Amigo loans

Ebe_Scrooge

mugonmyforehead wrote: »

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.

My thoughts in bold above.

fwor

mugonmyforehead wrote: »

I’m suspending my payments

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

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.

mugonmyforehead

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.

[Deleted User]

mugonmyforehead wrote: »

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?

Not that I can see.

Pixie5740

mugonmyforehead wrote: »

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.

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 [STRIKE]sucker[/STRIKE] 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.

fwor

mugonmyforehead wrote: »

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

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

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. :mad:

verityboo

mugonmyforehead wrote: »

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.

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

verityboo wrote: »

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

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.