UPDATES:
Do not use the templates on this page for the following lenders, instead see the specific page:
- Amigo has set up a Scheme of Arrangement. The deadline for making a claim has now passed, see Amigo’s Scheme for details.
- Buddy Loans went into administration in September 2021, see Buddy Loans goes into administration.
- George Banco & Trust Two set up Scheme of Arrangement, the deadline to make a claim to this has passed, see Everyday Loan Scheme for details
- TFS Loans went into administration in February 2022, see TFS Loans goes into administration.
Guarantor loans are very expensive. Often the lender didn’t check properly that you will be able to manage the loan repayments without having to borrow more.
If proper checks would have shown that you couldn’t afford the repayments, complain! There is a template letter in this article to help you.
You can get an existing loan reduced so you only repay the amount you borrowed, or get a refund if your loans have been repaid. If your complaint is rejected you can send the case to the Financial Ombudsman (FOS) who is upholding a lot (90%!) of guarantor loan complaints.
If you are the guarantor not the borrower, read Complaining if you are a guarantor which has a different template letter to use.
Contents
What is an affordability complaint?
A loan is not affordable if paying it left you so short of money you had to top up the loan, or borrow more from another lender or get behind with bills.
Does this sound like you? Then make an affordability complaint.
Just making the payments doesn’t prove the loan was affordable! You may have been repaying with difficulty, taking out other loans, because you didn’t want your guarantor to be affected.
You can complain if you are still paying the loan or if you have repaid it all.
If you win your complaint:
- interest is removed from a loan you still owe, so you only repay what you borrowed;
- your guarantor is released from the loan; and
- you can arrange to pay the remaining balance at a reduced rate.
When your loans have been settled, you get a refund of the interest you paid.
What should the lender have checked?
Guarantor lenders should have checked the loan was affordable for you before giving you the money.
The lender should have made sure you were likely to be able to make the repayments for the whole length of the loan.
Guarantor loans are large financial commitments. So I would expect a lender to have asked for evidence of your income, to have checked your credit record, and to have verified your expenses.
Some things a lender may have got wrong:
- It doesn’t matter if your guarantor is well off, the loan has to be affordable for you!
- You may have given said your expenditure was lower than it was, because you were guessing or desperate. The lender should have checked your figures.
- If you were self-employed or had wages that varied, the lender should have looked at how your income went up and down.
- The lender should have checked your credit record to see all your debts. If you had recently taken more loans or missed payments/defaulted, the lender should have been careful as your position was getting worse.
- When you top up a loan, the lender should check the new larger loan is affordable. If the current loan was causing you problems or your finances had got worse you shouldn’t have been given a larger loan.
If you feel there was something else unfair about your case, add that into your complaint as well!
What would a “fair solution” be?
If the lender or the Ombudsman decides the loan wasn’t affordable, this is what happens:
- The loan has been repaid, then any interest you paid should be refunded to you.
- The loan is still outstanding, then interest should be removed from the balance that is owing, so you only repay what you borrowed. Your guarantor should be released from the loan. The lender should accept an affordable monthly payment from you to repay the rest.
- Any payments made by the guarantor are refunded to the guarantor, not to you.
Will a complaint affect your guarantor?
Complaining won’t affect your guarantor if you carry on making the payments. The guarantor shouldn’t be told you have complained unless your complaint is being upheld.
If you stop paying the loan when you make a complaint, the lender may decide to get your guarantor to pay it. If you don’t want this to happen, you have to somehow carry on making the payments even though it’s hard.
If you can’t afford to carry on paying and you don’t want to hurt your guarantor talk to a debt adviser about your options in this difficult situation.
Making an affordability complaint won’t make things worse, and it may help in a few months time, but it isn’t an immediate escape from your problem.
Think about whether your guarantor also had a good reason to complain – see Complaining if you are a guarantor for details. If they win a complaint, they will be removed as a guarantor, which would take a lot of pressure off you.
How to complain to the lender
A template complaint to use
Don’t use this for Amigo of Buddy – see the update at the top of the page.
For all other guarantor lenders, including ones that have stopped lending, send your complaint by email – here is a list of lender’s email addresses.
Use SAR AND COMPLAINT BY BORROWER as the email title.
Here is a template. Change it to describe what happened to you and delete what doesn’t apply.
Only put this in if it applies to you: I took a top up of [£2,500] in [March 2018]
Add a reference number for the loan or give some other details such as your date of birth and your address when you took the loan out.
Please send me a copy of all the personal information that you have about me, including but not limited to all credit record checks, a copy of my loan application(s) and recordings of all phone calls from me. You have 30 days to reply to this Subject Access Request (SAR).
I am making an affordability complaint. This loan was/These loans were unaffordable for me and you would have realised this if you had checked properly before giving me the loan(s).
Delete or change any of the following so they are right for you:
[You would have seen from my credit record that I had recently missed payments/had defaults/was in a DMP/IVA.]
[I was on a low income/My only income was my pension/benefits.]
[You did not ask me for proof of my income or expenses and you did not ask about my expenses in detail.]
[I get ESA/PIP/DLA but you did not ask me if I had any extra expenses because of this.]
[I had a gambling problem which you could have seen from my bank statements.]
If you topped up the original loan: When I topped up the loan you should have seen from my credit record that my financial situation had got worse. [delete if not relevant: You ignored the fact that I had made several payments late to you.]
If you still owe money:[I am asking you to remove the interest from the balance so I only have to repay what I borrowed, release my guarantor and allow me to make lower monthly payments.]
If the loan has been repaid change that to [refund me the interest that I have paid plus 8% statutory interest.]
If you don’t want your guarantor to be told: [I want to carry on making the normal monthly payments because I do not want my guarantor to be affected. Please note I do not want my guarantor to be informed about my complaint unless my complaint is upheld.]
You have 8 weeks to respond to my complaint before I send it to the Financial Ombudsman.
If you would like some help with this, then go to your local Citizens Advice.
Definitely send bank statements!
It’s good if you can attach bank statements to your complaint. Send three months of statements before each loan or top-up and two months afterwards. So if you had a loan in August 2017, send statements for May-September 2017.
These statements will show how unaffordable your loans were. Don’t worry if there is gambling showing on the statements – that helps your case!
Don’t delay starting a complaint if you are trying to get your bank statements – just add them later. But now is a good time to get the statements as they can help your case.
Also get a copy of your credit record if this will show defaults, that your debts were increasing, that you had a large overdraft etc. Download this and keep it.
What to do with your personal information (SAR)
Copies of personal information (SARs) are often sent out by post, so if you have moved, make sure the lender has your new address. You should get the information within 30 days. It is often sent on a CD with a password.
This information is not the lender’s response to your complaint. Most lenders will send that separate from the SAR, usually a few weeks later.
You don’t need to do anything with the SAR, just keep it safe. You have asked for it now so that you have the details in case the lender rejects your complaint or makes a poor offer so your complaint has to go to the Ombudsman.
Taking a complaint to the Ombudsman
If the lender rejects your complaint, go to the Ombudsman
Don’t delay in sending a case to FOS – it has to go within 6 months. And while you have an “open” complaint at FOS, the lender cannot take you to court.
Lenders seem to reject many complaints and hope you give up! So don’t be surprised if a lender says No, the loan was affordable or We based our decision to lend on your application which was inaccurate.
If the lender says No, or you haven’t had a reply 8 weeks after sending your complaint, send your case to the Financial Ombudsman (FOS) the best way to do this is by using the FOS online form.
This is free to do and easy – you don’t have to quote laws or regulations. You can just send FOS the complaint you sent the lender. And if they have replied and said something that’s wrong, mention that as well.
You don’t need to go into details – a short FOS complaint is fine. If you want to add more details, read How Subject Access Request information can help an affordability complaint. But you don’t have to do this.
If only some loans are refunded, is this fair?
Sometimes a lender will say that just a few loans are unaffordable and remove the interest. Which is good, but should it be better?
If the rejected loans caused you difficulties and led to you needing a top-up, send your complaint to FOS and say you think the earlier loans too should be refunded.
Are you likely to win your Ombudsman complaint?
The Financial Ombudsman is agreeing with the customer on 90% of cases!
It is much simpler to win a case at FOS than a court case. If a lender has already started a court case against you, Citizens Advice can help you get the court case “stayed” (that’s legal jargon for put on hold) while you take an affordability complaint to the Ombudsman.
Complicated cases & help with guarantor loan complaints
If you want help with these complaints, Citizens Advice can help. Every Citizens Advice has access to the national Specialist Debt Advice Service if this isn’t something an adviser has come across before.
Leave a comment below this article to discuss what to do or talk to Citizens Advice if:
- your guarantor has made a lot of payments.
- you have been bankrupt, in an IVA or a DRO – read guarantor loans & insolvency .
- you have a CCJ from the guarantor lender – read guarantor loans & CCJs.
- if your debt has been sold to a debt collector.
Do not use a Claims Firm or a solicitor that is acting as a claims firm. There are two good reasons why you should avoid them:
- they will probably do a very poor job. They are not experts. They won’t put time into looking at your personal case.
- if you win a case but still owe a balance, this is usually just reduced. But the claims firm may expect you to pay their high percentage fee immediately even though you have not received any cash refund and still have the rest of the loan to pay.
Can you get an overdraft refund?
Card limit too high? Ask for a refund
Complaints about bank & other large loans
stacey says
I have been trying to contact you regarding your account. I wanted to be sure you are aware of the next steps on the account.
The account has now terminated which means the full balance has become due and a default will now be registered on your credit file, however I do still have a short time to make arrangements with you.
If we are unable to come to an arrangement, on the 31st March the account will then be reviewed for transfer to a Third Party Legal Service who may apply for a CCJ an attachment of earnings or charge against property.
I have the following options available to prevent this
1) You make payment of the full arrears £ 1127.60
2) You make payment of a monthly payment and confirm ongoing payments of £ 281.90
3) or contact us for settlement options
Please contact me to discuss the options, as without contact we will look to instruct an agent to your property.
————————
Sarah what would u advise in this please?- i have already contacted George Banco telling them i will be setting up a dmp which wont even pay the monthly payments due to circumstances changing.
Sara (Debt Camel) says
So that looks the same as the email they sent 2 weeks ago – have they resent it?
If so, it’s time to complain to the FCA. I can suggest some wording.
Has your guarantor complained?
stacey says
Hi , yes they resent it again although they said my account was on hold until 31st so doesnt make any sense really . yes if you coudl suggest soemthing and i will get it sent over to fos also.
