UPDATES
In May 2021 the court rejected the Amigo Scheme accepting the arguments of the FCA that it was not the fairest that could be proposed to customers. See Court rejects Amigo Scheme of Arrangement for details.
In December 2021 Amigo published the proposals for its Second Scheme. See Amigo’s new Scheme for the latest news.
Amigo announced on 21 December 2020 that it is seeking approval for a Scheme of Arrangement in order to cap the amount it has to pay to customers who were mis-sold unaffordable loans. The announcement says:
Whilst the Scheme will not enable all claims relating to customer redress issues arising from unaffordable lending (“Redress Claims”) to be paid in full, the Directors have now decided that a Scheme is the best vehicle for addressing customer Redress Claims.
In 2020 Amigo has been trying to get on top of increasing numbers of affordability complaints by borrowers and guarantors. In its half-year results in November, it said:
Amigo is working with advisers to review options, that are acceptable to all stakeholders, to address the current level of complaints. While at an early stage, this includes assessing the use of a scheme of arrangement as a potential vehicle for customer redress.
So today’s announcement is no surprise.
Amigo wants to restrict the money available to settle affordability complaints. It says:
The Company anticipates the immediate cash payment under the Scheme towards the Redress Claims Pool will be £15 million, with the option for this to increase should the anticipated Balance Adjustments be less than expected, up to an extra £20 million of cash. In addition, the Company will make a cash contribution to the Scheme based on 5% of profit for the next three financial years ending 31 March 2024. In light of the cash contribution to the Scheme and the Balance Adjustments to the loan book, the Company believes the requirement for the current unutilised complaints provisions remains in line with expectation.
It isn’t clear what that means. Is it saying the current provision in the accounts is expected to be used for customers with balances that are written off, and that customers with settled loans who need a cash refund will be limited to £15-35million? If so, that sounds entirely inadequate.
Amigo wants to stop complaint handling while the Scheme is being approved, proposing it will only settle complaints where it has already made a Final Response offer or where the Financial Ombudsman (FOS) has made a Final Decision, ie not an adjudicator decision. This would be in breach of the Financial Conduct Authority (FCA)’s DISP rules, so Amigo is asking for a waiver from these.
The announcement says:
the Directors consider that Amigo has adequate liquidity for the medium term … The Board is confident that it will be able to restart lending in early 2021.
This article looks at the background to this, how a Scheme works, the details Amigo needs to provide, the questions the FCA needs to consider, and the worries customers may have.
Contents
Background
What is an affordability complaint?
The regulator says that a loan is unaffordable if making the repayments means you have to borrow more money or get behind with essential bills.
For guarantor loans:
- the lender has to check the loan is affordable for both the borrower and the guarantor;
- when a borrower wins an affordability complaint, interest is refunded;
- when a guarantor wins a complaint, they are released from the loan and all payments they made are refunded;
- because guarantor loans are large, complaints are often won about a single loan, even if all the payments were made on time.
In 2019 FOS published two key decisions on Amigo cases: one by a borrower and one by a guarantor. It has set out how it decides guarantor loan complaints here. FOS is currently upholding 88% of guarantor loan complaints.
2020 – Amigo complaints jump & other problems
Complaint numbers began to increase significantly from the start of 2020.
From March to September there was a board room dispute about how Amigo should handle complaints. James Benamor, Amigo’s founder, resigned from the Board and said Amigo should challenge FOS decisions in a judicial review. Benamor did not regain control of the board and by November a new board and CEO were in place.
In May, Amigo agreed to a Voluntary Requirement (VReq) with the FCA to work through a backlog of c. 9,000 complaints by the end of June. But complaint numbers increased and Amigo asked for an extension. In November Amigo said that it had made a decision on c. 25,000 complaints included within the extended VReq.
In August the Kerrigan judgment and the FCA’s Re-lending by high cost lenders report were published. Neither offered any encouragement to a lender considering a judicial review of FOS decisions.
Complaints are not the only issue facing Amigo:
- with Covid-19, Amigo faced the difficulty of assessing a loan application when the person applying may lose a lot of their income. Amigo restricted lending to key workers, which was a very small number of loans. In November all lending stopped.
- the FCA began an investigation into Amigo’s creditworthiness assessments in June. There is no indication when this will be completed.
How Schemes of Arrangement work
See What is a Scheme of Arrangement and why do lenders want one? for an explanation of how Schemes work and the previous Schemes that have been approved and rejected.
All 650,000 current and previous Amigo customers are potential “redress creditors” because they may have a valid affordability complaint. Potentially both borrowers and guarantors can complain so they will all be given a vote in the Scheme.
A lot of questions
Questions for Amigo
(1) Complaint numbers and redress amounts
Amigo needs to give these numbers as they are essential metrics for assessing the Scheme proposal:
- How many new complaints arrive each month and how many complaints are at the Financial Ombudsman (FOS)?
- What is the average redress paid?
- What is the value of outstanding loans?
- How many customers has Amigo had? Update – Amigo says it has had 650,000 customers – 150,000 of these have a current loan.
(2) Determining complaints
There could potentially be hundreds of thousands of complaints so an automated process for determining complaints will be required. It should try to make broadly similar decisions to those FOS would. FOS agrees with the customer in more than 80% of Amigo complaints, including many single loan complaints where all payments had been made on time.
- Does Amigo expect the Scheme to uphold more than 80% of claims?
- How will the Scheme assess claims? Amigo’s own records are not sufficient as FOS often finds Amigo did not verify income and expenses.
- Will the Scheme make a deduction for “unpaid interest” when not all loans are upheld? FOS does not do this.
(3) Should borrowers and guarantors all be in a single class for voting?
- How will Amigo assess refunds where a guarantor has made payments?
- There are potential conflicts of interest between the guarantor and the borrower, so should they be treated as separate classes for the voting?
- Is a single class for all borrowers fair? Borrowers with a current balance will get a lot more back from the Scheme through the right of set-off than borrowers whose loans have been repaid.
(4) CCJs, charging orders and debts sold
If a complaint is upheld at FOS, Amigo has to arrange for any CCJ to be set aside and any charging order removed. If the debt has been sold Amigo has to arrange for payments made to a debt collector to be taken into account. Lack of clarity about sold debts has resulted in many customers feeling unhappy about the ICL Scheme.
- What is Amigo proposing to do?
- How many of CCJs, charging orders and sold debts are there?
(5) How much money is being put into the Scheme?
There needs to be clarity about the money being put into the scheme.
- how much of the provision in the half year accounts has already been used?
- is most of the remaining provision in the accounts expected to be needed for write-offs for customers with balances?
- how much cash will Amigo be left with after ring-fencing the money from the Scheme?
(6) What p in the £ will customers get?
This has to be an estimate but it has to be realistic. The original projections by ICL of an 80% return were highly misleading and ICL should have known that at the time.
UPDATE – I have done a long article exploring this question in more detail: Amigo Scheme – the numbers don’t look good. It concluded that people with a current balance may be OK but everyone with settled loans may get 6p in the £ or less.
Will the FCA agree to this going ahead?
Why would the FCA agree to a Scheme that lets an authorised firm pay customers less compensation than they should get? This is the fundamental question for the FCA.
If the FCA approves this, won’t every other lender think this sounds like a Cunning Plan? The FCA has previously not approved requests for a Scheme from large payday lenders who wanted to carry on lending.
