Amigo loans

DCFC79

Villain75 wrote: »

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

What makes you think he will decide to stop paying ?

After all he is your friend right ?

Only way out for you is to find the money whether its savings, a loan or other means to pay Amigo Loans off.

[Deleted User]

Amigo believe your friend won't pay.
You believe your friend won't pay.

They're not letting you go anywhere.

Villain75

If I had the money I would have borrowed it him my self,their has got to be a cleaver legal loop whole somewhere that means I can walk away,he hasn't missed a payment or nothing yet

Villain75

Ignore how bad my spelling is,I'm at work

Clive_Woody

Villain75 wrote: »

If I had the money I would have borrowed it him my self,their has got to be a cleaver legal loop whole somewhere that means I can walk away,he hasn't missed a payment or nothing yet

Afraid not, this is how guarantor loans work.

If your friend decides not to pay then you have to pay instead.

Amigo don't just let the guarantor walk away until the loan is paid in full.

Villain75

Right then,thanks that's all I needed to know

[Deleted User]

Villain75 wrote: »

their has got to be a cleaver legal loop whole somewhere that means I can walk away

Well, there's the one where you give Amigo a big chunk of money equivalent to the amount your friend owes. That will let you walk away.

Villain75

wow Zx81 your hilarious you should go on tour

dealer_wins

Villain75 wrote: »

wow Zx81 your hilarious you should go on tour

How else do you think Amigo will let you walk away.

They are lending YOU the money, not your friend, and YOU owe it until it is paid off.

nyermen

Sorry if this reads a bit mopey - it's the one area that particularly upsets me, I've seen some nasty consequences for well meaning friends who's own lives have been turned upside down when the "friend" disappeared.

I would beg anyone considering being a guarantor to not do so. Please. There are too many stories of the closest of people (childhood friends, siblings, parents) being left with their homes at risk. Bear in mind:

1) Amigo will check the guarantor, who I believe has to be a home owner as well. Anyone who fits their criteria can almost certainly get a loan direct from their bank. With this in mind, you can borrow the money at a much lower rate yourself, and lend it personally instead. The risk to you is no different, the interest rate is massively different (probably 3-7% vs 45%+). That's why Amigo transfer the money to you not direct to the "friend", it's your debt to them. ps. I'm not saying do this instead, I'm merely pointing out the lack of risk to Amigo in return for that 49.9% or whatever is charged.

2) There's a nasty potential loophole that was discussed a few days a go on this site, where a "friend" apparently called on the direct debit guarantee and Amigo didn't contest it (either because they mucked up, or possibly because they still have the guarantor). This apparently means all prior payments were returned to the "friend", and the guarantor is liable for the full original loan plus all the interest (even though they thought most was paid off). Not sure if it's true, or if it is, whether there was any positive resolution.
Update: Found it... https://forums.moneysavingexpert.com/discussion/5384738

3) I'm told they only "soft search" guarantors, but I'm not convinced (anyone able to confirm?), after all, CRA's are meant to record a hard search if a credit application is made, otherwise the credit history would be inaccurate. (and what would stop one person being a guarantor for any number of people?)

4) Just because a debt isn't secured on your home, doesn't mean it's not at risk. It just means unsecured debts are not first in the pecking order for the vultures. I believe they can still force a sale if the debt is over a certain amount.