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  • FIRST POST
    • shopaholic2
    • By shopaholic2 12th Jun 12, 9:56 AM
    • 599Posts
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    shopaholic2
    Amigo loans
    • #1
    • 12th Jun 12, 9:56 AM
    Amigo loans 12th Jun 12 at 9:56 AM
    Firstly, I am NOT considering using this company...
    I'm just wondering if anyone actually has?
    I've just seen the advert again, and I cannot understand how anyone, who reads this forum anyway,would use them?
    Or more to the point, who would be the "amigo"? The one who actually ends up paying the loan when you don't?!
    Anyone got any thoughts?
Page 9
    • zx81
    • By zx81 6th Jun 17, 11:54 AM
    • 12,444 Posts
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    zx81
    It's a clever business model, which charges sub prime APR with a prime back up.

    If guarantors knew what they were doing, they would simply lend the other party the money themselves.

    They will carry out the checks needed to run their business - risk appetite varies across lenders.

    Affordability checks also run both ways. The applicant should also believe they they can afford the loan in applying. It seems you're suggesting that the applicant in this case applied knowing he couldn't afford it.
    • Ebe Scrooge
    • By Ebe Scrooge 6th Jun 17, 11:58 AM
    • 3,714 Posts
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    Ebe Scrooge



    If you are applying for loans surely the loan company has a responsibility to make sure you have affordability rather than just simply relying on the guarantor. Nope, that's the way it works - the clue's in the name.

    Amigo do not chase the loan applicant, even when you offer them new evidence of address they don’t follow up. They are solely setup to nail the guarantor. Again, the clue's in the name - that's the whole point of these loans, they're designed for people who have a high chance of defaulting.





    My final point is this… if they solely rely on guarantors then why the high interest rate of 49.9% Because they can. If you don't like the APR, don't apply. No-one is forcing you to apply. Indeed, in these sorts of situations, the advice on this forum is always for the would-be guarantor to take a loan in their own name, at a much more sensible APR, and gift the money to their friend.
    Originally posted by mugonmyforehead

    My thoughts in bold above.
    I may not know much about art, but I know what I like.
    • fwor
    • By fwor 6th Jun 17, 12:29 PM
    • 5,833 Posts
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    fwor
    I’m suspending my payments
    Originally posted by mugonmyforehead
    I would recommend that you think very carefully before you do this. If you don't win the case it is likely to have a significant negative impact on your own creditworthiness.

    Be aware that Amigo are likely to put a lot of time and effort (and solicitors fees) into defending this - the obvious reason being that they cannot afford to lose. If they do it would set a precedent that would kill their very profitable business model - so you would need to have deep pockets, I would think, to take them on.
    • DCFC79
    • By DCFC79 6th Jun 17, 12:38 PM
    • 29,515 Posts
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    DCFC79
    Mugonmyforehead

    If it were me I would have asked to see the persons bank statements to see what kind of situation the account was in or it would be a flat no.

    Amigoloans seems to have worked to many people, not worked for yourself though.
    Je Suis Charlie
    • mugonmyforehead
    • By mugonmyforehead 6th Jun 17, 1:05 PM
    • 4 Posts
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    mugonmyforehead
    feedback
    WOW GUYS thank you... however do some of you work for Amigo loans.. I don't mind being patronised at all.. Thankfully I have monies to fight this organisation and that is based on principle. I accept in hindsight that I should have also checked the bank statements to demonstrate proof of affordability, but Amigo loans didn't bother checking either. And I have a statement that claims they would not have lent monies based on the information held in the financial statements. I did have the funds to lend directly myself but the whole point of this application was to help rebuild the persons credit file and financial trust. I accept that I was screwed over by a family member which in its slef is pretty tough to swallow... especially one so close... thought I had actually stated this in my original post? I am more than happy to engage my council to fight this matter. I believe they have issued funds without the correct and proper financial checks of the loan applicant. I am fortunate to have a considerable net worth and I am credit checked and bank statements commercially and personally every time I access trade deals. Yet someone with poor credit can obtain monies with little or no expenditure checks via Amigo loans... That is wrong... and immoral model to rely solely on Guarantors. Guarantors should be the very last stop. No attempts are made to reconcile an on-going relationship with the loan applicant. I for one will challenge this. Just because this is the way the model works does not deem it right.
    • zx81
    • By zx81 6th Jun 17, 1:11 PM
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    zx81
    I accept that I was screwed over by a family member which in its slef is pretty tough to swallow... especially one so close... thought I had actually stated this in my original post?
    Originally posted by mugonmyforehead
    Not that I can see.
    • Pixie5740
    • By Pixie5740 6th Jun 17, 1:21 PM
    • 10,590 Posts
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    Pixie5740
    That is wrong... and immoral model to rely solely on Guarantors. Guarantors should be the very last stop. No attempts are made to reconcile an on-going relationship with the loan applicant. I for one will challenge this. Just because this is the way the model works does not deem it right.
    Originally posted by mugonmyforehead
    I don't think you understand what it is to be a guarantor. Amigo knew your friend was a crap borrower that's why they wanted someone to guarantee the loan. Why would Amigo waste time chasing someone who hasn't paid, probably can't pay and let's be honest was highly likely never going to pay, hence the need for a sucker guarantor?

