soon.
I have a couple of other debts but I am able to pay them. I only borrow what I can afford to repay so I was really surprised to be approved as a guarantor. I do have good credit so I’m assuming this is why I was approved but I had hoped I hadn’t been rather than having to say no to my friend. Thank you so much for your help, I really do appreciate it.
Gaz says
Hi. If the interest has stopped on my loan does this mean I’ve paid back what I originally borrowed.
I have 8000 + remaining at 405 a month. I’m not paying anything else untill this is resolved
Sara (Debt Camel) says
I don’t know why they have stopped adding interest, they don’t normally do this.
So you said you have topped up a lot – that often means that a loan is unaffordable and you have a good complaint.
If you stop paying, it will hurt your credit record, but the negative mark will be removed if your claim is upheld by Amigo in a Scheme or by the administrators if Amigo goes bust.
You need to explain your situation and about your complaint to your guarantor and tell them to cancel their direct debit to Amigo and phone their bank and cancel the continuous payment authority Amigo has over their debit card.
This will not harm your guarantor’s credit record as the Amigo loan does not show on there.
Amigo may threaten you and your guarantor with being taken to court for a CCJ. While you have an open complaint at FOS this is just a nasty attempt to bluff you into paying them – they are not going to go to court – it would be against the regulator’s rules, it is a long slow process anyway and you could just defend the court case saying Amigo have not responded to your complaint.
Mike T says
Amazon do stop charging interest. They call it an “Interest Cap” but basically it’s a way of frontloading loans.
If you have a £10k loan @ 49.9%APR, your £400 per month payment doesn’t even cover the annual interest. In reality, the repayments should be pushing £700 per month.
However, no-one would borrow on those repayments. So, what Amigo do is only charge interest for the first few years of the loan. They call it an “Interest Cap.” Once you hit this, you pay no more interest but actually start dropping the capital.
On the surface, this sounds lovely – Amigo aren’t charging you as much as they could. In practise, no-one would borrow if they realised they were paying back nearly 7% of their capital every month – almost all of it every year.
Also, this shows Amigo’s whole business plan must be geared around getting clients to top up. This is proven but the bombarding of clients with offers of top ups. If you top up repeatedly, you never hit your interest cap so you always pay interest to Amigo.
Also, once you have hit your interest cap, you are only paying off capital, so effectively the loan becomes interest free. At that point, you may as well keep paying it down if you can afford it. Getting a loan from someone else at a lower rate looks good but you’re only adding more interest to what you owe.
Sarah, am I right on the last bit?
Sara (Debt Camel) says
Sorry I think most of what you have written is a bit confused.
A cap on interest has nothing to do with front-loading the interest. Amigo takes the same approach to charging interest as everyone else does these days. With all high interest loans like Amigo’s almost all of your payments at the start are paying off interest, so if you want to settle a loan early you will find it saves you a lot less than you would expect.
Amigo’s interest cap means they can never charge you more interest than they said at the start – so if you get some extension to the loan (not t op-up, that is a different loan) then more interest is not added. This is pretty rare with Amigo as they just go after your guarantor, it sounds nice for them to say they have an interest cap but it rarely actually helps anyone.
Getting a loan to pay off Amigo at the moment is a pretty disastrous move for anyone with an affordability complaint because you are paying someone else interest on this large loan when if your complaint had been won, your balance would have been dramatically less or even zero. After settling an Amigo loan you will get back only a tiny part of the cost of the new loan in a refund if you win your complaint.
Mike T says
Thank you for the clarrifcation.
Amanda says
Hello Sarah, I have had loans with amigo since 2005 my payment now is 295.00 it is taken forever to pay. I have missed one payment in 2016 and the performance that myself and guarantor went through was unbelievable. I have put a complaint to amigo and the same as everyone else they will get back to me. I really dont want to pay them this month as to me they are getting everyone payments and will still go into administration. The thought of what I have repaid them back is sickening.
Sara (Debt Camel) says
What is your current balance?
How large was the last loan?
Amanda says
5100 is my balance I topped it up I think it was 10.000 . Paying this back since 2017. I have payed every payment through covid because of the phone calls and texts you receive. My mom really cant afford the payments. My circumstances and jobs have changed since 2005 and not once did they check to see if I could afford it. I did put complaint in but received email just asking to look at the scheme. Nothing of them since.
