Amigo Loans

Bumbumtaloo

Hi, I’m new here, sorry if I don’t use the correct abbreviations.

In Dec 2013 I extended a previous Amigo loan to £5k - yes, I know it was incredibly stupid to take the loan in the first place! In March 2015 we hit financial difficulties - we both worked my husband full time and me weekend nights to fit around childcare but I unfortunately fell ill and lost my job this set off a chain of events that have now resulted in me being too ill to work and my husband is my carer and unfortunately relying on benefits.

Anyway back to the loan, we had never missed a payment and in March 2015 I rang them to explain the situation and reduced our payments from £197 to £100 every 4 weeks. Last year I received a retrospective default notice. I have just received a statement and have found I owe £6,442 despite paying the loan for five years and at this rate it will take another five years to clear it.

The thing I wanted to know is, when I explained the financial difficulties to them and set up a payment plan should the interest have been frozen - I have asked them and they have not given me a straight answer and can they issue a retrospective default notice?

To be clear I am not trying to get out of paying the loan back, I borrowed the money and it is my responsibility. I’m just really disheartened that I still have another 5yrs left and I can’t increase the repayments to them as I simply do not have the money.

Thanks in advance.

[Deleted User]

No, interest didn't need to have been frozen.

It seems correct that the account has defaulted, and it's fortunate that it is retrospective. It will fall off 6 years from the date it shows.

Visit the DFW boards for advice on how to cut costs and other options that might be appropriate for you.

Bumbumtaloo

Thank you, I fully agree the account should be in default I just wasn’t sure as it wasn’t issued for sometime.

TrickyDicky101

Who is the guarantor? Is it your husband? If not it would be a good idea to give the guarantor a heads up as Amigo may go after them to recover the debt.

Bumbumtaloo

No, it’s a friend of mine. I have been paying the reduced amount since March 2015 and Amigo have said a song as I make the agreed payments they wouldn’t seek money from her. They haven’t contacted her at all since the loan was taken in 2013.