Amigo / FLM Loans - Guarantors Please be careful!!

Poppy24

I posted this as a new thread and the lady I mention has been taken advantage of by her relative. It doesn't look good though does it?
Hi All, I know a lady who was duped into thinking she could trust a relative and agreed to guarantee a loan via Amigo Loans. This works by the money actually being paid to the guarantor who then pays it to the person who needs the loan. Said relative now seems to have no intention of paying her back and is becoming increasingly difficult to contact. The lady in question has since taken out a personal bank loan (at a much better interest rate) to pay off Amigo and rid herself of their extortionate loan rate with but is still left with a big debt. Can she do anything to get her money back?
Cheers.
Pops

sefton

I never realised that is how these things work. A property owner with a good credit rating takes out a loan at 50% interest from Amigo as guarantor instead of say 7% they could get from a bank. They then give the money to someone who has a poor history of managing money and hope they pay it back.


The one good thing about this kind of loan is it won't affect your credit rating if they default and you have to pay the money back. Apart from that it's crazy.

bsms1147

sefton wrote: »

The one good thing about this kind of loan is it won't affect your credit rating if they default and you have to pay the money back. Apart from that it's crazy.

Apparently not
http://www.experian.co.uk/consumer/questions/askjames266.html