Sara (Debt Camel) says
It sounds as though you have already paid more than the 10k you borrowed to the last loan? So if you win a complaint about this your balance should be cleared.
Yopu have obviously topped up several times – that often means that a loan is unaffordable and you have a good complaint.
If you stop paying, it will hurt your credit record, but the negative mark will be removed if your claim is upheld by Amigo in a Scheme (or by the administrators if Amigo goes bust).
You need to explain your situation and why your complaint is a good one to your guarantor and tell them to cancel their direct debit to Amigo and also to phone their bank and cancel the continuous payment authority Amigo has over their debit card. This will not harm your guarantor’s credit record as the Amigo loan does not show on there.
Amigo may threaten you and your guarantor with being taken to court for a CCJ. While you have an open complaint at FOS this is just an unpleasant threat to try to get you or your guarantor to pay them – Amigo won’t go to court – it would be against the regulator’s rules, it is a long slow process anyway and you could just defend the court case saying Amigo have not responded to your complaint.
Amanda says
Thankyou for your reply.
Kevin says
I am a current amigo customer and I’m struggling to make my scheduled payment this mth.
I don’t have a current complaint against amigo but I am in a dmp and was when I did a loan top up in Feb 2020.
My original loan was for £10,000.
What is the best way forward is it a affordability complaint?
Sara (Debt Camel) says
When did you take the original loan?
The top up, how much was the loan?
At the point you took the top up, could your guarantor have afforded to make all the repayments and still been able to pay their own debts, bills and living expenses? They may have been better off than you, but did they really have that much spare income each month?
Sean Brooker says
Hi
Does anyone actually know, what Amigo are doing? They have stopped communicating everywhere, other than to say they stand by the scheme.
Sara (Debt Camel) says
nope! See https://debtcamel.co.uk/amigo-silence-possible-scheme-2/
Jane says
My daughter felt coerced into being a guarantor for her ex partners loan. He has not paid any payments for the last year, ignoring contact from them and they are now chasing her. They do not live together she has had to move into social housing and has reduced working hours to look after their child. She could not afford the loan payments when it was taken out and she certainly can’t afford them now. What can she do? Thanks
Sara (Debt Camel) says
So she has grounds for a complaint saying she should be released as guarantor
1) because she was pressured into agreeing to the loan and
2) because it was not affordable for her because Amigo fauiled to take into account aht if her parter could not pay it is unleikely she would be able to pay either.
She can send Amigo a complaint about this to hello@amigoloans.co.uk with COMPLAINT as the subject and say she refuses to pay until her complaint is considered.
Amigo will probably threaten court action but if eh has sent them a complaint they are not going to actually do this…
However it is going to take a long while -probably at least 6 months possibly a lot longer – until her claim is considered either in a new Scheme from Amigo (which they have not even proposed yet and which will take months to be agreed and then start) or in administration if they go under.
As she has other debts, she is probably already in a difficult financial situation. I suggest she talks to National Debtline on 0808 808 4000 about her debt options for all her debts, not just this one from Amigo. As she is in social housing it may be that some from of insolvency – a Debt Releief order or bankruptcy – would be a simple solution to all her debts, including the Amigo one. In which case it would remove a big source of stress for her.
Jane says
Thank you for your help.
Dean C says
Just a message here to say thanks to Sara and all those who assist folks being trampled on by Amigo Loans. I performed the following regarding my brother’s loan from 2018 for which I acted as guarantor ( topped up just months later, no affordability check, poor communication, complaint in with FOS last year, has paid back more than borrowed, Amigo chased payments after complaint was filed )
1) Wrote a letter based on the examples given here , saying that FOS rules forbid Amigo from pursuing payments when claims were in progress, highlighting that I kept all communications as evidence. Informed them that Continuous Payment Authority was cancelled until complaints were investigated by the FOS. Further asked that they stop chasing payments until the complaints had been investigated by the FOS.
2) Amigo promised that there would be no further attempts to claim payment.
3) Payment demands continued along with threat of “may” take legal action etc.
4) Replied to the third e-mail from Amigo informing them that they were now both ignoring their own prior assurances, and that requests for further payments would form the basis of a third complaint, and any further such communications would be considered “harassment” and added as evidence to the new complaint.
No more e-mails from them.
Don’t think you can’t stand up to companies like Amigo Loans.
Sara (Debt Camel) says
A few comments here yesterday were deleted after a systems glitch – sorry! Please post them again if you want.
