Amigo loans

Double_V

Why ?
Too much interest ?

[Deleted User]

Too much interest, and too much pressure to put on a guarantor, in my opinion.

If someone is happy to be a guarantor for you, ask them to give you the money and then you pay them back. Cheaper and safer all round.

Gaz83

Why would getting paid four weekly mean she can't set up a direct debit? Just budget more effectively so that there is always enough in the account to cover it.

National_Debtline

phoenix1955 wrote: »

My husband has acted as guarantor for an Amigo loan for our daughter.


She has had a change of job and less hours, thereby less money. She has talked to Amigo and asked to work with them to repay the loan, but they have decided she hasn't got enough disposable income to work out a repayment plan and it wouldn't be morally wrong to take payments off her. What has actually been happening is she pays the loan and we help her out with other bills.


Her pay days have changed and she gets paid 4 weekly instead of monthly, so she can't set up a direct debit and Amigo won't accept that she get paid on a different day of the month, each month.


She is late paying her money again this month and Amigo are pestering my husband again to make the payment for her, but she is insistent that it is her debt and she will sort it out although the latest email my husband has from Amigo says they won't take a payment from our daughter and asking him to pay again.


What position are we in, can Amigo insist on payment from my husband if my daughter is still willing to pay, albeit a bit late? Are they wrong in not sorting out with her what she can and can't pay and taking the moral high ground in that they won't take a payment from her. They know at the moment she is trying to sort out housing benefit and an increase in tax credits, but they just do not seem to be interested to help her.


Any advice gratefully received.

Hi phoenix


Amigo can usually call in the guarantee upon any breach of the agreement by your daughter, even one you might consider minor. Yes it is a shame that they are not willing to explore more flexible arrangements with her, but with the guarantee in place there is simply no incentive for them to do this.


Her bank should be no less able to offer Direct Debit facilities just because she is paid four-weekly - the only difference is that she has 13 paydays a year as opposed to 12. It simply means that she needs to organise her other finances in such a way that there are enough funds to honour the DD on that day each month.


Dennis
@natdebtline

SnowTiger

Gaz83 wrote: »

Why would getting paid four weekly mean she can't set up a direct debit? Just budget more effectively so that there is always enough in the account to cover it.

That made me smile too. I guess the poster meant Amiga Loans wouldn't allow her daughter to change the payment date.

If I was the Father I would consider taking over payment of the loan myself (or paying it off in full), then 'extracting' regular payments from daughter.

The loan effetely belongs to the Father anyway; late and missed payments will be recorded on his credit file.

redpete

Double_V wrote: »

Is amigo loan a good choice ?

Have you read the rest of this thread?

The answer to your question is "No."

Puddylove

wildchild*62 wrote: »

Another person who cant read!!! To quote my post - As I said in my post, I am perfectly a aware of what amigo say, my question was has any one had experience of doing this.

I can read...when the poster doesn't appear both irate and illiterate.
You get annoyed when MSE folks ask you questions, but then demand to know their personal experiences of repaying Amigo early - and you say we're the 'intrusive, rude ones? :rotfl:

P x

dealer_wins

Its safe to say that an Amigo loan is NEVER a good idea.

If anyone is prepared (read stupid enough) to be a guarantor, then they should obtain the loan themselves at a much lower rate than Amigos 50%. Then hand over the loan amount literally in cash, yes a bundle of £20 notes to the person they are lending the money to.

This will stop 95% of loans as the borrower will realise he is the lender, handing over his own cash, and will have second thoughts! The remaining 5% of stupid lenders will at least be paying an interest rate 80% lower that Wongas.

forgotmyname

Maybe they need to provide figures to the guarantor to show how many people default and that they are 100% liable even if the friend takes the money and says he wont pay a penny back and leaves it all down to them to pay.

May put some off?

Villain75

Hey I need help,yes I was the stupid one who agreed to be an amigo for a friend and now I want out,he borrowed £3000 and hasn't missed a payment yet but I still think it's just a matter of time and want to cut myself loose,any ideas would be much appreciated and I don't need people telling me it was a stupid idea in the first place,I know ok