Sara (Debt Camel) says
ok, so I suggest you reply to George Banco saying something like:
” I want to suggest a 4th and much better option – you stop harassing me when you know I have recently had a miscarriage and instead put some effort into replying to my complaint. You should not be threatening someone with legal action and trying to pressurise them into paying more than they can afford. You know my hoyurs have been reduced and I am having difficulty paying my priority bills. I will be writing to the FCA to report your dreadful treatment of a vulnerable customer.”
stacey says
thanks sara so much for your help i will do both this today – i will give them the chance till end of the month for their complaint response i think its the 27th it will be 8 weeks. just frightned now of court action and stuff which is not what i want to be worrying about when i already feel like i am grieving or them showing up at my door.
Sara (Debt Camel) says
1) they can’t start court action while you have a complaint live with them or with the Financial Ombudsman. People have had threatening letters about this but no lender has actually tried it so far!
Also look closely at what they wrote: “If we are unable to come to an arrangement, on the 31st March the account will then be reviewed for transfer to a Third Party Legal Service who may apply for a CCJ an attachment of earnings or charge against property.”
I have added some Bold type there. This is very carefully written to sound alarming, but they are not saying it will happen. They just want you think it will.
2) They know you can’t pay. The chance of them wasting money by sending anyone to call on you is about zero in normal times, and these times are not normal. If anyone does turn up, they have absolutely no legal right to come into your house, they are not a bailiff. Just tell them to go away!
stacey says
Yes all scare tactics but they work when your not in teh right frame of mind, for months i continued paying when i knew i couldnt afford it even my two guarantor loans alone were coming to £700 , so i was just borrowing off one to pay another . it all shows even in my first application never mind my top up loans , my credit rating has always been around 112-180 sometimes even lower and missed payments defaults and dmp of £1 per previous creditors which all show on bank statements and stuff as well.
Sara (Debt Camel) says
The FCA is George Banco’s regulator. Sending this report won’t get the FCA to look at your case – that’s what FOS is for – but the FCA should really make GB improve their complaints handling and not threaten customers like you.
——————————————————————-
If you want to do this, email consumer.queries@fca.org.uk and copy this to chioma.nwachukwu@everyday-loans.co.uk and the general GB complaints email
Subject: Very poor complaint handling by George Banco (729032).
Give your GB reference number, your name and address.
Give a couple of sentences summarising your borrowing from GB.
Explain how you have told them about your miscarriage, bereavement and depression. And how your hours have been cut and you are having problems paying priority debts.
Say you complained on 31/01/20 and they haven’t yet replied. But they keep sending you threatening emails about court action and sending someone round to your house. Copy out one of these emails. Say these are causing you a lot of stress and you think it’s unfair to push you to pay money they know you cannot afford .
End by saying you know the FCA will not look at your case, and you will send it to FOS at 8 weeks, but you thought as GB’s regulator they should be told about this poor complaint handling and how a firm is making threats to a vulnerable customer.
——————————————
Craig says
Hi Sara,
i have put my claim into Amigo and was hoping you could help with what i could be expecting should my claim be upheld,
1st loan £2200 with £1187.95 interest paid
2nd loan £2500 with £1043.87 payout and £770 interest paid
3rd loan £4250 with £2077.31 payout and £1544.73 interest paid
4th loan £5250 with £1736.12 payout and £1044.93 interest paid
5th loan £6000 with £1052..49 payout and £2852.02 interest paid
6th loan £6500 with £968.08 payout and £1944.77 interest paid
I still owe £6389.04 on the last loan
Any help would be much appreciated
Regards
Craig
Sara (Debt Camel) says
Hi Craig, can you say how you calculated the interest paid numbers eg “1st loan £2200 with £1187.95 interest paid”
Craig says
I added up all the interest accrued each month I had 19 payments of £107.34 of which somewhere between £60 and £70 each month was interest
Sara (Debt Camel) says
ah, that doesn’t work well. Ignore amigo’s interest calculations and concentrate on cash movements.
You have said how large the loans were and what was paid out in cash. Can you also say for each loan how many payments you made of how much?
Craig says
loan 1 – 19 x £107.34
loan 2- 9 x £121.97
loan 3 – 11 x £207.35
loan 4 – 6 x £224.57
loan 5 – 14 x £237.15
loan 6 – 8 x £256.91
Sara (Debt Camel) says
so the interest paid on each loan looks like roughly (remember you may have typed in numbers wrong or I may have, this is just a guess)
Loan 1 – £1290
loan 2 – £762
loan 3 – £1514
loan 4 – £1042
laon 5 – £2850
Loan 6 – no interest paid so far, still £4452 to pay until you have repaid the amount borrowed on this loan.
If all 6 loans are refunded, the first 5 will repay the balance on the last one and you would get a refund of c £3006.
Joanne says
Hi I’ve rang amigo someone has looked at my case and they waiting for it to be signed off any idea what that means
Sara (Debt Camel) says
it’s in a pile waiting for a manager to look at it. I don’t think you can guess anything about what the decision is from that.
Jay says
Hi Joanne. Do you mind me asking how long you’ve been waiting for a response please ? Thanks.
Joanne says
13 weeks on Friday
gary says
Hi Sara
Just After abit of advice on my claim and what to do next here below is my last response from 1plus1 Guarantor Loans.
I was in a bad situation as mentioned in my email at the time i took out the guarantor loan and only got it accepted due to my guarantor having a very high credit score. I also had a bad gambling problem at the time of the application. Could you recommend my next steps as i think the company is now trying to bully me into cancelling my claim.
Thanks In advance
You should be aware that the date we have stated to you in our previous email, to respond to your complaint, is subject to variation or may be considerably delayed, due to specific employee none attendance or Government restrictions, during this Corona Virus Pandemic.
You can ask your previous Bank for a copy your statements, without them we will rely on the information we had at the time of your application. We believe your complaint has absolutly no merit and is simply an opportunist complaint, in an attempt to extort money from our Company, specifically by making the threat of “If there’s not a substantial offer made I will take my case up with the financial ombudsmen”. This can only be deemed, at least as vexatious and furthermore, if we find that any fraud whatsoever has been committed by you to obtain the loan in the first place, we will instruct our legal team to seek a criminal prosecution against you.
Sara (Debt Camel) says
Do you still owe money on this loan? How long ago was it?
Have you sent your bank statement to them?
Gary says
Hi Sara
The loan was fully paid in 2017 although my guarantor cleared the loan.
Not sent in bank statements as would have to request them from the bank as the account is now closed.
Just worried my initial application may have been exaggerated or something wrong. Im assuming there just using these tactics to scare me off although just after your opinion
Thanks very Much
Sara (Debt Camel) says
Yes they are trying to scare you off. A lot of lenders have sounded threatening about fraud, so far no lender has ever taken action about. There can be lots of reasons your loan application was inaccurate, see https://debtcamel.co.uk/payday-lender-says-lied/. And the regulator says the lender should verify applications, not assume they are accurate.
You need to get those bank statements – they are proof that you had a gambling problem.
How much did your guarantor repay? Have u=you paid him back for this?
Sara (Debt Camel) says
I suggest you reply that you will send them copies of your bank statements when you get them and that you will be sending the complaint to FOS at the 8 week point.
gary says
Think Guarantor paid around £500 which i have repaid to them now
Yes will do that Sara was just after abit of reassurance
Your help is much appreciated
Thanks
Ben says
Given the current coronavirus outbreak. Anyone think Amigo will at least be looking to give people breaks on payments etc? Or anybody out there spoken with them and if so, what was the reaction?
K says
I spoke to them today because they didnt uphold my complaint at 12 weeks but the fos upheld my complaint on all 3 loans last friday & gave them until the 27th to reply. I rang to ask what the status was because my next payment is due 3rd of april & they said business as usual & that i would get my update through them & through the fos & that payment would be discussed once they had decided to go with the adjudicator decision. I asked about the coronavirus & a pay reprieve for the month if they didnt & he just said we’ll discuss your payment when we have made a decision on the adjudicator findings
AG says
The deadline for them to respond to my adjudicator was Tuesday just gone (24th) and they haven’t. I’d cancel your direct debit or I can almost guarantee they’ll take the money!
K says
They’ve given everyone if you call a 30 day grace period because of the coronavirus so my next payment is now not due until 3rd of may. Have had verification via email, txt & its on my account as next payment due 3rd may instead of april.
D says
Any luck on a response for you today K?
K says
Not yet. I did speak to amigo this morning who said they would be getting a response to me/ombudsman sometime today by 6pm when they finish so fingers crossed but with everything going on i expect i might have a longer wait. They have deffered my next payment to may 3rd though so i dont have to pay next week
AG says
Did you get a response? I’m still waiting a week later and adjudicator said it might have to go to ombudsman which is a huge wait and still not free :(
K says
AG no not yet. Ive been calling them every day just to let them know im not going anywhere. I spoke to them this morning & they said they’re hoping by end of this week. She keeps saying “they’re working with the ombudsman on various things” which means nothing to me. Hard to get in touch with the adjudicator now aswell as they’re only open for phone calls 12-3 & mine hasn’t replied to email i sent on 26th yet either & normally hes very fast at replying
AG says
Fingers crossed we both get the result we deserve soon! Driving myself mad now we’re on lockdown as well – could do without amigo going through my head 17 times an hour… will let you know if I hear anything :)
K says
AG they must hate me because ive literally rang amigo every day 😂 sucks to be them right now but hey ive no income now because of no work so the sooner its rectified the better. Shes said today they’re trying to get a response to me asap but cant say when. I told her thats fine i’ll speak to my adjudicator in the morning & instruct them to send to the ombudsman as their decision will be legally binding…she then put me on hold & said they’re going to try get my case resolved & sent to the adjudicator by this friday. Ive told them that if it isnt i will instruct to send to ombudsman & get the ball rolling…she sounded a bit panicked when i said that. I think she expected me to not have a clue what i was on about
Graham Wilson says
Yes Sara it was any advice [about Glo] would be welcome
Sara (Debt Camel) says
The article above explains how to send in an affordability complaint, with a template letter you can use to get this started.
Graham Wilson says
Hi Sara
Sorry to be a pain again.
I got a 5000 loan with Amigo. Then when the 5000 ran out I got a top up of 4000 but when taking the top they advised the 4000 would clear the balance of the first loan but I was left with a balance of 10k
Should the top ups not clear the original balances if that makes sense?
Sara (Debt Camel) says
You should be able to see 2 separate loans in your Amigo online account.
Look at the first loan – it will say how much was used to settle this loan from the top up.
Then look at the second loan. How much does it say you borrowed? It should then show the amount that was used to settle the first loan. And the amount you were paid in cash.
How much have you paid to this second loan so far? What is the current balance owed on it?
Lucy says
Hi Sara,
I’ve just been reading the advice on your page and I honestly wish I’d come across this sooner!