Buzijs says
Good morning. I gurantor of loan. Today i got call that its been missed 2 payment off loan. My friend stopped making payments because he believe that he have claim and they didnt checked his and my credit history correct before accepted loan. I was in maternity leave that time and had CCJ with Barclaycard. When he top up 2more times he was Late with couple payments. Amigo told me today if wont make any payment that may send as to court and we both get CCJ on account. When i was reading here in coments that they cant give gurantor CCJ its that true??? Because Amigo said its wrong. They can. And send as to court while Amigo are in court. What shud i do now?? I cant afford do any payment i got plenty other credits and loans to pay and my friend dont wanna pay now while Amigo loans is this scheme. We both send FOS claim. And i send Amigo claim.
Sara (Debt Camel) says
If you were on maternity leave and had a CCJ then it sounds as though you have a good claim to say you should never have been accepted as guarantor.
You and the borrower have both made complaints but there is no way to get Amigo to look at those now. It’s going to be many months before your complaints can be considered in a new Scheme – one hasn’t even yet been proposed, then it has to go through the lengthy process of being agreed – or in administration if Amigo fails.
As you can’t afford to make payments then you shouldn’t pay. It would be difficult and expensive or even impossible to borrow this money, month after month to pay Amigo. Getting behind with rent and household bills is a disaster. And if you later win your complaint, you will get back very little of any money you do pay them.
“Amigo told me today if wont make any payment that may send as to court”
yes that is what they say – it is carefully worded to sound very worrying but doesn’t actually mean anything. They say “may” not “will”. There may be an earthquake next week. You may win the lottery. Doesn’t mean it will happen though!
A guarantor can get a CCJ – but if you have a complaint in, Amigo is not going to start court action against you for lots of reasons:
1) the FCA, who is Amigo’s regulator, rules say a lender should not go to court when a debt is “in dispute” – your complain means you are disputing the debt.
2) Amigo needs the FCA to be happy with the next Scheme, it isn’t going to annoy the FCA now by taking customers to court
3) it is a slow process to even start a court case. First Amigo has to send you a Defualt Notice, then wait a few weeks. Then it has to send you a Letter Before Action – you can then wait three weeks before replying saying you are going to take debt advice. Amigo then can’t do anything for 30 days. After 25 days you talk to a debt adviser that sets up a breathing Space for you and Amigo can then not legally go to court for 60 days…
4) if a court case is started (which it won’t be! I am just saying this as the worst case) you apply to have the case put on hold (the legal term is “stayed”) until a decision is reached on your complaint.
5) in 2019, the average time from someone getting court papaers to the court hearing was 9 months – and since then things have got slower as there is a backlog because of the pandemic.
So Amigo is just being aggressive and trying to bluff you into paying because you are scared.
Can I suggest that you should talk to a debt adviser about your situation? It sounds as though even without this Amigo debt you have a debt problem – phone National Debtline on 0808 808 4000 and talk about what your options are for all your debts. tell National debtline you have complained to Amigo about this one.
Debbie says
https://www.belfasttelegraph.co.uk/business/uk-world/lender-extends-lifeline-to-struggling-amigo-loans-40579115.html
What does this mean Sara?
Sara (Debt Camel) says
Amigo borrows money to lend by selling bonds. This announcement relates to bonds where Amigo has provided extra security so the repayments of some of its loans are effectively kept to repay the bonds. As a form of protection bondholders have the right to demand their bonds are repaid if certain things happen, called acts of default. The bondholders had previously agreed to Amigo having a “grace period” during which they would not take action which expired today. The announcement is that the bondholders have now agreed to a 3 month extension to this grace period.
The bondholders would prefer a new Scheme similar to the last one to be agreed as that way they would get 100% of their money repaid, so the extension can be sen as giving time for this to happen.
Camille says
Beloved Amigos!
I have year ago used them got few loans and repaid them.
I recently took out a loan a bigger one 10k!
I have been working part time for a number of years now. My guarantor has never had to step in and make any payments on my behalf.
My complaint was made last year August, wasn’t till December it made it to the FOS where it has been on pause since.
Covid payment breaks job change now expected to make £395 again.
Not sure what to do? Me nor my guarantor can afford to make payments she has lost her Job and finding it hard to make her mortgage repayments.
If I don’t repay what happens?
Sara (Debt Camel) says
A 10k loan is very large for someone only working part-time. When did you take the loan?
