This article relates to Amigo’s first Scheme, which was rejected in May 2021.
See Amigo’s second Scheme for the latest news.
On 25 January 2021 Amigo announced that it is proceeding with the next stage of its proposed Scheme of Arrangement and published the formal Practice Statement Letter (PSL) that describes the Scheme for the customers affected.
This article looks at seven points of concern about the Scheme. A common theme running through these is the lack of specifics about how exactly it might work.
Without a lot more details, it is hard to imagine how the Financial Conduct Authority (FCA) could agree to the Scheme proceeding. And it is very hard to see how customers would have enough information about the Scheme to be able to vote on it, even if it gets through the first court hearing at the end of March.
Contents
1) The FCA has not agreed to the Scheme
A Scheme has to be approved by the people affected – that is the customers – and the Court. Technically the FCA doesn’t have to approve it, but as an authorised lender, Amigo needs the FCA to be happy, which is why Amigo originally asked it for a “letter of non objection“.
This is not a formality. Wageday Advance and QuickQuid proposed Schemes that would let them carry on lending. Like Amigo they will have pointed out that customers would get more redress in a Scheme than in administration. Like Amigo they asked for a letter of non objection from the FCA – they did not get it and went into administration.
The FCA look at the effect on customers but it will also be concerned about the broader market:
- will Amigo uphold complaints in the scheme in the same way that the Financial Ombudsman does? If not, what signal does that send to other lenders? Will it make other lenders more inclined to ignore FOS decisions and to hope they may not have to pay FOS fees?
- the anti-competitive effect on the other lenders – why should they have to pay refunds in full if Amigo gets away with very little? How many other lenders will ask for a Scheme if Amigo gets one?
Now the PSL says:
[Amigo] has issued this PSL without the support of the FCA, which has not completed its assessment of the Scheme and its underlying methodology for assessing claims.
This isn’t some minor hiccup. I think Amigo was expecting to receive the go-ahead from the FCA. Without it, Amigo seems to be pretending it doesn’t really need it by withdrawing its request for the letter.
But if the FCA doesn’t understand enough about what Amigo is suggesting to agree with it, how can customers vote on this?
2) The customers are the only losers in the Scheme
The customers are the only group which loses in this Scheme. In administration unsecured bondholders would not be repaid in full and the shareholders would receive nothing. So it is fundamentally inequitable that only customers should suffer in the Scheme.
A fairer Scheme could be set up in other ways eg:
- a debt for equity swap would allow Amigo to put more cash into the pot for customer redress, with the money coming from the bondholders;
- a placement or rights issue would raise money from shareholders to go into the pot for customers.
But the PSL presents the current proposal as a binary choice, saying “If the Scheme is not approved, Amigo will likely go into insolvency“. Aimed at a financially unsophisticated set of customers, I think this is misleading – there are other ways to structure this Scheme.
3) How will Amigo calculate redress?
(a) Which loans are upheld?
As the PSL says: “the underlying methodology for determining claims is a critical component of the Scheme“. But it says nothing about how this would be done or even what Amigo is aiming for in drawing up the methodology.
Amigo could have said it accepts the general approach that FOS takes to determining affordability complaints and that is looking to implement decision-making that will result in a similar uphold rate for Claims in the Scheme.
But without that reassurance, how can a customer guess if a Claim from them would be upheld? Amigo has a long history of making poor decisions on complaints.
Amigo faces the problem that its own records do not appear sufficient to make proper affordability assessments because it did not verify income and expenses. Most simple metrics such as “accept top-ups but not the first loan” or “check if any payments were missed” – will not be helpful in many cases as FOS is frequently upholding single loan cases where all the payments were made on time.
The process needs to be consistent and reliable. It must also be largely automated (at least for the affordability complaints) or there is going to be no chance of Amigo processing 100-200,000 claims in a reasonable timescale. So it can’t be based on people looking at customer bank statements and drawing up new income and expenditures.
Underlying the scepticism here is the fact that Amigo will benefit if it turns down as many complaints about open loans as possible. If Amigo gives fewer balance reductions than it has provisioned for, it will put 39p of every pound saved into the pot for paying other customer refunds – but it keeps the other 61p.
(b) what is the redress on those loans?
Normally the redress calculation is simple once it has been decided what loans were unaffordable.
But Amigo has made this complicated in two ways. First it has been adding a deduction “for unpaid interest” which FOS never does. This has cost some customers hundreds or thousands of pounds. The PSL says “The Scheme will replicate the current redress regime of Amigo” so that sounds as though Amigo intends to continue with this unfair practice. See Amigo should end unpaid interest deductions and remove CCJs for more details.
Amigo is also proposing to give a guarantor full redress for the payments they made and take that money from the borrower’s account (I am simplifying here). It has said that it will not allow the borrower to owe more than they did before the complaint. But there will still be borrowers who have already repaid their guarantor who will get very little redress because of this.
4) Is the Scheme in the interest of customers who have a valid complaint?
Amigo says:
If the Scheme is not approved, Amigo will likely go into insolvency, and based on our calculations, no compensation would be paid to customers. Based on our calculations, customers will be better off if: (i) they vote for the Scheme; and (ii) the Scheme is approved by the creditors and the Court, because they will receive some compensation for their valid claims.
Which sounds so clear cut…
But it doesn’t mention that many people with a current loan will gain nothing from a Scheme as they would have the right of set-off in insolvency too.
Indeed they may get more from insolvency if they have more loans upheld in administration than in a Scheme or if Amigo applies its “unpaid interest deduction”.
See Will Amigo’s Scheme reject too many claims? for more details about this.
5) No indication of possible customer redress
I think the PSL should have made some attempt, however rough, at estimating what percentage people might be likely to get back.
I made some estimates in Amigo – the numbers don’t look good. They were very crude because so I had to estimate so many numbers.
But Amigo knows a lot of the numbers involved: what the average balance reduction is in a complaint, what the average cash refund is, what uphold rate it expects, how many guarantors have made payments, how many people have had top-ups loans, how many people have missed payments, how many people will have great difficulty in making a claim because Amigo has wiped data about old loans etc.
Amigo could therefore do much better calculations. One of the big unknowns is how many people will make a claim. But Amigo could guess at a range and use this to estimate the likely “pence in the pound” payout.
Why isn’t Amigo doing this? Perhaps it would show that Amigo expects to uphold a lot fewer complaints than FOS does … or the calculation may be so tiny people will be horrified?
Amigo has so far refused to give the detailed numbers that would help with this sort of calculation. Investors who have previously asked for average redress amounts and uphold rates were told the numbers are “commercially sensitive” so they won’t be published.
I don’t think Amigo can hide behind this screen of secrecy. It is proposing to pay customers a lot less than their correct compensation so it needs to be entirely open about what it is doing.
