UPDATE
In May 2022 the Amigo second Scheme was approved by the court. In November the deadline for making a claim to the Scheme passed. See Amigo’s Scheme for details.
With a current loan, you have three options once you have made a claim:
- you can carry on paying it if it is affordable.
- if you have paid more to this last loan than you borrowed, you can ask Amigo to let you pause paying until your claim is decided, see Equitable Set Off which describes how this works and the pros and cons.
- if you haven’t paid that much, you can talk to your guarantor and just stop paying Amigo, This article looks the pros and cons of doing this.
This article applies to people who have made a claim to the new Scheme.
Amigo says you still legally have to pay
Amigo says you have to continue your loan repayments.
The only exception is where they are offering to let some borrowers pause payments if they have paid more than they borrowed on the current loan, see Amigo’s Equitable set off for details about how this works.
It is correct that your loan still legally exists. But as you have made a claim, Amigo may owe you some money…
If your complaint is upheld, the interest would be removed from the current loan and any refunds from previous loans would reduce your balance. And a guarantor will be released from any liability if the borrower’s complaint or their complaint is upheld.
So in that case you may owe Amigo nothing.
Your duty to pay the loan is NOT more important than your right to have your claim assessed. Amigo is just trying to bluff you into paying.
Many people can’t afford the payments
This isn’t a temporary situation that will be sorted out in a few weeks. It is very unlikely your complaint will be decided in less than six months and it could nearly a year.
So you have to decide if it is even possible for you to struggle on that long.
Borrowing more from family or getting behind with important bills is a disaster.
It is also a big problem if you can only pay Amigo by not paying some other debt. If you stop paying Amigo and win your complaint, all negative marks on your Amigo credit record will be removed. But if you stop paying other loans and credit cards in order to pay Amigo, when you win your Amigo case you will still be left with a wrecked credit record.
And there is no reason why you should pay Amigo, or why your guarantor should be asked to pay, when they are refusing to look at your complaint.
What happens if you stop paying Amigo?
How to stop paying Amigo
A borrower needs to cancel their direct debit to Amigo. And you also need to explain to your guarantor why you are doing this and why they too should not pay Amigo.
A guarantor needs to cancel the direct debit and also phone up their bank to cancel the Continuous Payment Authority (CPA) Amigo has over their debit card. They should do this even if their debit card has been replaced with one with a different number.
Some banks are saying Amigo may reinstate the CPA. Point out to the bank that the FCA says Continuous payment authorities: it is your right to cancel and that if a payment is taken, the bank will have to refund it.
Both borrower and guarantor should tell Amigo (email hello@amigoloans.co.uk ) that they are stopping paying and will not restart until their claim is decided in the Scheme.
What happens to your credit record?
If a borrower stops paying, they will get missed payments and later a default showing on their credit record.
When you have had other recent credit record problems, one more may make little difference. And if the complaint is later won, these negative marks will be deleted.
A guarantor’s credit record is not harmed if they refuse to pay because the Amigo loan does not show on there.
Amigo won’t take anyone to court during the Scheme before their claim is decided
If you stop paying you may get emails and texts from Amigo saying you have to pay and making threatening noises about taking you to court.
Here is a typical one that was sent in 2021:
As there is no resolution in place, soon you may be issued 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. In Court, an order for the full balance will be sought. A CCJ may be issued against you and your guarantor.
Amigo worded that very carefully so most people will think it sounds very threatening. But look at the words they used:
- They MAY issue you an LBA. They aren’t saying they WILL. I may win the lottery next week, but I probably won’t!
- A court claim will be CONSIDERED. Again they aren’t saying this WILL happen. I will consider running a marathon next month, but my decision is going to be that I won’t.
- In 2021, I don’t remember Amigo taking any customer to court where they have an open complaint. The threats then appeared to be empty.
And Amigo has said it will not be going to court during the Scheme where someone has a claim that hasn’t been decided.
Summary – the pros and cons of stopping paying Amigo
Pros:
- not paying Amigo may let you pay your bills, other debts, feed the family and not get deeper into debt elsewhere.
Cons:
- your guarantor will be asked to pay and will also have to refuse to do this;
- a borrower’s credit record will be harmed, but this will be repaired if you win your complaint. A guarantor’s credit record is not harmed;
- you will get emails and texts from Amigo saying you have to pay and making threatening noises about taking you to court. These are empty threats but unpleasant to get.
- if you lose your claim, then you will have to then restart paying. But you will be in a better position to do that if you haven’t got rent, energy bill or council tax arrears.
Some people simply have no practical alternative – they can’t pay.
But if you aren’t sure what to do, talk to National Debtline on 0808 808 4000 about this Amigo loan, your claim and the rest of your financial situation.
Gabor says
Hi,
I made a complaint last year April at financial ombudsman. Now I got an email from them that they are not investigating, because Amigo Loan wouldn’t pay compensation anyway. My problem with this, that Amigo loan ignored every evidence that the borrower wasn’t affordable for the loan I sent for my complaint and refused it (in August last year) and carry on collect the money from me. 3 years still left, so because the ombudsman don`t do nothing, I have to carry on pay. It is any possibility to stop this unfair process und stop Amigo Loan to collect my money? I understand they wouldn’t pay compensation, but at least stop them to collect the money from me.
Regards,
Gabor
Sara (Debt Camel) says
It is indeed highly unfair. Amigo says you owe them money, you are disputing that because you say the loan should never have been given. You have the right to have your complaint decided – if you win you will not owe them any money. Every month you may them will be money you will get back little or nothing of in a Scheme or administration so you are effectively throwing that money way.
You don’t have to carry on paying. You can immediately stop paying by cancel your direct debit and phone your bank and tell them you want to cancel the continuous Payment Authority over your debt card.
This will not harm your credit record as you are a guarantor – the Amigo loan does not appear on there.
Amigo will huff and puff and may well threaten court action. See above for “are they likely to go to court?”
