Amigo Loans Guarantor Help

TIMO

Hi,

I am currently a guarantor for an Amigo Loan.

It is for £5,000 and the interest is ridiculous. I should never have done it but then again I trusted the person who took out the loan... back then anyway, which the reason for the loan turned out to be a lie.

Anyway to cut a long story short - I have been left with the loan now as the person as lied, ran away etc.

I fully understand I am liable to pay - which I am not trying to get away from as unfortunately I signed the paperwork BUT I was wondering if I could get the interest froze in anyway or is there anything else anyone could advice to do?

I do not believe Amigo are doing all in their power to chase the original person who took the loan out - all I receive it a text per month saying they were unable to pay and the amount has been taken out my account - no other contact or anything.

Any help / suggestions would be greatly appreciated - I have paid for the last 6 months and I can see no change in this

Many thanks!

ConsumerWizkid

Unfortunately as the guarantor you are entirely liable for the debt if the borrower doesn't pay, there is no breach of contract etc. It's up to you to hunt down the borrower and chase them for payment sadly.

Fruit_and_Nut_Case

Welcome to MSE :wave:

I take it that there's no way you can pay off the loan right away, rather than paying by instalments.

Otherwise you could try getting a loan in your own name to pay it all back, hoping that the APR is lower than the Amigo rate.

P.S. It may give you some small satisfaction that you're not the only person in this situation.

SeanG79

I would suggest trying to get a personal loan at lower rates and then settling the Amigo loan, which will save you money over the long term.

Then you need to decide if its worth your while to pursue the original person for your money back, through small claims, etc.

27col

The reason that Amigo are not chasing the borrower is that they don't need to. The whole point of them have a guarantor is so that they don't need to do any more than chase the guarantor, if the borrower defaults.

PeacefulWaters

I do not believe Amigo are doing all in their power to chase the original person who took the loan out

Why would they? That person got some other poor mug to pick up the tab.

all I receive it a text per month saying they were unable to pay and the amount has been taken out my account - no other contact or anything.

Again, why would you expect anything else? It doesn't really justify a singing telegram does it?

I'm sorry you're in this position, it must be unpleasant. I'd suggest getting a settlement figure from Amigo and paying it off with a cheaper loan from your bank or Zopa or similar.

Keep details of amounts paid just in case the loser surfaces again.

CHR15

That's why they paid the money into your account, so you understood it was your loan.

Little you can do aside from learn the valuable lesson not to give thousands of pounds away you cannot afford to lose.

The issue between you and your ex friend is between the two of you, sadly.

dealer_wins

I personally think guarantor loans (for individuals not businesses etc) should be made illegal. Im all for people borrowing responsibility, and paying back when they borrow money.

But guarantor loans stink, because there is often (nearly always) family or friends pressure to agree to being a guarantor, and loyalty issues as well when being asked to be a guarantor, and saying no can lead to family feuds and ruined friendships.

I believe they cause nothing but trouble and shouldn't be allowed by law.

@ the OP it looks like you have been one of many many people stitched up. Basically there is not a lot you can do to avoid repayment, as technically the loan is all but taken out in your name.

If possible apply to a mainstream lender and get a loan at the lowest rate you can and clear the Amigo one, or if thats not possible keep paying the instalments that you "guaranteed to do"

If you default they may freeze the interest and agree a repayment plan, but you can kiss your credit rating goodbye for many years!

iolanthe07

Always resist family/friend pressure to act as a guarantor unless you can genuinely afford to lose the money.

kwmlondon

I'd look into getting a low interest loan as quickly as possible and reconcile yourself to paying off the debt. If you can get a 0% credit card that will transfer the money to the loan company then that will save you money, but that's about it. From there I'd contact citizens advice and start the process of taking your friend to court. I'm very sorry for you.

TrickyDicky101

dealer_wins wrote: »

I believe they cause nothing but trouble and shouldn't be allowed by law.

Maybe people should just learn to say no instead?