6) Amigo does not have a DISP waiver
In December Amigo asked for a DISP waiver from the FCA because it wanted to suspend complaint handling. It didn’t want to have to to pay out on new FOS decisions and wanted to stop issuing decisions to customers making a complaint.
In the announcement on 25 January, Amigo said it had withdrawn its DISP waiver application. This sounds like the letter of non objection situation, with Amigo now trying to pretend it didn’t need a DISP waiver.
But if it doesn’t have a DISP waiver, how can it not payout on new Final Decisions from FOS, which are legally binding? This is baffling – how can FOS and the FCA be happy with this? And the Ombudsman seems to be continuing to work on Amigo cases.
This is not what has happened in the run-up to other Schemes – ICL continued to settle complaints until the Scheme was approved.
7) Which complaints will go into the Scheme?
There are two sorts of problems here. First the inclusions and exclusions that Amigo is proposing. And secondly making sure that the PSL describes these in clear and helpful terms to customers. How can someone be asked to vote if they are not clear whether a complaint by them would form part of the Scheme?
There is no plain English description of an affordability complaint in the PSL. Many customers will assume incorrectly that if they have made all the payments on time so far the loan is “affordable” so they cannot claim.
The PSL says all complaints about loans that have been issued by Amigo, current and previous, will be included in the Scheme. But customers may be unaware of the range of issues they may have good cause to complain about. Amigo, which wants to restrict the time to complain and the right to go to FOS, needs to provide clear information about possible complaints so customers have more information. Among the possible reasons to complain are:
- a guarantor was pressured into agreeing to the loan by the borrower;
- the loan was not explained properly to the guarantor;
- Amigo unfairly added a large amount of interest to the contract when the first payment date was moved a few weeks. Borrowers were not told at the time about how much this would be nor how they could reduce by making earlier payments;
- Amigo did not treat vulnerable customers fairly during its collection process;
- Amigo did not give a Covid-19 payment deferral when it should have;
- Amigo did not fairly assess a customer’s circumstances after a Covid-19 payment deferral when it should have provided tailored support;
- Amigo made errors in credit reporting.
It will not be possible to make any complaints about these loans after the six month period for Claims in the Scheme has ended. But some of the existing loans extend for years. How can Amigo bar future complaints about a problem which has not yet happened?
The PSL lists some exceptions where a claim cannot be made:
- 27a bars already settled complaints – but Amigo may have made an unfair offer and used misleading words so the customer thought they would not win a case at FOS eg time-barred loans and deductions “for unpaid interest”. This seems unreasonable – a better approach which is common in administration is to let a customer make a claim and any previous redress is deducted from the new assessment.
- I have no idea what 27b is intended to bar or why. It needs to be better worded.
Conclusion
Making a sweeping assertion that customers will be better off in the Scheme may not turn out to be accurate when there is a clear description of how Amigo will decide whether to uphold claims in the Scheme.
Amigo needs to be much more forthcoming about what it is proposing. Without this, customers can have little idea what they will be expected to vote on.
And the fundamental unfairness of a Scheme that only affects customers, not bondholders or shareholders, needs to be rectified.
UPDATE: See Amigo’s Scheme for latest news.
Ronan says
With my existing loan with them
I’m assuming I’ll have to keep paying my instalments, then no doubt I’ll get an email in 6 months stating your loan was unaffordable but your getting 1p of what you paid back?!
Sara (Debt Camel) says
Have you made a complaint? What stage is it at?
Are the repayments currently affordable?
Have your finances been affected by Covid-19?
Did you have just one loan? How much have you borrowed? How much have you paid so far?
Ronan says
My loan is currently in arrears because I couldn’t pay during 6 months of covid.
I never defaulted on payments however until the arrears is cleared (£998 arrears total balance £2800) it’ll keep showing as late payment on my credit file.
What I’m worrying about is,
If I continue paying as I have been then t gets to a point where they say oh we accept your complaint however we can’t financial compensate you I’ll go mad because it’ll be like
I’ve been paying for absolutely no reason. I have a complaint on process been told that it’s taking longer than usual to respond
Over 6 years I’ve topped up three times. In short is it smart to keep paying my weekly instalment given the chaos what’s going on with them. However that would risk further late markers
Sara (Debt Camel) says
If your complaint is upheld any negative marks on your credit record will be removed.
How much did you borrow for the last loan and how much have you paid to it so far?
Ronan says
Borrow £5000
Paid at least £3000
Sara (Debt Camel) says
OK so if that loan only is upheld then the refund would be to reduce your balance to about £2000.
But if the previous loans were also upheld your balance would be lower or it may be you should get a cash refund.
Some points:
– it will matter to you how many loans are upheld. If more might be upheld in administration than in a Scheme, that makes a lot of difference. Administrators generally try to follow what FOS might have done – we don’t know how Amigo is goping to decide these claims in a scheme.
– if in the Scheme not all loans are upheld, it will matter if Amigo is still applying its “unpaid interest dediction” as that would increase the balance you would own.
– if in the Scheme you do end upo with a cash refund, then the you would get a small amount of that paid back, but in administration there isn’t likely to be any cash refund, just a write off of your debt.
ec says
Hi Sara ,
Amigo rejected my complain in October and I sent it few days later to Ombudsmen . I received my SAR very late , after 4 months . Yesterday I received a message from amigo :
If you have taken out or guaranteed a loan with Amigo, you may be affected by a scheme of arrangement that ALL Scheme Ltd is proposing with its creditors. You may be a creditor if Amigo owes you compensation. Please go to http://www.amigoscheme.co.uk and read the ‘Practice Statement Letter’ which provides important information about the process. You should do this as soon as possible. If you do not act promptly, you will lose the opportunity to vote at the Scheme meeting, expected to be in late-April 2021. Further, if the Scheme is approved and then you do not make your claim in the Scheme by the claims submission deadline (expected to be in mid-November 2021), you will lose your opportunity to submit a claim in the Scheme.
I am still eligible to receive any compensation from them ? Or I need to wait from Ombudsmen ?
Thank you
Sara (Debt Camel) says
My previous article gives an overview of this Scheme: https://debtcamel.co.uk/amigo-scheme-timetable-approval-how-work/
We don’t know if the Scheme will go ahead, if Amigo will go into administration or something else.
At the moment there is nothing for you to do to try to speed up your complaint – even if FOS makes a decision Amigo will probably ignore it :(
Are you still making payments on a current loan?
Nicola says
Hi,
I in the process of writing a complaint to amigo.
I was never able to afford the money in the first place and my sister has helped me out considerably but I need to make a complaint as she is unable to help.
When I put the complaint forward what do I do with regards to payments as I can not afford to pay the full payment at all.
I’m sure I saw a note where it said payments are stopped whilst your complaint is going through is this still the case
Sara (Debt Camel) says
Have your finances been affected by covid-19?