    You can say what you like about Amigo Loans but you cannot say that they don't spell out the guarantor's responsibilities in the simplest of terms.

    https://www.amigoloans.co.uk/be-a-guarantor

    By all means try and fight Amigo but I genuinely believe you will just be throwing good money after bad.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • fwor
    • By fwor 6th Jun 17, 1:35 PM
    • 5,833 Posts
    • 3,861 Thanks
    fwor
    I believe they have issued funds without the correct and proper financial checks of the loan applicant. I am fortunate to have a considerable net worth
    Originally posted by mugonmyforehead
    You don't seem to have taken on board what others here have told you. YOU are the loan applicant.

    In effect what you do when signing up to be a guarantor is to link yourself financially to the "real" borrower for the purposes of the loan - in a manner that in some ways is similar to the way that a married couple is linked. The responsibility for the loan is "joint and several" so they only need to concern themselves with the financial position of the guarantor - they don't need to consider the "real" borrower, because they will always have a crap credit history.

    In legal terms, this type of arrangement is well established, so I doubt that you stand the slightest chance of challenging its legality and winning. You may, however, persuade them to offer a goodwill settlement, on the basis that it helps to reduce bad publicity, and might actually make their shameful business model look a bit less exploitative than it really is.
    • mugonmyforehead
    • By mugonmyforehead 6th Jun 17, 2:34 PM
    • 4 Posts
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    mugonmyforehead
    amigo
    Thank you for you comments, FWOR - So I would ask once again.. if I am as you say the "Loan borrower|" why the high risky 49.9% if they are setup to depend on the Guarantor.
    regardless I am prepared to throw good money after bad.. Principles..


    Pixie5740 - seriously? I have been doing finance deals for best part of 20 years and this disgraceful agreement is the only type of agreement that I have ever found to have holes in it. I have PG loads of deals without dispute.


    I'm baffled at most of your comments, you should sign up to the Amigo preservation society.. I was simply sharing my experiences to those that maybe considering this type of loan. I wasn't looking for patronising comments, or someone to fight my corner. I can do that all by myself. I was merely cementing what others were asking for feedback on... !!!! Turpin wore a mask... I'm astounded that majority of you accept and feel it is correct that no frank and proper financial checks were made of the persons they expected to be paying this obligation...


    BTW This was no friend. it was a close family relative were obvious unconditional love got in the way. if you have not experienced that type of issue then try discovering some empathy.
    • verityboo
    • By verityboo 6th Jun 17, 2:45 PM
    • 847 Posts
    • 1,056 Thanks
    verityboo
    Thank you for you comments, FWOR - So I would ask once again.. if I am as you say the "Loan borrower|" why the high risky 49.9% if they are setup to depend on the Guarantor.
    Originally posted by mugonmyforehead
    Because it means they can make lots more money!

    If a Guarantor stopped and considered the position they were putting themselves in they would take out a loan directly at a much lower interest rate
    • mugonmyforehead
    • By mugonmyforehead 6th Jun 17, 2:56 PM
    • 4 Posts
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    mugonmyforehead
    Because it means they can make lots more money!

    If a Guarantor stopped and considered the position they were putting themselves in they would take out a loan directly at a much lower interest rate
    Originally posted by verityboo

    But that does not reach the objective initially set out by way of so called improving the credit file or worthiness of the original applicant. otherwise I would have given the money myself. There as always an agenda here to better the position of the individual. I considered the options and this is the route that we felt would genuinely help them best.
    • zx81
    • By zx81 6th Jun 17, 2:59 PM
    • 12,444 Posts
    • 12,619 Thanks
    zx81
    A sub prime credit card would have been a better option for improving their credit file.

    Had they already tried and been rejected by the likes of Vanquis - or Capital One secured card even?
    • Pixie5740
    • By Pixie5740 6th Jun 17, 3:12 PM
    • 10,590 Posts
    • 14,551 Thanks
    Pixie5740


    Pixie5740 - seriously? I have been doing finance deals for best part of 20 years and this disgraceful agreement is the only type of agreement that I have ever found to have holes in it. I have PG loads of deals without dispute.


