Last week several readers were told they can stop paying Amigo while their complaint is outstanding, through Equitable Set Off.
This is what I have been saying Amigo should do since last December when they announced their first, now rejected, Scheme of Arrangement.
Amigo are trying to set up a second Scheme. But until now they have been insisting that people who have made a complaint have to keep repaying their loan, even though Amigo is refunding to consider their complaints until a Scheme is approved.
Equitable Set Off is a term that most people won’t know. So let’s look at what is being proposed and whether it will be good for you. And why has Amigo delayed doing this for so long?
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What is Equitable Set Off?
Here is an example of Set Off:
If you owe someone £500 and they owe you £300, then they can’t insist you pay them £500 because the two debts can be set off against each other resulting in you only owe them £200.
This can be applied to a disputed loan, when you have made an affordability complaint. You owe the lender the current balance of the loan, that was the contract you agreed to. But if your complaint is upheld, the lender will owe you an interest refund. This refund could be larger than your current balance, so they owe you a cash refund. Or it could be smaller, so your balance will be reduced.
There are various types of Set Off, see this legal blog on Cross-contract set-off. But the differences don’t matter here – Amigo is saying you have the right of Equitable Set Off, so you just need to know what the implications for you are.
How Amigo is saying this will work
The readers who have asked Amigo about this have been sent an email saying Set Off is available and a further email with details if they asked about this.
Here are some extracts from the Amigo emails, in italics, with my comments on it.
“In the previous contact we have received from you, you have queried about the option to not make payments to your current Amigo loan, whilst your complaint remains outstanding. We’d like to confirm that this process, Equitable Set-Off, is now available for eligible customers, if they wish.”
So far as I can tell, Amigo is not telling all people with a current loan about this, just those who have recently asked about stopping paying and who have made a complaint.
I think everyone who has made a complaint and owes a balance, borrowers and guarantors, should be eligible. But from readers’ comments below this article it seems that Amigo will only let you exercise your legal right if you have paid more than the amount you borrowed on the current loan, ignoring previous loans. I don’t think that is right, but you can’t make them change their mind. If they say No you are not eligible, then your choices are the same as they were before – carry on paying or talk to your guarantor about stopping paying – see the pros and cons in this other article.
“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”.
You need to have made a complaint. If you have delayed doing this as there seems no point until a second Scheme is approved, you should make a complaint now and also ask for Set Off.
You can keep your complaint very short as it won’t be looked at now. See affordability complaints about guarantor loans for what an affordability complaint is to give you a feel for whether you should complain.
“That Amigo will not be expecting payments from either you or your guarantor, if you agree to this.”
For many people this will be the most important point. Amigo will be stopping sending threatening emails and texts to you and your guarantor saying you will be taken to court if you don’t pay.
“That payments on your account will continue to fall due, and the account fall into arrears.”
This is standard for affordability complaints about other kinds of credit – when you stop paying arrears accrue. Amigo has a price cap policy, so the total amount of interest that can be added can’t exceed the amount stated when you took out the loan.
“That negative information may be reported to your credit file.”
This too is standard for affordability complaints about other kinds of credit. One important point for this Set Off is Amigo is saying they will not ask your guarantor to pay, so their credit score cannot be harmed as the loan doesn’t appear on their credit record.
“That contact will be minimised to you and your guarantor, however, you will still receive certain important communications.”
Lenders are legally obliged to send some warning letters about arrears known as NOSIA letters. There won’t be many of them.
“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 stop paying, you are taking a risk that your complaint won’t be upheld.
“Can I have this if I have already stopped paying?”
I can’t see why not.
If you and your guarantor have been getting texts and emails pushing you to pay, perhaps threatening court, then these should stop if you tell Amigo you want this right of Set Off.
When you have already stopped paying, I can’t think of any possible downsides in telling Amigo you want this Set Off.
“So far I have been paying – is this a good idea for me?”
You need to think about two main points.
First, whether your complaint will be upheld.
We know Amigo failed to make good checks on a very large number of loans. But what would proper checks have shown?
Guarantor loans are aimed at people with bad credit, but a loan still has to be “affordable” – so you can repay it and also pay all your other debts, bills and living expenses.
Ask yourself if Amigo had actually looked at your credit record carefully and your recent bank statements at the time you took the loan, what would they have seen? Would they have seen a worsening debt situation, someone who would be likely to struggle to pay £197 a month (or however much your loan repayments are) for years?
The other point to consider is whether you have any better options than stopping paying with this Set Off.
If you can’t afford to make the payments now, there is some risk that your complaint won’t be upheld but you may not have any better options than this Set Off. If you win your complaint, the negative marks will be removed from your credit record, your guarantor released and your balance will be reduced or cleared. That is much better than struggling to pay and running up more debt elsewhere and perhaps getting behind with other debts and bills – those negative marks won’t be cleared if you win your Amigo case.
If you can’t afford to make the payments but your guarantor could, opting for this Set Off will save your guarantor a lot of money if you win your complaint, as they would only get a small percentage back of that money in any future Scheme.
If you can afford to make the payments now (or pay some but not all of them) but you want to stop paying as you have already repaid more than you borrowed, your best option may be to opt for this Set Off and put the money aside into a separate account every month. If you do this and you win your complaint, you have some money saved up you can use for something else. If you lose the complaint, you can pay the amount you have saved up off the balance and then just start paying it again. Here the only thing you are risking by stopping paying is the harm to your credit record if you don’t win the complaint.
“How do I opt for this?”
The Amigo explanatory email concludes by saying:
“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.”
So you can phone them up or email them and say you have heard about the right to Set Off and you would like to stop paying and exercise this right. You need to have already made a complaint, so do this first if you haven’t already.
Why is Amigo only saying this now?
It’s good that Amigo is now telling people they have this right. But they have had this right all the time…
From December 2021 when Amigo stopped considering customer complaints and stopped accepting new FOS decisions, customers have been left without any means of getting their loan dispute considered. However Amigo has been insisting the borrower pays, and going after the guarantor if they can’t, and making threats of court action.
Why has the FCA allowed them to get away with this?
An authorised firm has been allowed to make threats of court action to customers even though it knows the customers have a right of set off which means Amigo would never start a court case.
Many customers may have been pressured into paying thousands of pounds to Amigo because of this. And they may only get back a tiny amount of that if they win their claim in the new Scheme. That has left Amigo with millions more pounds in its bank account.
That’s probably why Amigo hasn’t told people before about their right of Equitable Set Off.
I think the FCA should make Amigo put this right in the Second Scheme. Customers with an upheld complaint who had an open loan should get a refund in full – not a small percentage – of any payments made since December 2020.
Mike says
I am a guarantor and was being threatened after missed payments, I complained again to Amigo and informed them I will be complaining to the FCA. Amigo replied telling me they would not take an account with an open complaint to court and that the emails were just “Automated”. I did complain to the FCA too but they didn’t uphold my complaint.
Gemma says
Hi, we spoke on Twitter, thanks.
