Amigo Loans help please

uncreative

OP - have just been on the Amigo Loans website. I navigated the site as if I was a guarantor and the website does point out a number of potential downsides if the borrower doesnt pay. They even have a simple flowchart outlining all the paths that can be taken.

You are aware that your non payment in full as per the original agreement affects your guarantors credit score each month right? and that this has a cumulative negative effect?

So your guarantor will end up with an inability to get the credit they want for potentially the next 6 years?

Voyager2002

Dajwright wrote: »

I am a guarantor for an old friend since the loan has been taken out we are no longer on speaking terms. The past 4-5 payments they have missed and I am sat here paying it for them. If I was to clear the loan would I win in a small claims court to retrieve all the money from them? And help with this will be highly appreciated.

Yes, you would almost certainly win. However, that would not give you the money: if your former friend was the sort of person who paid money because a court told him to do so he would not have needed an Amigo loan in the first place. If giving him a CCJ makes you feel better then go ahead, but that is the best that you can expect.

[Deleted User]

I hadn't realised the guarantor has to hand the lent funds over as they actually get it first, wonder if there has ever been any situations like you can get in surrogacy of not wanting to hand over when it comes to it, after all they claim this is also when a guarantor has another chance to change their mind! - jeez this business sure is fraught with all kinds of risks, just don't know how either party can say they didn't know what they were getting into :cool:

CHR15

uncreative wrote: »

You are aware that your non payment in full as per the original agreement affects your guarantors credit score each month right? and that this has a cumulative negative effect?

You must have missed this guys posts which have now been removed.
He is overjoyed at the position he has put his Guarantor in. He doesn't give a hoot about his or anyone else credit files.
He has called us all retards and all manner of infantile names during his orgasmic delight.

Caz3121

CHR15 wrote: »

You must have missed this guys posts which have now been removed.
He is overjoyed at the position he has put his Guarantor in. He doesn't give a hoot about his or anyone else credit files.
He has called us all retards and all manner of infantile names during his orgasmic delight.

and you forgot the part that we were all stupid not to know that even with defaulting and reducing payments to 25%, the interest paid over the extended period will not be 1p more than if everything had been paid on time as this is what was agreed....but seems unable to provide links to this that would no doubt help many of the people who have found themselves in similar situations whose are ending up paying more interest than they agreed to upfront...as the banks etc obviously don't know about this "rule" either
Their behaviour to debt is exactly they cannot borrow money without a guarantor...

nyermen

Please, anyone reading this thread who's even slightly considering being a guarantor in such a way, search for all the sad stories on here and elsewhere, of abandoned guarantors struggling.
Without saying you should (just pointing this out) - The risk to you is no different to borrowing the money yourself from your bank, and doing something direct. Same legal commitment on you, but with a much lower APR...

Really sad to read all these stories, most cases the guarantors can't afford to pay it back, and yes, a house could still at risk, unsecured merely means the creditor doesn't get first pickings...

soolin

nyermen wrote: »

Please, anyone reading this thread who's even slightly considering being a guarantor in such a way, search for all the sad stories on here and elsewhere, of abandoned guarantors struggling.
Without saying you should (just pointing this out) - The risk to you is no different to borrowing the money yourself from your bank, and doing something direct. Same legal commitment on you, but with a much lower APR...

Really sad to read all these stories, most cases the guarantors can't afford to pay it back, and yes, a house could still at risk, unsecured merely means the creditor doesn't get first pickings...

I agree. Especially when you might end up on a thread somewhere like this being discussed by your so called friend who thinks you are a mug....

Herzlos

Dajwright wrote: »

I am a guarantor for an old friend since the loan has been taken out we are no longer on speaking terms. The past 4-5 payments they have missed and I am sat here paying it for them. If I was to clear the loan would I win in a small claims court to retrieve all the money from them? And help with this will be highly appreciated.

You can try, but you probably won't get your money back. Your best bet is to cut your losses by taking out a loan at a reasonable rate and pay off the Amigo loan (so you're paying ~3-7% on it rather than 49.9%) and bug the life out of your "friend". You can try and put in a small claims court claim, but if their credit rating is so bad you needed to be involved, there is probably no money left to collect. Giving them a CCJ won't make a difference as by this point their credit is totally shot.