There are other questions too.
How can the FCA agree to a DISP waiver? This seems highly unfair to customers who have already complained – the Scheme may not go ahead so why should their complaints be delayed?
Legally it isn’t the FCA’s role to decide if a Scheme is fair to creditors. However the FCA may feel it has to consider this as many customers may be vulnerable and lack the financial background to understand what they are being asked to agree to. So:
- should the bondholders be left whole? Would not some form of debt for equity swap provide more money for redress payments?
- the proposal that 5% of Amigo profits in the next three years should be added to the money for distribution seems insulting. Why should Amigo shareholders be able to profit from the new lending while old customers take all the pain in the Scheme?
What does this mean for customers?
We don’t know the details of the Scheme yet. Until we know a lot more, it’s impossible to say if customers should vote to approve this.
But many people will be worried that Amigo will be “Judge and Jury” in a Scheme, with no right to take an appeal to the ombudsman. And they may think it is unfair that they won’t be repaid in full if Amigo wants to be able to continue as a lender.
This Scheme may not go ahead, so I suggest that all Amigo borrowers and guarantors think about complaining now if repaying an Amigo loan caused them problems.
Comments for this article are now turned off.
Please read the more recent articles at
Amigo’s Scheme
for the latest news and leave any comments there.
Derek says
Hi
Just to confirm that I was with amugo loan company
Sara (Debt Camel) says
Are you thinking about making a complaint?
Roshan says
Yes I’m with amigo loans on 3year payment contract. My amount was 4500 and I’m paying 7890 will be able to get refund
Sara (Debt Camel) says
if the repayments have been hard to manage eg you have had to borrow more elsewhere or get behinds with bills – then it’s worth sending in a complaint. Do it now – no-one knows what will happen with Amigo’s proposed Scheme and it’s easy to complain see https://debtcamel.co.uk/how-to-complain-guarantor-loan/ which has the email to send to Amigo.
J S says
Do you think this will be a catch 22 situation.
If the FCA don’t approve the scheme (which by all accounts they wont), this would mean that Amigo would need to repay all upheld complaints in full.
Would this then potentially put them in a position where they may need to enter administration and customers might end of up getting pennies in the £ anyway?
My complaint is with the adjudicator who seems to be taking ages to make final decision.
Sara (Debt Camel) says
I don’t know, it’s difficult for me to guess if the Amigo board is just trying to get away with paying less but they will be fine if the Scheme is rejected. Or if they would immediately go into administration (though the announcement today says they are solvent in the medium term) or whether they would limp on for another year or so.
It’s also hard to guess if people really would get less in administration. One of the odd things about the Scheme is that it doesnt affect other creditors. So FOS must be owed quite a few millions in fees – under the Scheme they get paid in full, in administration they get the same % as people with affordability claims.
AmigoAmigoYeeHa says
What impact is this going to have on new complaints?
I’ve only received my statements today for 3mths before & 3after lian was issued – was typing up my god complaint when the notification of this came through
Sara (Debt Camel) says
We will have to wait and see. No reason to delay sending your complaint in.
David says
I was lucky to have £7.000 wrote off by the ombudsman , because amigo hounded my family ,could not reason with them,
Amy says
Hi there
I complained on 2nd December and received my SAR on Friday.
I presume this scheme means I shouldn’t expect to hear anything else from amigo for a while?
Sara (Debt Camel) says
Who knows! But send your complaint to the Ombudsman at 8 weeks if Amigo haven’t given you a decision.
MR F says
I’m awaiting Amigo to respond to the adjudicator, originally there deadline was 4th Dec then 22nd (tomorrow), after seeing this I left my adjudicator a message explaining my concerns and spoke to a pleasant least at amigo complaints who is trying to reach my complaint handler at amigo and will call me with an update hopefully later today, (it’s the first time I’ve been told by amigo there is a specific complaint handler dealing with my case) so I am hopeful to get this sorted without further delay, but knowing my luck it will now be placed on a back burner. Sara any opinions on how quickly they will put current complaints on hold that are awaiting acceptance/rejection adjudicator decisions
Sara (Debt Camel) says
sorry my only info on this sort of thing comes from what people post here! I am going to be looking out for news…
Mr F says
Thanks Sara, as soon as I’ve heard from either my adjudicator or amigo i’ll post an update
Mr f says
So I’ve just had an email from amigo
Saying that my complaint would not be effected by today’s news…. I now wait with baited breath….
J S says
Mr f, can I just check something.
You said your complaint wont be affected as a result of todays ruling due to Amigo not responding to FOS.
Was a final decision made by an Adjudicator on your case and Amigo have simply not responded to that, or have amigo not responded to a request from adjudicator?
My adjudicator has emailed amigo several times for a small piece of information to allow him to give final decision, but they have been ignoring him since late October/early November.
Mr F says
Hi J S
Adjudicator has upheld my complaint, so just waiting on amigo to accept or reject it. (Can’t see how they can object when they provided most of the data) but we shall see despite there assurances untill it’s resolved IL not be 100% convinced
Sharon says
Hi
From my understanding If I’ve accepted my offer abs waiting for my payment to be paid within the ten days does this still stand?
Thank you
Sara (Debt Camel) says
I think so – fingers crossed for you!
Chris says
I have been waiting on a decision since July, it’s been escalated to the ombudsman in September and keep getting fobbed off by amigo, could this be the reason I havnt received redress?
Sara (Debt Camel) says
possibly :(
Justin Sandy says
Ultimately is this not going to mean that consumers lose out either way? Either they get less redress and statutory interest for mis-sold loans if the amount is capped, or get less if the company goes bust or is allowed to do so? I am not sure which will be the harshest for all these unsecured creditors, as no doubt secured creditors again will take priority in either case. Hopefully, the voting rights of Amigo unsecured creditors will have enough weight and the FCA will act to block this like Quickquid and Wageday advance proposed arrangements. I am not sure if loans are covered by the FSCS (I assume not) but such redress should be. Instead of reducing the companies liability of its own making, in the 89% of cases that FOS views, the regulator should be looking to do the opposite….it is about time these matters were either included within FSCS or that the FCA directly increased companies liability by making individual directors and the board personally liable for these amounts owed- with unlimited liability if the company failed. This would then focus the minds of these companies to operate correctly. I know that this does nothing to help all the hundreds and thousands that must be in some form of progress waiting for relevant compensation.
Sara (Debt Camel) says
No these loans are not covered by the FSCS.
Some people may get less from administration. But anyone with a balance owing would get a full write off if their complaint is upheld in administration and that is probably they would get from the Scheme.
So the question be aimed, how likely is your complaint to be upheld in the Scheme? We know 88% are being upheld at the Ombudsman…
Until Amigo give more details on how claims will be assessed it’s hard to say anything. But there is the possibility that you would not get a loan upheld in the Scheme but may in an administration…
Justin Sandy says
I am not actually involved personally in this but know people who have suffered as a result of Amigo. I have been part of those who get into major problems with cycle loans with the like of Wonga, Quickquid, Wageday, ICL and so on, and borrowing to borrow more etc and robbing peter to pay paul. However, obviously, I am aware that the Amigo loans are significantly large in comparison to payday loans, or can often be. Ultimately I think Amigo is simply trying to avoid what is the ultimate inevitable, which will be administration, whilst boosting the bank balances as a result of such a delayed route. This is ultimately in part the fault of the regulator to take decisive action hard and fast at the time it overtook responsibility from the OFT. The regulator has shown it can bare its teeth in the current pandemic in days and weeks, not months and years. Ultimately the people that will pay for all of this will be the people that can least afford it….the people that had ‘unaffordable loans’, they will be the ones yet again having by default to ‘afford’ them, through the lack of protection offered.
