another amigo

StopIt

Deleted%20User wrote: »

If crazy enough to borrow so big from these types of lenders then yeah. High cost loan for a long time was also where they went wrong.

My recent APR was something like 1306 on £200 on STHC - more palatable way to look at it was it's actual costing of £1.60 per day. The APR doesn't really apply.

A bbc1 programme on loan sharking in the new year said how the term should never really apply to payday lenders and the like, only those that operate away from the high street.

£50p/m of interest on a £200 loan is palatable?


Not to anyone with an ounce of sanity it isn't. While APR is not the best way to show the interest rate on these loans, they also aren't incorrect and the alternatives aren't any less confusing.


Anyway, if the alternative to high cost credit is facing your financial D-Day, maybe it's time to just face it. Because even if people can afford them think of how much money that could've otherwise went towards things instead of horrific levels of interest.

dresdendave

MEM62 wrote: »

Amigo Loans strike me as being a loose-loose situation in most cases.

If you allow for the three components in the situation,
Amigo/borrower/guarantor then it actually a win-lose-lose scenario.

macman

When you signed as guarantor you agreed to be liable for the full cost of the loan, not liable for the full cost of the loan only if your financial circumstances didn't change. They can't recover assets from you that you don't have, but you don't say what assets you do have? Bankruptcy is only an option in extreme circumstances.

National_Debtline

Hi Air_wolf and welcome to MSE,

Air_wolf wrote: »

What are amigo's options with regards to recovering the loan if my friend is not able to cover it and (at nearly £300 a month) neither am I?
Can I offer a smaller amount per month?
Also, what happens if I am to go bankrupt, is the loan still recoverable from me?

When you sign as guarantor you become jointly and severally liable for the debt. This means that both you and your friend are responsible for 100% of the money separately and together. If you can maintain the monthly payments between you, there would be no further action. But if this is not possible you will both need to negotiate and pay what you can.

The creditor may come after one or both of you. This can be action through debt collectors and the county court (as other posters have said) and I am afraid they can mark each credit file.


Bankruptcy is a big option, and may be a bit extreme if this is your only debt, not to mention there are other implications of bankruptcy. But a key thing to mention is that if you go bankrupt, your friend will then be liable for 100% of the money on their own. You would both need to be insolvent for the debt to be unrecoverable. You may want to post in DFW for more advice about your options, or contact one of the free debt charities.


Laura
@natdebtline

Air_wolf

DCFC79 wrote: »

Why oh why do people mix money and friends as it never ends well.
Regarding who they would come after if neither can pay well no 1 I guess, same with going bankrupt only go that route if your sure.

Hey DCFC thanks for replying, and yes on this particular occasion it has gone t*ts up. But as I said I financed my friend twice in the 8 years I have known him and he has never lapsed payment which is why, when he was in a bit of a pickle and he asked, I agreed. Lol doesn't seem such a great idea now.

macman wrote: »

When you signed as guarantor you agreed to be liable for the full cost of the loan, not liable for the full cost of the loan only if your financial circumstances didn't change. They can't recover assets from you that you don't have, but you don't say what assets you do have? Bankruptcy is only an option in extreme circumstances.

Hi macman. Yes I was aware of my responsibilities but it is true I only agreed because my friend ensured that he would never miss a payment and that I need not worry.
I do not have any assets, apart from a pedal bike, which I ride to and from work. I still live at home with my parents but pay board.

MEM62 wrote: »

Yes it can and yes it is. But for as long as individuals are prepared to guarantee these loans Amigo will stay in business.

The business model is that Amigo are effectively lending at sub-prime interest rates while the security is based on someone with a good credit history. It's very clever, almost brilliant, and will continue for as long as guarantors are stupid enough to keep signing up.

Lol, seems like I deserve that title

National_Debtline wrote: »

Hi Air_wolf and welcome to MSE,
When you sign as guarantor you become jointly and severally liable for the debt. This means that both you and your friend are responsible for 100% of the money separately and together. If you can maintain the monthly payments between you, there would be no further action. But if this is not possible you will both need to negotiate and pay what you can.

The creditor may come after one or both of you. This can be action through debt collectors and the county court (as other posters have said) and I am afraid they can mark each credit file.


Bankruptcy is a big option, and may be a bit extreme if this is your only debt, not to mention there are other implications of bankruptcy. But a key thing to mention is that if you go bankrupt, your friend will then be liable for 100% of the money on their own. You would both need to be insolvent for the debt to be unrecoverable. You may want to post in DFW for more advice about your options, or contact one of the free debt charities.


Laura
@natdebtline

Hi Laura, thank you so much for your advice.
Amigo is not my only debt. Like I said, my financial situation changed drastically back in October 2015, and I have been playing catch up ever since. I have a personal loan, a barclays and amazon credit cards and my son was born in 2016 as well as a major bill in the tens of thousands pounds.
I have always honoured my debt repayments and will continue to do so but the truth is if the repayments start to take away from my life, where I have to make sacrifices in my home then they no longer become a priority for me and with amigo payments it is getting to this point very fast.

My sincerest thanks to all who reply, forgive my late reply, work was a little hectic this past couple of weeks. I thank your patience.
Have a great day.

Candyapple

When did you take out the loan?

When did your friend stop repaying?

Has he repaid anything since?

Shakin_Steve

Don't you think bankruptcy will 'take away from your life, where you have to make sacrifices in your home'? Or have you found a way not to pay and make these debts disappear?

AshI

Hi,

I am in a situation very similar but can prove my 'friend' hasn't made any payments, got himself an IVA and made me fully liable. As I can prove even he cancelled his bank card so the first payment couldn't be made, do I have any legal rights?

Arleen

AshI wrote: »

Hi,

I am in a situation very similar but can prove my 'friend' hasn't made any payments, got himself an IVA and made me fully liable. As I can prove even he cancelled his bank card so the first payment couldn't be made, do I have any legal rights?

Yup, you have the legal right to repay his debt. That is how being a guarantor works.

[Deleted User]

No.

Cancelling his card wouldn't achieve anything anyway.