Do you have other debts at the moment? Are you behind with any bills?
What was your guarantor’s financial position when you took the loan – it may have been better than yours, but could they really have afforded to pay £395 a month for 5 years to this Amigo loan and still been able to pay their own debts, bills and living expenses?
Camille says
Sara,
My guarantor has lost her Job! Now with covid also no chance of any thing now! Trying to keep her house over her head!
I am in debt with credit cards and other loans like provident!
I thought I could keep up but this time I cannot!
Robbing Peter to pay Paul!
Sara (Debt Camel) says
are you making any payments to your other debts? are you behind with rent, council tax, utilities or other bills?
Your guarantor is in a difficult position now, but one of their options depends on their financial position when they took the loan out, not now. This may not sound relevant to you but it makes a big difference… So think back to when you applied for this last loan – at that time your guarantor’s financial position may have been better than yours and they may have had a good credit record, but could they really have afforded to pay £395 a month for 5 years to this Amigo loan and still been able to pay their own debts, bills and living expenses?
Camille says
I have put in a compensation claim
With Amigos which is on hold still, I have an claim with provident also but with regards to those are on hold.
My guarantor now has bad credit due to last mortgage payments, and credit cards.
I have small payment plans on my credit cards.
Payment holiday is over with Amigos and thinking of trying to pay them is making me anxious as I know they will hound her when this payment doesn’t go through.
At the time the loan was taken out she was in full time employment, she has never ever had to make a payment on my behalf.
I was at the end on my claim and that’s when everything been on hold since.
My credit was cleared because I did a bankruptcy as I had alot of unsecured debt. No bankruptcy free find myself in debt but not as bad as before.
Sara (Debt Camel) says
ok, so all I can say is that your guarantor may have had a good job but the loan may still have been unaffordable for her. On that basis it may be worth her making an affordability complaint too, so this is looked at, I can’t guess what the chance of her winning the complaint is. That gives her two ways to be released as guarantor, if you win your complaint or she wins hers. .
You asked what will happen as neither you nor your guarantor can pay.
You both need to cancel your direct debits to Amigo and you guarantor is also likely to have given Amigo a continuous payment authority over her debit card – she needs to phone the bank and cancel that, or Amigo may help themselves to her money and leave her too short for essentials.
Not paying will hurt your credit record – but that is probably already pretty poor? If you win your complaint, the negativers will be removed.
Not paying will not hurt your guarantor’s credit record – the Amigo loan doesnt show on there,
Amigo will probably threaten to take both of you to court for a CCJ. when you have a complaint in, the debt is under dispute and Amigo should not go to court – they haven’t been doing that in this situation but they still try to put pressure on people to pay by threatening it.
As your guarantor is struggling to pay her mortgage I also suggest she should talk to a debt adviser – phone National Debtline on 0808 808 4000.
Camille says
Sara,
You are a legend! Thank you for your advise.
I am up for the fight!
Thank you so much will keep you posted
Andy says
If amigo go into administration do I still have to pay the remaining balance as I’ve already had my refund ?
Sara (Debt Camel) says
Your guarantor was released and the loan is now in your DMP?
How large are the debts in your DMP at the moment and how much are you paying a month?
Administration doesn’t wipe out debts. In some cases the administrators have been unable to sell some debts and have just stopped collecting them. I would be surprised if that happens with Amigo as the current debts are very large and few of them are very old.
I think you should work on the assumption that the debt will remain in your DMP and your payments will remain the same even if the debt is sold.
Yvonne says
Just to let you folks know amigo will try anything to get money I’m still fighting to get money back from my bank after I cancelled cpa and they still paid it, this week as both myself and my guarantor ordered new cards so they couldn’t use cpa they set up a dd to my guarantors bank account (74 year old pensioner) tried to collect the money via that we managed to stop that dd they then set up another for 3 days later, they would have left her overdrawn with no money to live on for 3 weeks even though I’ve had contact with them explaining I’ll pay when they’ve dealt with my 3 complaints
Richard says
Hi I took out a 2000 loan in Jan 2018 then a top up loan of 10k in August 2018, I couldn’t really afford the new payments but did jt anyway I had previous loans I was still paying and had previous credit problems including CCJ’s. My guarantor is my mum who was on a low income and lived alone. I had a payment break due to covid and being made redundant I’ve asked them now to reduce the payments which they haven’t done yet. so far I’ve made 27 payments of 395 and got another 33 to make which I cannot afford. I have sent in a complaint using your template yesterday what are my chances of this being upheld and what should I do next? Thanks
Sara (Debt Camel) says
My guarantor is my mum who was on a low income and lived alone.