Most customers don’t understand this and can be frightened by their threats – so Amigo pockets more money it should never get :(
If the payments are actually affordable for you, you could just put them into a savings account each month – then if the worst happens and you lose the complaint next year sometime and do have start paying, you can simply pay the arrears.
Also you can make a complaint to the FCA, not about Amigo but about the way the FCA is allowing Amigo to do this by giving Amigo an “informal moratorium” on paying refunds. See the article above for more about this.
Gabor says
Thank you for the advices.
If I stop to pay, and in worse case later FCA refuse my complaint, During this time the Amigo Loan carry on calculate the interest? Because after the FCA’s last message I don’t know that I can trust in FCA anymore.
Until the FCA don’t make decision about my complaint, Amigo Loan can not go to court? And final question, should I contact Amigo Loan and tell them about it? Because sooner I didn’t contact them that I made complaint on FCA.
Thanks,
Gabor
Sara (Debt Camel) says
Hi Gabor,
the interest Amigo adds onto a loan is “capped” at what they quoted at the start, so although they will carry on adding interest, if you lose the complaint you will not in the end pay more than you would have if you had carried on making the monthly payments.
Because after the FCA’s last message I don’t know that I can trust in FCA anymore.
This can be confusing, but the message you had yesterday was from FOS, the Ombudsman. Not the FCA who is Amigo’s regulator. It is the FCA who made the decision to let Amigo “have a moratorium” on paying refunds. So you would be complaint about this FCA decision, not FOS.
Until the FCA don’t make decision about my complaint, Amigo Loan can not go to court?
Amigo should not go to court where a debt is in dispute as the Article above says. I have not seen Amigo take anyone to court while there is an open complaint for more than a year. They threaten to do it but these seem just empty threats, they do not actually do this. And going to court is a VERY slow process if you defend the claim. Your complaint would be decided before the court case finished.
final question, should I contact Amigo Loan and tell them about it?
If you decide to stop paying, you should cancel the Direct Debit and CPA with your bank. I suggest you tell Amigo you will not be paying until your complaint is decided in any new Scheme they come with.
Because sooner I didn’t contact them that I made complaint on FCA.
I am not sure what you are saying here.
To be clear, you have two possible things to do:
1) decide to stop paying Amigo
2) make a complaint to the FCA about them allowing Amigo this “informal moratorium”.
You can decide to do both of them, or just one of them, or not do either.
Gabor says
Sorry, I put FCA instead of FOS. I made complaint with FOS against Amigo Loan. And i meant, that should I contact Amigo Loan to tell them, that I stop to pay until the complaint is in progress with the FOS? And I didn’t tell sooner to Amigo Loan that I made the complaint with FOS.
I cancelled the Direct Debit, but my bank said that Amigo Loan still can collect money, but HSBC bank will do investigation and challenge back the money. So it would be better to close down my account and open another one and not to tell to Amigo Loan? When the loan was defaulted after the borrower reported bankruptcy, it was the Direct Debit put on my account.
Thank You
Sara (Debt Camel) says
should I contact Amigo Loan to tell them, that I stop to pay until the complaint is in progress with the FOS?
I think it’s a good idea, so they know why you are stopping paying. Also say you have cancelled the Direct Debit and the Continous Payment Authority and you do not want Amigo to try to reinstate the CPA and collect the money, you are withdrawing your authorisation for that.
If you tell your bank you want a CPA cancelled they have to do it. See https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel.
But if HSBC are suggesting you change account, then it’s up to you if you want to do this.
Gabor Toth says
Hi Sara,
Amigo Loan took the money from my account again, I called the bank and explained them that I have legal right to cancel CPA, they said they will take it back but until it is pending they can’t (Still waiting for it).
I sent Amigo Loan a letter, they answered me.
“would result in the account entering arrears which could result in Late Payment Markers being reported to the borrowers credit file and a Default Notice being issued”
As the borrower already defaulted one and a half year ago, does this mean that they can make anything in my credit report?
“In addition, if Amigo has no option but to enter insolvency, this does not mean that our customers are no longer liable for the debt. The administrator would have a legal responsibility to recover outstanding debts from our customers.”
Does this mean, that they can take money from me anyway, doesn’t matter that I cancelled CPA on my bank account?
I made complaint last year January on Amigo Loans, and in last year April I sent to FOS my complaint. I could have stopped to pay the loan when I sent my complaint to FOS? I believed that FOS will make decision quicker and I could get back my money, so just curious that I could save the money that I paid for more than a year long?
Thanks, Gabor
Sara (Debt Camel) says
So to be clear, you cancelled the CPA with your bank and Amigo still took money from it?
they said they will take it back but until it is pending they can’t
what do they mean by “pending”?
Send your bank a complaint that you cancelled the CPA on dd/mm/yy and they should not have allowed Amigo to take the money. Encl;ose a link to this https://www.fca.org.uk/news/news-stories/continuous-payment-authorities-it-your-right-cancel. Ask for it to be refunded to you as soon as possible as you are in financial difficulty and it is the bank’s fault.
As the borrower already defaulted one and a half year ago, does this mean that they can make anything in my credit report?
No, the Amigo loan does not show on your credit report. the only way your credit score can be harmed is if Amigo goes to court for a CCJ, which they aren’t doing (despite threats) see the article above,
Does this mean, that they can take money from me anyway, doesn’t matter that I cancelled CPA on my bank account?
No, the administrators would have no right to take money from your bank account if you have cancelled the CPA to Amigo.
It simply means the loan does not vanish if Amigo goes bust – you can make a claim to the administrators and they will decide it – administrators normally try to follow what FOS would have done.
so just curious that I could save the money that I paid for more than a year long?
yes :(
Dean C says
Brilliant Sara, good to see all the information in one place for everybody so that they can make an informed decision.
I hope that the FCA comes to its senses and ensures that borrower / guarantor rights are equal to those of Amigo Loans as a lender, when it comes to demands to make repayments that may not even be owed if claims are won against the lender.
NR says
Do you think that the FOS are happy for these complaints to go away because of the backlog and being grossly understaffed?
