A reader asked: I have 5k debts and I’m now on ESA. I'm also a guarantor for my mum's Amigo loan - could that be included in a Debt Relief Order (DRO)? There are three types of personal insolvency in England: bankruptcy, IVAs and DROs. Normally if a debt can be included in one form of insolvency, the same applies to the other two. But for guarantor loans, it's more complicated. So this … [Read more...]
Amigo – Q1 results show more complaints being upheld
On 29 August, Amigo published its financial results for the April-Jun 2019 quarter. I wanted to see how Amigo was going to refer to the very high percentage of complaints against it which have been upheld by the Financial Ombudsman - see 83% of guarantor loan cases won at Financial Ombusdman - and whether Amigo is making any changes because of this. The Amigo announcement Here are some … [Read more...]
“I have a CCJ from Amigo – is it too late to complain?”
A reader asked: I agreed to be the guarantor for a loan for a friend, but he lied to me and couldn't pay it. Amigo were very difficult, wanting me to stop paying other debts so I could pay them, and got a CCJ. Is it too late for me to complain and ask to be removed as the guarantor? Guarantor lenders have a reputation for being very fast to go to court when a guarantor doesn't pay them. People … [Read more...]
83% of guarantor loan cases won at Financial Ombusdman
The Financial Ombudsman (FOS) complaint statistics for April-Jun 2019 have just been published, see Product Complaints Data. For guarantor loans, FOS decided in favour of the consumer in 83% of cases. That is a dramatic increase from the uphold rate of only 32% for the previous financial year I have been saying for several months that almost all affordability complaints by both … [Read more...]
How the borrower of a guarantor loan can complain
Amigo and other guarantor loans are very expensive and the lender often doesn't check properly that you will be able to manage the loan repayments without having to borrow more. If proper checks would have shown that you couldn't afford the repayments, complain! There is a template letter in this article for you to use. You can get a refund of the interest you have paid, or an existing loan … [Read more...]
How to complain when you are the guarantor for a loan
If you are a guarantor for a loan you can ask to be removed as the guarantor: if you couldn't afford to repay the loan without difficulty; or you were pressured into becoming the guarantor; or you didn't understand the implications of being a guarantor. A lender such as Amigo should have checked that a loan will be affordable for both the borrower and the guarantor before the loan … [Read more...]
Amigo – why the Ombudsman released a guarantor from a loan
The Financial Ombudsman (FOS) has recently published two important decisions about guarantor loans, one where a borrower complained and one where the guarantor complained. I have covered the borrower case here: Ombudsman – Amigo did not check properly that a borrower could afford the loan. This article looks at the FOS decision about the guarantor for a loan. I have selected points from the … [Read more...]
Ombudsman – Amigo did not check properly that a borrower could afford the loan
The Financial Ombudsman (FOS) has recently published its decision on Miss G's complaint against Amigo. This FOS decision criticised Amigo's inadequate assessment of Miss G's income and expenses. It said her poor credit record meant Amigo should have verified the figures, for example by looking at bank statements. So FOS ordered Amigo to refund all the interest and charges she paid, plus 8% … [Read more...]
How Subject Access Request information can help an affordability complaint
If you are making an affordability complaint about a large bad credit loan (that includes logbook loans and car finance) or a guarantor loans, my template letters start by asking the lender to send you a copy of all your personal information. This is often called a Subject Access Request (SAR). Lenders used to charge people £10 for this, but it has all been free since GDPR changes last … [Read more...]
Amigo guarantor loans – more refunds being paid!
In May 2019, adjudicators at the Financial Ombudsman (FOS) made several dozen decisions upholding affordabilty complaints by people with Amigo loans. So far as I know, Amigo has accepted all these decisions and has paid out refunds. These adjudicator decisions are not published by FOS but readers have sent me copies of them. This article has some extracts so you can see what FOS is looking at … [Read more...]