Justin Sandy says
Thank you for allowing my further comment, Sara. It was only needed due to your response limits! I have commented on this as ultimately I see it and to the FCA directly as allowing this arrangement is a bad signal overall…I am sorry for the consumers that might suffer individually but the proposed arrangement ultimately dictates acceptance that anything that Amigo has done before was in any way acceptable…WHICH CLEARLY IT IS NOT. The victims in this are clearly victims of the Regulation failing to adhere to such companies in allowing the companies to continue to operate. Unaffordable lending the UK is just that as it is about time the regulator honoured its promises. It is about time the regulator regulated in time on a day to day basis. I as I usually do have emailed directly to THE FCA AT consumer.queries@fca.org.uk, believe you me despite the fact they state ‘they don’t deal with individual issues’ they do listen to such individual responses. Their days and weeks actions on the pandemic are an indication of this, Such matters will only ultimately in the end back up and upgrade FOS powers.
C says
Has devastated me reading this today. I’ve had a complaint with amigo since Aug which theyve as good as let sit around along with many other thousands whilst theyve developed exit plans without paying compensation. FOS have requested files from amigo with deadline tommorrow which obviously wont be met. My understanding is amigo have disregarded the FCA and FOS and just dragged their heels and this scheme seems the now be the beginning of the end for amigo and anyone without a final decision I think we will be lucky to see any sort of redress in the future. Ironically I have been given a case handler today from the FOS due to the fact I am soon to be homeless. I would of been due around 12k redress from amigo not including 8% interest. Let’s hope the forces to be now act on such lenders in the future and by some miracle someone sorts the mess that is amigo out as like thousands of other these companies ruin lives and families.
J s says
I am feeling the exact same as you.
Totally gutted by this news. I estimated to get approx 10k back.
I sent all the required information to my Adjudicator back in September and he had asked Amigo for some information to which they have ignored him.
It has all become clear today that in my opinion, they have deliberately avoided dealing with complaints to get to this stage where they can tell people they probably won’t get much back. Its a disgrace.
C says
Sorry to hear….it sound you were quite abit further down the line than most.
I just can’t for the life of me work out how this has been allowed to happen by the regulatory bodies.. the fact they’ve let amigo get away with it for so long when it was blatantly obvious they were being evasive,lying and stalling for a reason. T release the statement over christmas where they hoped it would not be picked up by media.
RF says
I know how you feel. Submitted my complaint to Amigo in July 2019, escalated to FOS in August 2019, chased in Jan 2020 as nothing had been done, finally got an adjudicator in April 2020. Was informed on 10th Dec i should have a decision from adjudicator in a week. No response and my adjudicator is now on leave until January :-(
Personally feel that if I miss out here is would be as much the fault of the FOS as it would be Amigo but not sure if I can complain to FOS about FOS!
Justin Sandy says
Hi, please see
https://www.financial-ombudsman.org.uk/who-we-are/service-standards/service-complaints for complaints about the service received from FOS.
Justin
Sara (Debt Camel) says
it is possible to send FOS a complaint about their service.
C says
I also have a question. Were amigo not stating they had set aside 150m for complaints. Why is the scheme 10% of this amount just afew weeks later?
Sara (Debt Camel) says
The £15m they mentioned in the announcement was new cash in addition to the provision for complaints in the accounts.
Some of that provision will already have been spent on refunds. And there are the costs of setting up and running the Scheme – it won’t be cheap.
But most – possibly all – of this provision will be taken up with balance write-offs which will be paid in full. People owed a cash refund will only get a percentage and it may be very little… it’s hard to say without detailed figures – see all my questions in the article above.
MEH says
Son has a FOS guarantor complaint and not heard anything for weeks. Amigo still chasing payment each month. I helped him as they never verified income or expenses and he was continually overdrawn so should never have been accepted. Different people every month from Amigo, no consistency at all but the delays with FOS compounds matters and makes the stress continual.
J S says
See if a decision is made by the ombudsman before any schemes in place or rejected, are they being dealt with by amigo, or are they just refusing to entertain any complaints at the moment.
mariusz says
I have only found this site in the last week and it is fantastic. Have just realised I may be due claims from Amigo for loans I had a few years ago. I was in all sorts of trouble back then and desperately needed money. I think I made an error with some of my affordability calculations. Anyhow I managed to pay off the debts eventually.
Having read this article I am very concerned about the position of the company, how will we know as to how close they are at going into administration? My concern is by the time my complaint gets through how much would be left after the insolvency vultures and other creditors have picked over the carcass? At the same point I feel reluctant to accept or vote for the scheme. Obviously if it is the better deal I would consider it but how will we know?
Sara (Debt Camel) says
Sorry you found this all so late.
When more details about the Scheme are known, I will write another article on what is being proposed and how people can decide whether to vot for or against it.
T says
The FAQs say voting is likely to be in March.
Sara (Debt Camel) says
oh, I thought it would be faster than that.
Do you have a link to these FAQs – I haven’t seen them.
Sara (Debt Camel) says
For anyone trying to find the FAQs, there are here: https://www.amigoloans.co.uk/question/scheme-of-arrangement-faqs
Siobhan says
I’m absolutely gutted about this, I’ve had a complaint in since April 2019, this is the final
Nail in the coffin for me. I’m up to my eyeballs in debt and my refund would have helped me out. I knew something like this would happen.
John Evans says
Hi Sara/all,
I submitted a borrower affordability complaint on 17/12/2020, received a response today from Amigo today. They talk about the proposal and essentially say they’re still processing complaints but won’t be paying anyone out “…so that those customers are treated consistently and fairly with all customers under the Scheme.”
Shan says
Not sure if it’s anything to do with this scheme but, Just a heads up for anybody awaiting the payments gojng into their account. I’m in the 10 day process and today I have rang to see what is happening as their phone lines close as of tomorrow for Xmas. They have told me that they’ve received an email from higher up to stop any payments due to go out today or the next few days which would have been mine’ the staff on the phone have no idea why but hoping to come back to me with info by tonight. Appalled to be honest.
Sara (Debt Camel) says
oh. That should not have happened :(
Shan says
I know :( I just hope o still receive it. The person on the phone said I should but they have been told nothing basically! Will update if I find anything else out. Thank you ☺️ x
David says
In my opinion it’s not about Amigo trying to get out of paying. It’s about certain claim management companies being vultures putting in 6 complaints for one application. This then costs money and when it goes to FOS who reject the claim that then costs Amigo £650 per claim so you can see why they have stopped claims. Also false claims are going in if you look at Gary Jenninsons new video about Amigo and Amigo 2.0 it’s now in a better position.