16 months wait is unacceptable and fear that they are waiting for others such as TFS to follow so those can be rebuffed!
Sara (Debt Camel) says
No, my guess is that FOS are pretty cross at having their hands tied!
Lucy says
Thankyou for this Sara.
I have been wondering what to do , I borrowed £3000 August 2018 , and have been paying £124. monthly, with still another 12 months to go.
I put in my complaint months ago , Amigo rejected so went to FOS. I had the recent email from them so kind of gave up and thought for a quiet life I would continue with the instalments, although they are crippling me.
I have now decided to stop the direct debit , I’ve emailed Amigo, and told my Guarantor to do the same . I’m not going to let them grind me down !
Sara (Debt Camel) says
Make sure your guarantor phones their bank to cancel the continuous payment authority over their debit card.
Lucy says
Will do, thanks again 👍
Annie says
Thank you for the helpful information. What is the position if the person who took the loan out has entered into an IVA agreement and the guarantor has cancelled the reoccurring payment. Despite the IVA can the guarantor who happens to be my relative be taken to courts whilst her complaint Is being processed or after it is resolved. As the person who is in the IVA is now paying through the scheme as far as I’m aware, can they make demands on the guarantor as well?
Sara (Debt Camel) says
Has the guarantor made a complaint that the loan was not affordable for them? Or for the borrower?
Do you know if the borrower has made an affordability complaint to Amigo? Being in an IVA, it won’t do them any good – their IVA repayments will just continue – but it could really help the guarantor.
PM says
My father who is the guarantor is worried that Amigo can get a charge over his house as he had to send them details about it? He isn’t well off.
Sara (Debt Camel) says
Amigo can only get a charge over a guarantor’s house if they first take the guarantor to court to get a CCJ.
As the article above says, Amigo aren’t taking people to court while there is an open complaint, with them or at the Ombudsman. They make threatening noises but don’t follow through.
The complaint could be from the borrower – I assume that is you – or by the guarantor. Or both.
You may have made a complaint the loan is unaffordable for you. If your father doesn’t have the income to make the loan payments then he too can complain that the loan isn;t affordable for him. This is a good idea as it gives him two ways to be released as guarantor – if he wins his complaint or the borrower wins their complaint.
Gabor says
Hi Sara,
I cabcelled direct debit on my account and today would be due the next payment. Still wasn’t taken so it looks good for now. I sent email to Amigo Loan telling not to pay until my case not decided by FOS.
My question is that: I am a guarantor of the loan but the borrower reported bankruptcy and last year January was the loan default. I am still guarantor and my credit record can not be harmed until waiting for decision and not paying?
Thank you,
Gabor
Sara (Debt Camel) says
I hope you have also phoned your bank and cancelled the Continuous Payment Authority that Amigo has over your debit card?
The Amigo loan does not show on your credit reports – have a look if you want to double-check this!
Not paying Amigo will therefore not harm your credit record.
The only way your credit record can be affected is if Amigo takes you to court for a CCJ – as the article above explains, they may threaten this but they aren’t doing it.
Has the borrower also made a complaint? If they do, it gives you two ways to be released as guarantor – if the borrower wins their complaint or if you win yours.
Linda says
Linda, hi can we still put in complaints at this time thankyou
Sara (Debt Camel) says
Yes you can. Amigo will not look at them and you cannot send them to FOS. And if a new Scheme is set up you may still need to make a claim in that…
But the main point in making a complaint now is if you need to stop paying them. Having a complaint in explains why you are not paying – because you have made an affordability complaint so you are disputing the debts.
The article above explains how to make a complaint at the moment – keep it very short.
Mark says
Hey – is there any circumstance at-all which the guarantors credit rating could be affected if stop paying? I understand the loan does not show on their credit record, but I assume if in the future if Amigo did ever decide to take action it could get to the point of affecting the guarantor too?
Sara (Debt Camel) says
Yes, if Amigo gets a CCJ against you, that will be added to your credit record. This isn’t going to happen if you have a complaint in until the complaint has been decided.
If you can afford to make the payments and just don’t want to waste the money, one option is to just put them in a savings account – then if ultimately you and the borrower both lose your complaints, you have the money to pay off the arrears to Amigo – then no court action.
Nicola says
Hi, I put a complaint in with amigo last year which wasn’t upheld and was then referred to the FOS. The FOS obviously haven’t looked into it yet.
Can I still stop repayments if Amigo didn’t uphold the original complaint?
Sara (Debt Camel) says
You will be able to make a claim to any new Scheme Amigo get approved or to the administrators if they go bust.
You can stop paying, as the article above says. You will need to get your guarantor to also cancel their direct debit and phone their bank and cancel their continuous payments authority over their debit card to Amigo.
You will get hassle from Amigo. Your credit record will be harmed – but the negative marks will be removed if you later win your case. Your guarantor will get hassled. Amigo may threaten both of you with being taken to court which, as the article above explains, is not going to happen until your claim has been decided.
Can you actually afford the repayments? If you can’t, then you probably don’t really have an option, your claim is not going to get looked at soon, you will be looking at 6-12 months payments…
If you can afford them but don’t want to waste the money as you consider you have a good claim, then you could just save up the money in a separate account? Then if the worst happens and you lose the claim in the end, you have the money sitting their waiting?
Nicola says
Hi Sara, thanks so much for your reply.
We can just about manage the payments because I make sure this is paid before anything else, my dad is my guarantor so I didn’t want him to be forced to make payments. We can’t afford anything beyond these payments though, things like the car MOT, unforeseen repairs, birthdays I end up having to borrow from family.
Sara (Debt Camel) says
things like the car MOT, unforeseen repairs, birthdays
that means you can’t afford them… can you manage to do this for another year?
It’s your choice. Your guarantor cannot be forced to pay if they cancel their direct debit and CPA to Amigo.
Nicola says
Thanks again! I spoke with my dad last night and we’re going ahead. He has changed banks since the loan was set up so he won’t have a problem with them taking any payments.