Who is your guarantor, could they have really managed to pay all the loan repayments and still been able to afford their own bills, debts and normal living expenses?
I’m sure I saw a note where it said payments are stopped whilst your complaint is going through is this still the case
Not sure where you read that, it isn’t correct.
Nicole says
Hi,
Yes my guarantor is struggling now and can not afford to help me out. I’m currently have a payment holiday with amigo as I was struggling to make the payments as well as live and pay my vital bills.
What is the best way for me to complain ? I need to call them and let them know I am struggling but also feel that they should never of let me take the loan out in the first place as it has just added to my problems.
Sara (Debt Camel) says
You can send a complaint using the template here: https://debtcamel.co.uk/how-to-complain-guarantor-loan/.
There is no reason to delay doing this. Amigo may not look at it quickly but just send it in.
When does your current payment holiday end? Have you had 6 months of holiday because of covid-19?
Nicola says
No I believe I have only had 3 months of a payment holiday.
Do you think it is best I also call and advise that I am struggling ?
Sara (Debt Camel) says
Are you currently struggling because of COVID-19 – has your income, or the income of someone else in your household that shares the bills, dropped? Or have your expenses increased?
If yes, then you can ask for another 3 months payment deferral – the advantage of this is that your guarantor cannot be asked to pay during a COVID-19 deferral.
Interest will be added during this extra 3 months but if you win your complaint all that interest is removed.
Alternatively if you now stop paying but your guarantor has COVID-19 financial problems, they too can ask for. Payment deferral.
Anne-Marie says
Amigo knocked my complaint back last year. It is currently with the FOS.
I am still making payments but i am using the payment holiday and have been paying £50.00 a month rather than the 181.00 per month. I lost my job owing to Cv-19. If it wasnt for my partner I would have defaulted and my guarantor would have the burden. Im not on benefit im not willing to write our “autobiography” for a pittance or indeed nothing as my partner works full time.
Yesterday I received an email text and letter regarding this my letter had a lovely section highlighting the amount owed in ‘deferred paymemts” for a minute i got a fright thinking it was a demand for the balance but it wasnt.
I dont trust them though amigo are vultures and they are trying to wiggle out of it. Tbh if they go into administration GOOD.
I will be 181.00 better off a month. I apologise it thar sounds selfish as many people are due/entitled to redress.
I will be voting against it . As you have highlighted this has serious implications surely the FCA will realise this !
Sara (Debt Camel) says
Can I ask what your guarantor’s current financial position is? Have they been affected by covid-19?
And what was their position like when the loan was taken? Could they have afforded to make all the loan payments and pay their own bills, debts and living costs?
IF Amigo go into administration is does not wipe out the debt. But then the administrators will consider your claim and you would have the same “right of set off” to get the balance reduced that you would under the Scheme.
The big unknown is whether Amigo, who have already rejected your claim once, would uphold it in the Scheme. They have said nothing about this or how they would assess the claims.
Of course it can’t be guaranteed that your claim would be upheld in administration. But adminstrators tend to try to follow FOS’s approach to claims.
Louise says
Mine went to the financial ombudsman in November,what does that mean now? I’m still paying my loan off
Sara (Debt Camel) says
If FOS reaches a decision, Amigo will probably ignore it.
If the Scheme goes ahead – and this isn’t known and won’t be for months – FGOS will return open complaints to the Scheme to be assessed by Amigo.
If Amigo goes bust, FOS will return open complaints to the administrators to consider.
Is this your first loan? How much did you borrow and how much have you paid so far?
Louise says
Yes my first loan
I borrrowed 7500 and I have 15 months left so about 4500 left to pay.
I’ve paid back about £12500 already
Sara (Debt Camel) says
So in the Scheme if your complaint is upheld you would have the balance wiped and get back a small percentage – my crude estimate is possibly about 5% – of the £5000 that you have already paid more than you borrowed.
The problem here is each month you make a payment, you are reducing the balance that will get wiped – and moving more money into the cash refund you will onoly get back a tiny proportion of.
So if your claim is going to be upheld, you will be better off if you stop paying now! You will save the several months payments until the Scheme startes. And your credit record will be cleaned in the Scheme if you win.
But that means Amigo would go after your guarantor. Unless you could explain to them why you want to stop paying and suggest they cancel their direct debit to Amigo? They would get some hassle from Amigo but their credit record cannot be affected and Amigo aren’t going to go to court when you have an open complaint.
Chris says
I recieved the email yesterday in my junk folder. To be homest if I wasnt looking out for it it would be very easily missed.
In my eyes the FCA allowing amigo to continue to get away with not paying out on agreed amounts and delaying complaints is as criminal as Amigo itself.
They are the only ones who can enforce any sort of pressure onto amigo yet they seem oblivious or ignorant to what is going on.
The FCA are there to protect consumers no?
Sara (Debt Camel) says
Yes, the FCA should definitely be considering consumer protection.
Bob says
Assuming Amigo go into insolvency,and the loan book gets sold on to another company,does this mean I could refuse to continue to be a guarantor on a loan that my stepson took out with them coming up for 2 years ago?
Sara (Debt Camel) says
No. Insolvency and/or the sale of the debt does not wipe out the guarantee.
If your son makes an affordability complaint and wins, you would be released as guarantor. And the interest would be removed so he only had to pay what he borrowed. You could forward him this link: https://debtcamel.co.uk/how-to-complain-guarantor-loan/ and suggest he thinks about sending in a complaint as it could benefit both of you a lot!
What were your finances like when the loan was taken? Could you have afforded to make all the loan payments and still be able to pay your own bills, debts and living costs?
Siobhan says
I’ve emailed FCA again about Amigo ignoring an FOS final decision, FCA were not much help. Amigo have repeatedly ignored the final decision sent to them, are refusing to respond to FOS and have palmed me off numerous times. I think they’ve responded to one email out of 50! They are a disgusting company, no morals and I dread to think the mental health problems they are causing
Alex says
Hello im in the similar situation, im with Amigo on a reduced payment plan from October 2019 as i couldn’t afford to pay in full and i didn’t want to affect my guarantor, i was complaint to Amigo in October 2020, they rejected i sent to FOS , but they didn’t start to look in to it, i had with Amigo 2 loans and last one was 10000£ and by now i paid 14000£, is any possibility to stop paying without affecting my guarantor paying for me and affecting her credit score, if so frustrating im pretty sure i would win at FOS, least i would like to stop paying until i will have a decision on my complaint
Sara (Debt Camel) says
Two loans typically means a strong case so you may well be right that you would win at FOS.
If you stop paying they will ask the guarantor to pay. Can you explain to your guarantor why you want to stop paying?
If she cancels her DD to Amigo this cannot affect her credit score – the Amigo loan is not on her credit record.