I had 3 loans with Amigo. 2 while I was unemployed and on JSA, I was desperate at the time, and 1 (top up) while I already had a guarantor loan with a different company. These can all be proven by by bank statements. My problem is that I defaulted on my last loan as I had lost my job, I hadn’t paid anything in over a year and Amigo then sent my account to a company called Intrum who I’ve agreed to repay £30 a month to. It it going to take me a hell of a long time to clear the loan at this rate. Given that it is now with Intrum do you think I can make a claim for compensation?
Sara (Debt Camel) says
Yes you can still send Amigo a complaint.
I would carry on paying Intrum if that’s affordable.
Graham Wilson says
I also have a loan with Amigo Sara one for 5000 then topped up by 4000 then topped up by 1000. I fell behind with payments due to my father passing away (he was the guarantor) but a third party shoesmith now deal with the account I pay 150 per month would j be entitled to anything from Amigo if this makes sense?
Sara (Debt Camel) says
yes you can still put in a complaint to Amigo about your loans from them. Is the £150 a month affordable?
Graham Wilson says
Yes but I am worried incase they try take me to court or stop the agreement would that happen?
Sara (Debt Camel) says
They can’t take you to court while you have a complaint underway. If the £150 is affordable, it’s best to carry on paying it. If it isn’t you can ask for it to be reduced.
Graham Wilson says
But can I still get interest refunded while paying the £150
Sara (Debt Camel) says
You can still make and win a complaint while you are paying the £150 a month. If you win, interest is removed from the loan.
How much did you borrow? How much have you paid Amigo & Shoesmiths combined so far?
Suppose your loan was £3000 and you have so far repaid £3400
Here you have paid them more than you borrowed, you will get the excess (£400) back as a refund. Every month you pay £150 means you will get £150 more back.
But if you had only repaid £1800, then that is less then you borrowed.
Here the balance you still owe will be reduced to 3000-1800=£1200. every month you pay £150 will while the complaint goes through will reduce the balance by £150.
is that clear?
Graham Wilson says
The original loan was 5000 I kept the repayments up until the 5000 ran out requested a top of 4000 kept the repayments up until this ran out then requested 1000 top up then my father passed away 03.03.18 this when I fell into arrears since then I have paid shoesmith roughly 700 back.
If this makes sense
Sara (Debt Camel) says
If you would like me to look at the numbers, I am afraid I need all the details:
loan 1 borrowed 5000, paid x payments of £y
loan 2 borrowed p, paid out in cash q, paid x payments of £y
loan 3 borrowed p, paid out in cash q, paid x payments of £y
Stacey says
Dear Sarah me and my husband and kids are in isolation for 14days for covid-19 and are struggling with paying my amigo loan this week as my husband doesn’t get paid for being off, what should I do?
Sara (Debt Camel) says
Who is your guarantor?
You mentioned Safetynet Credit – did you put in a complaint about them? Did you use any other payday lenders – this would be a good chance to make affordability complaints to them?
Stacey says
My guarantor is my best friend. Iv done complaint against safety net credit still haven’t received an answer back as of yet
Sara (Debt Camel) says
You should think about whether the Amigo loan was actually “affordable” when you took it out. Amigo has given loans to a lot of people without checking they can really afford the repayments. if you can win a complaint about this, the interest is removed from the loan, your guarantor is released and you can make an affordable payment arrangement. See https://debtcamel.co.uk/how-to-complain-guarantor-loan/ whioch looks at the the definition of “affoprdable” and how to make this sort of complaint. It won’t solve your immediate problem but it could be a massive help in a few months if you win.
Once you have a complaint in, Amigo cannot take you to court while the complaint is going through.
Could your guarantor really afford the repayments?
Linds says
I accepted my offer from UK Credit on the 16th March, my refund is in my bank account today (18th).
MRB says
I’m now at week 8 without any reply from Amigo, so i’m going to send my case to the FOS.
I’ve just been on the FOS website, and it says there is currently a 5 month wait for your case to be allocated to a case handler for review.
I’m paying Amigo £320pm….another 5 months is a long time and a lot more money to pay out!
Do I have to still maintain these payments throughout this period (assuming they eventually reply and don’t accept my case?)
Sara (Debt Camel) says
what is your guarantor’s financial situation?
If they could not have afforded the loan when it was taken out, then they too can complain to Amigo and cancel their DD to Amigo. At that point you too can cancel your DD as your guarantor is safe.
If your guarantor does this, their credit record will not be affected. If they look at their credit record they will see the Amigo loan is not on there! They will get cross texts and emails from Amigo but Amigo cannot start court action while a complaint is underway.
MRB says
My guarantors financial situation is dire – they don’t have bank so Amigo can’t claim anything anyway, even if i were to miss a payment.
They’d also have 0% chance of covering anything I miss, so I need to find the money regardless.
Is it legal/lawful for them to add on fees/interest/charges while a complaint is open?
As I mentioned, £1600 is a lot of money and stress to find for the next 5 months minimum. I appreciate the FOS are extremely busy – and maybe even understaffed now with the coronavirus, which could delay things even more, but I’d rather not dig myself a bigger hole if possible!
Sara (Debt Camel) says
I have just seen what you said before about your guarantor:
He has debt up to his eyeballs, with numerous creditors as well as friends and family he owes money to. He entered into a DMP with StepChange but couldn’t keep to that either, so they have recently cancelled it. Bankruptcy is about the only thing he has feels he has left on the table, as things have gotten that bad. He has a young son so his partner only works part time – thus leaving less disposable income to pay rent/bills etc and making things worse.
That means you are safer to stop paying! With no bank account, Amigo can’t take any money from him. If he is going bankrupt, any liability he has for this debt goes at that point.
How on earth could Amigo have accepted someone with such a dreadful situation as a guarantor? Tell him you have to stop paying so they will ask him to. If he wants, he can also complain that he could not afford the loan. Send him the complaint page for guarantors: https://debtcamel.co.uk/amigo-complaints-by-guarantor/
MRB says
This is true Sara – I feel guilty about posting on these boards with a lot of messages though. I truly appreciate the responses.
His situation wasn’t as bad in Feb 2018 when he was first accepted for the very first loan, though he had numerous PDLs and gambled a lot at that time, so wasn’t really suitable anyway – by the time the second and third top ups were accepted they really should have said no. To be honest I only tried the third one as a ‘no chance/last resort’ shot as we knew it’d be rejected at both ends and other options all said no…and were amazed they said yes. I have tried to put him off going bankrupt as it’s usually a bad move, and also costs £700 (which he won’t have), though ultimately it’s his choice.
I will keep everybody posted on my progress to hopefully help.
I have spoken to Amigo today regarding no reply in 8 weeks. The chap on the phone was actually very pleasant and good to deal with. He explained that through weight of complaints (especially affordability in recent months – he kind of blamed social media and sites like this for making people aware and complain – boohoo) they just aren’t able to get them all back in 8 weeks. He also said I can go to the FOS (which I will) from now, and to expect a response in the coming weeks, more likely 1 month plus at least.
Sara (Debt Camel) says
“though he had numerous PDLs and gambled a lot at that time, so wasn’t really suitable anyway –”
Then he is VERY likely to win an affordability complaint.
Tell him to send in a complaint. It’s easy for him to do and it will take the pressure off you.
Bankruptcy may be a bad move for him or it may be much his best option. Just because it sounds scary doesn’t mean it’s “usually a bad move”. Can you suggest he talks to National Debtline about this? 0808 808 4000.
frogman says
Hi MRB,
I am in a slightly similar situation. I am on DMP and now 1 month behind with Amigo – repayment of £316/m.
I have lodged a complaint and my guarantor has too. Amigo will still get their pay from my DMP but nothing is going out to them from me or guarantor until the complaint is sorted. They have actually altered the email they send out. They haven’t asked me or my guarantor for payment since the complaint went in. Even though Amigo hasn’t recorded anything on guarantors credit record (I don’t think they can until it gets to CCJ level as explained by Sarah), my guarantor can’t afford to have any adverse on her credit record so we are preparing for the worst-case scenario with the complaint.
Steph Boyden says
Hi Sara.
Update on my case, Trust Two rejected my claim last year. Sent to Ombudsman last September. Still waiting for an adjudicator to be assigned !
I am now in 14 day isolation and have contacted TT to inform them. They state “you must still make your payment, nothing we can do”. My guarantor is 70 so will probably be going into 12 week isolation soon when announced by PM. I explained this also and still no luck with a payment “holiday”. Let’s hope the PM issues more guidance in the next few days. Steph
Sara (Debt Camel) says
Are the payments affordable for your guarantor?
Steph says
Not really. Guarantor is my father who is 70.
Sara (Debt Camel) says
so see what I just said to MRB above.
If you are desperate to not tell your dad about your situation, you have no option but to carry on making the payments.
But if you think your dad has a good reason to complain that Amigo didn’t check properly that he could afford the complaint, then perhaps you could show him the page for complaints by guarantors https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and help him to send in a complaint?
That sounds a bit patronising – plenty of 70 year olds don’t need any help with this sort of thing! I normally suggest that guarantors might want to talk to citizens Advice if they aren’t sure about this, but that’s going to be very hard with Coronavirus at the moment. he may be able to get through by phone though?
If he puts in a complaint he should also cancel his DD to Amigo. then you can cancel yours too and know they can’t take money from him.
Anon says
Hi Steph, if you don’t mind me asking how long did TT take to come back to you with a final response?
Steph says
They came back quite quickly with a no. Was within the timescale. I don’t think they even bother looking into and just come back with a standard rejection. Just get as much info as you can from them and send to Ombudsman
Anon says
Ahhh ok thank you, my week 8 is up next Tuesday and I really can’t afford the repayments :( hoping for some success before then but not too optimistic.
Jen says
Steph, I am sorry you haven’t had any success with TT.
Anon, just to let you know I had my complaint upheld with TT at week 9 and refund 4 days later.
I hope you both get the result you want very soon.
Danny says
update from my end:
neither buddy loans or bamboo loans are upholding my complaint. I have sent both of them to the FOS – just waiting to hear back from amigo now and will send that across as well (8 week period next week).
My debt was getting worse and worse having to borrow off people to pay these loans back then top the loans up to pay the people back. Had three top ups on each, my debt situation was clearly getting worse. In the end i took a loan out from the bank to clear them all off but as my credit is bad I had to do this in my mum’s name… Is there a good chance the FOS will uphold these complaints?
Danny
Jase says
Hi Sara quick update, i recieved this from amigo today.
Before we paid out the loan, we completed a budget plan with both you and your guarantor to ensure you were financially stable and in a position to obtain the loan. We also have thorough checks in place to ensure our customers are fully aware of the agreement they’re entering in to.
When completing your budget plan, you provided us with figures for your income and expenditure that showed you could comfortably afford the repayments, for the full loan duration, after covering all of your priority bills and other creditors.