    I'm baffled at most of your comments, you should sign up to the Amigo preservation society.. I was simply sharing my experiences to those that maybe considering this type of loan. I wasn't looking for patronising comments, or someone to fight my corner. I can do that all by myself. I was merely cementing what others were asking for feedback on... !!!! Turpin wore a mask... I'm astounded that majority of you accept and feel it is correct that no frank and proper financial checks were made of the persons they expected to be paying this obligation...

    Originally posted by mugonmyforehead
    You're baffled? I am completely bamboozled that someone who is as au fait with finance agreements as you claim to be doesn't seem to understand what a guarantor actually is and failed to comprehend Amigo's plain language about what is expected of a guarantor. The mind boggles.

    What is the purpose of you posting your experiences with Amigo. You clearly did no research before agreeing to stand as guarantor otherwise you would have found this thread and this forum before agreeing to become a guarantor in the first place. What makes you think other guarantors will read your experiences?

    I have no great love for Amigo as a company. I sure as hell wouldn't use them nor would I ever act as guarantor for someone.

    Proper checks were done, Amigo knew that when the borrower failed to keep up with the repayments you could afford to make them.
    Last edited by Pixie5740; 06-06-2017 at 7:00 PM. Reason: typo
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Anna9733
    • By Anna9733 6th Jun 17, 6:47 PM
    • 3 Posts
    • 4 Thanks
    Anna9733
    Run away!
    Been there, done that.

    They were ruthless, unfeeling about our situation when we couldn't pay and excessive with their contact! We had 17 debts and they were only one of 2 that wouldn't make arrangements when we were late or unable to pay in full, even though we told them everything.

    We gave up credit in 2011 and have just finished paying the last 2 on our credit files! I have even started a blog (A Peace Of Life) and e-book to share what we went through, my blog post about guarantor loans doesn't name them, but it was!

    Please don't use them.
    Anna x
    • Pixie5740
    • By Pixie5740 6th Jun 17, 7:02 PM
    • 10,590 Posts
    • 14,551 Thanks
    Pixie5740
    Been there, done that.

    They were ruthless, unfeeling about our situation when we couldn't pay and excessive with their contact! We had 17 debts and they were only one of 2 that wouldn't make arrangements when we were late or unable to pay in full, even though we told them everything.
    Originally posted by Anna9733
    How did your guarantor feel when you were unable to make your payments to Amigo or were you the guarantor getting shafted?

    We gave up credit in 2011 and have just finished paying the last 2 on our credit files! I have even started a blog (A Peace Of Life) and e-book to share what we went through, my blog post about guarantor loans doesn't name them, but it was!

    Please don't use them.
    Anna x
    Originally posted by Anna9733
    Congratualtions on your debt free journey.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • pvt
    • By pvt 6th Jun 17, 9:23 PM
    • 1,327 Posts
    • 1,062 Thanks
    pvt
    But that does not reach the objective initially set out by way of so called improving the credit file or worthiness of the original applicant. otherwise I would have given the money myself. There as always an agenda here to better the position of the individual. I considered the options and this is the route that we felt would genuinely help them best.
    Originally posted by mugonmyforehead
    You facilitated this person getting a loan at a very punitive interest rate - about 2,500% more than the interest rate that Amigo probably borrowed that money at. About 100% more than a sub-prime credit card.

    You facilitated them getting a loan that they couldn't afford to repay - Amigo knew that, which is why they would only lend it if someone else carried the risk.

    On reflection, how much do you feel you were helping them?

    The person you 'helped' took you for a mug - which is very sad given that your genuine intention was to help them - but don't blame Amigo for that.

    Amigo has no friends on this forum, their business model is odious and prays on well intentioned guarantors who haven't done their homework.

    Their business model is inspired, they actually have two different people to pursue for the money rather than one. There was a case posted here recently where a guarantor didn't pass the loan on the the applicant and disappeared - Amigo then relentlessly pursued the applicant for repayment of the money they had never received.
    Last edited by pvt; 06-06-2017 at 9:25 PM.
    Optimists see a glass half full
    Pessimists see a glass half empty
    Engineers just see a glass twice the size it needed to be
    • Pixie5740
    • By Pixie5740 7th Jun 17, 12:56 PM
    • 10,590 Posts
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    Pixie5740
    I had a look on the Financial Ombudsman's website to see what it had to say about affordable lending.


    unaffordable lending

    Unaffordable lending means lending that the consumer could not reasonably afford at the time it was taken out.

    This could be new loans, credit card facilities and overdrafts - or increases to existing borrowing limits on these products.

    Consumers who complain to us about unaffordable lending usually say that the lender should have realised they could not afford the lending - and should not have lent the money in the first place.

    first things first

    Some lenders mistakenly believe that the ombudsman service cannot look at complaints about a lender's decision - or about the commercial judgment taken by a lender on whether or not to lend. That is not the case.