Your content on this website has been invaluable, you helped me to make a decision on how to to vote in the scheme proposal too. So, so grateful to you Sara
Emma says
I am in the fortunate position where I can pay my loan of this month in total, however with an open complaints case and all the issues around Amigo at the moment , I am unsure if this is the best way forward ?
I suppose the questions I really have are below. Any answers would be greatly appreciated.
1. Do i pay off the remainder of the balance and then seek a refund of interest paid etc IF Amigo going into admiration etc ?
2. Do i carry on making the monthly payments until something is resolved ?
Sara (Debt Camel) says
I assume you are a borrower not a guarantor?
Did you have other loans before this open one?
This current loan, how much did you borrow? How much have you paid to the loan so far – just the total of payments you have made, ignore whether Amigo has described them as interest or principal?
Emma says
I am the borrower yes , not this is the only one I took out with amigo .
I took out a £5,000 loan and have made payments totalling , 6,323.84 with 3,926.59 to settle ?
Thanks
Emma
Sara (Debt Camel) says
The advantage of settling now is if you lose your complaint about this loan, you will have saved a small amount in interest. It won’t be much as most of what you have been paying so far is interest and so there is a lot of the principal left to be repaid.
But if you win your complaint, in a future Scheme or in administration, you will be MUCH better off if you do not settle this now. This is because you gain more benefit from having a balance written off than you do by getting an interest refund.
A very simple example to show this…
Say you have a balance of £2000 and a refund is calculated at £3000. And assum you win your complaint about this last loan.
If you don’t settle it now. Your balance will be cleared leaving a refund of £1000 and you will then only get a small amount of that. In the first proposed Scheme, Amigo estimated customers may only be repaid 10% of the interest they paid – and I think that was too optimistic and it could have been 5% or less. So you might get back £100-£200 in cash. In administration the balance would still be cleared but you get nothing back in cash.
If instead you have settled the loan by paying £2000 now, then later your calculated refund would be say £5000. But in a Scheme you only get back £250-500 of this, and nothing in adminstration. Effectively you have thrown away most of the settlement amount.
(Obviously we don’t know what a new Scheme will look like but I think it would be unwise to assume it will be massively more generous than Scheme 1…)
In your position, one option would be to stop paying Amigo now. See the article above for how to do this. You need to explain to your guarantor why you are doing this, because it will potentially save you a lot of money but that you have the money ready to repay Amigo in full if you lose your claim. Your guarantor also has to stop paying.
Stopping paying will harm your credit record, but that will be cleaned if you win your claim in a Scheme or administration. It will NOT hurt your guarantor’s credit record – the Amigo loan does not show on their credit reports.
Amigo may threaten to take you to court. The article above explains why this is just trying to bluff you into paying and it isnt going to happen as you have an open complaint.
One final odd wrinkle in your case – it doesnt apply to most people as they can’t afford to settle the whole loan. If a new Scheme is set up OR if Amigo goes into administration, after that point you can “safely” settle the outstanding loan because if your complaint is later upheld you will get a refund IN FULL of all the payments you have made in the Scheme or administration. It is only the payments before the Scheme or administration that you are wasting, so you do not want to settle this early.
Sara (Debt Camel) says
a couple more points.
With at least one top up loan you may well have a good complaint. Many people took top up loans because the previous loan was making their finances harder.
It is in Amigo’s interest to drag things out at the moment. Every month more people are making loan repayments they will only ever get a tiny amount back from if their cases are upheld. I think the FCA should not be allowing this to happen.
Scott says
It’s frightening the advice being given to people on this site. Can see some people ending up in worse financial postions following the advice on the hoping you have a claim.
Sara (Debt Camel) says
Frightening?
It would of course be far better if Amigo responded to the complaints it has been sent and gave refunds, including paying out on FOS decisions.
But as Amigo is refusing to pay refunds, it is not reasonable that people with a potential right of set-off are pressured into making payments, which will leave them worse off if their complaint is later upheld by the administrators or in a new Scheme.
And stopping making payments when you have a complaint in administration or a Scheme is standard debt advice, see for example
https://www.stepchange.org/brighthouse.aspx which says “If you have both an outstanding debt and a complaint with Brighthouse, you should stop paying the debt until the complaint is resolved. This is so that any redress they get can be offset against your outstanding debt.”
Vanessa says
Hi , i have had an amigo loan since early 2017 i topped up arohnd 4 times in thr space of around 9 months taking my loan from 1,250 to 8,000 i current have around 4,800 outstanding and have paid back over 11,000 i have been paying reduced payment since January this year my normal payments are 342 and im paying 200 as it stands i entered stepchange dmp in may for my other debts and kept amigo seprate one been because of whats going on and didn’t want to risk putting it in my dmp as they said they can still take it from my guarantor im now sick of paying amigo money i know i won’t get back what should i do ? I’m not worried about my money i just worry about my guarantor getting the trouble. Sorry for the long post thanks va
Sara (Debt Camel) says
So many top ups in in such a short time suggests this may be a VERY strong complaint.
Also from those numbers it seems likely the balance would be cleared if you win you complaint in a new Scheme or in administration – so every payment you make from now on is effectively throwing away most of the money as you would get very little of it in a Scheme and probably nothing in administration.
I think you need to explain this to your guarantor and say you want to stop paying Amigo completely until your claim has been resolved.
(I am assuming you have already made a complaint? If you haven’t, email Amigo with one today, keep it short, just say your loans were unaffordable and Amigo failed to make proper checks so you would like a refund of the interest you have paid.)
Your guarantor will need to cancel their direct debit and also phone their bank and cancel Amigo’s continuous payment authority over their debit card. You can reassure your guarantor this will not affect their credit score as the Amigo loan doesn’t appear on their record.
And you can also explain as the article above says that Amigo is making empty threats when it says it MAY take a borrower or guarantor to court, because this isn’t going to happen as you have made a complaint and they have to resolve that first.