That sounds as though there was no way she would be able to repay a 10k Amigo loan?
If that is the case, she too can make a complaint that the loan was unaffordable for her. This is a good idea as it gives two ways she can be released as guarantor – if she wins her complaint or if you win yours.
As you can’t pay the monthly repayments and your mum can’t either, you will need to cancel your direct debits to Amigo and your mum will also need to phone her bank and get them to cancel the continuous payment authority to Amigo, so they can’t just take her money.
You probably don’t want to have this conversation with your mum, but if you can’t pay, there isn’t much choice. It will unfortunately be many months until your complaint is looked at in a new scheme or in administration.
Have you stopped making payments to your other debts?
Lewis says
Have Amigo been given a timeframe before they either going insolvent or propose a new scheme?
Sara (Debt Camel) says
not that I am aware of.
Lewis says
So they can just plod away taking money from innocent people 😂
Sara (Debt Camel) says
Absurd isn’t it – the FCA needs to put its foot down and tell Amigo they cannot continue to pressure borrowers and guarantors to pay when there is an open complaint they are ignoring.
Would you like to suggest the borrower and the guarantor both email the FCA and tell them this?
Email consumer.queries@fca.org.uk and copy this to nick.beal@amigoloans.net
Subject: Amigo (708284) is pressuring me to pay but they are ignoring affordability complaints
Give your Amigo reference number, your name and address.
Give the details of the loan and how the borrower was forced to enter an IVA as her debts were unaffordable.
Say when the borrower complained and how her complaint is with FOS, who are no longer looking at any Amigo complaints
Say when the guarantor complained and how his complaint is being ignored by Amigo.
Say Amigo are now asking the guarantor to pay and that they are threatening court action [IF THAT IS CORRECT?]
Say how unfair and unreasonable this is as the debt is being disputed. Point out Amigo are in breach of the DISP rules and PRIN ^ as they are not treating customers with complaints fairly.
Say the FCA as Amigo’s regulator should be saying they cannot ask people to pay a current loan when there is a complaint in that Amigo are refusing to llok at.
Say the FCA needs to take better care of vulnerable customers and not leave them at the mercy of unscrupulous lenders that want to force people to pay money they may not even owe once the complaints have been resolved.
Ask the FCA to tell Amigo they have to stop this.
Put it into your own words!
The FCA will not directly investigate your case. But hopefully this will kick either the FCA or Amigo into doing what is right.
Scott says
Hi,
It may be worthwhile to also copy your MP with the email. Whilst they may not do anything on the back of one email, if enough people are sending emails about Amigo’s unscrupulous behaviour they may be forced to intervene.
People can find their MP here
https://members.parliament.uk/members/commons
Scott
Dean C says
I also received the unpleasant “threat” letter from Amigo after a few days’ of e-mails from them assuring that they would not be attempting payment from me ( as guarantor ) – left hand, right hand problem there I think.
I have used the letter example as a template and sent my own personalised version as advised, to the FCA. If there is any response to it I will share it here. Don’t back down folks, stand your ground.
Lee says
Messaged Amigo and the FCA – Amigo response. useful as ever
Thank you for your email dated 30th June 2021.
Firstly, I’m sorry to hear that you are unhappy with the way in which your complaint is being handled and that due to our proposed Scheme of Arrangement being declined that we aren’t currently issuing Final Response letters.
Although our initial Scheme of Arrangement wasn’t approved, we are currently reviewing all our options and will provide an update at the earliest opportunity.
We appreciate it may be frustrating, however, whilst the investigation is ongoing your account must continue as originally agreed, as there is no guarantee your complaint will be upheld. If we allowed the account to fall behind, then the complaint was not upheld, you and XXX could both be responsible for clearing the arrears as quickly as possible.
If you are struggling to manage your loan agreement in the meantime, please get in touch as our normal collections process is due to continue whilst any investigation is underway. In addition, should the account fall behind you are still due to receive automated arrears messages.
Neil says
I took a loan out with amigo loan 2016 , now I paying back the interest, when I took out the loan my partner (my guarantor) was on disability benefit at the time .I have but a complaint back in March. Do I still need too pay off my loan off . The outstanding balance is £3200.