    Regulator’s rules, lending industry codes and regulatory guidance require lenders to assess the affordability of the lending before they make loans. We take these issues into account, together with the relevant law, when deciding the fair outcome on a complaint that is referred to us.

    assessing whether the lending was affordable

    When assessing whether or not the lending was affordable at the time a loan was given, we consider the circumstances in which the loan came to be made - including what the lender knew of the consumer's financial position at the time.

    We also consider whether the consumer was vulnerable when the lending was made (for example, whether they were older, had mental health problems, or were in clear financial difficulty) - and whether this affected the affordability of the lending.

    We also look at how the lending has been managed by the consumer - for example, whether the consumer has been able to maintain the repayments and, if so, for how long.

    putting things right

    If we are satisfied that the lending was unaffordable when the loan was made, we consider how this has affected the consumer. This includes looking at what the loan was used for and what effect it had on the consumer's overall financial position.

    Consumers who complain to us should be prepared to give us information and evidence about this, so that we can fully understand the issues and arrive at the fair outcome.

    We assess the fair outcome by taking account of all the facts and circumstances of each individual case. This means there is no "rule of thumb" to assess the outcome in cases like this. Depending on what is appropriate for the individual case, we may consider one or more of the following measures as fair redress:

    * re-scheduling the lending onto affordable terms;
    * providing an interest-free period or a lower interest rate;
    * writing-off some of the lending;
    * exceptionally, writing-off all the lending.

    common misunderstandings

    The complaints we see show that there are frequent misunderstandings by consumers and financial businesses about how complaints about unaffordable lending should be approached. Here are some of the most common misunderstandings we see:

    If the consumer asked to borrow the money, they can't complain if they're lent it.

    No. For example, a consumer who believes they were pressured or wrongly advised by the lender may have a complaint, even if they applied for the borrowing themselves - particularly if they were vulnerable (perhaps older, or with mental health problems, or on a low income and already having debt problems). Whether that complaint is upheld by us will depend on what we find when we look into the matter in more detail.

    It's always wrong to lend to someone who is dependent on benefits or is disabled.

    No. A consumer whose income comprises benefits, or who is disabled, is entitled to the same consideration for credit as any other consumer. Those factors do not, on their own, make lending unaffordable. However, in some cases that we see the consumer's disability or financial position may have made them more vulnerable to the effects of unaffordable lending.

    It makes no sense for a lender to lend to someone who can't afford to repay the money - so the starting assumption should be that the lending was affordable.

    No. The ombudsman service doesn't start from the assumption that either side is "right". As an independent service, we listen to both sides and gather information for ourselves, before deciding what we think.

    If the lending was unaffordable, then it should always be written off.

    No. If we decide that lending was unaffordable, we take into account all the facts and circumstances, before deciding what the right outcome is for that case. This includes considering what overall effect the lending had on the consumer's financial position (both positive and negative). .

    We sometimes conclude that writing off some or (exceptionally) all of the debt is the fair outcome in a case. But this will normally be where - amongst other things - we are satisfied that the consumer was vulnerable at the time the loan was made, and the lender knew that.
    The FOS website also shows that of the complaints made about Amigo Loans only 17% were upheld in favour of the customer.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • tonycottee
    • By tonycottee 7th Jun 17, 5:41 PM
    • 1,035 Posts
    • 2,029 Thanks
    tonycottee
    Not that it helps now, but my advice would be not to lend to family and friends. However, if you have to, take out the loan in your own name and send them the money. That way, they will be paying less than 5% compared to about 50% in interest. There are other and cheaper ways to improve your credit rating.
    • Welshman2017
    • By Welshman2017 4th Jul 17, 11:55 PM
    • 5 Posts
    • 1 Thanks
    Welshman2017
    Im one of the unfortunate ones that got roped into a loan with them, and i got to admit il NEVER recommend them to anyone! They lie through their backsides, move the goal posts when it suits them, they add people to the account without your consent, they push and bully you into a corner untill you give in, they are extremely rude when ever you try to resolve an issue which 9/10 times they refuse as it has to be suitable for them, then they report your attempts to your guarantor saying they tried to resolve it with mr X but couldn't get not joy so now left to resolve the issue you (guarantor) their flexibility is pure garbage! They give you 2 weeks to pay any arrears and if you fail to pay they threaten you with pre liquidation. 99% of their reviews are from new customers and not from customers who been with them months/years. Amigo loans is a joke and i honestly can go in alot longer but don't think the reply is long enough lol but they should be avoided at all costs!

    I also got a logbook loan and they are absolutely spot on, they so friendly so helpful, really understanding and best thing is i can sell the car when ever i want providing i pay them off with the money i get and then they will send the logbook back the following day so i can send it off to dvla. Can't fault that in anyway what so ever. But amigo is a big NO NO
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