We are entitled to rely on the information you provide and do not need to ask for proof of income unless we feel it necessary. Nonetheless, to further ensure the accuracy of this figure, we carried out additional checks on this information. Your income was checked using a service called OI, supplied by the credit reference agency Transunion. OI uses a number of data points provided by Transunion to assess whether the total expenditure, the monthly instalment, and an emergency buffer were affordable to you based on your income. As this check was successful on this occasions, the agents were satisfied the information you provided was reliable.
We’d never agree to pay out a loan if either the borrower or the guarantor didn’t confidently demonstrate that they could comfortably afford their loan repayments, or we were concerned it was not the correct decision. After reviewing your applications and the budget plan provided,
Part 2.
we had no concerns.
I have raised a complaint on your behalf. Our Customer Relations Team will acknowledge your complaint within 3-5 working days and they will issue a final response within 8 weeks. I have also raised a request for a data subject access report. You will receive this within 30 days.
Thanks,
Becca @ Amigo
Sara (Debt Camel) says
So that sounds like standard guff. FOS does NOT agree Amigo is entitled to rely on the income & expense figures you provided, FOS usually says the lender should have verified them.
Have you sent them bank statements?
jase says
No I have never sent them bank statements before
Sara (Debt Camel) says
No I meant did you send bank statements with your complaint. If you haven’t, this is a good time to send them. They really help your case by showing the loan was unaffordable when you took it out.
Jase says
As in 5 years worth of statements?
Sara (Debt Camel) says
No, just around the time of the loan application – as the article above says, “Send three months of statements before each loan or top-up and two months afterwards. So if you had a loan in August 2017, send statements for May-September 2017.”
Lewis says
Hi Sarah, I have had my current £10,000loan upheld with amigo. I have worked out that I have made about £4000.00 in payments, my current repayment is £395.00 a month, which is unfordable to me at the moment. Can I now pay amigo a reduced repayment and extend the loan longer than 4 years interest free or will I still have to pay the £395.00 a month until the remaining £6000.00 is payed of? How will this also affect my credit?
Thanks for all your help Sarah.
Sara (Debt Camel) says
Did you have previous loans with them that haven’t been upheld?
Have they said they are releasing your guarantor?
Lewis says
I have had 3 loans in total. First for £7000.00 which was repaid quickly due to having a loan from family. I then took out another £7000.00 loan and topped up a month later to £10,000. Amigo rejected my complaint when I first sent it in May 2019, so I sent it to the ombudsman. When the ombudsman asked for there side of the story amigo reviewed my complaint again and decided to uphold the second loan and the top up, which I have accepted. They haven’t mentioned about releasing my guarantor or anything yet.
Bradley bird says
My income has been affected as me and my family are self isolating. I also have amigo would they accept a payment break do you think ??
Sara (Debt Camel) says
I think Amigo should consider your situation if you ask for a payment break.
Would you be able to afford to increase the payments to Amigo when things return to normal to repay the arrears? Or would you want the loan extended by the missed months?
Is the loan actually affordable for you normally or have you been getting deeper into debt to try to repay it?
VH says
Hi Sara
I heard back from Amigo after they breached the 8 week deadline. They confirm they are very busy and no one has even looked at my case. This is the second time , the first last Oct was quickly rejected by Amigo. I then sent straight to FOS and waited for 4 months to be assigned an adjudicator who sent back to Amigo 20/01/20. I have informed the adjudicator that Amigo still not looked at my case and have asked her if she can escalate it now.
Not sure what to expect now, such a long time.
Is anyone else waited this long.
X2 Loans first 5000 then top up 7500
Now paid in full
Sara (Debt Camel) says
you have done the right thing to tell your adjudicator about this delay. The purpose of FOS asking a firm to look again is to speed up decision making…
K says
Anyone else logged on & found no interest added today?? I find it very strange because usually they add interest every day but today ive had no interest added, its the same amount as it was yesterday.
Jordan Williams says
Mine has been added, probably not adding anymore because you’re getting your money back!
K says
Im hoping so. They havent emailed me or sent a decision to the fos in regards to the fos upholding my complaints so i guess time will tell. Hopefully not too much time though with the uncertainty of possibly having to take unpaid leave from work
D says
Hi K, When you had the adjudicator assigned, how long was it from them getting assigned to you getting a response from him on your case?
K says
Hi D. I sent my case after 8 weeks so 3rd of feb. They were assigned about 10 days later after agreeing to prioritise my case & then i got it upheld by them 13th of march. Amigo have until 27th march to reply but i dont know whats going to happen with everything going on in the economy at the moment
frogman says
I need some advice Sara, please. both guarantor and I have complained.
————————————————————-
Your account is now 24 days late with an arrears balance of £292.76. Shortly another payment will fall due which if not covered would increase the amount of arrears due. Whilst we are aware that you do not currently have the ability to make a payment towards the loan, we have been trying to work with your guarantor however so far this has proven unsuccessful.When this loan was paid out we made it clear to your guarantor that we would expect them to step-in anytime that you didn’t pay. I can see they have stepped in and honoured their agreement previously so it is important they do this again and work with me to stop the arrears increasing.I want to help you resolve the arrears as I want to prevent both yourself and your guarantor being impacted. I will continue to do what I can but if I am unable to get a resolution in place then further down the line I may have to issue you with an LBA (Letter Before Action), this is a legal notice which will allow you to come to a resolution prior to a court claim being considered. If court action is considered then both you and your guarantor could be issued with a County Court Judgment.If your situation has improved then it is important you get in touch so we can try and get the arrears resolved. In the meantime it is vital we work with your guarantor so if you’re in a position to, please ask them to get in touch on 01202 629161
Sara (Debt Camel) says
You and your guarantor are partners, right? I think your guarantor should talk to them and explain why she can’t pay it.
But also look at the weasel words in what they have sent you….
if I am unable to get a resolution in place then further down the line I may have to issue you with an LBA…
If court action is considered then both you and your guarantor could be issued with a County Court Judgment.
They aren’t saying this is going to happen, they are just hoping to scare you and your guarantor.
Frogman says
Thanks Sara,
Yes we are. She’s scared of the CCJ. What would be a good reason to say to them ? That she hasn’t got the money and on-going complaint ? These messages scares the hell out of her so I am having to use my holidays to work to get this money. That’s how I have been able to get this far with it.
Sara (Debt Camel) says
It says “Whilst we are aware that you do not currently have the ability to make a payment towards the loan,” does this mean you went through an Income & expenditure with them? That would be what she needs to do.
She needs to relax about a CCJ – they are just trying to scare her.
Let me go into an excessive amount of detail about this!
a) they shouldn’t start a court case while she has a complaint in progress, with the lender or with FOS. See CONC 7.14 in the regulators rules https://www.handbook.fca.org.uk/handbook/CONC/7/14.html
b) no one has yet had a problem with a guarantor lender starting a court case when a complaint is in progress. Literally no-one. So you don’t really have to read the rest of this.
c) if they were so mad as to decide to start a court case, this is a very slow process at the best of times if the case is defended.
This is what happens for a “normal” court case. First they have to send you a Letter Before Action/Claim (see https://debtcamel.co.uk/letter-before-claim-ccj/ for what one is). You can sit on that for up to 30 days, during which time they can’t do anything. Then if you reply at say 25 days asking for more information and saying you need to take debt advice, they have to allow you another 30 days before starting a court case. When you get court papers, you have 14 days to file a defence but if you acknowledge the papers that is extended to 28 days. You say you want to defend the case. You can then opt for an ADR (alternative dispute resolution process) which is usually by phone and which takes a few weeks to organise. If they don’t back down during that, you say you want the case transferred to your local country court. It will then usually take many months (more than 6 months is not unusual) to be allocated a court date.
Not speedy is it! During all this time your case is going through FOS and you can ask for it to be given priority at FOS if the lender has started a court case…
d) but this is not a normal court case. I have come across one guarantor loan case which had not been sent to FOS where the judge in the court case ordered the case to be “stayed” (legal term for put on hold) so that the guarantor could start a FOS case. And you don’t have to wait for that, you can apply for the court case to be stayed.
e) and because of coronavirus these are not normal times! And the courts are MUCH more likely to want FOS to resolve any cases.
So bottom line she needs to stop worrying. that’s why there are all those weasel words in the lender’s email – they are trying to bluff he into being worried.
She should talk to National Debtline on 0808 808 4000 if she would like confirmation about what I have said here.
frogman says
Thanks very much for the detailed response Sara. I have explained the above to her, she doesn’t seem interested and just wants the loan managed properly until the outcome of the complaint, she is a trainee solicitor and said shes doesn’t want any negative records – Simply put, she’s not ready to go the extra mile. I have had to folk out the repayment again yesterday in an extremely tight situation for me (swapped CCP payment for Amigo) and it’s 3 days before another one is due. Her complaint will be 8 weeks next week and I am going to tell her to send to FOS straightaway. I wish I had put mine in a long time ago. i don’t know wht it took me so long to discover this website
Hollie says
Can someone please help me? I have just logged on to my Clearscore report and my amigo loan has gon as have my other loans! Why is this?
Jamil says
Hello, thank you for the great information available here, it is really helpful. Has anybody spoken with Amigo in regards to the possibility of a payment holiday or extending the loan period to alleviate the financial pressure many of us are currently experiencing as a result of the severe economic situation and the struggle to stay afloat?
Sara (Debt Camel) says
I think if you are affected by coronavirus you should ask for this and ask to NOT have them chase your guarantor during this temporary period.
Jay says
I spoke to Amigo yesterday about this and was basically told that if I can’t pay because my partner has been laid off, that’s not their problem and they will just chase my guarantor.
Sara (Debt Camel) says
I think you already have an affordability complaint in?
You could reply saying that you think they are being unreasonable in not taking out of your coronavirus problem and this is not treating you fairly. Say you will be adding this to your complaint if your affordability case has to go to the financial ombudsman.
What is your guarantor’s financial position & are they affected by coronavirus too?
Jay says
To be fair I was ringing for an update on my complaint which has just reached eight weeks and has now been sent to the FOS. I just asked them what would happen in the event I couldn’t pay. We’re managing at the minute. I will say though that the advisor I spoke to spent a good 20 minutes explaining to me that their affordability checks are of an excellent standard and kept asking me to confirm the next payment on my account is affordable. It almost felt like they were trying to get me to admit I can afford the loan, so they could use it against me ?? Was very strange. My guarantor can’t afford to pay it if I can’t – but they don’t have her new card or bank account details so they can’t take it without asking either. We’ll be fine. I’ve dealt with worse than Amigo :-)
Teacake says
I too are with amigo I’m struggling financially am worried they will ask my guarantor as she’s been laid off due to the coronavirus where do we stand I can’t afford the payments by myself
Sara (Debt Camel) says
were you struggling anyway, even before coronavirus?