An ombudsman investigator upheld my unaffordable complaint in 2020, I haven’t paid since. Amigo have, in the meantime taken money from my guarantors account (the bank refunded this after we explained the ombudsman decision).
Would I be wise to contact amigo regarding set off?
Many thanks
Sara (Debt Camel) says
are Amigo still pushing you and your guarantor? Some people find it goes quiet after a while, others still get pressured?
Gemma says
They have gone quiet after initially bombarding us both. The ombudsman investigator continues to support me but overall is unsure as to what to do next. I am too. I’m worried about contacting them to request set off because I haven’t paid them in a long time. I hadn’t missed a payment until Covid and had topped up roughly 3 times in 2 years, although my investigator concluded in her final decision that the whole loan was unaffordable, not just the top ups.
Sara (Debt Camel) says
If Amigo has gone quiet, there isn’t much to gain by asking for the equitable set off – all it gives you is a bit of peace until your complaint is considered in the new Scheme.
You could just wait and ask for it if they ever start being a nuisance again.
.
Gemma. says
Thanks for that. Would you suspect that upheld cases will have to go through the process again in the new scheme? As in start up a new complaint? I fear they will, which seems unfair and renders the ombudsman service not fit for purpose. Or do you think it’s more likely that they’ll actually start responding to upheld complaints that they’ve ignored previously?
Sara (Debt Camel) says
I think Amigo will want to process complaints as efficiently for it as possible. I can’t guess in what order they will be looking at claims. Or if they will bother to look hard at your sort of situation of just accept those.
Trudy says
I still pay my loan , will I be breaking my contract if I ask to not pay ontill my complaint is dealt with
Thanks
Sara (Debt Camel) says
This is the point of “set off” – you owe Amigo money because you took the loan. But they may owe you a refund because of your complaint.
So you can ask for this equitable set off if you want to stop paying until your complaint is decided. It will harm your credit record 9which may already be poor) but not your guarantor’s.
Can you afford to pay them at the moment? If you can’t, do you have any better options than asking for this?
Dean C says
I suspect they’re being forced into this by the FCA after further complaints ( although those, like mine, were rejected ).
Most folks don’t follow this stuff so they’ve still been paying, filling Amigo’s coffers and improving their financial outlook for a potential further scheme. As I understood it, Amigo’s financial backing was to be pulled in early September if they didn’t produce a viable scheme – has that happened or do they now have assets sufficient to keep going?
Despite this capitulation, I fully expect them to try for a second scheme where they can decide who has a viable complaint, and I very much doubt they will offer recompense at all if they are not properly regulated in some way. If they worm their way out of this mess, nobody’s complaints will be upheld, it’ll be business as usual for Amigo and they’ll carry on regardless. What’s to stop them?
Sara (Debt Camel) says
Amigo’s AGM is next week, I suppose there is a chance something useful will be said at that point.
Steven says
I’ve paid more than £8,000 in interest on £10,000 . Payment was £395 interest £340pm .can I get the set off as a complaint was put in straight away but was still being threatened with court.
Sara (Debt Camel) says
If you think you have a good complaint and you have already paid more than you borrowed, then every extra payment you make you will get very little back from in the new Scheme (whenever that arrives, or in administration if that is the end result).
If you have already stopped paying, then say you want this right of set off and for them to stop threatening you and your guarantor with court.
If you haven’t stopped paying because of their threats it may be a good idea to stop paying and say you want this equitable set off. Do explain to your guarantor what is going on and (for safety) it would be better for them to cancel their Direct Debit to Amigo and also phone their bank to cancel the Continuous Payment Authority. If you can afford the repayments now you could save them up each month so (worst case) you lose your complaint, you can just clear the arrears.
Charlie Haldane says
Hi what’s the position if you made a complaint and have had a offer and have accepted the offer. I have also continued my complaint as I was not totally happy with the outcome. I went to the financial ombudsman who have since contacted me saying that they are not taking any action about Amigo due to the court action. Can I stop paying ?
Sara (Debt Camel) says
what was the offer you accepted?
Charlie says
No interest on the current loan and they realised my guarantor. I had some interest back on my previous loans.
Sara (Debt Camel) says
ah did you have one of the unfair “deductions for unpaid interest” applied?
Are you having problems making the payments at the moment? or are you just keen to pay less because you think you should get a larger refund in the Scheme?
Charlie H says
I continued the complaint because I didn’t feel I had enough compensation. I always have trouble paying but have always managed.
I don’t know what you mean by unfair deductions. So I honestly don’t know. Sorry
Sara (Debt Camel) says
It sounds as though you had several loans from them and they only upheld the last one or two? Not some of the earlier ones? or did they uphold them all?
Roughly what date did you get a reply from Amigo?
Charlie H says
Hi yes I have had 3 loans and two upheld and one not. They paid some interest back and cancelled the interest on my current loan. They realised my guarantor. I took my complaint to the financial ombudsman. Who eventually replied say they could not investigate any further due to amigos court action. I have just spoken to amigo at great length. They told me they do have a scheme in place. However the loan will continue to run and they would continue to proceed as normal with legal letter and mark payments as late and so on. The outcome of my call is that as I accepted the offer they consider the matter closed. I was told that I could continue my complaint with the ombudsman. I informed them that I had and the reply I had from them. They told me I could continue my complaint once amigo has settled in court via the ombudsman.
I will continue to pay my loan as I have spent a lot of time and effort cleaning up my credit file. I hope that make sense I am not great at this.
Sara (Debt Camel) says
They told me I could continue my complaint once amigo has settled in court via the ombudsman.
Amigo just said that ???
Thomas G says
Hi Sara
Thanks for the continued reporting on this issue, I’ve found it a massively helpful resource.
Can I ask if there is scope for Amigo to issue a default notice if a debtor exercises their right to equitable set-off and misses three or more installment payments?
Thanks
Thomas
Sara (Debt Camel) says
A Default Notice is only relevant for being taken to court and Amigo has said it will not do this because of equitable set off while you have an undecided complaint. So although they may send a Default Notice you can reassure a client they will not be taken to court until their claim has been decided in the new Scheme – if at that point they lose, they can make an arrangement to pay the arrears.
Or are you worried about clients’ credit records? A Default Notice is technically not relevant for them. Amigo has said “negative information may be reported to your credit file”. At the start this would presumably be missed payments, Amigo hasn’t said if they will later add a default.
That will only apply to a borrower, not a guarantor (a guarantor’s credit record can only be harmed if Amigo gets a CCJ, and they have said they won’t go to court).
Of course any negative marks are removed if your client then wins their claim.
Susan says
Quick question , if we stop paying and don’t win the complaint will we be expected to pay all missed payments in full or set up payment plan ?
Sara (Debt Camel) says
You would be allowed to set up a payment plan – it would be unfair to expect you to have to repay the arrears in full immediately. If you can afford to make any payments, it would be a good idea to save them up so you can clear the arrears and not get any hassle of course. But if you can’t afford to pay as you have other urgent bills, this may allow you to sort some of those out so you will be in a better position to pay Amigo if you do lose your complaint.