Sara (Debt Camel) says
So your guarantor’s only income was benefits in 2016?
What is your financial situation like now – do you have other problem debts? Are you behind with any bills? Are you buying or renting?
Does your partner also have other debts?
neil says
We are renting at the moment , my partner as credit card debt , and I am on a debt management scheme . Yes thats was is only income until 2019 , he is working now.
Sara (Debt Camel) says
So your partner also probably has a good reason to make an affordability complaint – in 2016 Amigo did not take into account the extra costs associated with their disability and did not assess if they would be able to repay the loan if you could not, which would mean that they were probably also paying a lot more of the household bills if your income had fallen.
It is well worth making this complaint – it gives them two ways to be released as guarantor, if you win your complaint or they win theirs.
As this loan is so old, I guess you have repaid more than you borrowed and also may have a covid-19 payment break?
If you have repaid more than you borrowed, then if you win your complaint the balance will be cleared. If a new Scheme goes ahead, you would get back some percentage of the cash refund you should have had but this will be low – Amigo thought 10% in its previously Scheme, I thought that sounded too high.
So now if you continue to pay, you are effectively throwing away most of the money as you will get back little of it if your case is upheld.
If you stop paying, your credit record will be affected, but if you are already in debt management then your credit score must already not be good.
Your guarantor will also need to cancel their direct debit to amigo and phone up their bank and cancel the continuous payment authority over their debt card. This will not harm their credit record as the Amigo loan does not appear there.
Amigo may threaten to take you both to court for a CCJ – but when you have a complaint in this should not happen and these seem at the moment to just be unpleasant bluffing by Amigo to try to make people pay.
Marie says
Hi i spoke to you before about the fact I took out a 4k loan to pay of half of my amigo loan so they wouldn’t harass my mother who is my guarantor as I couldn’t keep up with payments and put in affordability complaibt last year back in September. Anyway the dot dot loan I have just taken out at the time I was off work for two months on medication for mental health I’ve now handed my notice in as I’m suffering bad with anxiety. Is there any way to explain this to dot dot loans and would they be able to help as I am up to my neck in debt now this 4k loan is now showing 9k total to pay back and I have no income now . Will they help do u think
Sara (Debt Camel) says
I think you should talk to a debt adviser about your situation – contact your local Citizens Advice asap and they can also talk to you about benefits.
It isn’t really a case of “will dot dot be able to help” – you have no income, you can’t pay them. Cancel your direct debit to them. Tell dot dot you are no longer working, you have mental health problems and you are going to be taking debt advice – ask them to put your loan on hold while you do this.
Marie says
Ok ty so much .
Laura says
Hi – How does my partner get removed as a guarantor? He was only asked to confirm his identity to Amigo and nothing else was explained. His friend pressured him to being a guarantor which he didn’t understand and has other outgoings and debts to clear so couldn’t afford the £240 a month for 5 years but Amigo never explained or asked his financial situation. The debtor has not missed a payment but the debt isn’t going down as she is really only paying about £37 a month off a £6000 loan.
Im not sure where we stand now if the scheme isn’t going ahead?
Sara (Debt Camel) says
The previous Scheme has been rejected.
Amigo seems to be trying to put a new Scheme together. If this is approved, he will be able to make an affordability complaint saying that he could not have afforded to make all the payments to the loan and Amigo never assessed this properly. He will also be able to make this claim if Amigo fails to set up a new Scheme and goes into administration.
It is unusual for Amigo to not be asking him to may of the borrower is paying such a low amount. he might feel in a safer position if he cancels his direct debit to Amigo and phones his bank and cancels the continuous payment authority over his debit card.
He could also suggest to the borrower that she may be able to make an affordability complaint? That can be good for both of them – if she wins interest is removed from her debt so it will be repaid much faster and he will be released as guarantor.
Laura says
Hi – his friend refuses to discuss it with him and they’ve fallen out I’ve fit now and don’t really speak – he has tried but she skirts round the issue and becomes very defensive. It’s a £6000 loan over 5 years and she pays £237 a month of which £200 is interest. She hasn’t defaulted but my partner just does not wish to be guarantor any longer as has other outgoings and could not afford to repay that amount.
We don’t know what we can do at the moment until the 2nd scheme gets approved or not. Is there anything he can do now or is he just waiting in limbo for however long until they get another scheme approved or go into administration ?