Sara (Debt Camel) says
If the Amigo loan was causing you problems even before the coronavirus, it may have been “unaffordable”. In that case you can make an affordability complaint, see https://debtcamel.co.uk/how-to-complain-guarantor-loan/ for how to do this. This is worth doing as if you win the complaint (a) your guarnotor is released so you can make a payment arrangement without any worry about them and (b) interest is removed from your loan. These complaints are not quick, but if you think the loan is unaffordble, kick it off asap.
You can also say that you need a payment holiday because of coronavirus. Whether you are making an affordabilty complaint or not.
But Amigo may go after your guarantor…
If your guarantor cannot afford this now because of coronavirus, the guarantor should cancel the DD to Amigo and tell Amigo they can’t pay at the moment. They will get cross letters and texts from Amigo but their money is safe. In practice Amigo are unlikely to do anything like take her to court as she has no money! And her credit rating can’t be affected unless they did go to court as the loan doesn’t appear there. so this feels risky but in practice she should be fine.
If your guarantor could never have afforded the repayments then she too can send Amigo an affordability complaint. Send her a link to https://debtcamel.co.uk/amigo-complaints-by-guarantor/ – that has a slightly different complaint letter for a guarantor.
When someone has a complaint in with Amigo – or with the Financial Ombudsman if Amigo reject it – Amigo cannot take them to court. that applies to you, the borrower. And to your guarantor. So if both of you think you can make affordability complaints, then you can both cancel your DDs to Amigo. As I said you will get cross emails and texts but it will be months before your complaints are resolved and if you win them you will be in a much better position.
Amigo has not been checking properly that borrowers and guarantors can afford the loans. At the moment 90% of these complaints are being won at the financial ombudsman.
Cecil says
Hello Sarah,
Will this be applicable to George banco guarantor loan too?
Thank you
Sara (Debt Camel) says
yes. That applies to asking for payment breaks for Coronavirus and making affordability complaints. Amigo has 85% of the guarantor loan market, so other lenders are all tiny in comparison, but exactly the same applies to them – they are losing almost all of the affordability complaints that go to the Financial Ombudsman so if GB rejects yours (or don’t reply in 8 weeks) send it to the Ombudsman.
Sara (Debt Camel) says
The FCA has confirmed that guarantor lenders have to give borrowers affected by coronavirsu a 3 month payment break and that they cannot ask the guarantor to make these payments – good news!
Phil says
Hi Sara
I had my complaint rejected by Amigo as it was over 6 years old. I sent it to FOS and I requested bank statements from my bank. These have just been sent but all it says on the statement is DD payment for £100.79 and a ref number. But there is no mention on the statement that it was for FLM/Amigo.
Can the ref number be traced back to FLM/Amigo or would it just be a DD reference. It also shows that I was on benefits when the gave me the loan.
Sara (Debt Camel) says
remind me, what evidence is there that this loan existed?
Kitty says
Hi
I have an amigo loan- for a very high amount-
My hours are being cut temporarily as the school have shut- my in laws would normally watch them through holidays etc but they are in their mid 70’s and and in self isolation. With this being said I will not being able to afford my payment this month! And it’s only going to get worse as we all know complete lock down is coming at some point!
They should never have let me have this loan to start with- it’s my third from them- they never checked my bank statements- wage slips nothing!
I suffer with severe anxiety so as you can imagine with everything going on etc it’s even worse – my guarantor has already been told do stay home as her workplace has closed for the time being so she won’t be able to afford the payments! Because of my anxiety I find it really hard do make phone calls to the point where I have really bad palpitations/panic attacks- I have emailed them 4 times now with no reply- even sent a complaint which. They said three days to get back to me – on day 4 now and nothing! No doubt as soon as that payment is marked as late they will be on it with the communications then! What can I do?? Please help?
Sara (Debt Camel) says
Was the loan “affordable” before these coronavirus problems? Or were you having to get borrow more or get behind with bills to make the payments already? Having to have 2 top-ups is often a sign that the original loan was unaffordable.
What about your guarantor – could she really have afforded the loan repayment before the coronavirus problems?
Kitty says
If I’m honest probably not!
Especially after the third loan-
– they offered me more- and as I needed the money I applied and has the money within 48hrs- again no confirmation of my earnings needed- I could have said I earned £7 grand a month and they wouldn’t have checked!
Now my guarantor is not working/earning she can’t- to be honest I doubt very much she would have before all of this-
They really don’t care about people- the interest that’s being added each month is enough to make you have a heart attack! I was stupid for taking it out but at the same time my credit rating is so bad I couldn’t get any other type of loan- with endless amount of missed payments in the past to other creditors surely this should have flagged up for them?
Sara (Debt Camel) says
So you already had a bad situation and coronavirus has just made it worse :(
Read the article above and think if you should put in an affordability complaint about all your loans. If you win that, interest is removed from the loan, your guarantor is released and you can make an affordable payment arrangement.
Can you also ask your guarantor to read the page for guarantors https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and think if she can ask to be removed as the guarantor for the last loan because she could not afford the payments when you applied for the last loan. (That would take all the pressure off you if she could be removed – the loan just turns into a normal loan.)
If you simply can’t afford the loan repayment now, then you have to cancel the DD to Amigo so they can’t take the money and leave you too short to live on. This is bad for your credit record, but it’s probably pretty bad anyway, so in a crisis, your credit record doesn’t matter.
Amigo will then go after your guarantor … well probably, I am still hoping they will decide not to do that for a few months because of coronavirus, but at the moment you have assume they will.
But if your guarantor can cancel her DD to Amigo, she is safe, she will get cross texts and emails but they can’t take her money. Her credit record cannot be affected at the moment – if she looks at it she will see the Amigo loan is not even on there. And although Amigo may make threats, they can’t take you to court while you have a complaint in or her to court if she has a complaint in.
Phil says
This is all I have. Just the payments on my bank statements with this reference number but no mention on the statements that it is FLM/Amigo. I just wondered if the FOS would be able to find anything out with this ref number through Halifax
Dillen peters says
Sent the template letter and bank statements to amigo yesterday they replied and said complaints team will be in touch 3-5 days time, i had gambling in my bank statements to, will that help me?
Sara (Debt Camel) says
Gambling showing suggests the loan was probably unaffordable.
Dillen peters says
Ok sara, as i had help with gambling does thie go in my favour? Am just waiting on reply i had a loan for 2500, in april 19 then topped up to 3250 i think in sept 19.
Sara (Debt Camel) says
You have had help to stop gambling? That’s great, but it won’t help you win an affordability complaint.
Dillen peters says
Ok sara what happens when they come back to me, as I have sent bank statements and template letter sorry if sounding silly.
Sara (Debt Camel) says
Some people get a request for information about your circumstances when you took the loan. This is mainly to make you feel guilty… if you get this, I suggest you ignore the questions and just reply you have sent your banks statements so they can see your full position. After that you should get the SAR personal information after a month or so, you can go through that if you are interested or just put it to one side as you don’t need to do anything with it now. When it gets to 6 weeks you can send the case to the ombudsman if you haven’t had a reply.
Sara (Debt Camel) says
PS no such thing as a silly question. If you are wondering probaly a lot of other people reading this are too!
Syed n says
Hi
I want to ask I have lost my job and I got an garrunton loan with trust 2 loans. Also this virus is making it hard Will the company put account on hold or not ?
Sara (Debt Camel) says
You already have an affordabilty complaint in with Trust 2 I think? have they responded? And what has happened to your Amigo complaint?
Syed n says
Hi,
Amgio has upheld by fourth loan and closed the account. I have raised first 3 loans with FOS which is taking really long and also this virus we got now will take longer.
Trust 2 loans declined my complaint is
and I have raised it FOS still such a long wait.
Will they accept and hold my payment for 3 months. ?
Sara (Debt Camel) says
who is your guarantor & could they have afforded the repayments when the loan was taken out? Can they now?
Aiyesha says
Hi Sara,
I have a loan from Amigo which was used to pay mortgage arrears and other debts, still in debt and I do prioritise Amigo as my cousin is the guarantor without her family knowing so I sometimes pay them but not my mortgage, do I qualify for a affordability complaint?. Rang them yesterday as I am completely out of work now and they said that there was nothing they had to do as government had not said anything about organisations like them so they would just chase guarantor if I did not pay, could do nothing for me
Sara (Debt Camel) says
Sorry some questions, could you answer them all (even if they sound irrelevant or not what you want to do):
1) Using an Amigo loan at 50% APR to reply mortgage arrears is a disastrous choice – it is so expensive you have ended up back with mortgage problems again. When you took the loan did you say it was to clear mortgage arrears?
2) do you currently have mortgage arrears? is your lack of work coronavirus related?
3) When you took the Amigo loan (and was it your first or a top up?) do you think at that point it was unaffordable? the definition of unaffordable is that you struggle to make a lot of the payments without borrowing more or getting behind with other debts and essential bills.
4) what was your guarantor’s situation like when you took out the loan. Could she really have afforded the repayments?
5) has your guarantor had any problems because of coronavirus?
Aiyesha says
Hi Sara,
1) No, said it was for home improvements because I was desperate
2) Have been constantly in arrears with the mortgage but they recently consolodated my arrears so not in arrears now, Yes, lack of work is now coronavirus related but will be honest on here, I did not and have never earned what I told Amigo I earned at all, told them I was employed with a regular income which I wasn’t, I was and still am a contractor with irregular income, told them my partner paid the bills which wasn’t true either, he’s the same as me, not proud of it but just desperately needed the loan, they didn’t check, ask for income proof, expenditure proof or anything, just took my word for it
3) Took a loan out in 2016 due to no work, mortgage arrears, bills etc paid that early from a loan from my Mum because my cousin (the guarantor) was worried about her family finding out. Took another out in 2018 for same reason which I am still paying now, always unaffordablee
4) Guarantor is wealthy, can afford it, just the relationship tie makes me always snsure I pay Amigo above anyone else, if she had to ever pay, I would have hell to pay
5) Coronavirus has not affected her, she can afford not to work
They could say I lied, which I did which is why I am thinking do I even have a complaint at all?,,,although I do think a mahority of Amigo customers lie to get the loan because of desperation
Sara (Debt Camel) says
No, said it was for home improvements because I was desperate
That is something to put in your complaint then – that Amigo should have seen that you had mortgage arrears and a lot of other debt when you applied so they should not have accepted you.
told them my partner paid the bills which wasn’t true either
Amigo should have verified what you said. If your income & expenditure looked as though you had spare income, they could have known that wasn’t right or you would not have had mortgage arrears and your other debts!
You should complain that both loans were unaffordable, not just the current one.
I think you have a very good reason to say you should never have been given these loans. Send your banks statements with your complaint. Then if they ask you if your application was inaccurate – they want to make you feel guilty and drop a good complaint – just ignore their questions and tell them you have sent your bank statements so they can see everything.
re your current situation – have you asked the mortgage lender for a three month payment holiday?