Sara (Debt Camel) says
certain claim management companies being vultures putting in 6 complaints for one application
That would be incompetent, not the behaviour of a vulture. CMCs would gain nothing from doing that. And they will get complaints to their regulator.
when it goes to FOS who reject the claim
If there were any significant number of fictitious claims, Amigo’s uphold rate at the FOS would then fall significantly. It doesn’t seem to be happening…
Until the FOS uphold rate drops, the CMC problem is just a small red herring.
mariusz says
I do not think the claims management companies can be blamed. There was obviously a problem where loans were made unaffordable to the extent of how much is getting more difficult to prove. I think i have a genuine case but I also the issue was made worse when AMIGO said they would resolve claims in a certain time frame through the VREQ and didn’t understand that the CMCs have access to blanket email tools which I guess created a wave. My concern with the scheme is whether it will be fair. Past schemes don’t seem to have done that from my intense reading over the last 2 days, so forgive me if i have missed something. The people on this site, do their research and are willing to put the research in. I suspect most clients of the CMCs aren’t overly that bothered, so my other concern is if the CMC sign up enough people the scheme could go through and lessen our genuine claims?
Sara (Debt Camel) says
I don’t actually think there is any difference between the validity of claims from most people who used a CMC and most people who didn’t. Those who didn’t were just lucky enough to come across a free option first or knew from PPI experience to look for a free option. CMC claims are, by and large, no less genuine.
mariusz says
Thanks Sara of course I defer to your knowledge on this subject. My concern is if the CMCs start uping the advertising now as claims are stalling and sign people up. Won’t those people have handed their votes to the CMC to vote on their behalf? If the value of the scheme is attractive to the CMC maybe the rest of us take a big hot then if we are out voted?
Sara (Debt Camel) says
So far as I know, people will vote, not CMCs on their behalf.
I am not sure why you think that CMCs would like the scheme and individuals won’t?
But in any case, what matters is how the Scheme will decide the complaints to uphold, what percentage of complaints that is likely to be and how much money there will be to divide between them.
Adam says
Hi Sara,
Just wondering whether it’s better to vote for the proposal rather than go against it as if AMIGO go in to administration we will end up with getting nothing or few pennies.
Of you are more knowledgeable than us so please shed some light on this.
Sara (Debt Camel) says
At the moment we don’t know and the answer may be different for different people…
What matters is how Amigo will decide who should get a refund and how that will be calculated. The Ombudsman is upholding over 80% of complaints – if Amigo’s approach upholds a lot less, then some people could be better off in administration Amigo rejects their case but the administrators try to follow the FOS approach (which they normally do).
Adam Shah says
Thank you Sara,
Sure, but the issue is how much money will be available for us if this is end up in administration? .
Banks and bond holders takes their money before the administrator allocate the remainder for us right?
Also we have seen in recent cases like wonga & sunny, us (customers) received only few pennies.
It’s really confusing.
Your thoughts are really appreciated
Sara (Debt Camel) says
Tell me about your complaint? How many loans did you have? Has the last one been repaid? Then I could perhaps say something more useful to you.
Adam Shah says
Hello Sara,
I had 3 loans and all paid off. Last one was Nov 2018. I have submitted my complaint 28th of October. No big hope of getting anything but I’m trying as nothing to lose but lot to gain.
I’m happy to get something (better than nothing). My only worry is that we may not get anything if this goes under. Administrators will pay banks and bond holders before us. We may get nothing or little and share holders get nothing too.
Please correct me if I’m wrong.
Sara (Debt Camel) says
Let’s assume that Amigo will uphold claims on the Scheme in the same way that FOS upholds complaints. It seems highly unlikely but it’s the most optimistic assumption for customers who otherwise face a lottery as to whether they will get anything at all, with Amigo the judge and jury in the Scheme.
The only group of people that seem likely to do well in the Scheme are those with a large balance who would have any refund offset in full against that balance. These are also the group of people likely to be fine in administration as they have the same right of set off there – they don’t gain from a Scheme compared to administration.
People with a small balance and a larger refund will at least have all the balance cleared. As they would in administration.
But the 500,000 previous borrowers like you – plus all the guarantors who made payments, say 50,000? – will have just £15m to be divided between the number who make a claim. And that number is likely to be large… with the payday lenders a significant number of customer only had one or two small loans which they repaid easily and they may even have forgotten about them. Amigo loans are much larger and much longer and the average interest paid will have been much more.
So under the scheme you would probably be looking at a payout percentage lower than Wonga.
Unless Amigo really restricts what it upholds, in which case you may well get nothing.
J S says
Are there not 2 elements to this anyway. The creditors vote and the decision of the FCA. if either fails then it won’t be approved?
I can’t see the FCA agreeing to it in any case as they would be setting a precedent.
Sara (Debt Camel) says
Yes. If the FCA objects, the vote will never happen.
David says
JS Why would the FCA not agree this resolution? Theres a lot more at stake here..
First of all there is 400 jobs at amigo add that to every other company going bust at the moment Government to pick up the tab.
Amigo now has a new BOD. It isnt the ones who caused the problem. Paul Dyer was on the FCA’s senior leadership team . What you also have to consider as well is if AMGO go into administration people still have to repay their loans and they get nothing.
The fact is Amigo are trying to turn this around and are working very closely with the FCA. Not only that Amigo are prepared to go to the high court and get a ruling.
Sara (Debt Camel) says
Job preservation is not part of the FCA’s remit.
A new Board doesn’t give a lender the right to walk away from customers it has previously mis-sold loans to. What is being proposed is not an equitable division of the pain between all stakeholders, see my new article today: https://debtcamel.co.uk/amigo-scheme-estimated-numbers-not-good/
In administration anyone owing money has the right of set-off against a redress complaint. These people will get no more from the Scheme than they would if Amigo goes under.
All Schemes have to be approved in the High Court.
Keenan Price says
Surely, as a customer who has complained, we should agree with the scheme put forward? I for one would prefer to get some repayment back, even if it is less, rather than get nothing at all if they went into administration? At least we would all get paid and treated equally. I do not want to see any business close down in these difficult times and see people put out of work. What would you recommend?
Sara (Debt Camel) says
“all get paid and all treated equally” – that sounds nice, doesn’t it? But we have no idea what will happen until this is explained in detail. At the moment it looks pretty implausible to me.
Will all customers who have a complaint that would be upheld at FOS have it upheld by Amigo in the Scheme? Would you be happy if your complaiint was rejected by Amigo so you got nothing?
And what if equal treatment means everyone who has a complaint upheld gets less than 5% of the amount they should have got? Would you be happy with that if you then see Amigo making huge profits?
Why should it only be the customers who have already been badly treated by being mis-sold loans who are asked to accept a very small amount. Shouldn’t bondholders and shareholders also share the pain?
mariusz says
Keenan are you perhaps an employee or a shareholder? I don’t think anyone should accept until we see what the offer is.
I will concede that if the company really is in dire circumstances it would be better to get something rather than nothing but that would be a last resort for me.
Christopher says
The Final Ombudsman has provisionally ruled in my favour after a long 18 months. Hopefully Amigo don’t get away with this and I am left with less out of pocket.
Sara (Debt Camel) says
So far as I know, if the Scheme goes ahead Amigo are only planning to pay people who had a Final Decision from FOS before 21 December.
Was the last loan repaid?
Rach says
We had an email Monday 21st Dec morning at 9.10am with our offer, hubby called them as soon as the email came in and they confirmed his bank details over the phone and stated the money will be in his bank within 15 working days. What’s the chance of that happening now with this latest announcement on the day we got our email offer ? Thanks in advance
Shan says
Hi rach.