How good do you think your complaint its? Was this your first Amigo loan? What was your financial situation at the time you took it out?
Susan says
I have 1 £5000 loan with amigo at £197 a month , when I applied I put Down my husband pays all other bills so I looked affordable , we have now split up so I’m struggling
Sara (Debt Camel) says
But did your husband really pay all the bills? Ir if Amigo had looked at your bank statements, would they have seen that you paid some of them?
Who is your guarantor? Was the loan really affordable for them – could they have repaid it and still paid their own bills, debts and everyday living expnses?
Susan says
No he didn’t pay it all I did , they never checked bank statements or payslips . I had a huge nationwide loan a my jar and a satsuma at the time of taking out the amigo , my guarantor couldn’t afford it either he lied and said his wife pays his bills , he earns good money but has a lot of debt including a £40k car finance , we’ve both made complaints
Sara (Debt Camel) says
Then you probably have a good complaint.
I do suggest that now you get copied of your bank statements from 3 months before the loand and 3 months afterwards. And take a copy of your current credit report and save that – it’s easy to download the Transunion statutory report so that is a good one. Then you are prepared for the claim in the second scheme (or in administration if they go bust).
Also suggest you guarantor does the same now.
So you have to decide whether to stop paying. It will harm your credit record – but it sounds no good anyway… and any negative markes are removed if you win your complaint.
If you can’t afford to pay, then what is your better alternative?
If you can scrape together the money, then as the article above says, you could stop paying and put the money into a savings account. Then worst case if you lose the complaint you have it there ready to be paid off.
Abbie says
Hey, I raised a complaint in sep 2020 due to when I took out the loan they never ask proof of income or bank statements, surely this is them not running the correct procedures when taking out a loan? Can I complain again?
Sara (Debt Camel) says
did you ever get a reply to your complaint? if so, roughly what date?
Abbie says
I got a reply on the 18th sep 2020, I topped up 3 times, my first loan I took out was £3000 then top up twice for £5000, so I have been making a payment every month since oct 2018. I only took a holiday payment during covid for 6 months
Sara (Debt Camel) says
Obviously you can’t be sure Amigo will uphold your complaint in the new Scheme (if it ever arrives!) but that sounds like a good complaint to me – topping up twice in 18 months normally shows you are in financial trouble.
I think you will be able to make this claim to a new Scheme (or to the administrators if Amigo goes bust) but that can’t be guaranteed as there is no documentation for the new Scheme yest to look at.
Did you send the complaint to the ombudsman?
Abbie says
Can I open or make a new complaint? I never went to the ombudsman because I never felt confident or felt like I had a good case to take to them, but now I seen what they have done to everyone I feel like They should Defo stop my loan or pay money back
Sara (Debt Camel) says
I think you will still be able to make a claim in the Scheme because you had 6 months to take the complaint to the Ombudsman, but FOS had stopped taking Amigo complaints before the 6 months was up. As I said, as there is no documentation for Scheme 2.0 yet so I can’t be 100% sure, but I think it’s very likely.
So you can contact Amigo and say you didnt accept their decision, and you were unable to make a complaint to FOS as they stopped taking complaints, but you will be making a claim to the second Sceheme. And then say if you want to stop paying because of equitable set off.
Christine cook says
If I’ve completed payments but me and guarantor went through all their threats whilst paying. Where do I stand. That much going on, and have even really ill, how can I check if I’ve already made a claim?
Sara (Debt Camel) says
Has your loan been repaid now?
Lee says
Ive sent an email so see what they come back with – thanks for this info
Valerie Anne Sarson says
So can you clarify the equitable set off amigo are offering – it is only offered when you have already paid back an amount which equates to your net loan borrowed.
Sara (Debt Camel) says
Amigo have not been clear about this, but I think equitable set off applies in ALL cases where you still owe a balance.
If you haven’t repaid more than you borrowed, if you win the complaint your balance will be reduced and your guarantor will be released and you will be able to pay at a lower more affordable rate. So the set off here is real and means your guarantor won’t owe anything. Hence its wrong for Amigo to insist you pay and ask your guarantor to pay if you don’t.
Valerie Anne Sarson says
I have already emailed amigo and requested the equity set off and I got a reply that I did not qualify because I had not paid the equity amount. It would be good to get clarity on this for everyone as I am not sure their response was correct and will get confusing because I am guessing only a small amount of people may qualify if what I was told is correct. Thanks Val
Sara (Debt Camel) says
can you go back to them and say the equitable set off should apply because your balance will be reduced, your guarantor released and you will be able to pay at a lower rate if your claim is upheld. So it is unreasonable for them to ask your guarantor to pay when your guarantor may not have any liability.
Valerie Anne Sarson says
I have just checked my email from Daniel at amigo. He says you can only apply for equitable set off if you have repaid your capital which I have not. Do you think this is correct? Val
Natalie says
Hi I called and was told to meet the criteria for equitable set off you need to of repaid your initial loan amount to be eligible. I was fortunately only a small amount away so paid it then they allowed me to do it.
Seems very unfair that they won’t allow everyone with an outstanding complaint.
Sara (Debt Camel) says
I think that is wrong and can be challenged. But now you are past that point it doesn’t matter for you.
Lou says
Ive just had the same email. Even though in total I’ve paid thousands more back than I’ve borrowed since my first loan, they’ve said I’ve not paid enough principal on my final top up to qualify. So I’ve told them to go ahead with the court action they keep threatening us with as they’ve admitted unaffordable lending to the FOS and I have that in writing so I’m happy to use that to defend a court claim.
Valerie says
Sarah i have gone back to amigo as suggested and said everything you said and challenged what they said to me initially. They have emailed back saying they are only offering equitable set off where the capital payment has been paid off. They are not budging. Reply was from Michelle at amigo. Val
Sara (Debt Camel) says
ok so then you have to decide whether to still stop paying. They are obviously trying to get as many people as possible to continue paying even when they have good complaints :(
The only difference having the “Equitable Set Off” makes is they won’t ask your guarantor to pay. But you stopping paying won’t affect your guarantor’s credit record and Amigo’s threats of taking you to court are just empty – there isn’t time for this before a new Scheme starts and they have said they won’t go to court in a Scheme.
Can you talk to your guarantor about stopping? See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at the pros and cons.
Sara (Debt Camel) says
no I don’t think that is right as i said in my previous comment. Ask them to look at this again making those points.
AC says
Hi Valerie/Lou,
I have today been accepted for ESO and Amigo took into account the amount of money that I had paid into my two previous loans prior to topping up. If you haven’t already done so, have another go at applying for it.
S. Phynex says
I am a garuntor and have been paying g someone else’s loan for years, and I am in arrears because I can’t afford the same amount a mortgage as the loan was. Do I need to contact Amigo and complain or as I am a paying garuntor will my case be seen automatically????
Sara (Debt Camel) says
Are you still on good terms with the borrower? DO you know if they have complained?