Aiyesha says
Hi Sara,
Yes, mortgage lender has granted a 3 month payment holiday
Thank you for not judging me and giving me the confidence to complain, will send off today and update on here how it goes, i just need to make sure I word it right and don’t drop myself in it with a strong sense of ‘I basically lied about everything’ jeorpadising my complaint
Have checked my experian online so I could see what they will see and it shows mortgage arrears amongst others for both times loan awarded and online bank statements are accesible too so here goes….
Thank you so much for your advice…God bless you,Xx
Sara (Debt Camel) says
can I ask if you (or your partner?) have other unsecured debt that you are currently paying?
Aiyesha says
Yes, loads, credit cards mainly and two drafty OD’s, pay the minimum, used them to keep up payment arrangements with mortgage so they would consolidate and remove the fear of repossession – it served it’s purpose, Drafty OD’s were solely for Amigo so they didn’t go running to guarantor, but we are stuck with that debt too now
Sara (Debt Camel) says
ok, so put in affordabilty complaints against Drafty (use payday loan template here https://debtcamel.co.uk/payday-loan-refunds/) and cancel the CPA/DD to Drafty.
If the credit cards have increased their credit limits while you have mortgage arrears, also put in affordability complaints to them, see https://debtcamel.co.uk/refunds-catalogue-credit-card/. And tell the lenders you can’t make any payments now because of coronavirus. This may sound scary, but if your incomes have dropped you have little option. Phone National Debtline on 0808 808 4000 on Monday to talk through all your options.
Aiyesha says
Wow! Thanks Sara!,
Can’t believe my luck stumbling across this site!, have just sent email off to Amigo, won’t hold my breath but you never know, will update on that.
Re additional info above, will do!,,,Yes, all additional credit was provided while in arrears, it is a bit scary but am so fed up of taking off Peter to pay Paul and vica versa constantly and now neither Peter or Paul will be getting anything so Yes, I have little option but to bite the bullet
Thanks Sara for all your advice, so very very much appreciated..Xx
K says
Received my SAR – some of the estimates they had were off, they asked questions such as do you expect bills to go up in the 5 years or income to change? How am I meant to know?! Credit report clearly showed defaults, missed payments, over credit limits 1 month before loan issued. Now the crux is I have since found out they want 3 payments more than agreed. Nowhere in the paperwork states this, I have the agreement signed by them with no mention of extra payments. Now I listened to call and I was told DD could not be taken on date I requested as it was too late to change, any interest will accrue daily TIL first payment. I then asked how much is that and was told oh just your normal £276.67. Was not told it would be x3 extra payments. Do I have grounds for complaint re extra payments?
Sara (Debt Camel) says
If it wasn’t explained properly and it feels unfair, then complain!
If you win your affordability complaint then it won’t matter as all interest us removed so you just repay what you borrowed. But if you don’t, then that is a lot of extra money to pay them.
Sarah C says
I wonder if anyone could advise !
We had a guarantor loan with Bamboo, my guarantor complained to them and they straight up agreed to remove her as guarantor (excellent news) as we were able to prove no affordability checks were done and she didn’t know what she was agreeing to !
She was removed 4 months ago and we had heard nothing since until very recently where they have no started chasing me for the full outstanding amount ! They have not removed any of the interest and want full normal payments ! I assumed that by removing the guarantor we had done all we needed to but clearly not and now I have to complain separately ! I am more than happy to do this, I am just not sure on what grounds I now complain now the guarantor has been removed ? Any help would be much appreciated 👍
Sara (Debt Camel) says
She complained the loan was unaffordable for her and won. But interest won’t be removed from your loan unless you win a complaint saying the loan was unaffordable for you.
If it was, then send in the template letter above.
I assume you can’t afford the normal repayments? What are the rest of your finances like at the moment?
Sarah says
Sadly the loan is not affordable for me now and it certainly wasn’t when we took the loan out ! I should never have taken it but I was in a very dark place ! I’ve now been diagnosed as Bi Polar and am trying to sort things out, but there is just no way I can afford the payments !
I am sure eventually they will pass the loan to a DCA and I am prepared for that but I just want to make sure I try everything else before I do
Thanks for your help 👍
Sara (Debt Camel) says
As your guarantor has been removed, this is now just any normal loan. You can offer a lower payment or put th loan into a debt management plan if you have other problem debts? Winning your complaint will reduce what you owe – how much did you borrow and how much have you paid to it so far – just the total amount of cash paid, ignore whether this is supposed to be interest or not.
Sarah says
Sorry for taking so long to reply !
Total borrowed £3.5k
Total paid £850
The monthly payments they are asking for is £179
There are many other debts that are currently all in default and I’m dealing with them one at a time.
The loan was definitely not affordable for me or the guarantor at the time, I was already in huge amounts of debt with my only income coming from state benefits at the time, which they never even checked, so I feel an affordability complaint on my behalf (now the guarantor is no longer in the picture) might be worthwhile ?
Sara (Debt Camel) says
So you won’t get a refund from that but could get the balance reduced to £2650 if you win an affordability complaint>
Definitely worth doing unless your situation is so bad that you should really be looking at a debt relief order or bankruptcy? How large are your other debts? Are you renting privately or social housing?
Gemma says
Hi sara
I’ve just received a text from amigo about my complaint asking me to complete a questionnaire and there saying I have had 5 loans from them I thought I only had 3 that’s the stress I can’t remember it is asking questions like was I telling the truth about my expenditure and they said it has to be back in 10 days do I fill it in or not?
Sara (Debt Camel) says
Have you sent them your bank statements?
Gemma says
Yes when I first sent the claim on 8th March just for the last loan
Sara (Debt Camel) says
It doesn’t sound as though you remember the loan applications in detail if you thought there were only 3… I suggest you reply that you aren’t even sure how many loans you had and that you have sent them your banks atstements so they can see your full position. Just ignore their detailed questions – they are trying to make borrowers feel guilty even though the lender has the regulatory duty to make sure the loans are affordable.
Michelle says
Hi Sarah,
I made an affordability complaint to amigo in January, I have received my SAR but it got to the day of the 8 weeks and they emailed to say they need another 4 weeks, following your advise to others on here I emailed the ombudsman straight away but they haven’t responded yet as they are obviously busy with other complaints, do you have any idea of how long they are taking to assign someone to the complaints?
Sara (Debt Camel) says
Sorry, no.
What is your current situation – do you still owe a balance? If you do, what is your guarantor’s financial position?
Michelle says
Yes I still owe a balance, I think the last payment is in November this year, my payments are £292.73 a month. My guarantor is my brother and he is self employed builder, i haven’t missed any payments as I didn’t want him to have to pay instead, I’ve just struggled along on my part time wage.
Sara (Debt Camel) says
so could your brother really afford £292 a month? if he couldn’t have afforded this from when you took the loan out, he could also complain that he should never have been accepted as a guarantor and should be released. It depends how desperate you are, whether you want to talk to him about this.
Michelle says
No he can’t afford the repayments, as he can sometimes go weeks without any work especially in winter when most people don’t want building work doing because of the weather or Christmas time etc. I will speak to him about putting a complaint in as well, thank you. I will let you know what happens with the ombudsman
Sara (Debt Camel) says
If he complains & cancels his DD, you can then cancel your or offer lower affordable payment.
While he has a complaint in, including at FOS, Amigo cannot take him to court. And His credit record cannot be affected unless they have gone to court and got a CCJ.
Steve says
I’ve had a settlement figure for a loan which lasts a month but they have said that figure stands whether I pay it on day 1 or day 30 is that right? I’m up to date and it’s not them offering me a discounted settlement figure. Thanks
Sara (Debt Camel) says
Yes that is right, the number is calculated assuming you pay it on day 30. (This always annoys people, but it’s hard to see what else could be realistic. If they gave you a figure based on you paying it in a week, then they would have to keep revising that if you missed the payment.)
AG says
I have a guarantor loan with bamboo, quite a recent loan.
I have asked for my account to be placed on hold. They have sent a payment holiday request to management who will decide whether to reject the request or not. I am in the travel industry as is my guarantor and we are basically both out of work for the foreseeable. My pay has been more than halved so clearly can’t afford to make the payments.
God knows what will happen if they reject my request.
Sara (Debt Camel) says
If you cannot afford the payment (and if your pay is halved it is hard to imagine that you could) then you should consider cancelling the DD to Bamboo so they cannot take the payment and leave you short of money for the essentials such as rent, food, heating, transport etc.
This will harm your credit score (unless they agree that it won’t – I think all lenders should agree this but that doesn’t really help you!) but that is better than being left short of money. And better than getting another high cost loan to let you make this months payments, or you will be in twice as much difficulty next month – you can’t borrow your way out of this situation.
Bamboo will then go after your guarantor, but as they can’t afford it either, the same applies to them – cancel the DD to Bamboo and protect their finances. In their case this probably won’t harm their credit score as the bamboo loan may not appear on there… I know Amigo loans don’t appear on the borrower’s credit record.
That is how to get yourself in a safe position. Not a great position, but the least bad you can do. I hope Bamboo agree to this.
BUT this is also the time for you to think how affordable this guarantor loan actually was before coronavirus came along… A loan is only affordable if you can repay it without having to borrow more money or get behind with other bills. Many guarantor lenders have done a very poor job of checking borrowers can afford the loans and the Ombudsman is upholding 90% of customer complaints about them. If you can win an affordabilty complaint then a) your guarantor is released, b) interest is removed and c) you can make a lower payment arrangement as it turns into a normal debt.
See the article above which goes into a lot more detail and has a template letter for a complaint.
AG says
Thanks for the reply Sara,
The loan is affordable under normal circumstances.
Re cancelling direct debits: the payment is a continuos card payment 😳
They said they will get back to me by the end of the week, however the payment is due on Friday.
Sara (Debt Camel) says
You need to tell Bamboo you want the payment cancelled or it will leave you with not enough for the essentials AND tell your bank today that you want the CPA cancelled. Hopefully Bamboo will agree to suspend payments, but get yourself safe in case they don’t.
Stuart Harper says
Hi Sara.
I have an affordability / irresponsible lending complaint myself and guarantor have both complained my question is they have asked for statements but my account is a joint account which shows money from my ex partner coming and going into the account how should I handle this situation pls .
your help is much appreciated.
Sara (Debt Camel) says
Send the bank statements for the joint account.
robin hutchinson says
Hi Sara,
After accepting amigos offer and decidi g not to pursue loan one I got a response.
They said the refund on loans 3,4,5 left me with a balance of £209 to pay which seemed reasonable.
I’m however Confused still because they refunded my gaurentor on loans 2 and 6 but now they arnt refunding my gaurentor on the other loans. I’m not sure but I think my gaurentor will pursue the mo ey back, am I due a nasty shock and have amigo made a mistake?