Vanessa Barker says
Thank you . Yes i complained to amigo in December they did email me in January to say they were still looking into my claim amd ive continued making payments since then. I have cancelled my direct debit and am i going to phone my bank to make sure they can’t take it . Have spoke to my guarantor just need them to cancel there’s. He said he has never given them direct debit details and his card is a new card since the loan started so surley they dont have any details for him? Thanks
Sara (Debt Camel) says
It is standard for Amigo to have either got a DD or a CPA or both for a guarantor. He needs to talk to his bank to make sure that they haven’t.
Vanessa Barker says
Hi again sara . All dd and cpa from mine and the guarantor have been cancelled now . Both received this text today
As there is no resolution in place, soon you may be issued 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. In Court, an order for the full balance will be sought. A CCJ may be issued against you and , where it will stay on both of your Credit Files for up to 6 years. If you’re in a position to do so, please arrange payment of the arrears. Call me on 012
Sara (Debt Camel) says
ok, let me know if you do get an LBA – I don’t think anyone has been sent one this year.
Vanessa Barker says
Hi again sara , i cancelled my dd woth amigo and sent them an email explain i wouldn’t be paying my loan until my complaint had been delt with they have emailed me today saying
we currently have a reduced payment arrangement in place with you of £200, which is less than the contractual payment of £342.20.
While the account is falling into arrears, which is reflected on your credit file, it is not falling behind as rapidly as it would be were there nil payment being made.
The main benefit of us coming to an arrangement with you is that while the payment arrangement is successful, we agree not to turn to your guarantor
If the arrangement does begin to fail, as we made you aware of when we set the plan, he will be asked to step in and pay the full arrears, which is currently £979.39 and will increase.
Should i worry or is this empty threats?thanks again
Sara (Debt Camel) says
I am sure they will ask your guarantor to pay – but your guarantor knows this and has either cancelled his DD and CPA or is sure Amigo cannot take money from him?
You have topped up a lot in a short space of time, so it is likely you do have a strong complaint. If you win the complaint it doesn’t matter how high the arrears get – your balance will reduced and may well be cleared.
Michelle Asling says
Hi
I am looking for some advice as to how to reply to this email from Amigo. I also include my initial email to them first.
I am writing to inform you that I wish to cancel my direct debit due to commence on 6th August 2021. The repayments are unaffordable.
I will commence repayments once my complaint has been considered by Amigo following the outcome from the Financial Ombudsman.
Thank you for your email and apologies for the delayed response.
Your account will continue as normal until a resolution of your complaint is reached through the Scheme. Unfortunately we are currently unable to advise any timeframes for this.
The loan terms and conditions remain as agreed with Amigo and repayments on your loan still need to be made. If you are currently experiencing financial difficulties and wish to discuss your repayments, please contact us on 01202
Any advice will be greatly appreciated
Michelle
Sara (Debt Camel) says
Have you cancelled the DD with your bank? You are TELLING amigo you are not paying, not asking their permission.
Also has your guarantor cancelled their DD and the Continuous Payment Authority over their debit card?
If you and your guarantor have cancelled everything, then you don’t need to do anything.
(As your email said, you want your claim to be considered – this may be by Amigo in a new Scheme, it may be by administrators if Amigo go under, it is unlikely (though theoretically possible) that it will be by FOS. But you don’t need to tell Amigo this – your email was clear that you wont be paying until your claim is resolved.)
Michelle ASLING says
Hi and thank you for such a quick response. My guarantor was refunded all their payments last year and is no longer on the loan (thanks to your website 🙂) I will check the continous payment authority with my bank but I don’t think they have my card details. Just to say I love your website.
Dino Andreas says
Sara
I emailed Amigo yesterday with an affordability claim using your template.
I have advised them that I am very confident of winning my claim against them and I am strongly considering stopping my payments to them based on the information on your site and what other Amigo customers are doing.
I do believe Amigo are stalling with details of any new scheme so that can claw in as much money as possible. I just don’t want to be in a position where I am eventually successful in my claim and receive 5-10p in the pound as a redress. I am currently paying £245 per month and have until Oct 2022 when the loan is paid off. This was a top up loan.
I just need your advice regarding stopping paying. I am aware that many Amigo customers have stopped paying until their complaints are addressed and this does make sense.
Incidentally, I only sent the email to Amigo yesterday but I have received no response. Is this usual.
Many thanks
DA
Sara (Debt Camel) says
They aren’t going to consider your complaint. If anyone reads it, they will just reply you have to keep on paying.
I am sorry but there is no point in ASKING them to be able to stop paying. You have to decide whether to stop or not.
The article above looks at the pros and cons. If you have already repaid more than you borrowed, and your complaint is upheld, the balance would be wiped and you will only get a small amount of cash back from rest of your refund in a Scheme and likely no cash back in administration.
Have you talked to your guarantor and explained your situation?
Dino says
Sara
I spoke to my guarantor a few months back and at the time I said I would keep paying. I think that one day in the very near future I will wake up to reality and just stop paying Amigo like may others have done and considering their no courtesy in responding to my email.
Many thanks, a great informative site.
DA
Jamie says
Hi,
I made a complaint to Amigo back in August 2020 about my loan. I still have not yet had a final response. I have taken it to the Financial Ombudsman too. However, both parties are unable to keep me updated due to the court proceedings that Amigo are taking. I have told Amigo I cannot afford the monthly repayments and they are not helping at all.. I have about £450 left on my original balance that I took out, the rest will all be interest that is owed. I do not wish to pay anymore then I owe incase amigo go into liquidation. Also I am owed interest on loans I had previously taken out with them and then had to top up to afford repayments. Where do I stand with Amigo and them not keeping me updated with my claim?
Sara (Debt Camel) says
The article above looks at your options at the moment.