Amigo are likely to send threatening emails about possible court action. But Amigo should not go to court when there are open complaints. They may send texts, emails etc talking about going to court but these are just an unpleasant form of bluff.
I have not seen Amigo them take anyone to court in this situation for years and now, with a Scheme cooming up and them wanting to look “clean” to their regulator they are very very unlikely to do this. It isn’t going to happen.
Ronan says
So would you recommend stopping paying them for
Now? And if I did what reason would
I give? Say I took legal advice?
Sara (Debt Camel) says
This is a difficult decision for you to make.
I can’t give you advice on it. And I am not a lawyer!
Partly it depends on how likely you are to win your complaint.
If only the last loan is upheld, you would still have a balance to pay. So it may better to carry on paying, unless the payments are unaffordable?
Stopping paying will mean your credit record is harmed – but the negative marks will go if you win your claim.
It also means Amigo will go after your guarantor. So you would have to explain to them why you wanted to stop paying and that they need to cancel their direct debit to amigo. Would they be ok about the hassle they would get?
So this isn’t simple. If you want debt advice, you could talk to National Debtline on 0808 808 4000.
Linda says
Just contacted Louise at complaints at Amigo and in fairness to her she sorted my redress out that I was offered in September 2020 and it was put into my account within a few hours of Louise sorting it so don’t give up hope if you have had a final response offer it should still get paid to you.
Thank you Louise at Amigo for your help in getting my redress paid
Poppy says
Hi, I had an offer from Amigo (via FOS) this was accepted but I haven’t received a payment. I am due to pay my final payment on 1st March and my loan is paid off. They have sent me an email, text & letter regarding their intended scheme, assuming this means I will not recieve the money they had already offered & I had accepted!? So frustrating!!!
Sara (Debt Camel) says
what date was the offer from Amigo?
Poppy says
Hi. Amigo’s offer was offered & accepted before the December cut off (my claim has been dealt with by a claims company).
Sara (Debt Camel) says
Then you should be OK.
The emails, texts etc about the Scheme go to everyone on their database, no exceptions. In theory you may still want to complaint about something else.
But getting these doesn’t mean they aren’t going to pay you. I suggest you phone them up and ask. Be persistent.
Stephanie says
Hi there I’m a guarantor for an amigo loan and my partner made an affordability complaint months ago and amigo said no they weren’t giving us compensation. We took this further to the FO with evidence that the loan was unaffordable and the FO are still waiting on amigos response to our complaint. I’m very confused on this new scheme….is it best we vote against it??
Sara (Debt Camel) says
So your partner is the borrower? Do you have a current loan?
Eloise says
Just out of interest, what would happen if amigo were to go into administration? What would happen with outstanding guarantor loans that still have an open complaint?
Sara (Debt Camel) says
The loans still legally exist in administration.
If they go into administration, people can make a claim to the administrators. (Often the administrators will take all open complaints at the lender and FOS as claims so you don’t have to input them again.)
The administrators then have to decide which claims to uphold. They normally try to follow what they think FOS would do. Say they uphold a loan and calculate the redress at £2000.
For open complaints, if your balance is more than £2000, then it is reduced by that £2000.
If it is less than £2000, then you should get some cash refund but this likely to be zero for an Amigo administration. And you would get a refund of any payments you had made since administration started.
So this is much the same as what would happen in a Scheme. The reduction in the balance part is the same.
One difference is that in a Scheme you would probably get a very low percentage back of the cash refund element.
But the big unknown is would your claim be upheld by Amigo in the Scheme? No idea. Hopefully we will find out a lot more at some point.
salmac says
Can someone please explain to me why Amigo are receiving such an avalanche of complaints. I haven’t used the service myself I’m just trying to understand what is going on. Am I right in thinking people are complaining that they were allowed to borrow from Amigo when they couldn’t afford to. I’m just really confused. If I went to a fish and chip shop and ordered a fish cake with large fries the fella cooks it for me and tells me it’s 3.80 but I’ve only got 2.75 is he in the wrong for not checking I have the money first?
Sara (Debt Camel) says
yes, a lender has a duty to check affordability.
For a loan, the question is will you be able to continue to make the repayments? Because if you don’t, you would have your credit record damaged, you could be taken to court, your guarantor may have to pay – Amigo loans are large with serious consequences and they are given to people whose finances are known to be difficult. So Amigo should have made detailed checks.
Buying food is different – there is no long term financial commitment so the chippie owner doesn’t have to check anything.
jonathan says
Hi, I have had a successful complaint against amigo, they agreed that they were irresponsible. And agreed to take the guarantor off, but when they agreed to this they gave the guarantor the money the had covered in payments + interest back to the guarantor without really consulting me in it at all. Yes its great that i won but now i have a no interest balance to pay but i still feel like im being punished by amigo for there irresponsible lending and my guarantor has got money back that’s gone against my balance. How do you feel about this situation?
Sara (Debt Camel) says
had you repaid your guarantor?
has your balance actually got worse because of this? or did taking the interest off leave you owing less even after the changes made because of your guarantor refund?
Carla says
Hi I be guarantor with amigo but borrower no paid th loan after 1 year I no receive any information only I have information this situation last week. My income is low I have 4 children I am single mum I made the complaints only I want the amigo take out from guarantor what I need to do ? Please I need help
Sara (Debt Camel) says
When the loan was taken, could you then have paid it? or was it always unaffordable?
Do you have other problem debts?
Are you renting or buying a house?
Carla says
My English is no very good I was a guarantor my friend take the loan but now he no pay for long and the leader Amigo Loan say to me I have to pay it because I be guarantor. I have other credit to pay for me self and also overdraft my credit I pay. House is rent
Sara (Debt Camel) says
OK, do you have money problems because of covid-19?
Are you managing to pay your other credit and overdraft or are they difficult?
Carla says
Principal problem i don’t want be guarantor because I no have money
Sara (Debt Camel) says
OK so you can send in a complaint and say you want to be released as guarantor. There is a template you can use for your complaint here: https://debtcamel.co.uk/amigo-complaints-by-guarantor/. That has lots of options but you want the easiest one: “a) The loan was unaffordable for you”
To stop Amigo taking money from your account, you also need to cancel the direct debit from your bank account. Otherwise they will take the money and you may have to little for the rent and feeding the children.
Amigo will get cross and may threaten you with court but when you have sent them the complaint just keep saying that you cannot afford it and you want them to look at your complaint.
If you have other debts as well, it would be a good idea to talk to National Debtline on 0808 808 4000. I think your English seems pretty good! They also if a good webchat https://www.nationaldebtline.org/contact-us/ if you really don’t like the phone.
Sean says
From what I’m seeing on social media, trust pilot etc..nearly everyone is voting no to the scheme. I’ll also be voting no.
Under the scheme we will get next to nothing, my claim was calculated at £24k…pence in the pound will bring it down to nothing. I’d rather get nothing, and watch them go under.