Sara (Debt Camel) says
There isn’t anything you can do to speed this up.
R says
Hello Sara , I wrote to you in 2019 , about my situation between my borrower and me the guarantor. I won my case, with your guidance ,I got a full refund and I’m not longer a guarantor as amigo lent to me, when I had no income. However on the account it still stays in a guarantor! I am now writing to you about my friend , currently the loan with all the interest on top stands at nearly £4,000. I didn’t realise how bad, my friends financial situation was when I agreed to be there guarantor. Now 4 years on, my friend is starting to panic, and his already has bailiffs turn up at his door for another unpaid bill along with a threat of a CCJ. So I’m just curious to see what can be done about the amigo situation , as he is in no situation to pay the money as his job is just above minimum wage and has a family. I’ve tried to get him to go citizens advise about this and his other debts, but he just seems to bury his head in the sand. So I’m thinking is there a chance that he would be eligible for a Debt relief Order (DRO) . Honestly has his friend, I can’t help to feel bad for him, when I shouldn’t, as he pressured me to get the loan for him. But I do want to try and help. Best wishes
Sara (Debt Camel) says
on the account it still stays in a guarantor!
where are you seeing this?
Helen Mills says
Received this today
We’re writing to let you know that, as you’ve not been able to bring your account up-to-date since it fell into arrears* on Thursday, 17 Jun 2021, we are issuing you with a default notice. We will also be looking to Sonia to make payment, in line with their agreement as your guarantor.
I have enclosed a copy of the default notice for your reference. A copy has also been sent to guarantor
The default notice enclosed outlines what can happen if the notice period expires. If this notice expires and the arrears still remain due on Monday, 19 Jul 2021, the full balance will be outstanding. However, we will accept any payments made towards the loan and will only request that you and Sonia clear the arrears at this point.
We’re sending you this as a legal requirement and for information purposes. This notice doesn’t stop us from being able to accept any reasonable arrangements, and if you’ve already made an arrangement with us that we’ve accepted, this doesn’t cancel that arrangement.
The notice enclosed also explains the action that Amigo can take if the notice period expires. Amigo will only ever take an account to court as a last resort if no reasonable arrangement can be made to bring the account up to date or to clear the loan.
Dean C says
I got the same copy-and-paste letter and e-mail myself a couple of days ago.
I also got a reply from the FCA regarding Amigo’s conduct – they essentially cannot offer assistance to individual cases and re-direct the complainant back to Amigo Loans, which of course doesn’t achieve anything. So no result there, sadly.
Helen Mills says
I’m stopped my payments now until I hear more from the court etc
Dean C says
I’ve written to the FCA with a formal complaint about their own conduct regarding allowing Amigo Loans to continue demanding payments for loans which may not be in debt if complaints were being investigated and upheld. Will see what that brings and whether it motivates them to prevent Amigo Loans from sending these threatening Demand Notices etc.
Gaz says
Hi. My guarantor cancelled there direct debit to amigo an called the bank saying they would do this. Amigo have taken it up on there self’s to reinstate the direct debit for payment on the 8th of July, but after they said they would do this they then took a card payment on the 30th of June without consent. Is this completely wrong or have they the right to do this. Thanks gaz
Sara (Debt Camel) says
“after they said they would do this ”
Did you mean “after they said they would NOT do this”?
Are Amigo also threatening you and your guarantor with being taken to court?
Danny says
Hi
If Amigo goes in insolvency, what does this mean for repayments? (Not got a claim)
Sara (Debt Camel) says
What do you mean by “repayments”?
Payments to customers owed redress for unaffordable lending?
Or payments by customers to current Amigo loans?
Danny says
Payments by customers to current amigo loans
Sara (Debt Camel) says
Going into insolvency doesn’t wipe out the current loans.
Borrowers and guarantors will be able to make a claim in insolvency and if the last loan is determined to be unaffordable have full set-off of any redress calculated for their loans against the balance owed. This is the right of insolvency set-off – it applies even if there is no money to make cash payments to unsecured creditors and if secured creditors are not being paid in full.
Guarantors (who may be complaining about affordability for them, affordability for the borrower, or other matters such as being pressured into becoming a guarantor) will also be released from the loan if either they win a claim or the borrowers does.
If the set-off wipes the balance, any payments to the upheld loan made during the administration are also refunded in full.