What should I do now? My instinct is to question it and get things correct, as said previously wasn’t fair for my gaurentor to pay so much. I know they likely pursue it so I feel it would be better to avoid that just tell amigo and start repaying?
Any advice?
Robin
Sara (Debt Camel) says
I suggest you worry in future about that. If you are happy with the offer, set a payment arrangement to repay the £209.
If your guarantor wants to put in a complaint, then Amigo can tackle that. In the meanwhile you try to get yourself a bit more sorted.
Becky lewis says
I have just sent the copy that you set up to amigo. Upon looking at my bank statements that I sent them during the loan application they clearly have payday loans and debts on there being paid is this likely to help me claim back I’ve had 3 loan top ups in total and have probably paid about 20,000 in interstate over 4 years.
Sara (Debt Camel) says
It’s not that you shouldn’t be able to get a guarantor loan if you had other debts incuding payday loans. What FOS tends to say is that because of your debts the lender should make sure the loan really is affordable.
3 loan top-ups suggests that Amigo wasn’t checking things very carefully!
Edward says
Hi Sarah,
I received the message today from amigo with the Questions
Were you aware at the time you applied for the loan that you wouldn’t be able to afford to repay It?
Why do you believe your loan was unaffordable?
The income stated at the time we paid out this loan you received £1,430.00, was this correct?
The expenditure stated at the time we paid out this loan was £604.04, was this correct?
Do I have to answer these and what is the best answers to give.
I lied about my expenditure bit has I give low estimates and said my wife payed lots of the bills, even know she was on benifits at the time
Sara (Debt Camel) says
have you sent Amigo your bank statements?
Edward says
Yes sent them 2 weeks ago
Sara (Debt Camel) says
Then the best thing may be to ignore their specific questions – they are just trying to make you feel guilty adn ignore the fact that the lender has the regulatory duty to check the loan is affordable – and just reply that you have sent them your bank statements so they can see your full situation.
Hollie says
Hi Sarah
Could you please give me some advice. I have put an affordability claim in against amigo. They have emailed me tonight to say I will have my final response tomorrow. But they have not requested any bank statements or asked me any further questions? I’m confused as I thought this was standard procedure?
Many thanks
Sara (Debt Camel) says
when did you take the amigo loan(s)?
Hollie says
February 2017. It just worries be the lack of interest they have in my circumstances. I’m currently on a reduced payment as I’m a single parent on benefits. My usual payment is £296 a month and I’m currently paying £99
Sara (Debt Camel) says
My impression is (and I can’t be sure it is right) that for a period they often asked for statements but now they don’t as much.
I still encourage people to send statements as they are excellent evidence that supports your claim that your loan was unaffordable. But at this point, best just wait until you find what their response is.
K says
Im still waiting for amigo to respond to the ombudsman about my claim which the ombudsman upheld. They are meant to reply by friday but with everything going on it might be a bit longer wait.
But, my next payment is due the friday after…for anyone struggling, because of the update last night, amigo are…if you’re calling & tell them you are out of work which i am as off 11pm last night, they’re giving you a 30 day grace period.
Im hoping my complaint is sorted before then but ive had email confirmation & its updated when i login that instead of my next payment being due april 3rd its now not due until may 3rd.
Hope this helps some people
Marl says
amigo has text my son to say that from his next payment, 26th March He has 3 months payment holiday, and added on to the end of his loan term. His next payment is due in June and they have stated that it may be the fact that one more month of a payment holiday may be required, but will review this at a later date. Amigo is not answering the phones, we think they are working from home.
My son put. Due to the governments legislation regarding 3 months payment holiday for mortgages loans, payday lenders and guarantor loans, because of the corona virus, and working 2 days a week, as is my guarantor, I now claim my 3 months payment holiday, and my 3 payments to be added on to the term of my loan.
Thought this may be useful, as peeps having real trouble with amigo.
Laura loomes says
Amigos won’t even let me have a 3 months holiday I phoned them today and they have basically said if I can’t pay the amount they want they will go after my guarantor but he can’t help cause he is self employed and now out of work due to this virus. I haven’t got a dd set up but got my card saved on my amigos account so they can take it that way but if they do I’m left with no money
Sara (Debt Camel) says
So get yourself in a safe position by cancelling the Amigo DD with your bank. And your guarantor needs to do the same. In this emergency, the most important thing is that you have money for food and your rent and essentials. As Amigo are being unhelpful, you can sort them out later.
And then also think if you can complain the loans was always unaffordable. If you win this complaint (and the ombudsman is upholding 90% of these complaints at the moment because of Amigo’s poor checking!) then interest is removed from the loan, your guarantor is released and they have to accept a low payment, even £1 a month, if that’s what you can afford.
And your guarantor may be able to make a similar complaint – a lot of self-employed people would find it hard to be able to afford to pay someone else’s Amigo loan every month… A template letter for a guarantor to complain is here: https://debtcamel.co.uk/amigo-complaints-by-guarantor/. If he wins his complaint, he is released as guarantor.
Laura says
I can’t get my card details of there system they done it to me last month I was a couple of days late in paying so they used my card details that they have stored. I could afford the repayments when I first took out loan and my guarantor was working but he has had to stop because he is a carpenter and due to this Coronavirus he has had to stop
Sara (Debt Camel) says
You & your guarantor should delete the Direct Debits with your banks, then Amigo can’t take the money,
Kitty says
How did he manage to get this? I have asked them to do this for me but they will not budge- they have only let me defer the payment for one month?
Sharon says
Hi, I sent email like your son’s to Amigo last week and they haven’t replied. My loan was due today and they have sent text to me and my Guarantor, she is laid off and can’t afford to pay it either. I emailed again today but they still haven’t responded. Impossible to try phone them and when I last phoned them they were very abrupt and not helpful at all. I currently have affordability complaint against them with FOS but I know this might take some time. They are causing unnecessary stress to both myself and my guarantor. Who did your son address the email to at Amigo? Was it just complaints?
St123 says
Hello, today is currently the last day for amigo to send me there decision. I have emailed today on the back of last weeks email where amigo stated they will update me by the 24th March.
If they dont respond today with a decision, do i go straight to the fos tomorrow?
I first took out a £2500 loan, was allowed to top up 4 times and ended up with £7500 loan. Amongst a mess of multiple pay day lenders i kept reborrowing from.
Have many people won complaints to amigo?
Thank
E says
Amigo have stopped lending to anyone except for key workers or applications made under extenuating circumstances. A lot of lenders are doing this to focus their operational teams on their existing customers, I suspect some of the complaints team will have been redeployed to manage the influx of calls from people that have had a change in circumstances due to the current climate – in short, I think we’re all in for a longer wait, but to be expected in these unprecedented times.
Dean says
Hi Sara,
I have a affordability complaint with amigo and there 8 weeks was up yesterday I sent them bank statements also. Shall I email them or go straight to the FOS?
Many thanks
Dean
Sara (Debt Camel) says
I suggest sending it straight to FOS. It won’t be looked at for a while but get in the queue!
Hollie says
St123 following as your story is exactly the same as mine and waiting for a response today
St123 says
Hi hollie, i just called them. Couldn’t get put through to complaints but the lady i spoke to said she would email them directly to call/email me.
I said FOS will be contacted if i dont get a response. Hopefully get an update and decision!
St123 says
Hi Hollie,
They emailed saying they need another 4 weeks to look in too my case.
Emailed last night to the FOS. Will let you know how it goes.
Hollie says
Briliant. Yes let m know. Good luck
Gemma says
I was on 12 weeks as of Monday! No holding letter no nothing. Did online fos at 8 weeks! Think we’re in for the long run on this!
Hollie says
Hi St123
I called and eventually got through! They told me another 4 weeks. Do you think I should go straight to ombudsman?
St123 says
Hi Hollie,
I got another response today from Amigo saying sorry it will take more time.
I have now raised it to the FOS. I will keep in touch to let you know what the outcome of this is/any updates
Thanks
Maria says
Hi all
I Finally got my data today for the second time the first l could not open the CD and now they have emailed everything to me in in 7 attachments in ZIP format but cannot open any of them and get the message “windows cannot complete the extraction. The destination file could not be created”. Can anyone assist as to how l open the ZIP format. Coincidentally 8 weeks end today.
Jen says
Download the app WinZip, this can extract the file for you
Maria says
My 8 weeks with Amigo are up today and l have not had a decision on my complaint from them. How do l send my complaint to the Ombudsman service? please
Sara (Debt Camel) says
there is a section in the article above on how to do this. I recommend FOS’s online form.
Ben B says
Talking to my brother today he said he should have been removed as the guarantor for my loan, looking at my account under the section of About your Loan it doesn’t say anything about James being my guarantor anymore, interesting. I am in arrears and not working I can pay the arrears today but if its just me and I got a complaint with FOS they can’t take me to court right?
Sara (Debt Camel) says
It sounds a bit odd your brother being removed as guarantor, but if he says that and that’s what it looks like on the amigo website, then that’s great news for you.
Yes, if you have a complaint in, they can’t take you to court. If you aren’t working, can you really afford to pay anything?
Ben B says
Since I’m only on universal credit I wouldn’t be able to afford no, I should receive that £1000 I am owed today but if he has been removed as guarantor then there are some things I need (had to sell my TV recently and my phone)
Also looking at my credit report recently I had 2 accounts with Santander (one a bank Acct and a credit card) when I got fired from them 4 years ago I owed them a combined amount of £4000 but now that says they are closed, and HSBC informed me recently that I am not liable for my credit card I used to have, if this is correct that my total debt is a lot less now and far more manageable.
Ben B says
This is odd, I got a reply back from Amigo informing me that James is still my guarantor, why then I wonder does he believe otherwise and on my account it doesn’t state he is guarantor like it to used to.
Sara (Debt Camel) says
I think you need to ask him!
Ben B says
I think I understand now. As he is in the midst of setting up an Iva then once it starts Amigo can’t chase him as long as it’s running.
Bit of pressure removed.
Sara (Debt Camel) says
ah yes. He needs to make sure that his IVA firm lists the Amigo debt in his IVA – it should be in there but as he isn’t paying it at the moment, sometimes it can get forgotten.
yes all the pressure is now off you if they can’t chase him. This is not just a normal unsecured debt – you can out it into a debt management plan if you have other problem debts or even look at insolvency yourself.
Colin says
Hi Sara
I have been reading closely about your advice about Amigo loans. I have a loan with them, in fact I topped up the loan 2 years ago they used some of my new loan to pay the first one then gave me the balance which I pay £256 a month and I’m starting to struggle. Do I just complain about the existing loan since the first one is now paid up. Thanks in advance. Colin
Sara (Debt Camel) says
You can complain about loans that have been settled, not just those outstanding.