I am in the ‘ten days waiting’ stage for the money to go in my bank. Last week I rang amigo to check if everything was okay, they told me that all payments are put on hold but they didn’t give a reason why. The staff bless them have emailed to let me know if any updates or not abs they are asking me to get back in touch in the new year, I’m assuming we will all get the money we have accepted but it’s just when we will receive it!?
Rach says
Hiya,
Fingers crossed we do! I shall let you know if I get payment as taking into bank holidays and weekends etc I’m guessing the latest ours should be is the 11th Jan?
Rach says
Hiya
Have you heard anything back yet or had payment ? We’ve heard nothing a no payment as of yet 🙈
Sara (Debt Camel) says
No one here has reported being paid since the 21st when Amigo announced the possible Scheme. Despite them saying people who already had a final decision would get paid.
Shan says
I have still not been paid … they’ve told
Me they will chase it up I’ve rang three times today like they would me if I had missed a payment! The man on the phone said the ‘pause’ which was put on payments on Xmas Eve has been lifted (not sure if it’s the truth or what) he says we will be paid but it’s just when 😳 sounds daft but I had a medium reading and he said ‘can see money I’m owed coming to me in March & then still
Expect delays 🤣 I’m hoping that’s not the case!! It’s like getting blood out of a stone getting an answer of when we will get it! Absolute joke! Have you rang them
Mark says
I made a unaffordable lending complaint to amigo via resolver which is now over 8 weeks old and still not received a response. I’ve tried to chase them up today but don’t think they are back open till 4th January now. Would I be best escalating to ombudsman now or wait to try speaking to Amigo before I do? Thanks
Sara (Debt Camel) says
I don’t think you will get a useful response from Amigo next week. It may be that escalating to the Ombudsman doesn’t get anywhere in the end, but at the moment it seems your best of a bad set of options.
Laura says
I hope the FCA will look at the statistics of amigos complaint handling. I wonder if they have been sitting on complaints with customers who have finished paying loans off whilst they looked for exit stratergys. Give the people who paid off loans pittance…I wonder how many people had to borrow extra credit to repay loans so how their proposal remotely fair.
At the end of the day if Amigo is proposing something then I think it’s safe to say judged on the behaviour of this company the propersal only benefits the shareholders not customers.
Lisa says
Hi Sara
I confused where it states if there has been a decision made by 21st December is this an Ombudsman decision or Adjudicator? The adjudicator upheld my complaint in September and Amigo finally accepted this at the beginning of December and told me that my details have been passed to the relevant department to calculate my redress. Will this be classed as being a decision by 21st?
Sara (Debt Camel) says
I don’t know. I think you should ask Amigo.
lisa says
I have sent them an email, will let you know the outcome.
Lisa says
I have not received a response from Amigo but i have received this response from FOS:
Amigo are currently delayed, working through their backlog of complaints like yours, and I hope they will get your settlement out to you soon. It has been raised by senior management at the service to senior management at Amigo Loans.
The news issued on 21 December 2020 does not impact your settlement, as it was accepted prior to this date, and so you will still be receiving the full amount.
Lisa says
Cancel my last post as I went back to the Adjudicator and questioned that it was only Ombudsman decision and got this in response:
“Please accept my apologies, my understanding was incorrect. I’ve been informed that only those who’ve accepted an offer in an Final Response Letter or who had a final decision by an Ombudsman dated prior to 21 December 2020 will get their settlement. Everyone else won’t be getting their settlement yet.
Please see the following update on our website: https://www.financial-ombudsman.org.uk/news-events/information-amigo-customers
I apologise that I don’t have a further update for you at the moment, but we are going to continue to chase this for you in the meantime.”
Not happy that it was the adjudicator who pursuaded me not to send my complaint to the Ombudsman when Amigo missed the first, second and third deadline. I even said I was worried they were in Financial Difficulties!!
Alexandra says
Hi,
(4 weeks letter) I’ve received an email for them on the 21st saying that further to the letter acknowledging my complaint, they are writing to confirm that my complaint it’s still being investigated. They’re saying that it is due to my complaint requiring a more detailed investigation or because they haven’t been able to pick it up as quickly as they had hoped. However, they are assuring me that they are still looking into it and I will receive an answer soon.
Are they still looking into complaints at this point it are they all on hold ?
Sara (Debt Camel) says
I think that is an automated email that means nothing at all.
Zac Bruce says
Hi Sara, seasons greetings to you. I have a post further up in this thread regarding 2 x Amigo guarantor loans. I did put a complaint in finally to Amigo in early December which they have acknowledged & have also sent the dsar. Meanwhile, specifically I’m interested to know if you have any idea if a guarantor can receive a default notice or negative impact on their credit file if they choose to cancel the continuous payment authority (CPA). My guarantor is under the impression it is unlawful for them to cancel the CPA. Amigo did take last months payment from my guarantor. I guess ultimately whilst my complaint plays out, at which juncture absent payment being made either by myself or my guarantor would this adversely affect my guarantor. I am no position to pay them anything & requests for forbearance after a 6 month deferral have been largely ignored. My credit file is shot to pieces & I have zero concern about it, moreover my concerns are more with the guarantor & their credit file/court action etc possibilities as result of them cancelling the CPA & not paying. Meanwhile also awaiting the outcome of my affordability complaint. Thank you.
Sara (Debt Camel) says
If your guarantor looks at their credit record, they will see the Amigo loan is not there at all. The only way a guarantor’s credit record can be harmed is if Amigo go to court for a CCJ. Getting a Default Notice is just a bit of paper, nothing to do with the guarantor’s credit record.
It is incredibly unlikely that Amigo will go to court at the moment. They may huff and puff but – thank goodness – they haven’t been going to court when people have complaints in this year at all.
My guarantor is under the impression it is unlawful for them to cancel the CPA.
It isn’t. Not making a payment is a potential reason to be taken to cour, but that isn’t happening if there is a complaint in.
Fred says
If amigo offer a decent chunk future profits (higher than the 5% being offered now) then far more can be returned to customers in total than if Amigo went bust. Would be good for us claiming if more was offered in this sense and it is accepted.
Sara (Debt Camel) says
Well yes, but it would have to be a LOT more to be perceived as fair…
My latest article https://debtcamel.co.uk/amigo-scheme-estimated-numbers-not-good/ suggests that the current proposal would return between 2p and 6p in the £ to customers owed refunds. I suggested a debt for equity swap PLUS 50% of future profits for however many years it takes to return 50p in the £ to customers, during which time no dividends would be paid. Also the obvious need to provide assurance that claims will be assessed in a similar way to FOS, otherwise the whole thing turns into a total lottery for customers – clearly not equitable.
Stephen jones says
Hi there i put in a borrower complaint on the 7th September 2020 and still not had a final decision from them? Does this mean because the complaint was made before 21st December they have to make a redress?
Sara (Debt Camel) says
If the Scheme goes ahead (as yet unknown) then you would not get your full redress as you were not given a Final Response letter by amigo before December 21st.
Do you still owe a balance?
MEH says
Hi, amigo given final decision to guarantor in Oct so FOS complaint made but nothing heard. If I was to help guarantor pay off balance £11k and FOS uphold guarantor claim, am I likely to get full refund if scheme gets go ahead? Would rather pay off now as monthly payments would halve but wary of losing all that we pay. TIA
Sara (Debt Camel) says
I’m not clear what your situation is.