Darren says
Hello, I borrowed £10,000 in 2018 and have been paying £400 ever since. Keep in mind it was a top up loan, but as of right now I’ve payed over £12,000 and I’m till outstanding to the rough amount of £11,000. I’ve tried to ask them to let me pause the payments for a while and they keep telling me I have to pay or my guarantor will end up paying. I put a claim about unfair lending in with a solicitor sometime last year but haven’t heard anything since. The last I heard it was with the financial ombudsman, I’m not even sure it was accepted. I’m really struggling to keep up these payments. What advice can you give me and thanks. Darren.
Sara (Debt Camel) says
The article above runs through the pros and cons.
If this is a top up loan and a large one. If you think the payments were unaffordable from the start then this may well be a good affordability complaint.
It sounds as though you have repaid more than you borrowed? for this last top up loan? In that case the balance would probably be cleared if you win your complaint in a Scheme or in administration. But you will onlt get back a small percentage of any payments from here on in a Scheme and likely no cash back in administration.
If you add to that the fact you are struggling, then it makes sense to discuss this with your guarantor and explain why you want to stop paying Amigo and why they too would have to cancel their Direct Debit to Amigo and also phone their bank to cancel the continuous payment authority over their debit card – can you do that?
Your guarantor’s credit record would not be affected but both of you would get some hassle from Amigo as the article above says.
There isn’t going to be a resolution anytime soon to this. If you can’t afford 3400 a month then what other option do you have?
jamie loney says
hi sarah
i havent paid my loan since last october and put my complaint in also my guarantor made a complaint about the unnafordable loan . amigo have just sent me a default notice say the arears should be paid by september 4th should i just ignore this?
jamie
Sara (Debt Camel) says
Getting a Default Notice doesn’t change your situation, does it?
If they send a Letter Before Action, that needs to be replied to, but a default Notice doesn’t.
But you could think about complaining to the FCA that it is unreasonable for the FCA to allow Amigo to halt complaint handling for so long and still expect customers to repay what were mis-sold loans. See the article above for how to do this.
Joel says
Hi Sara,
After discussing with my guarantor I made the decision to withhold payments. I am on my final year of the loan and complained a year ago with no final response. I made the decision as I think I have a good case and I estimate I have already paid back half of the interest and can see me paying it all back by the time a final response is provided.
I held back payment for 31st August and me and my guarantor emailed Amigo shortly after that date to advise we were holding back payments until a response has been provided. Neither of us have had a response to our emails but have been sent various texts and emails about making the missed payment.
My guarantor is a bit worried as they are repeatedly requesting payment from him. I did advise him this would probably happen but they can’t do anything while complaint is still open.
I suppose I’m looking for a bit of re-assurance for him that that’s the case and whether to your knowledge they have responded or taking note of the emails to advise holding back payments?
Many thanks
Joel
Sara (Debt Camel) says
Amigo tend to either ignore you saying you won’t be paying until your complaint has been considered or to reply that you are legally obliged to pay them – which is true but you are disputing the debt and they are conveniently not mentioning that.
So if they did take you to court (and there is no sign at the moment that they are doing this. I have not seen Amigo do this where there is a complaint in for a VERY long time) then you could defend the case saying that the loan was missold and you have a counterclaim for the amount of a refund which they owe you. Both Amigo’s claim for payment and your claim for a refund would be decided at the same time as you have the right of set-off.
All you can do is tell your guarantor this. That they are making threatening noises to try to bluff you or him into paying. And tell the FCA how unfair it is that the FCA is letting Amigo ignore these complaints and pressure you into paying.
Joel says
Thanks Sara,
As ever much appreciated
Phil says
Hi Sara,
I’ve had active loans with Amigo since 2014 including 3 top ups, the last 1 being in 2017 for £6500.
To date I’ve paid back over £17,000 in total. I stopped paying them back in June after submitting a claim with them. I’m getting the standard threatening letters, messages & emails. As is my guarantor but I believe I have a strong case.
Thanks for the advice
Phil
Sara (Debt Camel) says
So you have read the article above which looks at the pros and cons? The cons (hassle, effect on your credit score) are only temporary if you eventually win your complaint in a new Scheme or in administration.
If the repayments are affordable for you, you could start saving them up – then in the worst case if you lose your complaint you can just pay off the arrears.
If they aren’t affordable, then you probably don’t have any sensible alternative, do you? It’s a mistake to get behind with priority bills or other debts to pay this debt that you are disputing. If you aren’t sure about this, you could talk through your whole finacial situation with a debt adviser, phone National Debtline on 0808 808 4000 who can help you look not just at this Amigo debt but the bigger picture.
3 top up loans is typically a very good case. Some exceptions would be if the loans got smaller or if your own situation had improved by the time of the last loan.
Phil says
Hi Sara,
Thank you for your reply.
Does my case not also come under the 100% price cap rule, brought in by the FSA in 2015 preventing lenders charging borrowers anymore than twice what they borrowed in interest & fees.
By my reckoning I’ve paid back nearly 3 times what I borrowed and still have a year left at £256 per month.
Thanks
Phil
Sara (Debt Camel) says
No, unfortunatley the price cap only applies to payday loans – loans which are shorter than a year.
Lou says
Thanks for the great advice. Amigo have been harassing me and my guarantor for weeks now even though I’ve told them we’re not paying a penny. They offered the FOS in January to uphold my first 2 loans out of 3 and I rejected the offer. FOS told them they think that all 3 should be upheld and they’ve conveniently ignored the complaint since, yet still want me to pay £300 a month when they’ve already admitted the first 2 were unaffordable! They’ve set up a direct debit today on my guarantors account which she’s cancelled and I’ve wrote to the FCA and all the mps as I think it’s a complete joke that they can get away with this! Keep up the great work 👍🏼
Sara (Debt Camel) says
Just checking that your guarantor has also phoned their bank and canceled the continuous payment authority over their debit card.
Lou says
She phoned Santander who told her that they can’t cancel a cpa until a payment has actually been taken from it (she’s never had to step in and make a payment) so she reported her card as lost/stolen back in June. Her visa debit card was cancelled and she received a new MasterCard so we’re hoping they won’t be able to use old card details to take a payment.