Sandra says
I have had my complaint in now a year not really had much emails from them at all I stopped paying and my guarantor complained to at the time and the fos said they could t do anything as they had stopped looking at complaints even though my case was with them a while and they had agreed my loans were unaffordable and proper checks weren’t taken in the first place, so what happens now do I email amigo and say I want to know about this set off etc and do I qualify.
Sara (Debt Camel) says
If they aren’t bothering you or your guarantor much, you don’t really need to bother, do you? the big plus here is that your guarantor shouldn’t be hassled, but if they aren’t being, then you could just let sleeping Amigos lie and not bother them.
Bobby Jones says
Hi Sara my friend in work is in the same predicament as S Phynex .He to has made the repayments as a guarantor he isn’t on good terms with the borrower .He filed a complaint to Amigo this week and cancelled his direct debit .He hasn’t heard anything back yet .Would he be able to join the equitable set off scheme ?
Sara (Debt Camel) says
Although the equitable set off should also apply to guarantors, in practice it matters a lot less for them. The big, big plus of this for a borrower is the knowledge that their guarantor won’t be asked to pay.
For your friend the guarantor, well it would be nice if Amigo agrees he doesn’t have to pay, but if they don’t well he just carries on not paying. He may get stroppy texts and emails but really Amigo aren’t going to take him to court until they have considered his complaint in the new Scheme.
PS I hope he has phoned his bank and cancelled the Continuous Payment Authority over his debit card as well as cancelled his DD.
Bobby Jones says
He has Sara ,I told him too .
S Phynex says
My question still stands. As a paying guarantor, one that is in arrears, do I have to make a complaint to get the loan stopped/get the refund or will they automatically look into my payments and stop the loan/repay me??
I have paid over £8000 am in over £2000 of arrears and there is still about £6000 left on the loan. The person that took out the loan only paid four to six months of the loan, and they have been declared bankrupt!!!!
Sara (Debt Camel) says
you will need to make a complaint (unless the borrower has made a complaint and that is upheld.) All loans are not going to be reviewed in the new Scheme, only where there is a complaint.
Was the loans affordable for you at the time it started? A loan is only affordable if you can repay it on time and still be able to pay your own debts, bills and living expenses. If paying Amigo leaves you short so you have to borrow more, the the loan is not affordable.
You can complaint because the loan was unaffordable for you OR because the loan was unaffordable for the borrower. Or both. You may find it hard to provide evidence that the loan was unaffordable for the borrower if they don’t co-operate with you.
Rose says
I received a default notice from amigo for literally being 15 days in arrears..im not even a full payment behind..my regular monthly payments are 463.50 and i owe 433.50..i have until the 2nd October to clear the arrears or they say they will issue a default on my credit file..what happens if i don’t pay by the cut off date?
Sara (Debt Camel) says
A Default Notice has nothing to do with adding a default to your credit record. A default should not be added to your credit record until your are 3-6 months in arrears.
What is the rest of your credit record like? What other problem debts do you have?
What is the rest of your financial situation like? Are you still on Universal Credit? That will be dropping by c£86 next month.
Have you made an affordability complaint? Do you think this large loan was affordable at the time it was given – could you really pay this loan and all your other debts, bills and living expenses without getting further into debt.
You said your can’t afford to pay. What was their financial situation like at the time the loan was given…. Could they have really afforded to pay all the Amigo loan repayments and been able to pay their own debts, bills and expenses?
Rose says
Hi sara..they told me that when the 2nd October passes that they can put it on my credit file..I’ve recently gone back to work after a period of illness so payments will be affordable..i do have a complaint with the ombudsman from about a year ago..my credit is decent but my concern is that i dont want my credit affected..ive paid the actual amount of the loan so for the last month its basically the interest that im paying.
At the time i took out the loan i was in debt..my credit score was literally showing as 0..i had 4 ccjs…2 defaults and missed payments.
Sara (Debt Camel) says
Well they are wrong – you can complaint to the CRAs if they add a default to your credit record that soon. This may just be someone in Amigo’s customer services team that doesnt understand how credit reporting works.
If you win the complaint, all negative marks are removed from your credit record anyway,
Lily says
Hi I’m wondering what the best course of action is I took out a guarantor loan with Amigo in July 2018 for £8,000 so far I have paid back £12,000 with another 2 years to go, at the time of taking out the loan I was a compulsive gambler Amigo would have noticed this had they of looked at my bank statements. I have made a complaint to the financial ombudsman over a year ago but as it stands these complaints are on hold with the way things are going with Amigo at this time. I cannot afford these repayments of £316 a month my health is not good but I cannot cut my work hours as I have to pay this loan back any help would be appreciated.
Sara (Debt Camel) says
What was your credit record like at the time you took the loan – did it show recent problems? A lot of recent borrowing? Were you always in your overdraft?
what was your guarantor’s financial position at the time you took this loan? They may have been better off than you, but could they afford to pay £300 a month for years and still pay their own debts, bills and living expenses?
Russ says
Hi Sara, this is an interesting article and something I have been looking for but I would have like no negative marks put in my credit file.
With your experience do you think the negative marks an offset would have on your credit file really makes much of a difference? If you have not missed payments over the last 3 years and no defaults ( mine will be removed in the middle of next year), Amigo would be the only thing not good showing on my report. The difficult decision I’m having is I can afford the repayments but I’m just paying interest now. If my complaint is not upheld and everything on my credit file is good, what impact would the Amigo loan being in offset have? I believe you can make comments on your file to explain negative marks so would this help. I’d like to look at getting a mortgage around the end of next year If I can afford to and don’t want my credit file getting in the way. Thanks
Sara (Debt Camel) says
I would have like no negative marks put in my credit file.
Well of course you would – but this is the decision that anyone with an affordability complaint faces, Amigo aren’t being difficult here.
I summed up your situation before as “If you continue to pay and later have your claim upheld, you will get back very little of the payments before the Scheme/administration. If you stop now, your credit score will be harmed (but not your guarantor’s) although this will be repaired if you win your claim.”
I would expect your Amigo complaint to have been resolved by end next year. So the question really is not what the temporary effect will be on your credit record (which I can’t guess) but what the chance of you winning the complaint is. You took a top up loan about 7 months into the first loan? That is typically a sign that the first loan is not affordable. Also you had a lot of payday loans showing at that time I think? This may be a good complaint.
I don’t know how long it will be until the Amigo second scheme is announced. A guess at the fastest likely timetable for approval would be 2 weeks from Announcement with a new Practice Statement Letter to first court date, then 4 weeks for voting and then 2 weeks until the second court hearing. So a couple of months.
AAV says
Amigo are still up to their old tricks, so beware. I wrote to them about the scheme (my loan has been paid off) and Tom (who was regularly rude to me and consistently gave wrong information – at one point telling me months after I’d accepted the offer – for one of the loans – in writing and over the phone, that I hadn’t accepted the offer), responded by telling me my loan was still open and that I still needed to make payments. The account has been closed for 6 months.
Someone in a different position might have felt threatened enough by this to pay. I had this kind of situation many times with him over the time – so just beware! He then had the audacity to mock me in a reply.
Wonder if they’ll continue to be so smug and belittling once they don’t have a job.
