Amigo loans

jacksufc90

I've used them, I'm currently 3 months away from clearing my account.
At the time, I struggled to get a bank loan to finance a move across the country to start a new job.
Admittedly the interest rate is high, probably 5 times more than what you'd pay at a bank, but hey ho.
There isn't a problem if you pay it back on time, and your guarantor will not have to pay back anything.
But please please only take these out if you know you can pay it on time. I think having a guarantor has the potential to put strain on a relationship with the person you asked if things do go wrong.
As such, my Amigo payment (£112/month) is the first that goes out after I'm paid.

In terms of customer service, fairly good. Can be on hold for a while if you catch them at the wrong time but have tended to be flexible (i.e paying a day later as my paydate fell a bit later)

DCFC79

jacksufc90 wrote: »

As such, my Amigo payment (£112/month) is the first that goes out after I'm paid.

A good tip here, its a shame more people don't have the payment setup like this.

looploop_2

I am concerned about the some what judgemental tone of these posts
I also wonder if a lot of them are fabricated
There are people on here who seem not to understand the psychological significance of money
Consider, all the children in your child's group go to a party
Your child does not
You cannot afford a present
You cannot afford to hold a party
You know you shouldn't spend money on presents
And a party
Most of the time you are sensible
But, just once, you are not
You give way
You are in debt
You can pay it back next week
But, then your hours are cut on your minimum wage job
Your debt increases
And so on
Couple that with a lack of cooking skills( who spends time learning to cook with their parents now?) you are a fast track to debt, poor health and so on

DCFC79

looploop wrote: »

I am concerned about the some what judgemental tone of these posts
I also wonder if a lot of them are fabricated
There are people on here who seem not to understand the psychological significance of money
Consider, all the children in your child's group go to a party
Your child does not
You cannot afford a present
You cannot afford to hold a party
You know you shouldn't spend money on presents
And a party
Most of the time you are sensible
But, just once, you are not
You give way
You are in debt
You can pay it back next week
But, then your hours are cut on your minimum wage job
Your debt increases
And so on
Couple that with a lack of cooking skills( who spends time learning to cook with their parents now?) you are a fast track to debt, poor health and so on

A present doesn't have to be £50, 1 being £5 is adequate.
Having some savings aside for the birthday presents.

CHR15

looploop wrote: »

I am concerned about the some what judgemental tone of these posts
I also wonder if a lot of them are fabricated
There are people on here who seem not to understand the psychological significance of money
Consider, all the children in your child's group go to a party
Your child does not
You cannot afford a present
You cannot afford to hold a party
You know you shouldn't spend money on presents
And a party
Most of the time you are sensible
But, just once, you are not
You give way
You are in debt
You can pay it back next week
But, then your hours are cut on your minimum wage job
Your debt increases
And so on
Couple that with a lack of cooking skills( who spends time learning to cook with their parents now?) you are a fast track to debt, poor health and so on

I've read that three times now but still can't make it rhyme.

Coveredinbees!!!!

Who needs punctuation
just start a new
line

[Deleted User]

These guarantor loans
You'll find in the end
Will cost not just cash
But also a friend.

First published in 'Poems and verses from financial services', an anthology by zx81

mugonmyforehead

Amigo Loans.
Hi Guys.. Let me share my experience as a guarantor toAmigo Loans.
A family member approached me for some assistance and like any unconditional love relationship you are always more than willing to help. After all in today’s financial world you would hope that someone like Amigo Loans would carry out the usual checks of income and expenditure.. rights? WRONG!
My family member borrowed just over £7000 and asked if I would guarantee this for him. At the time my family member had a very good job and needed the monies to replace his family car.
He also had a very negative credit file due to previous financial issue with a credit score of just “7”. Defaults and CCJ existed on this file form some 4 or five years ago. However you would hope that people change and make progress and I was told this process would help build his credit profile. Promises galore etc etc I wanted to help and trust them.

The monies was paid out and my family member purchased a car. But when the first payment was due it went unpaid, in fact every payment for the last 12 months has gone unpaid. I have to pay the monthly amount 15 days after his payment due date. Ok you would say that is my responsibility and I must accept the obligation. I get that! however!!!!

