Amigoloans.co.uk

Chloesoldman

amigoloans.co.uk sell themselves as being
An alternative to the banking system and don't perform credit checks
However... They Do!!... Not on you but a friend or family member?
If I wanted a Guarantor for a loan I'd just go to a bank and get a cheaper loan...
Seems like a pointless company to me....
And now I'm being spammed by them since I applied.....
All my friends are in the same boat as me & even if they were in a position to help I wouldn't ask this of them....
I have pride, even if I am broke..:beer:

DCFC79

Chloesoldman wrote: »

amigoloans.co.uk sell themselves as being
An alternative to the banking system and don't perform credit checks
However... They Do!!... Not on you but a friend or family member?
If I wanted a Guarantor for a loan I'd just go to a bank and get a cheaper loan...
Seems like a pointless company to me....
And now I'm being spammed by them since I applied.....
All my friends are in the same boat as me & even if they were in a position to help I wouldn't ask this of them....
I have pride, even if I am broke..:beer:

What is exactly the complaint ?

Amigo loans do guarantor loans and this is explcitly detailed on the site.

Chloesoldman

DCFC79 wrote: »

What is exactly the complaint ?

Amigo loans do guarantor loans and this is explcitly detailed on the site.

As quoted from their website::

NO CREDIT SCORING
Credit scoring sucks. If you pay your phone bill a day late, move house or get refused a credit card, your credit score drops. We don't think that's fair, so we ignore your credit score and ask your friends what they think instead.

Great: No credit scoring
Wrong: Credit score your friends instead?
Fair?: I thought Amigo thought credit scoring wasn't fair?

Quote: We'll never credit score you, we promise.

Nope: just my mates???

These people are just making out they have a fresh approach to loans
When the only real difference is they call their customers "friends" I prefer Sir myself..

R_P_W

So you think a company should lend money to whoever applies and should only ask their friends if they think they will pay it back or not?

Maybe be more selective in who you apply to next time eh? The name Amigo loans should have been warning enough, but the language of saying credit scoring 'sucks' doesn't exactly portray the imagine of a professional company does it?

SnowTiger

Chloesoldman wrote: »

Quote: We'll never credit score you, we promise.

Nope: just my mates???

These people are just making out they have a fresh approach to loans
When the only real difference is they call their customers "friends" I prefer Sir myself..

They promise not to credit score you, the borrower, however...

http://community.amigoloans.co.uk/answer-centre/question/view/will-you-credit-check-the-guarantor:

WILL YOU CREDIT CHECK THE GUARANTOR?

We will need to check the guarantors credit file, this is just to make sure that they haven't had any trouble paying back bills in the past.

Don’t worry, this is a special type of credit check, called a Quotation search, that means that when a company credit checks before granting credit, they wont be able to see we checked your credit file.

You need a better calibre of 'mates.' :rotfl:

debtcutter

Are you saying that you didn't know they needed a guarantor before you applied?

Looking at the site it says "no credit scoring" but doesn't say they don't credit search at all, don't companies have to do some kind of search to prove your not bankrupt?

Are you just annoyed because you can't get a loan with them?

SeanG79

WILL YOU CREDIT CHECK THE GUARANTOR?

We will need to check the guarantors credit file, this is just to make sure that they haven't had any trouble paying back bills in the past.

Don’t worry, this is a special type of credit check, called a Quotation search, that means that when a company credit checks before granting credit, they wont be able to see we checked your credit file.

A quotation search is only visible to you, so wont impact on your credit at all...I don't see the issue UNLESS your Amigo has credit similar to yours, in which case the guarantee won't be worth much...

Chloesoldman

debtcutter wrote: »

Are you saying that you didn't know they needed a guarantor before you applied?

Looking at the site it says "no credit scoring" but doesn't say they don't credit search at all, don't companies have to do some kind of search to prove your not bankrupt?

Are you just annoyed because you can't get a loan with them?

I could most probably get a loan if I was desperate enough to ask a mate to help & be a guarantor.
Just wish people would be honest in their description.

BAKED BEANS
In tomato sauce

Contents:
40% flour
5% egg
5% starch
30% tomato flavouring
20% water.

SeanG79

Chloesoldman wrote: »

I could most probably get a loan if I was desperate enough to ask a mate to help & be a guarantor.
Just wish people would be honest in their description.

BAKED BEANS
In tomato sauce

Contents:
40% flour
5% egg
5% starch
30% tomato flavouring
20% water.

ANYONE could get a loan with a suitable guarantor so your statement is irrelevant and your baked bean analogy is pointless, no credit scoring is different from no credit searches and the T&C's define exactly the procedure, so not sure how you can have a problem...

The guarantor will be asking for trouble agreeing to this and could rather get a personal loan for themselves and give you the money if they wanted to do this, that way their exposure to loss would be reduced as they would get a lower rate...

As a business model, looks to be a good idea that Amigo have come up with...lend creditworthy customers loans at far higher rates to give to their Amigo's who may or may not pay...

pheonixrising21

To be fair, there is no real point in peforming a full credit check on a person applying to amigo loans. If they are applying to amigo, then their credit file is shot to pieces anyway as they can't get a loan elsewhere. therefore, they don't bother credit checking the borrower.

Instead, they credit check the guarantor (the "amigo"), to make sure that if (when) the borrower defaults on the loan, the amigo is in a position to take over the payments.

Ultimately, they need to check that someone will pay them back. As you are in the position to need to apply to them, they know you are unlikely to be able to pay them back, so they need to make sure your amigo can. As they state, you will not be credit checked.

As someone else has said, they have found a way of charging astronomical interest rates to credit worthy customers, as ultimately that is what happens. You borrow, you default, your amigo pays.

If you need to go down this route and have found someone gullible enough to be your amigo, please ask them to get a loan themselves and then loan you the money (with a written agreement between the two of you). At least, then, they will only be left with a loan at 7% APR, not the 50%+ Amigo no doubt charge.