Patrick says
AAV, if a loan is closed then it is closed. If someone tells you it is still open then it is surely a mistake and nothing more. Are you really suggesting that Amigo are trying to collect balances for loans that don’t exist? I struggle to believe that the company is trying to collect on fake loans and so I would suggest that there is an alternative explanation.
Sara (Debt Camel) says
One reader reported her direct debit being reinstated months after she cancelled it when her loan was settled and a payment waqs taken! She was reimbursed by her bank.
Then the same thing happened again 6 months later!
AAV says
No, I don’t believe it is a mistake actually, Patrick. And by “someone”, you mean an employer of Amigo who has full access to my account that clearly says CLOSED and tried to get more money out of me. I imagine you’re an employer/investor of Amigo. Like Sara comments with an example below, I have heard of this many times, and this is not the only time this happened to me, even after offers were made and accepted. So yes, I think Amigo would collect on loans that have already settled, going by the severity of harassment and bullying I personally suffered.
Michelle says
I phoned amigo today to ask about the equitable set off didn’t know how it worked I was told I had only payed back £3500 which I said no I’ve payed back £7000 but because the loan was topped up that doesn’t count I’ve only payed £3500 on the new loan and my loan was for £10,000, I put my complaint in last year it went to the FOS and in January they said I shouldn’t of got the loan and the whole loan should be cleared it was the only way to rectify what they done when I said this to the girl on the phone she said it’s out of their hands they know nothing about what’s happening hated her manner on the phone basically if I don’t pay the loan my guarantor has to so I have no option until I hear anything I’ve continued paying half of the agreed amount since January but still annoying when they said I shouldn’t of got the loan take it I’ll just need to wait now
Sara (Debt Camel) says
have you talked to your guarantor about stopping paying?
Michelle says
No but I wouldn’t want her to be asked that’s why I kept paying cause I think she would feel she would have to if I never
Kate says
Not sure if this has already been mentioned in the comments. I emailed amigo to ask if the could send me information about an equitable set off and my rights in relation to it. They said I would need to call. I asked them again to send it and they again asked me to call saying we could discuss the arrears on my account. I advised that I did not want to call and do not wish to discuss the arrears as I have stopped paying until my complaint has been addressed. I also suggested that if they were unable to send this by email could they explain why so I could keep a copy of the email with all the harassing correspondence I and my guarantor have received so I could show this to the FCA if I chose. They emailed back advising that information relating to equitable set off was available if I logged into my account and I could then select that option. I have done this and received email confirmation that it has been set up
Sara (Debt Camel) says
Good to know!
Sandra says
I had this today from amigo- Firstly, we’d like to apologise that it’s been a while since we last reached out to you. Although this is not an update on a new Scheme, we wanted to let you know what we’ve been doing and where we currently are.
We continue to work with all stakeholders, including our regulator, to ensure customers get the best possible outcome.
Introduction of a Customers’ Committee
This time we’ve looked to increase customer involvement which means we’ve put together a Customers’ Committee. This Committee is made up of eight volunteers selected at random from past and present borrowers and guarantors. The Committee has been given completely independent advice (paid for by Amigo) and has been discussing what they as customers would want the new Scheme terms to be.
What’s happening now?
We are working with the Customers’ Committee to come up with a solution that provides the best possible outcome to anyone with a valid claim. We don’t yet have any timeframes on when we’re likely to announce anything, but we will be in touch as soon as we have anything we can tell you.
An update on outstanding complaints
We understand that some customers will still be waiting for a response to their outstanding complaint. As we are still working hard on what a new Scheme could look like, our pause on progressing certain complaints, and paying redress, remains in place.
Susan says
Hi Sara I messaged amigo about this and their response was
We do now have the option to provide customers with the right to exercise Equitable Set-Off, if they meet the criteria to do so.
In order to become eligible, a customer needs to have repaid the principle loan balance that they borrowed from Amigo, as this will always be due, regardless of the outcome of any future claim within a Scheme of Arrangement.
Currently, you have repaid £3359.54 of your £5000 loan. Once you have repaid £5000, we would ask for you to contact us back if you still wish to exercise your right to set-off, and stop payments.
Is this correct ? I was under the impression any customer with a open complaint could do this regardless of how much they’ve paid
Sara (Debt Camel) says
Well I think they should allow any customer with an open complaint to have this as the legal right of set off applied even if you haven’t repaid what you borrowed.
But your choice now is whether to stop – or make reduce,d more affordable – payments anyway. Are the current repayments affordable for you? Have you made a complaint to Amigo?
Susan says
The current payments aren’t affordable and iv already missed one and they bombarded my guarantor , he’s not overly bothered about his credit as we know it doesn’t appear in there , he’s worried they will try to take money he can’t afford to pay either both me and my guarantor have Made complaints yes
Thanks Susan
Sara (Debt Camel) says
“he’s worried they will try to take money he can’t afford to pay “
If he understands why you want to stop paying and is just worried that he can’t stop Amigo taking money from him, then he needs to cancel the direct debit to Amigo AND also to phone his bank account and cancel the Continous Payment Authority Amigo has over his debit card. Even if he has a new debit card with a different number, he still needs to do this.
Gemma says
Hi, this happened to my guarantor. They took £330 without prior warning. They said the guarantor already agreed previously when agreeing to be a guarantor so contractually, they could go in anytime and take money. This was after the ombudsman had upheld my loan as unaffordable. I would advise your guarantor to let their bank know in advance, tell them not to pay out to amigo and explain the situation. My guarantors bank was able to recover the money but it took a month long investigation and left her short for priority bills.
Susan says
This was their next reply
Only Borrowers that have repaid their principal loan amount are eligible for equitable set-off with Amigo, and all customers that have exercised their rights so far, have met this criteria. This principal balance will always need to be repaid, regardless of your claim outcome, and therefore needs to be repaid before a customer can elect to stop payments by exercising set-off. Please let me know if this mis-advice was provided to you by an agent at Amigo, and I will look to follow up on this.
They aren’t having none of it !!
Sara (Debt Camel) says
I think they are being unreasonable.
But the question for you is whether you still want to stop paying even though Amigo won’t let you have thei Equitable Set off…
Read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at this.
Jasmin says
Hi,
I was told that my complaint would be automatically included in the new scheme and have made the decision to pause the payments whilst my loan is under dispute. I have sent Amigo multiple emails stating my intentions going forward and have applied for equitable set off but have been refused – “You do not qualify for the Equitable Set Off as you have not paid your capital’’.
At present, they are still asking my guarantor to pay and I am unsure of what steps to take next. I’m confused as to what they mean but ‘you have not paid your capital’.
Any advice would be much appreciated
Sara (Debt Camel) says
I’m confused as to what they mean but ‘you have not paid your capital’.
They mean that you haven’t yet repaid the amount your borrowed. For example if you borrowed £3000 and have so far paid £4000, they would allow you to opt for this Equitable Set Off, but if you had only paid £2000 they won’t.
