Anyone seen this new loan company

crunk

Hi

I saw an advert yesterday for loans up to £5000 with no credit checks, apparently they do loans the "old fashioned way"

I didnt catch the name of the company, has anyone seen the advert?

How are they doing this, surly its a recipe for disaster?

Thanks

tiggerbodhi

crunk wrote: »

Hi

I saw an advert yesterday for loans up to £5000 with no credit checks, apparently they do loans the "old fashioned way"

I didnt catch the name of the company, has anyone seen the advert?

How are they doing this, surly its a recipe for disaster?

Thanks

Think this maybe Amigo Loans, Guarantor loans, and yes more that surly (sic) it's a recipe for disaster, often for the borrowers "mate" who is respnsible for the loan if/when the borrower defaults.

Tixy

Sounds like one of the guarantor loan companies adverts.
And if so so its not a disaster for the loan company, or even the borrower, just for the person mug enough to be the guarantor.

crunk

Thanks for the info.

Probably a silly question but do you know any companies that will loan to people with bad credit?

Regards

[Deleted User]

Only those that require kneecaps as part repayment.

view

crunk wrote: »

surly its a recipe for disaster?

It is ... and don't call me surly

DCFC79

crunk wrote: »

How are they doing this, surly its a recipe for disaster?

Thanks

A disaster for the borrower if they value ones knee caps but not a disaster for the lender, ok knee capping doesn't occur but the guarantors credit rating will take a battering if you miss a payment.

Its just not worth it OP, dont involve a friend/family member, if you have money troules then tackle it by reducing your outgoings.

McClane54

PLEASE STAY AWAY FROM THEM!!

you've been warned :T

pheonixrising21

IMO, Amigo loans and the like have found a fantastic business model here. They have found a way of charging a credit worthy customer (the guarantor/"Amigo") an extortionate interest rate for a loan that they could get from a high street lender for a 10th of the APR!!

I know technically they are not lending to the "Amigo" but lets face it, in more cases than not the borrower will default and the guarantor will be left with the bill.

OP, if you even considering these type of loans, please, please, please make sure the guarantor is FULLy aware of the consequences of their actions. If they still want to be your guarantor, please, please, please persuade them to take out a mainstream loan which you then pay them the monthly amount for. It will cost you both alot less and especially them if you default... (the risks of which are high as if you need to consider these loans then you have probbaly defaulted at least once in the past).

As a further note, the reason they state no credit checks is that they don't credit check you, the credit check your amigo instead. They don't need to credit check you and in essence they don't care whether you are able to pay the loan back or not. They credit check your amigo and make sure that they can pay the loan if you default. All they are doing is moving the checks from the borrower to the guarantor. Obviously, they will collect from the borrower first, but as soon as the borrower defaults, they will be after the guarantor and they may ruin both credit files in the process!

UsetheFORCE

It definitely is AMIGO LOANS.

Yes, get your Guarantor to take out a loan directly then get a legal agreement in place to ensure they can sue you for the money if you don't pay them.

Unbelievable rates of interest considering the fact the risk is on another party, not the borrower.

harveybobbles

I know someone who got one of these loans from Amigo...

Borrowed £5000... no credit checks. Money in account within days... Got ther 72 year old home owning Nan to be guarantor...

Pay back £195 for erm 5 years. So thats £11700 to pay back.

Madness.

If they fail to get payment, they will then aopply to the guarantors bank to get the payment.

Every missed payment goes on the guarantors CRA.

disgusting.