So it depends if the first loan was “unaffordable”. If it was pretty small and you paid it without any problems then it may have been affordable. But if repaying the first one led to a worsening debt situation – which it may well have done as you needed to take that top up loan – then complain about both of them.
Colin says
Just to clarify Sara am I right in saying that the title to the email I sent Amigo loan should read as SAR AND COMPLAINT BY BORROWER. Is this correct. Thank you in advance
Sara (Debt Camel) says
That looks ok – it’s good to get the word complaint in there.
Ann says
Hi so this morning I had a notification that my clear score credit check will change as an account will removed from my next report. It’s my currently Acctive amigo loan I’ve complained about. My other four show as closed and the account number is deffo the current one.
I sent my check Complaint on March 7th. Had the email asking me to confirm details which I acknowledged but sent bank statements. They only asked about my 2015,16 and 17 loans not the few before.
Has anyone else had them remove it from credit file early? I’ve no defaults with them, but everything else has defaulted.
Sara (Debt Camel) says
I suggest you don’t get hopeful. This has happened to other people and it doesn’t seem to be an early warning that your complaint is being upheld.
Ann says
Ok 👌 many thanks 🙏 shall wait and see
frogman says
Hi Sara, Amigo’s 8 weeks ran out yesterday, please see below email from them. Whats the procedure for lodging complaint with FOS please?
We write further to our recent correspondence to let you know that we are continuing with our investigation into your concerns. As we are currently carrying out a high number of investigations, we have been unable to issue our final response to you. We apologise for the delay and we will write to you again when we have the results of our investigation into your complaint. We anticipate, based on our current volumes, to be able to respond to your complaint in the next four weeks. However, we will endeavor to respond sooner. If you are dissatisfied with our progress you have the right to refer your complaint, free of charge, to the Financial Ombudsman Service.
Sara (Debt Camel) says
Follow the If the lender rejects your complaint, go to the Ombudsman section in the article above and say that Amigoi have not given you a Final Response at 8 weeks but have told you you can go to FOS.
Maria says
Hi Sara,
I submitted my complaint on the 29th January 2020 and received an email from Amigo yesterday:-
“I’m writing to confirm that we are still investigating the complaint you have raised. This is due to your complaint requiring a more detailed investigation or because we haven’t been able to pick it up as quickly as we had hoped. However, your complaint is important to us and I’d like to assure you that we will be responding to your concerns as soon as possible. Thank you for your patience. We will write again as soon as possible, and at the latest, within 8 weeks of the date we received your complaint”
I calculated eight weeks was yesterday – should l send to Ombudsman and if so do l also send the bank statement sent to Amigo.
Sorry to bombard you with questions
Maria says
Hi Sarah
I have since received another email saying “We write further to our recent correspondence to let you know that we are continuing with our investigation into your concerns. As we are currently carrying out a high number of investigations, we have been unable to issue our final response to you. We apologise for the delay and we will write to you again when we have the results of our investigation into your complaint. We anticipate, based on our current volumes, to be able to respond to your complaint in the next four weeks. However, we will endeavor to respond sooner.”
which l think is routine for Amigo now.
Sara (Debt Camel) says
yes I suggest you send this to FOS now. Attach the bank statements you sent to Amigo.
robin hutchinson says
Hi Sara,
If you have any further advice or guidance I would massively appreciate it as the situation is incredibly stressful for me at the moment. It’s the not knowing on what might happen and I just want it over and I want some clarity.
As you know amigo chose to refund me the interest leaving me a balance but they havnt refunded my gaurentor as they did with loans 2 and 6. Even though my gaurentor paid 80percent of the payments on loans 3,4,5.
I took your advice and I set up a payment plan and focused on myself. However my gaurentor isn’t happy with the result and is asking me for further info and also intends to complain.
I have no power over what has happened, I still agree that the correct thing is for amigo to refund the gaurentor.
What is the likely resolution here if my gaurentor complains? I reckon I can clear my amigo balance in 4-6months and I don’t want to find a larger balance has arisen. I’d rather know now I stead of finding I’m in further debt.
Should I communicate this to amigo and my adjudicator? I spoke with my adjudicator after the offer and they said amigo should refund the gaurentor if they paid.
Any advice appreciated as always, especially in the trying stressful time.
Rob
Sara (Debt Camel) says
I agree that your guarantor should be refunded. I don’t know why Amigo are making such a hash of your sorting your case out. You may be left with a much bigger debt – that’s why before I suggested that you might want to consider bankruptcy.
But you have said your situation is now better. Can I suggest you talk to National Debtline on 0808 808 4000 and explain your current Amigo debt, and how much this might go up to if/when your guarantor is refunded, and all your other debts too.
robin hutchinson says
Thank you, I will do 👍. I shall make that call today
Should I raise theses concerns to amigo and the adjudicator as it seems off.
I might also just pass the details over the my gaurentor so that the communication is direct and they have a clear picture is this a good idea?
Sara (Debt Camel) says
I suggest getting a plan for your own finances first.
robin hutchinson says
Okay 👍 will work on that
Thank you
Kitty says
Hi Sara
Ok so after reading through this website and posting the other day I have finally submitted my affordability complaint! I had asked them for a three month payment break which they have refused.
I know the amounts are extremely high but was so desperate I didn’t have a choice and unfortunately I don’t have family members I can ask for help- hence why I went down the guarantor root- something I wish I never did!!
I looked back through paperwork and I have actually had four loans with them-
Loan 1- £6250 (13 payments at £247)
Loan 2- £8750 (4 payments at £345.84)
Loan 3- £10000 (6 payments at £487)
Loan 4- £15000 (8 payments to date at £592)
As you can see from the last three loans there is not a lot of payments between each- as top ups were so easy!
When I logged on yesterday it said I could top up in July 2023- today I logged on and it’s now saying I cannot borrow more money from amigo?
How do I work our what has been paid etc? Interest?
Just so done with this loan ruling my life-
I suffer with anxiety and depression and I have informed them of this- I also can not talk on the phone as anything to do with money sends me into panic attack- it’s a horrible feeling to have when trying to sort anything with finances!!
Hopefully I can beat them as the stress/anxiety of this loan is completely ruling my life!
Sara (Debt Camel) says
who is your guarantor? Could they really manage those huge monthly repayments?
Do you know how much you received in cash from each of the three top ups?
What are the rest of your finances like at the moment, do you have other debts as well?
Kitty says
Hi Sara ok so Loan one £6250 (13 payments at £247.03) July 17
And these were the top up loans-
Loan two £2500 (4 payments of £345.84) Aug 18 – (loan total £8750)
Loan three £1289 (6 payments of £487) Jan 19
(Loan total £10,000)
Loan four £5608.96 (8 payments to date at £592) June 19 (loan total £15000)
Total owing now is £16000!!!
These really aren’t affordable for my guarantor- yes she owns her a house- but realistically not affordable for her!
Rest of my finances are a mess as always making sure I have enough to pay this loan as don’t want my guarantor to have to pay!
Sara (Debt Camel) says
so loan 2 you received £2500 in cash? Then 8750 – 2550 = 6250 settled the first loan … but that looks surprisingly high as it suggest your 13 monthly payments hadn’t cleared any capital at all? Can you check the numbers?
Kitty says
Hi Sara
First year you literally pay interest-
I have checked all of the loans and on the statements you can literally see you make a payment and then the interest is added which completely wipes out you payment-
My latest loan was for a top up of £5608 bringing my total to £15k- my balance after making 8 payments is now £16333!!!
Sara (Debt Camel) says
I have done a lot of these calculations now and it is very unusual for someone to have paid off NO capital at all in the first year…
So I have said that I am not sure your figures are right, but if they are:
loan 1 – interest paid £3211
loan 2 – interest paid £1341
loan 3 – interest paid £2314
loan 4 you still need to repay £10,264 to have paid what you borrowed. if you get a refund an all the previous loans, the balance would be reduced to £3398.
Sara (Debt Camel) says
if the payments are not affordable for your guarantor, can you ask her to to complain? If she can be removed as guarantor, then all the pressure is off you – the loan turns into a normal loan and you can set up an affordable payment arrangement.
There is a different template letter for complaints by guarantor here: https://debtcamel.co.uk/amigo-complaints-by-guarantor/
Kitty says
Hi Sara
Just gone through my statement for the £15k one- between June and now the interest payments that have been added come to £4890.39! Payments made are £4736 so as you can see I’m literally paying the interest at present!
frogman says
Please has anyone experienced this ? over 8 weeks now and no SAR from Amigo yet.
Sara (Debt Camel) says
most people don’t have this problem!
Amanda says
Hi,
I wish I’d seen this earlier however, I’ve made my affordability complaint which Amigo Loans acknowledged as from the 28th February 2020 therefore they have until 24th April 2020 to make a decision… I’ve had two loans, one in 2014 and a top up in 2017 (they did not do any of the appropriate checks at the top up point) I’ve only borrowed £3000 approx and they say I owe &10000! I’ve worked out 29 payments of £395!!! paid thus far equates to a hell of a lot more! My guarantor is also making a complaint next week… I’ve moved my payment from the 1st April to the 20th to try and not pay within their timeframe to give me a decision and allow myself a small breather! I’ve used all the templates, revived my SAR last week, had two emails asking me questions and after referring to here I responded saying all financial details are supplied via my bank details. Yesterday I received an email saying they are looking further into my complaint but will endeavour to complete within timescale….. I will update you all as tome goes by but thank you for this site, the updates via subscription and to everyone else for sharing their experiences!
X
Danny says
Hi Sara, can I still do something about my loan as my guarantor was accepted but they had a really bad credit?
Sara (Debt Camel) says
Do you think your guarantor could have afforded to make all the payments to the loan?
And how affordable is it for you?
Gary G says
I submitted my complaint to the FOS on Thursday as Amigo never replied, I’m suffering with anxiety due to other debts I have that were caused by borrowing off payday lenders etc to pay Amigo. Is there any way of getting the FOS to look at my case as priority? Also how soon are people getting responses from the FOS? Thank you
Sara (Debt Camel) says
Are you making payments to the other debts?
Gary G says
No I am unable to at the moment, I’m praying my claim against amigo is successful so I can use it to pay my debt
Sara (Debt Camel) says
what is your guarantor’s financial position?
Gary g says
They are in the process of going bankrupt
Sara (Debt Camel) says
If they are definitely going bankrupt, then their liability for this Amigo loan will be wiped out.
So if they now cancel their DD to Amigo, you can just treat this as a normal unsecured loan and put it and all your other debts into a debt management plan with StepChange, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx.
Then you just make a single affordable payment a month to StepChange, no stress. If later you win your Amigo case, that will help to repay debts and end your DMP much sooner.
Gemma says
Been on hold for 1 hour 30 minutes to amigo there customer service team are horrible they don’t want to help and are nothing but rude they want closing down!!!!