This company cannot be allowed to not pay out what they owe in compensation, but yet remain open for business. Surely the board of directors know that the majority of customers, won’t vote yes for this?
Sara (Debt Camel) says
I think there is some feeling that their customers are so desperate that they will vote for scraps. Or that lots of customers may not realise how small the payout will be as Amigo have not given any indication so they may expect a lot more.
I think it is important for people to focus on the important point about whether they have any faith in Amigo reaching a correct decision on which loans to uphold.
Sara (Debt Camel) says
ah I see. The problem is people who have had their complaints upheld against Amigo are not normally going to be reading comments on this article as their life has moved on and they don’t need to :)
If you were self-employed when you were accepted as guarantor, then Amigo should have looked closely at your income. If they didn’t then you would probably win your affordability complaint at FOS. Have you sent in your complaint and asked for a copy of all your personal information? That can be very helpful in these cases.
Are you being asked to make payment at the moment?
L says
Hi, I got an adjudicator decision with an amigo loan in November, they had to reply by 27th and missed this deadline. Probably avoiding it due to them bringing the new scheme to the table. Only the last two of 4 loans were upheld by adjudicator. Will this all just be scrapped now? Naughty they missed the deadline and just constantly seem to get away with it.
Sara (Debt Camel) says
Do you still owe money for the last loan?
L says
I have a balance of £50 left which is due to be paid 28th Feb. Thanks
Sara (Debt Camel) says
Amigo are very unlikely to accept the adjudicator decision – they will probably just ignore it,
if the Scheme goes ahead, FOS will return your complaint to Amigo to go into the Scheme. At that point you have to cross your fingers and hope Amigo will uphold the two loans AND they will not make one of their deductions for “unpaid interest”. But you will then only get a small percentage of what is calculated.
In which case they will they have got away with this one :(
X says
Could I ask you both the borrower and myself have separate complaints lodged with the FOS in OCT 2020 regards unaffordable mis sold loans and I as an unsuitable guarantor if I or the borrower comes to an agreement with Amigo and or George Banco (the borrower has two loans taken out 3 weeks apart) does this stop the complaint we have made or any compensation that may or may not be due if this loan was found to be mis sold I can get money from a friend to pay them a lump sum but would not like to think by doing this amigo or banco would be let off the hook for mis selling
Sara (Debt Camel) says
So you, the guarantor, would be borrowing from a friend to settle the loans?
If you do this, then you can still carry on with your complaint. If the lender is making normal repayments, you would get all your refund back. Which you can then use to settle up with your friend.
BUT if a lender goes into administration or a Scheme, you are likely to get little or nothing back. Just a small percentage of what you might have got at most.
If you do not settle the loans now, then if you win your complaint in a Scheme or administration a lot, possibly all, of the outstanding balance would be written off. So you would be much better off not settling the loan now in this case.
We know Amigo is looking at a Scheme or administration. (It may have another option but it isn’t saying.) We don’t know this about George Banco, but the regulator is investigating them at the moment. If Amigo get their Scheme approved, GB may also decide they fancy one?
F says
Hi all
I have an update regarding my amigo complaint, after harassing amigo continually since December I’ve been told by Amigo (last Tues) that my case has been ‘escalated’ within Amigos Internal FOS team along with a selection of other cases that have been given an adjudicator decision (Adjudicator responded end Nov upholding my complaint) and that I will have a response soon, I’m taking this with a pinch of salt at the moment but there is a slither of hope it could be good news for some so I thought i’d share. I was not classed as priority at FOS but I have continually advise amigo of the effect this is having on my mental health.
Ty says
Hi,
I have also put a complaint in to Amigo back in august 2020 for 3 loans in total, 1 when I turned 18 in 2009 and then 2 others more recent one in 2017 which I then settled in 2018 and another in 2019 which is still ongoing. When I took these out I had a lot of other loans. I’ve never missed a payment with them as I’d never want any trouble for my guarantor. The last loan was for 6000, there is still 17 months left to pay and at present I’ve paid back 5,500. Amigo refused the claim and therefore I sent it to the FOS and they acknowledged this in October 2020 however I’ve yet to hear anything further from this. With all the uncertainty relating to this, I’m thinking I should continue to pay monthly for the next 3 months so that I have then paid back just over the original 6000 but what would your opinion be on after that as I have had so many claims from the payday loans upheld for £5k and even 6k but because of the pence to pound only actually got £100-£200 compensation yet I’ve spent my entire adulthood in debt and I still am yet now there is acknowledgement of this I’m still no better off
Sara (Debt Camel) says
apart from the Amigo debt, what other debts do you still have?
Ty says
Hi thank you for getting back to me, I have a DMP in place with likely loans, 118118, satsuma, capitalone and fluid credit cards – the total for that is now 7300 I pay £492 per month for the plan and amigo £292 each month
Mike says
Hi. As Amigo are not currently abiding by the DISP regs, could this not undermine the FCA’s position? What are the potential consequences of this to Amigo and do you think there is a ‘likely’ outcome? Other firms may see the FCA as a toothless regulator if this is not dealt with appropriately and could possibly follow suit.
Sara (Debt Camel) says
I think the FCA should be concerned about this.
Sean says
I emailed the FCA, and response was shocking. No recognition, or any sense of caring. I really couldn’t believe it.
Basically said, nothing to do with them.
My breathing space has now run out, my claim is going to the FOS, due to amigo not resolving my claim and giving any decision. (I started this in August 21)
They now want me to start paying, I’m still furloughed and from previous experience they’ll now go after my guarantor, whatever case I plea with them. It’s very stressful!
My guarantor would have to cancel his cards to stop payment, and he isn’t keen on getting letters as my claim is just in limbo. What do I do?
Sara (Debt Camel) says
It is stressful. Amigo is behaving disgracefully and I have no idea why the FCA is being so wet about stopping this.
My guarantor would have to cancel his cards to stop payment,
No he doesn’t have to do that. He needs to cancel the direct debit to Amigo with his bank and check if there is a Continuous Payment Authority set up and if there is, cancel that too.
I understand he won’t want to get emails from Amigo but what other choice do you have? If you cannot afford to pay this, then it would be a disaster getting behind with essential bills.
You can reassure him his credit record will not be affected. And that despite its threats, Amigo does not go to court in this sort of situation.
Sean says
I’ve spoken to amigo about my current situation.
We now need to have an in depth talk. But basically they are saying. Any agreement where I’m not paying the full amount, could lead to default notices against me and my guarantor.
If I can’t pay a reasonable amount and as a “responsible lender”, not to allow my loan to full in to arrears they’ll go after my guarantor.
I also have to jump through hoops to get a payment plan sorted. How is this helpful, it’s almost passive aggressive behaviour. They have all these new support links stating they are here to help and will never leave you in financial hardship…well I they won’t, because they just go straight to your guarantor!