Sara (Debt Camel) says
Santander were wrong when they said they could not cancel a CPA before a payment had been taken.
Whether the switch from Visa to MasterCard will be nough to prevent Amigo from reinstating a CPA on her new card I don’t know. I suggest she tells Santander in writing (secured message in her account will be fine) that she does not want Amigo to be able to set up a CPA on her new card and she withdraws her permission for that to happen.
Lou says
Just to let you know this seems to have worked. My mum wrote to the bank to complain that they had given her false information regarding the cpa and that she withdraws her permission for any cpa or dd to be set up with amigo. No further attempts to take payment have been made and yesterday we received the standard “we may issue an LBA” threat. I’ve told them I’ll happily defend my claim in court so please feel free to go ahead.
I’ve complained to the FCA and sent to the MPs you mentioned plus my local MP. So good to see so many people standing up to these bullies finally!
Lou says
Thankyou I’ll tell her to do just that.
Susana says
Hi,
I requested a loan of 10k in 2018, at this moment I already paid 15k and it says I still owe them 7k, I did my claim in April this year and received the answer saying that my complaint will be automatically included within the proposed scheme! I am thinking to stop paying but because my boyfriend is the guarantor Im afraid that something cam happen to him! There is any possibility that in the end they actually will take me to court to pay everything?
Sara (Debt Camel) says
What was your financial situation in 2018 when you took the loan? And what was your guarantor’s situation then?
Susana says
I had a few loans at the time and thats why they said I needed a guarantor and after that I did a DMP with Stepchange but I didn’t included the Amigo because of my boyfriend!
And I carry on paying
Sara (Debt Camel) says
A 10k loan is a lot if you are in a difficult situation. Do you think from the start that it was unliekly you could pay Amigo and still be able to pay your other debts, bills and living expenses?
What about your boyfriend – could he have managed the Amigo repayments and been able to pay his own debts and bills etc?
Susana says
No he definitely couldn’t pay, and I was actually surprised at the time that they aproved it considering my situation.
And I did the claim and they replied saying “we can confirm that your complain will be automatically included within the propose scheme” and I carry on paying but Im paying 400£/month and I already paid 15k and how come I still have 7k more! I just wanna stop paying but Im afraid for my bf!
Sara (Debt Camel) says
Ok so if you think the loan was unaffordable for you AND for the guarantor at the time it was given, then you both can complain about affordability. This is good as it gives a second way for your boyfriend to be released from the guarantee, if you win your complaint OR if he wins his.
I am a bit puzzled that Amigo said your complaint made in April will be automatically included in the Scheme, but we need to wait for the 2nd Scheme to actually be proposed so that the rules can be chacked in detail. If it isn’t automatically included, you just submit a claim.
So the question now is whether to stop paying.
As the article above says, they aren’t going to take you and your guarantor to court before the new Scheme starts. And they have said they won’t in the Scheme until complaints have been decided.
If you lose your claim in the Scheme and your boyfriend loses his claim, then at that point they could take you both to court, but if at that point you start paying again, it is pretty unlikely – what would they gain by this if you are already paying?
If you lose your claim and your boyfriend wins his, this becomes a norrmal loan and you just put it straight into your Amigo DMP.
If you win your complaint, then you will be much better off if you have stopped paying. You havepaid more than you borrowed, so you will only get back a tiny amount of each payments you are making now. Amigo thought 10% in the 1st Scheme, hopefully it will be more in the 2nd, but it wouldn’t be wise to assume you will get much back.
One way to make the worst case (yopu both lose) better is if you can start putting aside some or all of the money you would be paying them. Then you would have a pot of money to pay off the arrears if you both lose. And a nice savings pot that could help pay off some debts in your DMP (full and final settlement offers?) if you win.
I think you need to talk all these through with your boyfriend and make a joint decision. If he is worried about his credit record, that won’t be affected if you both stop paying now – it could only be harmed if Amigo gets a CCJ against him.
Susana says
Yes I will stop paying and my bf will make a complaint like you explained in the article and I will put aside the money every month just in case we both lose.
Thankyou so much
Sara (Debt Camel) says
Make sure bf cancels DD and also the CPA.
Susana says
I contacted Natwest and they say I can’t cancel because if I gave my cards defails to Amigo I need to carry on with the payments, I said according to FCA I have the right to do it and the lady said I can’t! Now I don’t know how to do.
Sara (Debt Camel) says
So you have cancelled your Direct Debit and they won’t let you cancel your CPA? Phone them again and ask to speak to a manager – if they again refuse, tell them you want to put in a complaint and if Amigo take money from you you will expect them to refund it.
Susana says
Do you think is easier to do that way or I just take all the money to other account and cancel that account?
Sara (Debt Camel) says
that’s an account you have open with another bank you are happy to switch to?
Susana Fernandes says
Yes I don’t mind to do that if is easier!
Sara (Debt Camel) says
Ok well Amigo definitely can’t get to a different bank!
Danny says
Hi,
So I am a guarantor on a loan for amigo, the borrow has repeatedly failed to make payment and numerous times went into default.
The borrower and I rarely speak now because of this, I have a case open from December against amigo but don’t think the borrower has.
I have today cancelled direct debit and contacted my bank to ensure no further payments can be taken, I have also emailed amigo to say I wont be making any further payments going forward until the outcome of the case is resolved.
Will this still be ok as the borrower hasn’t opened a case with them?
Thanks
Danny
Sara (Debt Camel) says
Is your complaint that the loan was unaffordable for you? Or for the borrower?
Danny says
Thanks for the quick reply.
My complaint is that the loan wasn’t affordable to the borrower which resulted in me being left to pay, but that my finances weren’t looked into by amigo and that it is also unaffordable to me.
Sara (Debt Camel) says
ok so you were complaining about two things. As you have a complaint in , the points in the article above you having disputed the debts and it being very unlikely Amigo will take you to court apply.
It would be good for both of you if you can encourage the borrower to also complaint to amigo. if the borrower wins, interest is removed from the debts and you are released. win – win.
