Was I missold into taking Amigo loan?

meer53

YOU didn't take out a loan, your friend did. Be a GOOD friend and make sure you repay the loan.

User_101122

Despite being on a DMP, they approved my loan as I managed to get a friend as a guarantor despite his pleads for me not to take it.

Why did your friend agree to be your Guarantor when you were allready struggling to pay your previous debts?
Did you tell your friend, that you were on a Debt Management Plan?

The interest is shocking (50%).

Why are you shocked at their interest rate? It's clearly stated they have a representative APR of 49.9% APR!

However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?

Why would they? They only need to satisfy themselves that the Guarantor can pay the loan back if you can't. They are not interested in your ability to repay the debt.

Could this be a case of irresponsible lending on their part?

No. They give you a loan content in the knowledge that your Guarantor would be paying it back if you could not.

I just don't want to cause any agro for my guarantor

Too late for that. If you are unable to pay Amigo loans WILL be contacting your guarantor, if they are unable to pay their cridit file will be affected and Amigo loans are also well known for taking County Court action against Guarantors and have a good track record of getting charging orders.

Any advice? Words of wisdom?

Tell your Guarantor your situation, and you should contact Stepchange to get the Amigo Loan added to your Debt Management Plan.
The Guarantor should also contact Stepchange if the loan has put them into financiall difficulty also. There is no way arround this, either you make the full monthly payment or they will make your Guarantor pay it on your behalf.

Westminster

Tell your Guarantor your situation, and you should contact Stepchange to get the Amigo Loan added to your Debt Management Plan.
The Guarantor should also contact Stepchange if the loan has put them into financiall difficulty also. There is no way arround this, either you make the full monthly payment or they will make your Guarantor pay it on your behalf.

Agree with the first part - but adding the loan to the DMP will simply trigger recovery action against the guarantor. You need to ensure you get this paid off yourself and will have to suck up the high interest unfortunately if you don!!!8217;t want to cause significant hardship and financial damage to your guarantor.

foxy-stoat

I doubt Hoof will be coming back.

eschaton

foxy-stoat wrote: »

You mis-bought the loan.

Keep paying unless you wont your guarantor to pay for your debt.

The thread could have been locked after this reply.

Irresponsible borrowing and the friend has been taken for a mug.

AnotherJoe

I think the OP should sue their friend for enabling them to get a loan. Reprehensible behaviour.

User_101122

Agree with the first part - but adding the loan to the DMP will simply trigger recovery action against the guarantor. You need to ensure you get this paid off yourself and will have to suck up the high interest unfortunately if you don!!!8217;t want to cause significant hardship and financial damage to your guarantor.

But then if you can't pay the DMP creditors because you're showing preference to another non-priority debt this increases the risk of the other creditors taking action as they won't be getting treated fairly.
If any of the other creditors get a CCJ and seek an instalment order, the Court don't class Amigo Loans as a priority debt and will pro-rata the payment accordingly.

I think what ever happens here the guarantor isn't coming out of this with their credit file intact.

dealer_wins

If only people like the OP had all these deep thoughts about their loan/affordability etc BEFORE they take them out!

gycraig_2

Or even better before they spend the money ...