And I see they are also trading again, why is nothing being done? My claim has just been put to the side, and will take months with the FOS, by that time if the scheme is in place it’ll go back to amigo anyway, who can then decline the claim. Or they go under, but I still have to pay. My guarantor, isn’t willing to risk anything and I get that.
I really don’t know what to do, I’m still furloughed. I’ve asked them for help in the past, it was an awful experience and I just ended up paying.
Sara (Debt Camel) says
Any agreement where I’m not paying the full amount, could lead to default notices against me and my guarantor.
That is correct. But your guarantor needs to know that receiving a “Default Notice” is a formal procedure for a loan in arrears under the Consumer Credit Act and it has NOTHING to do with a default being added to their credit record, which can’t happen as the Amigo loan is not on there.
I understand why you guarantor may feel you not paying the full amount is risky and they don’t want that.
Amigo as you know can be very unpleasant to deal with.
In practice a few people are making part payments and Amigo is not going after their guarantor, I don’t know how they got Amigo to agree to this or if perhaps they didn’t and just cut what they were paying.
But what are your alternatives? Would it help to talk to a debt adviser about your options? Try National Debtline on 0808 808 4000.
Sean says
I’ve spoken with debt advisors, the issue is amigo will just go after the guarantor.
Amigo state they want to help but don’t, they hold you to ransom. How can they not help people affected by Covid and go after the guarantor surely this isn’t right?
I don’t understand who is protecting customers right now, the FCA is doing nothing to stop this…they are actually just turning a blind eye.
I feel extremely let down by any regulating body, the scheme must have been approved already if they are trading and basically ignoring customers complaints…who else as consumers can we turn to?
Sara (Debt Camel) says
How can they not help people affected by Covid and go after the guarantor surely this isn’t right?
Ethically, no, it stinks. And it shows the “new Amigo” seems to be just as aggressive on the debt collection front as the old one was. How hard would it be to say, “Look we will accept a lower payment from you for 6 months to give you a chance to get back on your feet. After that we will ask your guarantor to pay.” But no, they want their pound of flesh right now.
But legally that is the nature of the loan you agreed to.
The Scheme hasn’t been approved. It goes to court end of March, then it has to be voted on by the customers (including you), then it has to go back to court again.
Amigo aren’t currently lending.
But I have no idea why the FCA is letting them ignore customer complaints.
Sean says
No my guarantor is fine. I’ll be voting no, it would appear a lot of people are. Surely they know that customers aren’t going to agree to this, after being treated this way. The scheme fails and administered happens. It’s in there interest to help people!
If the vote goes against in March, what happens then will they still be going after payments and guarantors?
Sara (Debt Camel) says
The first court hearing is at the end of March. The step after that is voting by creditors. Then there is a second court hearing in mid May. Not until after that can the Scheme go ahead.
Chris says
Hi Sara,
Would the FCA be expected to give any indication of its approval / disapproval of the scheme to the court hearing.
It’s looking like they are taking the action of inaction…burying their head in the sand hoping the courts sort this out so they do not have to get involved?
Of course I could be wrong but this was announced almost 2 months ago now. The court date is 1 month away almost…the FCA remaining silent is not helping anyone including amigo.
Sara (Debt Camel) says
The FCA has said it doesn’t have enough information and asked Amigo to appoint a Skilled person who will write a report for the FCA.
The FCA is likely to make representations at the court hearing.
Mr F says
So Amigo really are ignoring Adjudicator Decisions and not handling complaints after months (since November 24th) of them telling me that my case is being looked at by Thier internal FOS team, Amigo have now decided to tell me they can’t give an update or a decision until they hear off the ombudsman…. So what prey tell have they been doing and why lie to me about it….. Frustrated does not being to explore how I’m feeling at the moment. On the plus side I finally got the complaints team to give me an email address of someone in the FOS INTERNAL team at amigo so maybe emailing them directly will provide more clarity (watches pigs fly past)
Sean says
How to do complaints right.
Bamboo…made a complaint, 10wks later done. Why aren’t amigo doing the same and acting correctly? And if not, why aren’t they.
Sara (Debt Camel) says
Because they are hoping to get the Scheme approved and get away with paying customers peanuts.
Why the FCA is letting them get away with not dealing with complaints properly before the Scheme I have no idea.
Sean says
It’s not going to be approved, lots of people are voting no. Amigo are probably banking on most people not bothering. As soon as I get the information required, I will be making my vote…and it will be no. I’d rather see them go under.
DM says
Hi Sara, just wanted to check my thinking. If Amigo are able to calculate they do not have enough money to pay all they redress they think they might owe based on the current level of assessment, how do they summarise that they are only ‘Likely’ to go into Administration if the Scheme is not approved. Surely if the court rejects this at the end of March they need to go straight into administration the next day or the FCA should suspend them until they have addressed all outstanding claims which they still have not processed including those from the extension they had until Nov last year? Quote from FCA website: ‘Where we find that firms are not following our rules, we intervene. This may mean imposing penalties, stopping them trading or securing redress for consumers.’
Sara (Debt Camel) says
Are Amigo really in a dire situation? Or are they just suggesting they are as it may make people more likely to vote for a Scheme?
This is one of the big unknowns. There are a lot of these sort of questions that need to be answered before people are allowed to vote, as otherwise they could be voting on the basis of misleading or incomplete description of the Scheme.
Helen says
Hi, I just wanted to ask something, I’ve complained to Amigo as I’m a guarantor for my son and I don’t think they carried out the proper checks on him or me, and I’m waiting to hear from them after they’ve acknowledged my complaint but if I was to pay off the loan would that mean I wouldn’t have any further claim against them?
Sara (Debt Camel) says
If you pay off the debt you do have a claim. But if it goes into the Scheme you would only get repaid a very small percentage of this. So in your situation, you are better off waiting and seeing how your claim will be assessed. Any money that you pay them you will not get much back from.
Also have you encouraged your son to complain? That gives you two ways to be released as guarantor – if you win your complaint or he wins his. And if he wins his, the interest is removed from the loan so he is in a much better position.
X says
Hi Helen I am in the very same situation as yourself I made a complaint to amigo and my son made a separate complaint as expected they rejected the complaint I went to the FOS and they took my complaint and my sons complaint put them together and are looking at them as one rather than 2 separate complaints they said it would save time and be quicker so if going to the FOS ask them to do this hope this helps
Helen says
It does, thanks!
DAW says
The biggest problem with this scheme that I can see is the extended timescales involved, they could still enter into insolvency just before payments are made at some point next year.
In a long phone call with the FCA two days ago they said that they are not there for consumer protection as such they are responsible for ensuring the companies follow regulations, the FOS is responsible for consumer complaints. The person I spoke to was very helpful and told me that there will be a statement from them at the court hearing with regards to the scheme and with regards to breaking DISP rules there was a team actioning the response to this but they couldn’t give details of what that may entail.