This is a condition being imposed by Amigo, I am not sure why as if you have only paid £2000 (in the above example) you may still win your complaint and have your balance reduced to £100, your guarantor released and be able to repay the £1000 at a lower affordable amount. So it seems unfair to insist you keep paying.
So you have to choose whether you want to stop paying anyway. Without Amigo allowing you to say you want this option.
Read https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at this decision and the pros and cons.
Jasmin Alderson says
Hi Sara,
Thank you for your reply. I have decided to challenge my right for equitable set off and have continued to pause payments whilst my complaint remains open. I have been issued a default notice – which I was prepared for, given that I believed and still believe that I have a strong complaint (two top ups within same year). My situation now is – my partner is a full time student and I’m a post grad. I don’t want Amigo putting pressure on him to pay when he is undergoing his studies, but I also believe it right to pause the payments until my complaint is resolved. I’m also worried that Amigo will attempt payments from my partners account that he can’t afford. Apparently the bank could not see a CPA set up to Amigo on his account nor a direct debit but have read that Amigo are able to reinstate this?
Help!
Sara (Debt Camel) says
Two tops up in a year is usually a sign of a good case.
Was the loan affordable for your partner at the time it was taken out? If not, he too can make an affordabilty complaint – that means there are two ways for him to be released, if you win your complaint or he wins his complaint.
Most gurantors don’t have a problem with a CPA being reinstated, but obviously he wants to make sure his won’t be. I suggest he sends his bank a message – the secure messaging is fine – saying that he wants to confirm what he said on the phone that he withdraws any consent for Amigo to have a CPA or a direct debit over his account.
Can I ask what the rest of your and his finances are like? Do you have other problem debts? Are you being with any bills?
Jasmin Alderson says
Hi Sarah,
Thanks your reply. My guarantor is unemployed and a full time student and I’m a post-grad working part time. I have problem debts which I have previously neglected in order to pay for the loan. I have a history of borrowing from payday loan companies which I am paying off as well. At the time of the original loan and top ups, my guarantor was studying whilst working part-time, so we were both extremely surprised that he was accepted as a guarantor – we’ve put forward an affordability complain for him too, however Amigo are still pushing for us both to pay and recently email saying ‘As advised you are not eligible for equitable set-off and to have your payments paused. If your complaints are not upheld the arrears that would have occurred would be required to be paid in full. We will need to get an understanding of your current finances and look at a solution whilst the complaint is in process. Please complete this income and expenses form’. What’s your advice on my next steps?
Sara (Debt Camel) says
Are you still paying?
Jasmin Alderson says
No, we both decided to stop paying last month.
Sara (Debt Camel) says
So all the equitable set off would give you is Amigo not asking your guarantor to pay. The rest of it – you getting into arrears, interest still accruing, your credit record being harmed – is exactly the same unser this equitable set off as you simply not paying without Amigo “allowing” you to pause the payments.
If you struggle to pay Amigo and the rest of your debts get worse, then if you win the Amigo complaint, it won’t resolve the rest of your debts.
Have you looked at affordabilty complaints for your other high cost debt as well? Not as an alternative to stopping paying but in addition to whatever you do about this Amigo loan.
You can talk to Amigo about your income & expenditure if you want, but others have said they try to badger you into paying more. What is your plan if you win the Amigo complaint and your guarantor is released and you are left with a lower balance? Would that be manageable or are you then looking at a a debt management plan or insolvency?
Does your guarantor have problem debts as well?
Jasmin Alderson says
Hi Sara,
Thank you for your reply. I have arrangements in place with other debts which are low-cost monthly repayments and affordable, but I have previously missed some to pay for the amigo loan which is the highest cost loan I have (£5750). If Amigo lowered my balance due to redress it would be much more manageable as I’m currently paying £227 per month. If I completed the income and expenditure form they would see that neither my guarantor nor myself can afford this loan going forward unless they agreed to significantly reduce the monthly payments. I’m really un-decided as I want the emails, phone calls and threatening letters to stop as it’s effecting my mental health. With equitable set off – I have paid well over the original loan amount before the top up but I guess that’s not something I can use to challenge their decision is it?
Sara (Debt Camel) says
I think the way they are excluding people like you from the equitable set off is unfair, but there isn’t a way to make them change their mind, so there isn’t much point in stressing about this.
If you decide to talk to them about your income & expenditure, don’t let them push you to pay more than you can afford. They are not a “priority” debt legally.
Sam says
I have now made a complaint but have heard nothing from them. I didnt even get an automated reply to say they have received it.
Gemma says
****Hi Sarah, just had this through from amigo in case its of any interest to anyone here****
Firstly, we’d like to apologise that it’s been a while since we last reached out to you. Although this is not an update on a new Scheme, we wanted to let you know what we’ve been doing and where we currently are.
We continue to work with all stakeholders, including our regulator, to ensure customers get the best possible outcome.
What’s happening now?
We are working with the Customers’ Committee to come up with a solution that provides the best possible outcome to anyone with a valid claim. We don’t yet have any timeframes on when we’re likely to announce anything, but we will be in touch as soon as we have anything we can tell you.
An update on outstanding complaints
We understand that some customers will still be waiting for a response to their outstanding complaint. As we are still working hard on what a new Scheme could look like, our pause on progressing certain complaints, and paying redress, remains in place.
We’d like to reassure all customers that processing complaints is very important to us and we’re working to find the fairest way for all customers with a valid claim to receive redress.
Any complaint that is currently raised with Amigo, and paused, will be addressed as part of the planned Scheme (even if you have settled your loan). We intend to provide an update to all customers as soon as possible, when we have details to share.
Sandra says
I also had this Gemma a few days ago and was wondering what it meant also.
Sara (Debt Camel) says
It doesn’t really have any implications for you.
Gemma says
Hi Sandra and Sara (sorry I misspelled your name in an earlier message), I think the overall message in that email is that they expect to get back to complaints when it suits them, not when is reasonable. They’ve a knack for telling customers what they need while showing total disregard for the customers needs. This has been my experience unfortunately.
Karen says
Where can a new affordability complaint with request for set off be sent. Their website still has a Complaint Form.
And there is this email address hello@amigoloans.co.uk or should I post the complaint and have it Signed For to
Amigo Loans
118-128 Commercial Rd,
Bournemouth
BH2 5LT
thank you
Sara (Debt Camel) says
email will do fine.
MC says
Just phoned up to request the equitable set off and was quite straight forward but was about 30mins on the phone to get through. Have paid more than the principle and have an active complaint on current loan (and 4 tops up since original in 2011). Shame they have to advise the guarantor though as now have to deal with the hassle of explaining the situation even though it makes financial sense as have been throwing away £337 of my £375 payment since August 2020
H says
Thank you for contacting the Financial Conduct Authority (FCA). I understand that you’re unhappy with Amigo, as they don’t have consumers as a priority, and allowed you borrow irresponsibly. They have also left your complaint running for over a year. You wish to request that the FCA reject their scheme again, as they deserve an administration. I appreciate this must be a stressful time for you. Thank you for sharing your concerns with us.