Are you the borrower?
Did Amigo reject a complaint by the guarantor so that was sent to FOS?
Have you also complained that the loan is unaffordable for you? What happened to your complaint?
Do you have a spare 11k to pay this off? Or would you be borrowing to do this?
Why is your guarantor being asked to pay if you can afford to?
In general most people will be a LOT better off in the Scheme if they have a balance left – then the balance will be cleared or reduced at 100% of the refund value. If there is no current loan then people may only get 2-6p% of the refund amount – those are the very rough estimates I made here https://debtcamel.co.uk/amigo-scheme-estimated-numbers-not-good/ and they may change if Amigo give more details about the Scheme.
MEH says
Sorry, I’m the parent of the guarantor, trying to help him out. He’s split from borrower who has now ceased payments. Seems best to await FOS decision & then scheme decision if FOS claim is refused. Thanks
Sara (Debt Camel) says
ah yes, that makes sense!
Can he afford the repayments at the moment? If not he should only offer an amount that he can afford. This will not affect his credit record unless Amigo go to court for a CCJ which they won’t with a complaint pending. They may huff and puff but they haven’t actually gone to court in a sutaution like this for a long while and with a Scheme pensing they aren’t likely to start now.
It may also make logical sense to tell the borrower to also complain – it could benefit both of you. But you may not want to do that.
MEH says
Thank you, we’ll check his finances as 395/mth is a lot but the longer he takes to pay, the more interest paid, hence me using some savings and taking a loan.
Sara (Debt Camel) says
Basically two options – either his case is upheld, in which case it is will be MASSIVELY better if he hasn’t paid any money if there is a Scheme or if Amigo go bust.
Or it isn’t upheld, in which case the overall interest is capped so he can just repay at an amount which is affordable to him.
Does he have other problem debts as well?
Cases where one half of a couple was the guarantor for the other are very commonly being won as Amigo has usually failed to consider if the the guarantor could pay the loan of the borrower couldn’t.
MEH says
He doesn’t have any problem debts as such but isn’t good at managing his finances, hence we’re involved as parents. He has made 2 guarantor payments and a 3rd is due in 15 days when she defaults again ( which she will). 1 loan, 3 top ups, payments went from 170 to 395 per month without verifying income or crucially, expenses. He was overdrawn 11 of 12 months yet Amigo not interested. Concerned at what interest will be capped at as they told me the loan bal was 11k but could repay 23k.
Sara (Debt Camel) says
I suggest he asks for an affordable payment arrangement and sits this out. If he wins the complaint he would not have to pay anything more but will only get back a pittance of what he has paid. My estimate is 2-6%.
If he loses a serious option for him is a debt management plan or a form of insolvency. You can then help him out with money as he needs it, but don’t have a huge loan around your neck. he could talk to National Debtline on 0808 808 4000 about how these options could work – but they would be worst case, if he does lose the complaint.
Really telling her that she should complain is a good move. That way he wins if either he or she wins the complaint. And her worst case is having to repay the loan without interest.
Kyle says
When do we get news if they pass it or reject it?
Sara (Debt Camel) says
In stages – it has to be approved (or strictly-speaking, not objected to) by the FCA. Then customers. Then the Court.
helen bowen says
Hello,
How does submitting a complaint have an effect on the Guarantor?
Sara (Debt Camel) says
Is this a complaint by the borrower? Or by the guarantor?
Has the guarantor made any payments?
Peter says
The Financial Ombudsman have agreed my 2 loans with Amigo were examples of irresponsible lending. As this 2 months before their request for the scheme should they still pay out the redress payments and with one loan still outstanding do I have to continue to pay the monthly payment as the amount outstanding is considerably less than the redress amount?
Peter
Sara (Debt Camel) says
was this an Ombudsman decision? or an adjudicator decision?
Peter says
This was an Ombudsman conclusion after they investigated my loans. They gave Amigo 2 weeks to respond but it has now been 2 months. They found that both my initial loan and the top up loan were irresponsible lending.
Sara (Debt Camel) says
The Ombudsman is a two-stage process. the first stage is an adjudicator decion – my guess is that is what you have had?
Are you on good terms with your guarantor? Because if you are sure that the redress will wipe out the balance then if the Scheme goes ahead or Amigo goes into administration then you will be better off stopping paying them anything. If you guarantor will be OK with this and will also delete their direct debit to Amigo?
This assumes that your case would be upheld in the Scheme or in administration. That is some risk. You have to weigh that against the fact you are just throwing money away to carry on paying them from now on if you complaint is upheld.
Peter says
Thank you Sara. It is a really poor state of affairs for consumers all round. Hopefully the FCA will see through the wriggling that Amigo are doing!
DAW says
After speaking to Amigo today they have now said that final responses will not be issued until after the scheme is in force despite the website FAQ stating “We have not stopped processing complaints but have stopped paying out redress” so they can’t even get that correct.
Shan says
You are joking me 😑 nobody has told me this what so ever! That is an absolute joke … been passed all sorts of info and this wAsnt any! I’m over the ten days and they just keep saying they are waiting on info as to when I will receive it! Absolute joke.
Who did you speak to the complaints team?
Thanks for posting this
DAW says
Hi I’ve had this from three different people now and all said the same that although claims are being processed there will not be any decisions being released until the scheme is clearer which I’ve been told they will be approaching the court with mid January. No date for release of decisions or amounts involved at all. This only applies to anyone who hasn’t received a final decision notice.
IF they have done any work on the case that we started back in September then I’m hoping it’ll show on a SARS request.
D
Claire says
Even though they have agreed to mis selling and wiping it off still pursuing me for 5k
Plus clearscore are reporting it on my credit file Amigo are blaming them?
Sara (Debt Camel) says
Hi Claire,
When did Amigo uphold your complaint – was it direct or through the Ombudsman?
James says
Hi all
On Monday 21st December 2020 I received the figure I am due to get back from amigo, I received this at 8.34am and called at 9.05am to accept. They took bank details and verified account and said I would receive payment within 15 working days. Since read on the forums and seen on their site about the pause, does anyone have any further info or any experience in a similar position if they are releasing the funds or holding it back still until the outcome of the court. Thank you in advance.
Shan says
Hi
So I was due my redress by the 29th December and still not received it. They put a pause on payments on Xmas Eve so I did no receive my money. I rang yesterday & they said they didn’t have an update but they are continuing with payments now. I have rang today abs a lady told me three people were chasing up where the money was & when I will receive it … I then phoned back & was told the update was that they are reviewing it to see what’s the best move in regards to the borrower (as I am garantour) to see if they will be putting the debt back onto them or getting rid of it I’m assuming? But he promised either way I will received the refund I was promised and accepted. Just no idea when!? It’s so stressful I would have rather not known I would be getting it back ! Fingers crossed yours is more straight forward.
D L says
Hi all,
I am having a similar problem with Amigo. They stated that a redress amount was agreed with my guarantor on 1st December. I then received an email saying I would have my final settlement sent to me by 14th Deembr. Finally yesterday, having chased across all platforms, I received an email from them stating the redress amounts and that payment would be made. Whilst following this up, I asked why my guarantor had no received the funds yet despite agreeing the settlement on 1st December. They said that payment would be made and would take 15 days – does anyone know what this 15 working day time frame is? No bank transfer method takes this amount of time so it seems very suspicious.