Sara (Debt Camel) says
they could still enter into insolvency just before payments are made at some point next year.
Indeed. If for example a lot more of the people with current loans make complaints that Amigo have allowed for.
How many people have they allowed for? They refuse to say. It’s not encouraging is it, the complete absence of facts.
Crin says
So I recieved an email yesterday from my FOS investigator to say they were ready to start to investigate as they have all the info but…..amigo have made a settlement offer. It has the usual unpaid interest…saying they need to contact my guarantor about redress ( even though we filled in the amigo questionaire in Nov ) etc.
I’ll presume this is merely symbolic as the offer was made past 21st Dec…
Has anyone been paid out or had offers recently?
Sara (Debt Camel) says
Do you currently owe them a balance? What is the offer?
Are FOS giving you priority because of vulnerability?
Crin says
Hi Sara,
My loan is closed.
I had a total of 12 loans / top ups with amigo over 10 years.
Loans 4-11 amigo are willing to refund.
I worked out originally if all my complaints were upheld I would of been looking around 16k. Amigos offer is just shy of 11k. They are taking around 1.3k for unpaid interest back.
The FOS did make my case a priority back in December and this being my worry.
If the offer is genuine, it would allow to me get my life back on track…going back and forth amigo or waiting for the FOS to complete could take months further.
However my grandparents are my guarantors and in their 70s now. I dont want them having to be involved if it’s just a delaying tatic as when they recieved the message about the scheme from amigo they got into a right panic. Anything amigo related terrifies them.
Sara (Debt Camel) says
You should talk to your adjudicator about this.
So far as I can tell, some FOS priority cases are being settled now, even though this was after the Dec 21st cut off date. I don’t know how these are chosen, but the fact Amigo has made an offer suggests yours may well be one of them.
It is very annoying that Amigo are deducting money for unpaid interest – make sure your adjudicator is aware of this.
But logic suggests you should accept this offer. If Amigo go into the Scheme you would end up with massively less after a long while. If they go bust the unpaid interest deduction would be very unlikely to be made but there may well be no money to distribute at all.
Rejecting this offer will only lose if Amigo struggle on and pay out in full and FOS make a better decision in your favout. I would be pretty confident about the FOS part but the chance of Amigo struggling on doesn’t look good…
I don’t think your guarantor should be contacted at all unless they made any payments in your place?
Crin says
Thanks for your reply Sara.
My guarantor did make some payments but already filled in the questionaire in Nov, they are happy for any redress to come back to me.
My feelings were similar if I was to challenge anything could happen to amigo between now and a resolution is found
My FOS investigator did highlight how amigo were working out redress wasnt their method and I sort if knew what to expect from following complaints on here for a year.
I will accept the offer and then I believe Amigo have 4 weeks to pay the refund…it will be a anxious 4 weeks but as soon as I have an update I will post again.
Thanks again
X says
Hi Crin how long did it take from you first sent your complaint to the FOS until they made a decision
Crin says
Hi Leslie,
Complained to amigo Aug 2020.
Escalated to FOS in Oct
First recieved contact in Dec from investigator from which because I was made homeless in Dec my case was made a priority.
First response I actually recieved back from the complaint to Amigo was there response to settle.
Like others until the money is in my account I will not properly believe it.
Please dont give up!
Crin says
Thought I would update.
I’m 2 weeks in after accepting amigos offer. After multiple phone calls to Amigo I hit the jackpot and found a amigo employee who actually wanted to help which I’ve found a rarity. But fair play she promised she would and seemed genuine.
She went away and rung back within an hour to say that Amigo are still waiting for a response from FOS with regards to me accepting their offer…so back to the FOS I go and presume the 4 week timer will only just start… now means I’m past the first court date which makes me even more nervous.
This is becoming extremely draining mentally now.I hope lessons are learnt across the industry and regulators over Amigo but I doubt it.
Crin says
New update.
Amigo have been in touch with my guarantor offering him redress. Vastly diffrent figures that I was offered with the FOS.
Also in the email and conversation. If my guarantor accepts the offer I will suddenly owe amigo 5.5k ( no current balance with them). Rung amigo who confirmed if guarantor rejects the redress amigo will just keep the money…..how on earth is this correct.
Amigo refuse to tell me what my offer will be if guarantor accepts or of he rejects. My guara tor is now in his 70s and now has become furious with the whole situation whilst hes not in the best of health.
Has anyone else experienced this, I really need some advice and whilst the FOS mean well the delays I’ve incurred because of errors their side are leaving me with no confidence
Sara (Debt Camel) says
so have Amigo accepted your guarantor’s complaint and rejected yours?
Crin says
My guarantor has never made a complaint. He made payments as guarantor however was repaid and has told amigo such.
———————————————————–
Following your recent complaint with the Financial Ombudsman Service, we wanted to get back in contact with you today.
The Financial Ombudsman Service have confirmed that you have accepted Amigo’s offer of redress.
Your guarantor, xxx has made payments towards the account. We have now removed your guarantor’s liability for the loan and have contacted them to ask whether they would like a refund of the payments they made towards the loan agreements. If your guarantor accepts the refund the loan balance will be updated accordingly, and you will be liable for this amount.
Sara (Debt Camel) says
how large a refund is your guarantor getting?
Crin says
Figures as below
Payments to be refunded to you: £5,493.74
8% statutory interest awarded: £1,773.08
20% tax already deducted from 8%: £443.27
Total refund due: £7,266.82
My offer from FOS was for similar amount. However amigo only offer me £61.80 for 8% interest.
I’ve spoken to ky investigator but it’s not any clearer
Crin says
7688
That includes a chunk of 8% interest. This money had been repaid as guarantor has told amigo.
When he checked I would recieve instead of himself they were evasive as when I rung up. Would not give any figures.
Thanks
Rick says
Hi Sara
My Complaint got rejected in august and I referred it to FOS. FOS emailed me on Friday to say amigo have re-assessed my complaint and now want to offer me 13k and wipe the 7k loan balance.
I was so happy but now reading this, I’m worried I won’t get the redress. What are the chances that this 13k will be paid?
Sara (Debt Camel) says
Did FOS classify you as vulnerable?
Rick says
Hi Sara. After waiting months for them to investigate the complaint, I told FOS I had financial problems and they said they would try and prioritise it. They then contacted me on Friday to say amigo had made an offer. But now FOS have told me this morning that amigo aren’t paying any redress and my complaint is part of the SOA, despite amigos FAQ section on their website seemingly confirming I was not.
Sam says
Hi Sarah!
I had my complaint upheld by FOS in January 2021 (after the 21 Dec deadline).
This left me feeling uneasy about receiving any sort of refund as I thought amigo would worm there way put of it with the scheme they are proposing!