Any remaining amount owed (after set off and refunds of payments made during administration) is an unsecured claim in administration. It is very unlikely there will be cash to distribute (apart from possibly the “prescribed part” of £600k which applies in some administrations.)
If a borrower or a guarantor stops paying during the administration, they will not be taken to court by the administrators before their claim is decided.
The administrators will want to sell part of the loan book. This will probably be postponed until claims have been decided or the administrators have assessed every open loan for potential claims. (If loans were to be sold before that point the contract will have to provide for the loan to be bought back by the administrators or set off by the debt purchaser and that would considerably reduce the price the debt purchaser would be prepared to pay and increase the costs of the administration).
If a debt is sold, the borrower can just keep on repaying as normal. A debt purchaser does not have the right to demand immediate repayment in full. Taking a practical view, most debt purchasers are a lot nicer to deal with than Amigo.
Dean C says
I have just discovered that my brother’s loan ( for which I am guarantor ) was topped up not once, but twice – and I have no record of any e-mails from Amigo Loans regarding this second top up, and am certain I would not have agreed with it! Unlike when the original loan was taken out, there were no phone calls to me or my brother checking affordability. Further, my brother’s initial complaint was sent to the FOS in February 2020, almost a year earlier than I had thought.
I’m currently putting together a time-line of events and it makes for pretty interesting reading, which will support complaints to the FOS, the FCA. Despite being badly injured in 2019, he rarely missed a single payment throughout the entire period, despite being unable to work and very sick, and has already paid more than the value of the original loan.
Had the FOS got started on his claim without such a huge delay ( four months for the first reply to his lodged complaint and several more before it reached a handler ) he probably would not have had to deal with all of this ( and nor would I )!
Sara (Debt Camel) says
I suggest you send Amigo a Subject Action Request asking for copies of all your personal data, including recordings of phone calls. email them at hello@amigo.me and with Subject Access request as the subject line. Hive your name and amigo reference number.
You could suggest your brother does the same.
Dean C says
Already done a while back, they replied and said it’s underway but would take several weeks.
Sometimes, when considering all of this, I’ve wondered whether I’ve made mistakes or recalled things incorrectly etc, that maybe things were actually done the right way by Amigo and I just don’t remember them. But reviewing the timeline it’s become clear that Amigo actually granted the second top-up after my brother broke his back, about which they had been informed in some detail via e-mail by me ( copies of which I have ). They never even called him, let alone me, to check affordability.
I have told him to contact the FOS to chase up their investigation into all of this. I know that the situation means the FOS can’t resolve cases involving Amigo right now, but his case seems a perfect example of what is an almost criminal level of irresponsible lending.
Alex B says
I don’t see how this is possible as Amigo always pays the money to the guarantor’s bank account and the guarantor then transfers the money to the borrower. Are you sure it hasn’t just slipped your mind?
I think the FCA do a very good job – they may take a while but they would need to at least triple their workforce to deal with every complaint quickly – who would pay for all this extra resource? All my complaints to the FCA have taken approx. 6 months and I was happy with this as appreciate they are dealing with an unprecedented number of complaints.
Dean C says
I would normally agree, but the second top-up seemed to be done differently and I can’t seem to find any evidence of it in my records, and I’ve kept literally every e-mail and letter from Amigo since this all started in 2018. I do concede that my memory might be at fault though.
The FCA are fine in terms of how they deal with complaints, but no longer processing complaints, while allowing Amigo to continue demanding payment of accounts which may longer be owed, is an entirely different matter.
Dean C says
I found it in the end. They sent me the difference between what my brother originally borrowed, and what he wanted to top-up to again, so it was an odd number of £726 or so, which was why I could not recall it.
By this time though, they knew he’d broken his back. I’ve confirmed no affordability checks were done, neither of us called or e-mailed – he was able to get the money via on-line application with no questions asked.
Sara (Debt Camel) says
Then Amigo broke their own rules – they should ALWAYS a talk to the guarantor before a loan, including top ip, is agreed. Otherwise you may reasonably have thought that the loan you were guaranting was for just £726 pounds, which you were happy with, but may have said no to the real size. This on its own is an excellent reason to complain and to be asked to be released as guarantor.
Debbie Lawrie says
I have written a complaint to the FCA on their handling of all of this, I think customers should do it on their droves! It’s all absolutely shocking
Sara (Debt Camel) says
what email did you send this to?