Our role
K says
Hi
Does anyone who has managed to arrange a set off with amigo mind telling me if they have have paid alot over the amount borrowed?
I am asking as I have also requested this but amigo are telling me that I have not yet paid the principal amount. (Borrowed 8000 and so far payments made to date are just over 9000). They have said that I have only paid just over 5000 as every time I make a payment so much goes towards principal amount and so much towards interest. I understand that this is what they do with payments, however if my claim is upheld (which I believe I have a strong case) then the interest will be removed and they will owe me.
Sara (Debt Camel) says
Is this the first loan you had from them?
K says
No, this is my 7th loan since 2011
Sara (Debt Camel) says
ok, well I *think* what Amigo may be doing here is saying that you have to have repaid more than the last top up loan you had or it won’t let you have equitable set off.
So how large was the last top up loan? Not the cash you received, but the whole loan? And how much have you paid to this last loan?
NB if this is what Amigo is doing it is wrong and unfair. Because you may have refunds due from previous loan. And they may be mixing uo their “deductions for unpaid interest” (also unfair) in the calculation. The legal principle of equitable set off is not restricted in the way they appear to be doing.
So the bottom line is if they won’t agree that you can have this offer from then, then you have to choose between continuing to pay and stopping without this offer. The article above looks at the pros and cons – can you discuss this with your guarantor?
K says
Yes my guarentor is fine and happy for me to stop payments, however it would be more ideal if it was an arrangement so the bombarding emails and phone calls would stop. Guarentor has also put in her own claim aswell.
My last loan was a top up loan and was for 8000 (payout of 1676 after paying of previous loan).
So far I have paid just over 9000 (had covid 19 break and am currently in arrears)
Sara (Debt Camel) says
Then I have no idea why they say you can’t have this. You could phone up and insist on speaking to a manager and point out you borrowed 8k and have paid over9k – the covid break and arrears are not relevant to this calculation).
But if they won’t let you have the break, then you and your guarantor know what you need to do.
A. says
Hi Sara
I am eligible for Equitable Set Off, as I have paid well over what I have borrowed. My problem is my guarantor, who is past herself, thinking she will have to pay, {which I told her she does not}also she thinks they will take her house away from her as well. I did put a complaint in but they rejected it, so it is with the FOS, who are obviously not dealing with it. Hopefully they will either get this new scheme or go into administration. I am just paying a reduced amount to Amigo, that does not effect my guarantor.
Sara (Debt Camel) says
could you afford to put the monthly payments into a savings account? So you can tell your guarantor that IF you lose your complaint, you can just pay off the arrears?
A says
Hi Sara
Thanks for the reply, I have told her this but she is not having it. She also, has a complaint in with amigo. Just have to keep paying. Thanks
DM says
I have applied for Offest. Amigo advised they will not chase the guarantor for any payments until resolved which puts her in a better position (but cant stop them from making any payments voluntarily if they are stupid enough to do so) . Would an option be to put the money aside if you can afford to do so and show your guarantor monthly it is safe until a scheme is set up or Amigo go into Administration and once either has started pay the accrued money in which would clear any arrears and you should get back in full if full claim is upheld if money owed by Amigo is over existing balance? You will still get the negative marks on your credit but protect the refund of payments whether partial or in full. Not financial advice as not accredited to give any (and would not be on this forum otherwise) have posted partial extract Amigo response below to me which includes statement about guarantor
DM says
Following completion of the online form, we have updated your account to reflect that you will no longer be making payments, under the right of Equitable Set-Off, while your complaint is awaiting an outcome.
To confirm, you have agreed that:
You will not be making any further payments towards your loan, while your complaint is awaiting investigation and a decision.
By not making payments, the account is at risk of falling into arrears, or falling further behind. Your account will continue to be reported to all Credit Reference Agencies. This may have a negative impact on your credit file, and will only be removed in future if your complaint is upheld. Any arrears owing will be due immediately if your complaint is rejected.
Interest will continue to accrue on your account as agreed, unless it has already been paused or stopped.
You will continue to receive certain communications from Amigo, including by letter, regarding the status of your account and any arrears.
We have stopped any future payments being collected from you. Please be aware that we cannot stop any pending payments.
We have sent a confirmation message to your guarantor to advise them of your decision and have also stopped any payments from them, while your complaint is awaiting review. We cannot refuse any payments that your guarantor may choose to pay, however, we aren’t expecting or asking them to pay currently.
Sara (Debt Camel) says
I think putting money aside is a very sensible option if you can afford it.
Let’s wait and see the exact terms of the Second Scheme – it’s not a good idea to prejudge these.
Valerie says
Hi Sara I got a long detaioed but amicable type email from Daniel, one of amigo collection’s team leader. It is too long to copy paste but could email it to you. He talks about equitable set off working like a counterclaim. He also said amigo would never expect anyone to make payments they cannot afford.
All went quiet for last few weeks but this morning got text threatening letter before action. I am not paying anything until details are released about new scheme. Even if approved I would expect it will take best part of 2 years to get results as that happened with money shop they gave timetable which got extended many times and they did not have level of complaints amigo have. It is going to be a long haul if approved. Val
Ian says
Hi Sara
Great work on this forum, much appreciated. I am helping my brother with his claim against Amigo. I have said for some time now that they have been underhanded in collecting monies where borrowers have paid back more than they loaned. ie we will threaten you for monies which you must pay us but we will only return a fraction if your complaint is upheld, which most are as a result of this shambolic and opportunistic company. The FCA should hang their heads in shame. I’d like your thoughts on the situation where the borrower hasn’t paid more than the principle sum but is having issues repaying due to unemployment. Now they are recognizing equitable remedies should he ask to stop payments? Credit file is most likely shot but in any event I am confident his case will be upheld (eventually) and thus negative markers removed. They have failed to respond meaningfully to the complaint in breach of their own charter/guidelines and the FCA have paused all actions as far as I can see. We are both sick of waiting for them to get their house in order. As he is struggling to make payments there are the usual threats to the guarantor which is upsetting her (a relative). I can see no downsides to asking to stop payments based on equitable set-off (albeit it more nearly applies where the lender owes more to the borrower in this scenario). Grateful for thoughts.
Sara (Debt Camel) says
Well there is no downside to asking, but from what other people have been told, Amigo will say No.
The only thing you would have gained if they said yes, is that they won’t hassle the guarantor. Can you explain the situation to the guarantor – how their credit rating will not be affected if they don’t pay? the strong case the borrower has? how threats of legal action are just unpleasant bluffing as Amigo is not going to do this before any Scheme? See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/
Ian says
Hi Sara. Thank you for fast responses. On what grounds do you (or Amigo) believe they are able to say no? I’m not sure how they can legally distinguish between where there is more or less owed to them? Equitable set-off is available in both by its very definition and operation at law.
I have explained the to the guarantor, they have no problems with this position. I shall call Amigo today and see what they say.
Sara (Debt Camel) says
oh I don’t think they SHOULD say No. I am saying from what other people have said that they WILL say No.
