Problem with Amigo Loans Direct Debit Indemnity

OYummyOnes

I don't think the load will be approved as far as I know.

boo_star

antrobus wrote: »

I believe that there might be some mileage in taking that route.

As a matter of law, the OP has been well and truly stuffed; as the guarantor they are left in the position of having to cough up the money to Amigo and then seeking to recover their losses from the friend, who is now nowhere to be found.

The FOS however operates under the principle of 'fairness', and may well therefore provide some relief to the OP.

Is it "unfair" though?

The OP wasn't misled, they agreed to an increase before the borrower showed them the successful payments.

If the argument is that guarantor loans are inherently unfair you'll get no argument from me but as they are still allowed, I don't think an FOS complaint will go anywhere.

pelirocco

If you do seek a ccj , have it transferred to the high court and send in the baliffs

boo_star

pelirocco wrote: »

If you do seek a ccj , have it transferred to the high court and send in the baliffs

Unless you know they have the cash, that's likely to be throwing good money after bad.

forgotmyname

DCFC79 wrote: »

How do you know that ?

Yummy one is a spammer, They just had their spam posts removed, probably didnt even read the main post just type some drivel to get their post count up.

WillyWonga

The website does explain quite a bit how they work. They credit score the guarantor, they pay out the loan to the guarantor. Basically the loan is for the guarantor at a much higher interest rate than if they went to say Barclays and passed the money onto the friend themselves.

For eg.

Bob has excellent credit score and Mick has a poor one. Amigo offer a loan of £5k to Mick as long as the credit standing of Bob is good. They pay it out to Bob at a high APR and use Mick's bank account details to collect the payment. Mick does a runner so they collect payment from Bob. Result - Bob is left with an extorniate debt with high APR and pays to keep his credit score from being wrecked. Legal standing - stuffed.

Bob could have gone to Anybank and got loan in his own name at low APR, pass money on and same could happen. But at least he has less of a debt to pay back.

They charge high APR for low risk lending as its the guarantor that matetrs

Marktheshark

WillyWonga wrote: »

The website does explain quite a bit how they work. They credit score the guarantor, they pay out the loan to the guarantor. Basically the loan is for the guarantor at a much higher interest rate than if they went to say Barclays and passed the money onto the friend themselves.

For eg.

Bob has excellent credit score and Mick has a poor one. Amigo offer a loan of £5k to Mick as long as the credit standing of Bob is good. They pay it out to Bob at a high APR and use Mick's bank account details to collect the payment. Mick does a runner so they collect payment from Bob. Result - Bob is left with an extorniate debt with high APR and pays to keep his credit score from being wrecked. Legal standing - stuffed.

Bob could have gone to Anybank and got loan in his own name at low APR, pass money on and same could happen. But at least he has less of a debt to pay back.

They charge high APR for low risk lending as its the guarantor that matetrs

Basically yes, with signed trust deed for belt and braces.
The OP will be paying the loan or defaulting.
That is cold hard fact.

magpiecottage

antrobus wrote: »

I believe that there might be some mileage in taking that route.

As a matter of law, the OP has been well and truly stuffed; as the guarantor they are left in the position of having to cough up the money to Amigo and then seeking to recover their losses from the friend, who is now nowhere to be found.

The FOS however operates under the principle of 'fairness', and may well therefore provide some relief to the OP.

I think we are in agreement on this. It is also clear that the ex friend has deliberately defrauded the OP so I agree it makes sense to make a formal complaint to the Police and seek to press charges.

The difficulty will be in tracking them down. However, that is not an insoluble problem.

There may well still be mutual friends (eg on Facebook) who would let them know.

Incidentally, where deception is involved, as in this case, the time limits under the Limitation Act are also unlikely to help the ex friend.

Xbigman

If there was a statement showing two card payments for £1850, how was a card payment called back via the direct debit guarantee?



Darren

worried_jim

Xbigman wrote: »

If there was a statement showing two card payments for £1850, how was a card payment called back via the direct debit guarantee?



Darren

I read it as the rest of the payments made by dd had been called back so the op owes the two combined loan amounts + interest - £1850.

Still a massive stitch up and I'd be on their door step now with a rounders bat looking for kneecaps.

There was a similar tale on BBC radio 4 you and yours. Totally trusting do gooder totally stitched up and left for broke by a friend who took the money and never made one single payment. I hope the op gets it sorted but their chances are close to zero hence-

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