Amigo Loans/FLM

behindthelines

Hi,

I'm wondering if anyone can offer some insight on Amigo Loans (formerly FLM)

I'm not here to debate the APR etc. I'm just after an honest yes or no answer I suppose.

I've been offered a loan from them but requiring a guarantor, a family member has agreed and to give myself some peace of mind that I won't be involving a family member in something I shouldn't be, I'm just wondering if anyone has any experience of them?

Firstly, I'm using the money lent from them to pay off the remainder of the dreaded HSBC Managed Loan. The monthly payments I'd be making to Amigo are practically the same and I'd be paying off Amigo in the same amount of time I'd be paying off HSBC but the slate would be clean so to speak with HSBC.

Secondly, I am aware of what would happen if I miss a payment to Amigo but having been in the Managed Loan trap since early 2005 I have never missed a payment with them so have no intention to miss one with Amigo and involve my guarantor in anything.

To sum up, despite the APR, if I make regular payments to Amigo/FLM will I or my guarantor have any trouble?

Thanks.

stephane_2

Why try to involve a guarantor with a loan with more or less same monthly payment and repaid in same time frame?? If you fail any payments then guarantor will have to pay eventually for any fees...late payment etc...if you are unable to do so.
If I were you I would think very carefully before involving a family member as a guarantor

zxspeccy

My question would be the same as the previous poster. If the term and repayments are the same why bother refinancing.

All that you would be doing is involving a guarantor into the process for no obvious reason.

I'd much rather being owing money to a well established Bank instead of a finance company called "Amigo" (never heard of them which is not usually a good sign).

I would suggest you stick with what you have got, providing you can meet the repayments.

behindthelines

To put it simply, I want to wipe out my debt with HSBC sooner rather than later.

Taking the loan and paying the same amount over the same time period to Amigo/FLM will not increase my financial wellbeing however it means the albatross around my neck that is the infamous "managed loan" will be gone and specifically I can look in to obtaining a mortgage through HSBC for the place I currently rent.

With the Managed Loan in place, no other credit is available through HSBC however without it there will be, specifically the aforementioned mortgage.

I am fully aware of the consequences of missing a payment on a loan with a guarantor and, as I mentioned, my payments have been made on time 100% of the time since the managed loan was put in place in 2005 that is why the guarantor, knowing I can be trusted to make the payment and confident in my ability to do so, has agreed to act in this capacity.

dealer_wins

There are 100s of threads on here of guarantor loans gone wrong.

They can rip apart friendships and whole families.

And I personally think it is morally wrong to ask someone to guarantee your loan. If you cant obtain one on your own financial status, you cant afford it plain and simple!!

Bravehearted_2

behindthelines wrote: »

To put it simply, I want to wipe out my debt with HSBC sooner rather than later.

Taking the loan and paying the same amount over the same time period to Amigo/FLM will not increase my financial wellbeing however it means the albatross around my neck that is the infamous "managed loan" will be gone and specifically I can look in to obtaining a mortgage through HSBC for the place I currently rent.

With the Managed Loan in place, no other credit is available through HSBC however without it there will be, specifically the aforementioned mortgage.

I am fully aware of the consequences of missing a payment on a loan with a guarantor and, as I mentioned, my payments have been made on time 100% of the time since the managed loan was put in place in 2005 that is why the guarantor, knowing I can be trusted to make the payment and confident in my ability to do so, has agreed to act in this capacity.

I think that's always the case in all "guarantor loan gone bad" episodes.

That is until, God forbid, xxxx happens and they can't repay.

The payments are always 100% on time until that first missed payment.

DCFC79

What if the 2 of you fall out over something and you stop paying the loan ?

debtcutter

I had a loanwith FLM a while back.

High APR compared to bank loans (if u can get a bank one, I guessyou wouldn't be going to them) but better than a payday or loans likethat

If you can't get a loan from another bank at a lower rate, thenjust make sure you're honest with your guarantor and make sure theyunderstand that they have to pay if you don't.

My loan went OK. The only time I missed a payment was when my cardexpired. Didnt take it from my guarantor as they called me on the dayand took my new payment details. I did pay it off early though. Ifyou take it over a long time, it works out quite expensive. I paidoff early and didn't pay off anywhere near as much as they quoted atthe start.

I guess, like anything, make sure you've thought it through, make sure the guarantor has too, it's ok to ask them, but to put pressure if they're not happy isn't fair.

chalkie99

I don't understand why you want to swap HSBC who are one of the biggest and most respected banks (no bailouts for them) for someone with a dodgy Wordpress template website knocked up in about 5 minutes and with a joke picture on their front page.

If HSBC won't give you a mortgage now then why do you think that by paying off your loan with them they won't just look at your credit files and see you have simply moved your debt elsewhere?

I'm interested to learn because I just don't get it. :huh:

debtcutter

Forgot to ask, what's your HSBC APR?

Apples2

Why don't you ask your guarantor to get a loan in his own name and give you the cash?
No doubt he would attract a much better interest rate than you.

Please don't kid yourself anything is being cleared, you are simply moving things but will remain in exactly the same position.

There is a reason you need a guarantor, this thread explains it quite well

https://forums.moneysavingexpert.com/discussion/3963555