Amigo Loans help please

selkirk44

hi all
I have a loan with amigo, I was unable to pay last months payment, ive let them know and weve discussed putting me on a lower monthly payment(half of usual) for the short term, this has been going on a few weeks now and its me contacting them not the other way around to sort this, we have not come to agreement yet as they want details about mortgage rates etc, I am now getting threats(emails) there going to take money from my friend for missed payments yet I am still dealing with them to sort the new payment amount, can they do this even thou I am not declining payment and offering 50 per cent payment for the short term ? ive seen an OFT quote which says "must work with the borrower to help them come up with a plan to repay their debt" which I am presently doing in full.
any advice about if they can go to my friend for debt despite me offering 50% payments to pay off debt ?
thanks in advance
selkirk

Gaz83

It's a guarantor loan.

If you don't come to an arrangement and don't make payment they can, and will, take money from your friend.

That's how guarantor loans work.

Browntoa

http://www.amigoloans.co.uk/docs/GtTerms-v14.2.pdf



agree that if the Borrower fails to make any payment under the Borrower’s agreement to us on the agreed payment date, you will immediately make that payment;

•guarantee that if we demand you will immediately meet all of the Borrower’s responsibilities under the Borrower’s agreement; and

•guarantee that the Borrower will carry out all of their responsibilities due and owing under the Borrower’s agreement



Collecting payments from your credit or debit card (or under your direct debit mandate) is not an enforcement of this guarantee and indemnity and we will not need to give you a default notice before we collect this money. "Enforcement" in this guarantee and indemnity means the obtaining of a court judgment and the enforcement of that judgment.

Browntoa

Can I take a payment break?

We want our customers to improve their credit history's with our loans, so we don’t allow payment breaks. If you don't think you will be able to pay us on time, tell your guarantor so they can make the payment for you and keep your account up-to-date.
Every time you pay us on time, we tell the credit rating people to put a good mark next to your account. The more payments you make, the better your credit history should become. If you miss a payment we have to tell the credit rating people to put a bad mark, this could make your credit history worse.

http://community.amigoloans.co.uk/answer-centre/question/view/can-i-take-a-payment-break

DCFC79

OP have you looked at where your money is going, anything you can do without/cut back on ?

selkirk44

DCFC79 wrote: »

OP have you looked at where your money is going, anything you can do without/cut back on ?

thanks, no down to the bare basics now, but I really think if I am offering to pay the debt they shouldn't have the rite to chase guarantor yet, its not like I am refusing to pay

Autistic.Avenger

Why would amigo accept a lower payment when they have a signed authorization from the guarantor to pay missed payments on time! Your friend is fully liable for the remainder of your loan if you can't pay. You should NEVER lend or borrow and live within a budget if your rent is too high move out of London

[Deleted User]

selkirk44 wrote: »

we have not come to agreement yet as they want details about mortgage rates etc, I am now getting threats(emails)

Why not work with them and be showing them, they are clearly trying to help
- they have to follow guidelines set out now by the FCA (not OFT) and I imagine when they are checked in an audit, they need as much proof from a Debtor as possible, that they are in hardship, rather then living the highlife with reduced payments, after all they took what you said at application in the best of faith and now with a change in circumstance you are being asked to prove it.


Hope that makes sense, I won't say anymore except if you've done all you can, then complain formally but you did also chose to drag someone else into this.

Gaz83

selkirk44 wrote: »

thanks, no down to the bare basics now, but I really think if I am offering to pay the debt they shouldn't have the rite to chase guarantor yet, its not like I am refusing to pay

You are, though. You're refusing to pay what you agreed to pay.

Amigo are a business and they want to make money. Why would they accept 50% payments from you when they have authorisation to take 100% payments from your guarantor? You should consider yourself fortunate that they're even considering it, and get an arrangement sorted as quick as you can, otherwise your friend will quickly become your ex-friend.

Clive_Woody

selkirk44 wrote: »

thanks, no down to the bare basics now, but I really think if I am offering to pay the debt they shouldn't have the rite to chase guarantor yet, its not like I am refusing to pay

But you are refusing (or unable) to repay the debt as you agreed to do so. There is no clause in the agreement that allows you to vary the repayment as you wish that then stops them taking payment from the guarantor.

They expect to be repaid in full, within the timelines that you agreed to. Reducing the payment extends the timelines and means that you are in breech of the contract.

You need to let your guarantor know that they will be making up the shortfall on your loan very soon so that they are not surprised when the money is taken from their account.

Candyapple

selkirk44 wrote: »

hi all
I have a loan with amigo, I was unable to pay last months payment, ive let them know and weve discussed putting me on a lower monthly payment(half of usual) for the short term, this has been going on a few weeks now and its me contacting them not the other way around to sort this, we have not come to agreement yet as they want details about mortgage rates etc, I am now getting threats(emails) there going to take money from my friend for missed payments yet I am still dealing with them to sort the new payment amount, can they do this even thou I am not declining payment and offering 50 per cent payment for the short term ? ive seen an OFT quote which says "must work with the borrower to help them come up with a plan to repay their debt" which I am presently doing in full.
any advice about if they can go to my friend for debt despite me offering 50% payments to pay off debt ?
thanks in advance
selkirk

There was a reason why you had to turn to Amigo and use a guarantor to get a loan in the first place - that chicken has now come home to roost.

What has changed in your circumstances that you have not budgeted for the loan amount last month? Is it likely to be an ongoing thing?

Have you warned your friend that they may be taking the payments from them shortly?