I would also encourage everyone on here to complain to the FCA about this conduct.
Matt says
It will be because of their payment processes. The payment won’t be made to you at the same time they have sent you the email.
The email will likely then be forwarded to their finance department who will include your payment on their next pay run. Judging by the 15 day time frame they would make pay runs fortnightly and it would then take the usual 3 days to clear.
D L says
The thing I don’t get is that, with their loans, they transfer immediately and at a much higher daily volume than what they are seeing right now. Why such a wait?
Matt says
Unfortunately I think that’s just because they care more about their cash flow than they do about customers getting their refunds more quickly.
Greg Cassidy says
when did you get your initial outcome from the complaint?
D L says
They initially thre out my complaint on 2nd November – I then challenged it and they sent an updated final settlement agreement on November 30th which was agreed. I am still waiting on payment now. I called them around 30 minutes ago and was told that every refund is being sent out manually and so it will be anywhere within 15 working days of January 4th.
Does that sound suspicious?
Nt says
Hi
I had an offer agreed via FOS upholding my last 2 loans on 17 December 2020 and then via Amigo on 04 January 2020 reierating the same to confirm the refund amount. I called on 04 January 2020 to accept the offer and was told the money will be refunded in 15 working days from 04 January 2020. I have called again yesterday to confirm it will be done and was told they are looking to honour all offers and Final Decisions within 15 working days so it looks like they are doing something for cases investigated and offered before 21 December 2020.
Mr F says
Hi
Was this adjudicator or ombudsman decision from fos
Nt says
Hi
It was an adjudicator who emailed me. What actually happened was Amigo sent an offer to my FOS handler in November 2020 stating they will uphold the remaining 2 loans, FOS were then provided the figures and checked them then I accepted it. Amigo recieved my response accepting via FOS and then sent me the figures again on 04 January 2020 and I accepted. The letter Amigo sent said they will do the refund and again reiterated x3 since that it will be honoured. Just waiting on the refund now.
Hope this helps others.
Liam says
Hello I had an offer accepted on the same day as you to uphold the final 11 loans. I spoke to the financial ombudsman 17th like yourself but haven’t received a final response letter!
Sara any help? Why are some people being issued the figures and some not?
Sara (Debt Camel) says
it seems random to me :(
Dan C says
Hi all,
I have a reply on the 23rd December from the Financial ombudsman saying that Amigo would like to settle the complaint in full after they rejected my complaint back in August – will they honour this or would this be past the deadline scheme they’re wishing to pursue?
Sara (Debt Camel) says
I don’t know. Amigo may have told FOS that before the 21st? And I don’t know if telling FOS something counts?
At the moment this is all very vague!
Dan C says
Thanks Sara,
Let’s hope so! They didn’t give me much information on the phone earlier – I’ve had the final response from them and challenged it with the Financial ombudsman in which then was overturned and Amigo wanted to make an offer in full – I’ll await and see what happens – from the figures of the scheme I truly hope that isn’t the case as a lot of people will lose out.
Zm says
Amigo need to pay out people need to sue them ASAP. If solicitors sue them this will serve them right. Amigo have created mental health and debt in uk
Sara (Debt Camel) says
Going to court is not an easy or speedy process. I strongly suggest making a complaint and then taking it to the Ombudsman.
Nt says
Hi
Can anyone who has recieved a payment (or is due to) please update on here so we are made aware Amigo are actually carrying out refunds on offers and Final decisions. I am on day 5 now of the 15 working days advised by Amigo on 04 January 2021.
Much appreciated
Shan says
Hi
I recurved my after pestering & pestering but they don’t deal with anything till after the 15th day!
Keep ringing from the 10th day for updates
Nt says
Hi was this a refund for an offer or a final decision? And was the payment after 21 December 2020? Can you provide some background info if you don’t mind please.
Dan C says
I was emailed on the 23rd December by the ombudsman who told me Amigo would like to settle the amount in full after rejected my complaint – have and contacted Amigo who told me they couldn’t give me any information but I received a final response back in August from them – I contacted ombudsman again who said Amigo would honour the amount as it was discussed before the 21st December – still waiting from an email/call from Amigo about the offer to settle the complaint but been told by the ombudsman not to worry.
Lisa says
Hi Dan
You may want to check this with FOS as this is what they told me when I first asked but then changed their minds. I have posted the responses I had from FOS in my post above started 29/12/20. If its an ombudsman decision you should be fine but not if its only the adjudicator.
Shannon says
Sorry just realises it didn’t make sense. I was offered my redress before the 21st and was told 10 working days giving Christmas it should have been in on the 29th. It wasn’t and I rang everyday from the 4th. It landed in my bank on the 8th, they had to go through legal forms but they didn’t tell me this in December …. they’ve also written the debt off rather than putting it baxk onto the borrower (I was garantour ) I was paid all that was owed to me! Have you had a final response ?
Sara (Debt Camel) says
oh that is good news – you are the first guarantor I can remember for months who has actually had a payout. Did you complain or did the borrower?
Dan C says
Thanks Lisa,
Couldn’t reply above:
I emailed FOS after they confirmed to double check as I was aware of the scheme that Amigo want to pursue, this is what they replied:
Dear Mr C
We’ve been told that Amigo will honour all offers made before their announcement and this means your offer should be processed as normal. We received Amigo’s offer on your case before their announcement.
Not much I can do but wait I guess, I did phone up but didn’t get much from Amigo,
Complaint wasn’t up held in August (final response),
I raised with FOS and then they replied 23rd December to confirm an offer was going to be made from Amigo,
Double checked with FOS who said should process as normal,
I’ll keep updating but I could get another email likewise to tell me the same thing – not much I can do I guess apart from chasing,
joseph hogan says
any update
started a claim on the 2nd december
i guess i missed the boat :(
Sara (Debt Camel) says
Sorry, have to see what happens to the proposed Scheme.
Do you still owe them a balance?
Chris says
The longer it takes for the FCA to make comment on this the more I think somehow they are going to give the scheme their approval. Do we no how long when previous payday companies tried this the FCA made comment?
Sara (Debt Camel) says
Not sure about that – it’s been over Christmas and they are probably waiting for some committee/meeting to look at it. The timescales in the past were never visible as it was all done behind the scenes. It is odd the Amigo decided to conduct this in public.
Chris says
The way it has been orchestrated makes me feel that amigo must be confident of getting the FCA onboard, as you say its odd it was made public. They must of been aware of the backlash they would recieve yet decided to make public anyway. I could well be looking into it too much but I do not trust amigo one little bit.
Sara (Debt Camel) says
Confident or desperate? Who knows…
joseph hogan says
yes i still owe them a balance
Sara (Debt Camel) says
ok, could you give some details about your loan(s) from them and your financial situation? And what is your guarantor’s position?
J S says
Just typical. I have got my decision from Ombudsman upholding my complaint last Friday.
So annoying because my adjudicator asked Amigo for information to allow him to complete his investigation way back in September.
If amigo had just got the finger out and replied sooner, I would probably be in position for a payout.
I have kind of given up hope now, but guess will just need to see what happens with the scheme.