However the FOS have emailed me today (17/03/2021) stating that amigo have accepted their decision. The FOS then went on to say that they have asked amigo to settle the funds with me as they recommended in their final decision. The email then said that if I don’t hear anything back from amigo within 4 weeks then to get back in touch but other than that they are done with my complaint.
Does this sound like amigo are actually going to pay up?
I’m unsure what to believe and have taken the email with a pinch of salt!
Jonathan says
Hi Sara.
I had an email off my case handler at the fos this morning saying that amigo had been in touch to say they are working hard to review the outcome of his findings.
I won my complaint against amigo in January and they had until 11th February to acknowledge the adjudicator’s findings but today is the first time amigo have replied to the adjudicator.
Do you think that amigo might be actually trying to resolve my case or could it just be bluff.
Sara (Debt Camel) says
It is hard for me to guess! I hope they work a bit harder and decide to accept the decision!
A says
Has anyone who was not a priority case and have had their complaint upheld by the adjudicator at FOS prior to the 21st December received any response or pay out from Amigo?
My other question is now that the FCA have expanded their investigation to look into Amigo complaints handling as well- what will this mean for people who have complained from May 20- March 21 and haven’t had their complaints resolved or redress paid?
Will this mean that the FCA will realise that Amigos complaint handling process is not fit for purpose and order them to resolve all the backlog of complaints they have up until this point?
Sara (Debt Camel) says
now that the FCA have expanded their investigation to look into Amigo complaints handling as well- what will this mean for people who have complained from May 20- March 21 and haven’t had their complaints resolved or redress paid?
Probably nothing I am afraid unless the FCA is prepared to stand up and say the Amigo scheme needs to be changed significantly. The FCA enquiry looks a lot like closing the stable door after the horse has bolted.
You have been let down by the FCA in so many different ways.
1) the FCA never enforced its rules on affordability so you were mis-sold the loans in the first place
2) the FCA never made Amigo follow its DISP rules on complaint handling
3) the FCA let Amigo trade without adequate capital to pay refunds
4) the FCA decided not to include lenders in the Financial Service Compensation Scheme, so there is no safety net to help you get your full refund.
A says
I agree with all the points above.
If the FCA doesn’t stand up and enforce the rules to Amigo now, I feel that this will set a significant precedent for the wider market to follow suit knowing that they CAN and WILL get away with anything with Provident already following suit.
I feel incredibly let down by both the FOS and the FCA.
They have both sat on the fence quietly allowing Amigo to do as they wish rather than help protect the consumers, almost as if they have turned a blind eye to it all and given up.
The only people gaining from the Scheme of Arrangement will be Amigos board who will see a huge payout of millions after 5 years if the scheme was to go through.
Ronan says
Amigo have had my complaint for 3 months with no update, my guess is they’re waiting for the insolvency or SoC to pay out a tiny amount to everyone. Whilst they still insist on taking payments off me lol
Sara (Debt Camel) says
Are you struggling to make these payments?
How much did you borrow and how much have you paid so far?
Did you have another loan before this one?
Ronan says
The issue is is that I have a £2200 balance (£1000 of that is arrears) I’m between a rock and a hard place they threaten the guarantor contact/further action if I don’t pay. I’ve stated why do you not hold payments until complaint resolution theyVe simply said we do not do that and if I don’t pay collections will escalate. Feel like I’m paying £50 a week to be burnt when the scheme eventually says I’m due 50p compensation and loan to be wiped.
Sara (Debt Camel) says
How much did you borrow and how much have you paid so far?
Was this your first loan from Amigo?
Have your finances been affected by Covid-19 and if so, have you taken a 6 month payment break?
What were your guarantor’s finances like when you took out the loan? What are they like now?
Sara (Debt Camel) says
If you stop paying, they will chase your guarantor. But this will not affect your guarantor’s credit record – the Amigo loan does not shown on there. And they won’t go to court with an open complaint, even though they will send unpleasant emails saying they may.
Adam says
I have recently had my claim upheld and have had an email saying my claim will be automatically added to the scheme . I am unsure what this means going forward my original loan was for 9k and so far have paid just over 10 leaving 11k outstanding I do understand if the scheme is approved I will only recieve a fraction in compensation but would I still have to pay any outstanding amounts
Cheers in advance
Sara (Debt Camel) says
recently had my claim upheld
by the Ombudsman?
were you being treated as a priority case by FOS?
my original loan was for 9k
how many top up loans did you have?
Mr adam says
Sorry 9k was my current loan after top ups that’s the amount of the current outstanding loan.
originally took 2500 in may 2017
Top up to 3500 Aug 2017
Top up to 6500 in may to 6500
Top up nov 2018 to 9000
After sending in a complaint 8 weeks ago received this
I am writing further to our previous correspondence and to keep you up to date with the progress of your complaint. Thank you for your ongoing patience
We can confirm your complaint will be automatically included within the proposed Scheme and we will update you after the Scheme court hearing on the 30th March 2021
Unsure if that means they have agreed I shouldn’t of been sold loans or that if Scheme goes ahead my case will be looked at
Sara (Debt Camel) says
You said your claim had been upheld – that means someone has agreed the loans were unaffordable – is this correct? or did you mean you has sent in a complaint?
So you had 4 loans. I can look at the numbers if you like. I need to know:
2500 loan – how many payments & how large eg 2 lots of £143
3500 loan – how much did you get in cash? how many payments & how large
6500 loan – how much did you get in cash? how many payments & how large
9000 loan – how much did you get in cash? how many payments & how large
Mr adam says
12/5/17
£2500 2x£121.97
05/08/17
Top up £5000 8x£197.62
08/05/18
Top up £6500 5x£256.91
19/11/18
Top up £9000 25x£355.72
I don’t have to hand the amount I received in cash compared to total top up amount
Took a 3 month payment holiday last year
Sara (Debt Camel) says
You should be able to see the cash amounts on your bank statements? Sorry, they are an important part of the calculation about redress and how much you balance is likely to reduce.
Sara (Debt Camel) says
Also are your finances currently affected by Covid-19 and if yes, have you taken payment breaks?
Mr adam says
Initial loan of £2500
Top up 05/08/17 £5000 recieved £2356.64
Top up £6500 08/05/18 (can’t find the sum for cash recieved awaiting my guarantor getting back to me)
Top up £9000 19/11/18 recieved £2352.11
And yes my finances are currently affected been on furlough and I took a holiday payment last year for 3 months
Mr adam says
Cash recieved on 08/05/18 was £1520.18
Mr F says
FOS have added an update on thier site
https://www.financial-ombudsman.org.uk/news-events/update-information-amigo-customers
Sara (Debt Camel) says
Comments are now closed on this article.
For the latest news on Amigo, see https://debtcamel.co.uk/amigo-new-scheme-2/