If you want to be extra safe, you could save up the payments to Amigo you have now decided not to make. That way if you lose your claim – in the next Scheme or in administration – you have the arrears already there that you can pay off – no danger of any court action after that either.
SD says
Hi Sara, thanks for all the advice you provide here. I’m sure it’s helped a lot of people.
I put in a complaint a while ago, it got rejected, I sent it to the ombudsman and they basically told me to hang on until the scheme ends. I’ve stopped paying Amigo, I’ve cancelled the direct debits and so has the guarantor.
Today I got this email:
It’s Melissa at Amigo. It’s important to me that you have the facts regarding the CCJ that we could apply for if we’re unable to come to a resolution regarding the missed payments. When the loan was paid out, we could accept Tony because of the strong credit score they had built. A CCJ may impact that score and set their own ability to obtain credit back years.
If you’re able to, please pay the arrears Easypay:
Sara (Debt Camel) says
this is more of Amigo’s careful wording, designed to sound worrying but actually not saying anything very much.
“the facts regarding the CCJ that we could apply for”
It isn’t saying they will do this.
SD says
I thought as much :-) I’ve asked them to be more direct.
Thanks Sara, very helpful, I appreciate your time.
I will let you know if there’s any updates regarding this case.
Dan says
Hi there – so I complained to Amigo last October about the multiple loans including tops ups that I have with them, they only upheld the last top up loan, which is the one I currently have with them. To be honest, if they hadn’t have subtracted future interest payments from their offer, I would probably have accepted. But I rejected and sent it to the ombudsman in November last year which is where it sat since then.
I have emailed Amigo to reiterate my complaint with them and that I would not make payments, and am now getting the “may get an LBA”, “CCJ may be sought” threats by text and email.
This doesn’t faze me, thanks to your brilliant advice above, but my question is – should I reply to these emails/texts at all? Or just do nothing?
As an aside, because they upheld my current top up loan, they released my guarantor and have stuck to that, he hasn’t been contacted at all.
Sara (Debt Camel) says
yes the “deductions for unpaid interest” were a very unfair device to just pay people less :(
How much do you still owe? What is the rest of your financial situation like at the moment – do you have other problem debts?
Dan says
I still owe 3677.56 of a 5,500 top up loan that I took out on 26 November 2018. This was a top up to an loan that I only took out 6 months previously on 30 May 2018…
I have loads of other debts to repay for loans and credit cards that I took out since 2018.
As I mentioned, the original complaint against my current top up loan was upheld by Amigo, so I believe the threats of going to court are empty, but wanted to make sure that I shouldn’t reply to the texts and emails I have been getting?
Sara (Debt Camel) says
You can reply if you want – some people prefer to. I would keep it pretty short, they aren’t likely to do anything with it so no reason to waste your time writing a lot.
But if you have a lot of other debt, do you have a plan for sorting that out? This Amigo debt is just another unsecured loan now, nothing special. If insolvency such as a Debt Relief Order is a good option for you, the Amigo loan can just be included in it. I suggest you talk to National Debtline on 0808 808 4000.
Lou says
Just had a lovely long letter from the FCA basically telling me to stick my complaint about them allowing Amigo to continue pressuring customers for payment and saying that they won’t be telling amigo to stop chasing customers with complaints outstanding. But they do wish me all the best and hope I reach a resolution with them soon 😂 Me and my guarantor are receiving the usual generic weekly threats of court action now. The last time I contacted them I told them to go ahead, I won’t be contacting them again as it’s pointless.
Anthony says
Amigo took me to court when I could not pay my loan back . They then tried to take from my mum the guarantor . She is a pensioner. They also put a hold on her property. They then sold the debt to another company and she is now struggling to pay back 100 £ per month. Is should she now stop paying while there is a dispute?
Sara (Debt Camel) says
Do you think you have a case for saying the loan was unaffordable at the start for you?
It sounds as though it was also unaffordable for your mum 😢
Have you both made affordability complaints?
Her debt was sold to Intrum? They are usually OK to deal with. Has she asked if she can reduce her monthly payments if she is struggling?
This loan is now secured on her house. It’s not a good idea to stop paying a secured loan… if she can’t afford the £100 and Intrum refuse to reduce it, I suggest she takes debt advice and talks to National Debtline on 0808 808 4000.
What is your current financial position?
Sam says
Good afternoon Sam,
Thank you for confirming, and getting back in contact with us.
As it may be easier for you, I’ve provided some information below about Equitable Set-Off, and what this means, to allow you to consider if you’d like to exercise your right to this.
By exercising your right to for Equitable Set-Off, you agree:
That you will not be making any payments to your loan, due to your ongoing complaint. You believe that you will have a redress payment that you can set off in the future, against your Amigo loan balance.
That Amigo will not be expecting payments from either you or your guarantor, if you agree to this.
That payments on your account will continue to fall due, and the account fall into arrears.
That negative information may be reported to your credit file.
That contact will be minimised to you and your guarantor, however, you will still receive certain important communications.
That any future complaint or Scheme outcome isn’t guaranteed, and that if a complaint isn’t upheld, that any outstanding balance and arrears would be payable.
If you wish to exercise your right to Set-Off, please let us know. We will then enable the option for you to confirm this, via a form on your online account.
If you have any questions, or want to speak to an agent directly about this, please let me know, and we can arrange a call-back to you.
Kind Regards
Amigo Loans
Sara (Debt Camel) says
I think a lot of people will think this sounds good – anyone who wants to stop paying a loan because they have a good complaint but was worried this will affect their guarantor, read the above and email Amigo if you want to do this, mentioning Equitable Set off.
Sara (Debt Camel) says
As Sam’s comment above shows, in Mid September Amigo has told some customers who have made complaints that they can stop paying and their guarantor won’t be asked to pay.
See https://debtcamel.co.uk/stop-paying-amigo-set-off/ for details.
If you have a current loan that new article is the one you should read. This one is out of date. I have turned off comments on it.