Liam says
Hello Sara,
I have had a complaint with Amigo since May 2019. On December 17th 2020 the ombudsman contacted me to say that Amigo loans would be upholding loans 2 + 3.
The interest paid for loans 2 + 3 currently stands at £14,685.75 and the amigo balance is currently at £14,012.68. The first initial loan was only for £500.
They have removed guarantor liquidity and responsibility from the account in May 2020.
They have (since offering redress) sent me a notice of arrears and are currently hounding me like dogs for payment.
They insist that the complaint will still be upheld and any money I pay them now will be paid back to me in redress, but I still don’t trust them, should I trust them and pay them?
They have become increasingly aggressive when hounding me for the money.
Your opinion would be greatly appreciated.
Many Thanks,
Liam
Amigo Customer.
Sara (Debt Camel) says
so Amigo haven’t given you any numbers?
At the moment you cannot assume that you will get any money back in redress. And indeed why should you trust them when they could just work out the numbers and get all this sorted properly?
Would you like me to look at the numbers?
For each of loans 2 and 3 – how much did you borrow? How much did you receive in cash for loan 3, assuming it was a top up? How many payments and how large did you make to loan 2 eg 6 lots of £234. And how many payments of how large to loan 3?
Emma says
Hi,
So on 6th Dec I put in my complaint myself to amigo, they have acknowledged my complaint and also asked me for bank statements from certain months etc so I assumed it was being looked at and was hopeful that I would get a final decision by beginning of Feb when the 8 weeks is up, but then since finding the news article about the arrangement I’ve become worried. I have an ongoing loan with them and 3 previous loans so any redress will be a significant amount. I have been getting an email from them every week with probably an automated email.
Am I best calling them for an update and asking them about what this means for customers that have made a complaint?
Thanks
Emma
Sara (Debt Camel) says
If you call them you will just be given a standard line – that is unlikely to be helpful. My guess is that no-one has yet looked at your case. Do you expect that any redress will clear your balance?
Emma Skelton says
Hi, they must have looked into it as they thought my guarantor had made payments which they hadn’t so they asked me to confirm and send them bank statements proving that I had paid.
From my workings out it looks like I it should clear my balance with some left over.
Thanks
Emma
Alexandra says
Hi, I have complained on 21st of November and I haven’t heard anything back. Should I still send my complaint to the FOS?
Sara (Debt Camel) says
I think you may as well. We don’t yet know if this Scheme will go ahead or what will happen if it doesn’t So all you can do is get yourself in the FOS queue – it’s simple to do this.
Toby says
On the 8th December Amigo acknowledged they have received confirmation from the FOS that they had agreed to the payout on the loans I had with them. The FOS Contacted me on the 28th November informing me Amigo had agreed to their decision and did I agree with it which I replied yes. Basically what I’m asking is does anyone know if my case will now be affected by what’s been happening as technically all I was waiting on now is the payout which I still have no news about. The FOS and Amigo are both telling me there’s no news!
Sara (Debt Camel) says
I hope you should get paid in full!
Zey says
I would suggest keep on hassling amigo none stop
Day and night
George says
Hi Sara,
The FOS have emailed me back today asking for me to agree to terms and conditions etc. Assuming this means they are going to start their investigations.
I just wondered if you knew whether customers that had already received a final response from Amigo that wasn’t agreed with, i.e. in my case, not upholding the first loan and deducting £2000 in unpaid interest, whether this would be set aside from the scheme as Amigo had effectively already provided their final response?
Thanks in advance,
George
Sara (Debt Camel) says
I have asked Amigo whether they intend to carry on with their absurd deduction for unpaid interest but i have not had an answer.
So far as I know the reason there hasn’t been a FOS decision on one of these cases is every time FOS looks at one, then rapidly decide the previous loan should never have been given either, so the unpaid interest falls away.
Zey says
Amigo is messing people about after 8 weeks they will pay nothing people
I received so many harrassung calls from them for 3 years
Richard says
Anyone who had a final response and accepted there offer and provided bank details before the 21st been paid out yet>
I accepted my offer on the 21st December and given them my bank details they told me 10 working days I should get redress but I had to take in to account the christmas period so from the 21st I should of had the payout tuesday 12th jan. Rang them and they have yet again put a pause on the payout even after telling me the new scheme wouldnt affect me and my payout as I accepted on the 21st best thing is they told me they had only within the hour put another pause on any payouts. What’s going on. I’ve waited nearly a year for all this to be over. It’s never ending.
James says
Ours is same situation as yours accepted on the 21st at 9am and gave bank details – we were told 15 working days but after reading here they closed over Christmas and paying everyone 15 days from the 4th Jan 🤦🏼♀️ Not good to hear they’ve paused payments again ! We have yet to be paid also. Can the FOS do anything about this or is it a sit and wait to see if we get a payment ?
Richard says
The lady I spoke to on phone yesterday reassured me as soon as they can start paying out again I would receive payment but they couldnt tell me how long that would be. When I rang on the 23rd of december after hearing about the scheme and seeing if I would be affected it was paused then but was only for 24hours but then obviously they was closed over xmas. I will just wait and give them another week and ring again and see what they say then. I dont know if fons can help I will give them a ring tomoz or and email and see what they say.
james burry says
hi on 18th decmber 2020 i had respons from the f.o.s saying that amigo loans, are prepared to offer an amount I excepted this through the fos and they contacted amigo, now amigo wont pay up what I am due, only if its accepted through scheme
have fos having a nightmare
Emma says
Hi. I have a complaint 9 weeks old with amigo, they keep delaying. Should I now escalate to FOS or is it futile given this scheme announcement
I still have a £5k outstanding balance with Amigo too by the way – if I can current customer would my redress still be a full one?
I’ve had a payment break on it too due to covid. I have zero income currently and live at home with parents. They’re demanding I pay now and said I can’t have any more time. They said will call guarantor next week. Told me to claim benefits to pay them. Horrible awful people to deal with on the phone. They made me very upset on the recent call.
I’d love to know if i have any options on this too?
Sara (Debt Camel) says
I don’t know if/when the Scheme will go ahead or what the alternative will be, apart from administration.
It’s up to you – it’s easy to send the case to FOS but whether it’s worth it is hard to say.
Claiming benefits is a sensible move so you can pay some rent to your parents!
Their collections department is often unpleasantly pushy with people in difficult situations.
Is this you first loan from them? How much did you borrow and how much have you paid so far?
What is your guarantor’s financial position like?
Emma says
I’m not eligible for UC according to assessment.
Thanks. It’s the third agreement with them but never paid it off, I topped up twice. I was on a DMP too so I was wrong to take it out but I didn’t look at it like that at the time of needing the money desperately, but reflecting on it it wasn’t responsible of them to lend me the money either given the situation I was clearly in.
First time I borrowed £2k in October 2017 on the first one, a top up to £3.5k and then another to £5k on final top up in June 2019. I was on a DMP the entire time and only last year finished it.
I have made payments to them of around £4160, last one being in April 2019 and I’ve been on ‘breathing space’ since then.
Sara (Debt Camel) says
I’m not eligible for UC according to assessment.
why not?
Emma says
Because of the households income.
Sara (Debt Camel) says
Do you have a partner? Because your parents income is not relevant to your UC calculation
Emma says
My guarantor would pay it if she got the call, she’s just got her first mortgage so is in a good enough position.