The problem is there is no way for you to challenge this. The FCA is washing its hands of AMigo customers. FOS can’t take on any more cases. And going to court doesn’t make any sense.
I think they are just saying this to restrict the number of people who stop paying them.
Ian says
Hi Sarah. I agree, you are completely right. Pains me as a lawyer to let them treat people like this and disgusted with the regulator/OM.
Keep up the good fight. I’ll let you know what happens if I do decide to ask them.
Ewan says
I’m 27 months into my 60 month long contract. I took out of a loan of £7500, and have so far paid £8003.88 in payments, with nearly another £10k left to pay.
Any advice what to do given current circumstances within Amigo? Am I best waiting to see what happens with the scheme or do I have a better alternative to forever paying interest and seemingly never seeing my balance actually ever go down.
Sara (Debt Camel) says
Was this your first loan from Amigo?
Do you think it was affordable at the time you were given it – a loan is only affordable if you can repay it and still pay your other debts, billas and everyday living expenses?
Ewan says
Alas no, it was maybe my second or third top up. I think at first I was paying about £150 a month but then obviously this rose as I got top ups. They were all affordable for me at the time, but I don’t think they truly looked into the other debts that I had on my file at the time (a couple of thousand between other lenders) and still allowed me to top up.
To be honest, if I still have to pay I still have to pay, I just feel like I’m down a never ending interest hole. I know it’s what I essentially signed up for, but with the way their company is at the minute you’d think they would mind giving themselves one less headache.
Sara (Debt Camel) says
They were all affordable for me at the time
Then you should carry on paying as you wouldn’t win an affordability complaint
but I don’t think they truly looked into the other debts that I had on my file at the time (a couple of thousand between other lenders) and still allowed me to top up.
BUT that suggests to me that you don’t think the later top ups were affordable? In practice a lot of people who topped up 2 or 3 times had unaffordable loans – it was the fact they were struggling with one loan that made them as for the top up.
Sam says
Just wanted to update on my journey.
I made a complaint directly to Amigo and was rejected sometime around May 2020. I was still paying off the loan. I made a complaint with the Financial Ombudsman in June 2020. I completed payments in January 2021. The Financial Ombudsman contacted me on 11/10/2021 to say that the scheme Amigo proposed was rejected and they are working through claims with my claim approved. I borrowed £3,000 and paid back £5200 in total. Amigo then emailed the following day 12/10/2021 to say my complaint was upheld:
Interest paid to be refunded to you: £2,158.42
8% statutory interest awarded: £121.37
20% tax already deducted from 8%: £30.34
Total interest refund due: £2,279.79
I made my complaint using all information on this website with the templates, etc and managed to obtain nearly all interest back on loans I have had previously during the dark days. The only disappointment has been Sunny (Elevate Credit). Claim valued at £3,313.17 with a dividend of £106.42 paid.
Stay strong people and tackle each loan one by one, and you can get there.
sam phynex says
I am happy for you but confused too. Can I ask, why, if Amigo haven’t come up with a second scheme that’s been excepted, are they paying you out an agreed amount? Surely if they haven’t agreed anything they can’t say how much they are going to give you……
I complained to Amigo both by their form on the website and by email but I haven’t heard anything from them. I am a garuntor who has paid all but 6 payments as the original loan recipient declared bankrupt because of the payments.
Sara (Debt Camel) says
So far as I can tell, Amigo has agreed to refund in full a small number of people where FOS has made a decision. I don’t know who, how many or why not other people…
Sam says
My original claim was denied by Amigo March 2020 in which I raised with FOS. Not head anything apart from them calling this week with the above information.
My claim was for one loan only but at the time of obtaining the loan I had a wide range of unsecured loans and in financial trouble which I stated in my complaint original complaint. FOS upheld in which Amigo offered all interest back as stated above. I have not received payment though and informed this would take up to 10 days.
Apologies I do not know any further information than this
Jasmin Alderson says
Hi Sara, I’m hoping you can give me a bit of clarity here. So I’ve been refused equitable set off because I’ve not paid my capital. When I queried this, Amigo said that I had only paid £4268 towards the top up loan £5750, however, they are only taking into account the repayments made since I topped up the loan. What about the repayments towards my previous loans? As from August 2018 – September 2019 (month of top up) I paid over £2000 which means that effectively, I have paid over £5750. When I said this, they argued that I was quoting figures from a previous loan which do not count towards capital. Where has this money gone then?
Sara (Debt Camel) says
I’m sorry but it is impossible to reason with Amigo about this. What they are doing is unfair in many ways. But they won’t change their mind and you can’t take a complaint about this unreasonable behaviour to FOS.
You have to decide between continuing to pay or talking to your guarantor about stopping even though Amigo will hassle them.
Doctor Sax says
I have been told by Amigo today that Equitable Set Off is only for those customers who have made payments equivalent to their capital borrowing — ie, if you borrowed £5,000 and have paid £4,500 off (but obviously still owe a fortune because of the interest rates) you are not eligible.
Sara (Debt Camel) says
Yes that is what they are saying. It’s not reasonable as you have the right of Equitable Set off even if only reduces a balance, doesn’t clear it. But you can’t make them change their mind. You have the choice about carrying on paying or talking to your guarantor about stopping paying, see the pros and cons in this article: https://debtcamel.co.uk/stop-paying-amigo-set-off/
Robert says
Hey Sara, is there a template to send Amigo regarding this Off set? Plus are they usual quick to respond or have they been known to “ignore it” for aslong as they can?
I’ve sent a email but think I should of added more to prove my case. I’ve paid close to £9000 of interest for my 10000 loan. Think in all I’ve paid close to 16k. This is a top up loan do feels like an age having to deal with Amigos. If they said “would you just like to clear your loan with us instead of a refund” I would accept that within a heartbeat. The fact I have 2 more years is eye watering
Sara (Debt Camel) says
No there isn’t a template. They aren’t going to change their minds, I doubt they will even think about what you have sent them. And there is no way to challenge this.
You have to choose between carrying on paying them and talking to your guarantor about stopping. See https://debtcamel.co.uk/stop-paying-amigo-pros-and-cons/ which looks at the pros and cons of stopping.
Simon Bailey says
I exercised my right to equitable set-off off and Amigo seemed quite happy to set it up but since then I’ve had several letters and a default notice issued today I expected this but they have said they’ll try and now claim the arrears for the missed payment from my guarantor. Can they do this?
Sara (Debt Camel) says
You had the email from Amigo explaining how equitable set off would work? And this said they would not ask your guarantor to pay?
Simon Bailey says
Yes I had an email explaining how it works and it said they wouldn’t ask my guarantor to pay but they’ve started asking her to and today wrote to me and her saying if I don’t pay the arrears that they’ll look to my guarantor to take the full loan balance. I’ve emailed them and I’m awaiting a reply.
Sara (Debt Camel) says
I suggest you phone them up and ask.
If your guarantor hasn’t cancelled their direct debit to Amigo AND phoned up their bank and cancelled the continuous payment authority over their debit card they should do this now. Better safe than sorry!