However – I have issues with the way this business is conducted. I have evidence that demonstrates that Amigo loans did a proof of income, but never challenged his expenditure, never asked for bank statements, never even checked his or my bank statements. I have obtained my family members bank statements and no less than seven pay day loans are present leading upto the Amigo loan pay out, I have also learned that two days after purchasing the car it was log book loaned. My point is this… 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.
I had a conversation on the phone and recorded the call with permissions and the head of Amigo complaints stated that had she seen the bank statements at the time of paying out the loan, she would not have made the loan payment. They admitted in open forum not checking my relative expenditure but stated they used a national average as a statistic. How can anyone whom has terrible credit file, bank statements that prove negative issues be subject to a national statistic alone?
I don’t get issued a mortgage based on my neighbours credit worthiness, or statistic?
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. At the time the loan was being issued they asked if I could provide bank statements which I refused as I felt my credit file was more than worthy. They proceeded without seeing my bank statements.. Bizzare they ask for my statements, but actually dismiss the loan applicant’s bank statements.
My final point is this… if they solely rely on guarantors then why the high interest rate of 49.9% because in my eyes there is no risk. They will only take the loan applicant to court when the guarantor stops paying, but the court action is issued for both the loan applicant and the guarantor.
I’m suspending my payments, awaiting court actions and making a counter claim with all the evidence and recorded calls that I have. I cannot believe any judge would find in favour of these people whom have ignored basic simple financial checks, for the lack of protection and complete disregard for the guarantors. They have a responsibility to make sure they lend to people whom have the affordability and something they clearly failed to do.
I warn you the loan applicant or a guarantor… please do not use this company at all cost…. They do not care about you... one bit.

Pixie5740

mugonmyforehead wrote: »

Amigo Loans.
Hi Guys.. Let me share my experience as a guarantor toAmigo Loans.
A family member approached me for some assistance and like any unconditional love relationship you are always more than willing to help. After all in today’s financial world you would hope that someone like Amigo Loans would carry out the usual checks of income and expenditure.. rights? WRONG!
My family member borrowed just over £7000 and asked if I would guarantee this for him. At the time my family member had a very good job and needed the monies to replace his family car.
He also had a very negative credit file due to previous financial issue with a credit score of just “7”. Defaults and CCJ existed on this file form some 4 or five years ago. However you would hope that people change and make progress and I was told this process would help build his credit profile. Promises galore etc etc I wanted to help and trust them.

The monies was paid out and my family member purchased a car. But when the first payment was due it went unpaid, in fact every payment for the last 12 months has gone unpaid. I have to pay the monthly amount 15 days after his payment due date. Ok you would say that is my responsibility and I must accept the obligation. I get that! however!!!!

However – I have issues with the way this business is conducted. I have evidence that demonstrates that Amigo loans did a proof of income, but never challenged his expenditure, never asked for bank statements, never even checked his or my bank statements. I have obtained my family members bank statements and no less than seven pay day loans are present leading upto the Amigo loan pay out, I have also learned that two days after purchasing the car it was log book loaned. My point is this… 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.
I had a conversation on the phone and recorded the call with permissions and the head of Amigo complaints stated that had she seen the bank statements at the time of paying out the loan, she would not have made the loan payment. They admitted in open forum not checking my relative expenditure but stated they used a national average as a statistic. How can anyone whom has terrible credit file, bank statements that prove negative issues be subject to a national statistic alone?
I don’t get issued a mortgage based on my neighbours credit worthiness, or statistic?
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. At the time the loan was being issued they asked if I could provide bank statements which I refused as I felt my credit file was more than worthy. They proceeded without seeing my bank statements.. Bizzare they ask for my statements, but actually dismiss the loan applicant’s bank statements.
My final point is this… if they solely rely on guarantors then why the high interest rate of 49.9% because in my eyes there is no risk. They will only take the loan applicant to court when the guarantor stops paying, but the court action is issued for both the loan applicant and the guarantor.
I’m suspending my payments, awaiting court actions and making a counter claim with all the evidence and recorded calls that I have. I cannot believe any judge would find in favour of these people whom have ignored basic simple financial checks, for the lack of protection and complete disregard for the guarantors. They have a responsibility to make sure they lend to people whom have the affordability and something they clearly failed to do.
I warn you the loan applicant or a guarantor… please do not use this company at all cost…. They do not care about you... one bit.

You don't seem to understand how Amigo loans work. It's quite clever actually. Amigo lend money at subprime rates based on the guarantor's not-subprime credit referencing and affordability.

It was down to you as the guarantor to ensure you were confident that the person you were guaranteeing could afford the loan. However, the very fact that the borrower was having to resort to the likes of Amigo in the first place should have been a massive, billowing, red flag that the borrower is crap at borrowing money and repaying it in accordance with the T&C. People who are good at borrowing money and more importantly repaying it in accordance with the T&C do not have to use lenders such as Amigo.

[Deleted User]

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.