Amigo loans help please

Niw132

Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

Edi81

Totally legal.
How long is the loan for?
You need to overpay as much as possible.

Clive_Woody

Now would be a good time to read that small print, see what APR you signed up to, what your the total amount of repayments will be and also confirm the duration of the loan.

Pretty sure Amigo are legally compliant....if morally repugnant.

antrobus

Niw132 wrote: »

Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

Representative 49.9% APR (variable)
Representative Example: Borrowing £3,000 over 36 months, repaying £146.37 per month, total repayable £5,269.32. Interest rate 49.9% (variable).

https://www.amigoloans.co.uk/

49.9% APR is actually quite a good rate for someone with "terrible credit". You're only getting it because someone else with good credit has signed up as a guarantor.

[Deleted User]

Niw132 wrote: »

And maybe I'm extremely naive but surely that is not legal?

The correct answer is option A.

boo_star

Niw132 wrote: »

Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

I'd say it's normal for loan statements to "front-load" the interest so you can see exactly what you need to pay back.

A monthly payment of:
£146.39
Total cost of credit:
£2,270.04
based on an APR of:
49.9%
That's a total of:
£5,270.04

So you'll be paying nearly 75% for the privilege of a 3 year loan.

tonycottee

Clive_Woody wrote: »

Now would be a good time to read that small print, see what APR you signed up to, what your the total amount of repayments will be and also confirm the duration of the loan.

Pretty sure Amigo are legally compliant....if morally repugnant.

I disagree. A good time to read the small print is before you sign.

Not that it helps, but avoid Amigo Loans like the plague.

antrobus

tonycottee wrote: »

I disagree. A good time to read the small print is before you sign.

Not that it helps, but avoid Amigo Loans like the plague.

Small print?

That representative 49.9% APR is in very big print on the Amigo Loans website. It's not a secret.

But people who want or need a loan frequently don't take the time to consider what are the implications of that 49.9% APR. It's only afterwards that they look at their statement and go, blimey, that's a lot of interest.

DCFC79

Niw132 wrote: »

Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

Maybe you should post on the dfw board, its 1 from from the loans board.


What is on your credit files ?

poppy10_2

Niw132 wrote: »

Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over.

Sounds like you screwed yourself over

sourcrates

tonycottee wrote: »

I disagree. A good time to read the small print is before you sign.
.

I believe there was a touch of irony in that statement.