Amigo loans

jgard8

Hi ,

Don't Know if i'm posting this in the right place but here goes .

I have an amigo loan which i am struggling to pay and this is a gaurentor loan and basically wondering if this can be added to a dmp or would the gaurentor end up paying ?

I'm in debt and currently in a dmp but things are just getting harder as i have no spare money and cant pay all my bills such as gas water etc .

Please could anyone advice me on the amigo loan going in to a dmp.

Willing2Learn

Hi,

I think, (not 100% certain), that the liability for repayments will immediately fall upon the guarantor, as you will be in breach of your original agreement with Amigo if you were to try and add it to your DMP.

An alternative would be to re-negotiate your current DMP so that it accurately reflects your current circumstances and is affordable. Hopefully your current DMP was negotiated through one the free debt counselling services. If so, they should be able to support and advise you with regard to the re-negotiation (if you choose this option)

jgard8

Hi

Its currently with payplan and only paying £100 a month already so i think this is quite low as it is ..
Problem is the amigo is £200 a month and its crippling me.

Willing2Learn

You can take the £100 lower...you could also for example just pay £1/month to each creditor (Not suggesting you should pay that little though). The point is...if you literally can't pay for things like gas and water, then the DMP has to be changed to something you can afford.

Hope you don't mind me asking, and please don't take offence, but I was wondering what has happened that has lead to your current situation? I don't think that PayPlan would have put a DMP in place that wasn't affordable. I'm assuming you didn't have the Amigo loan when you started the DMP?

jgard8

hi, i did not tell them about the amigo loan due to the fact i did not want to let the gaurentor down. i've set up a direct debt for my gas and electric but my water is to high and at £ 80 a month and they wont budge due to the account being in debt ,

Willing2Learn

Hi,

Please could you take a look at the OFWAT Dealing with household customers in debt - Guidelines

If you go down to page 14, Principle 4, When agreeing payment arrangements with customers, the customer’s circumstances should be taken into account wherever possible. Do you think they have dealt with your account and arrears in accordance with the guidelines and principles? In particular:

Make reasonable enquiries as to the customer’s ability to pay when setting up instalment arrangements and take account of the information given. This may involve using some kind of ‘income and expenditure’ form or ’common financial statement’ (as published by the Money Advice Trust and the British Bankers’ Association) completed by the customer or a debt advisor to use in assessing realistic payment options. Companies and their agents should retain an appropriate record of enquiries made.

and

Set repayment levels which are realistic and sustainable given the customer’s circumstances including taking into account all outgoings. Customers should not be pressurised into paying the debt in full or in unreasonably large payments.

Your Water Company may also have a 'Restart Scheme' where part of the debt can be written off so that repayment becomes affordable. Have you tried applying for a grant for help with water and other utility bills? Have you advised PayPlan of your current difficulties as they may be able to help or signpost you?

And finally, you may want to post up your SOA as MSE members might be help and advise, in depth, on your current budget (income/outgoings)

P.S. How come you waited four years before making your first post??

antonic

If you default on the loan, Amigo will go after the guarantor for payment - suggest you tell your guarantor before Amigo contact them.

How will your guarantor react ?

Petlamb

I agree with the above. Discuss this with your guarantor, they need to be in the loop. Don't get me wrong, don't give up on it, but make sure they're included in what's going on. Let them know you're trying and that you want to find a way forward - that way if/when Amigo contact them, it won't be a shock, and they won't feel like you've kept them in the dark.

Good luck finding a way forward x