Amego loans urgent help.

jonesMUFCforever

I have said this before and will repeat again here = Any guarantee should be sent to a solicitor of the guarantor's choice for the implications of being one spelt out to them.
Banks used to do this a long time ago before taking a guarantee from a customer to secure business debt.

JasonHand

Judging by how many posts there are on this subject there does seem to be a requirement to bring in some new legislation on these things. The advice here always seems to be that the guarantor should have simply taken out a much cheaper loan themselves, clearly good advice.

Perhaps something these companies should be made to do is clearly highlight this in the guarantors paperwork, comparing the cost of their loans to an average high street loan. Maybe seeing these sorts of numbers in front of them might help.

On this subject we received a letter from Amigo addressed to a previous occupier chasing up one of their loans. So I need to give them a call today to ask them not to send me anymore letters.

foxy-stoat

JasonHand wrote: »

Judging by how many posts there are on this subject there does seem to be a requirement to bring in some new legislation on these things. The advice here always seems to be that the guarantor should have simply taken out a much cheaper loan themselves, clearly good advice.

Perhaps something these companies should be made to do is clearly highlight this in the guarantors paperwork, comparing the cost of their loans to an average high street loan. Maybe seeing these sorts of numbers in front of them might help.

I don't think we need more legislation or more things explaining, we just need people to read the information or contracts BEFORE they sign up to these high interest loans. You need to be 18 to get credit, that is when you are an adult and responsible for your own actions.

I dont like the business model of guarantor loans nor do I like the high interest that these loans attract but !!!!!! can people read the agreements before they sign or maybe come on here before they do if they need some pointers....not after it all goes wrong and they wonder how they go themselves into a situation of paying for a loan - oh wait, they got themselves into it, they even signed the forms.

Theres even a section on the Amigo web site;

What is the guarantor's responsibility?
A guarantor’s responsibility is to make loan payments if the borrower doesn't. This is why we run through an affordability assessment; we want to make sure that the guarantor is able to take on the commitment.

However, wherever possible, we will always work with the borrower first and come to an arrangement before looking to the guarantor to pay. We will also inform the guarantor of any arrangements made with the borrower.

We’ll only ever ask the guarantor to pay in line with their agreement and in the best interests of both the borrower and guarantor. Doing so helps prevent any negative implications of the account remaining behind, such as the arrears increasing and the loan term extending.

If the borrower was to enter into an IVA, go bankrupt, simply stop paying or pass away, then the guarantor would become solely responsible for each monthly repayment until the loan is cleared.

When considering if you should be a guarantor, we recommend you ask yourself the following questions:

· Do you trust this person to make all the payments on time every month?

· Is the monthly repayment something they can afford?

· Are you comfortable with making these payments on their behalf should anything go wrong?

If you are comfortable with the guarantor responsibilities, meet the criteria above and trust the borrower, then we will too.

And ;

Why is the money paid into the guarantor’s account?
We pay the money into the guarantor’s bank account to protect them against fraud. This way we can make sure they’re aware of the loan.

Your guarantor can then either transfer the money to you, pay it to you by cheque or withdraw the funds for you as cash.

^^^^^ So there can be NO mistakes - the loan is the responsibility of the Guarantor, not the person who spends the money. The money is paid into the Guarantor's account so it is their money - its then "gifted" to the person who tricked them into the loan.

If the loan HAS to be paid by the Guarantor on death of the Borrower then it clearly isn't the Borrower who has taken out the loan - same is said if the Borrower goes Bankrupt or IVA - the loan isn't included on such agreements.

JasonHand

foxy-stoat wrote: »

I don't think we need more legislation or more things explaining, we just need people to read the information or contracts BEFORE they sign up to these high interest loans. You need to be 18 to get credit, that is when you are an adult and responsible for your own actions.

I dont like the business model of guarantor loans nor do I like the high interest that these loans attract but !!!!!! can people read the agreements before they sign or maybe come on here before they do if they need some pointers....not after it all goes wrong and they wonder how they go themselves into a situation of paying for a loan - oh wait, they got themselves into it, they even signed the forms.

Theres even a section on the Amigo web site;

What is the guarantor's responsibility?
A guarantor’s responsibility is to make loan payments if the borrower doesn't. This is why we run through an affordability assessment; we want to make sure that the guarantor is able to take on the commitment.

However, wherever possible, we will always work with the borrower first and come to an arrangement before looking to the guarantor to pay. We will also inform the guarantor of any arrangements made with the borrower.

We’ll only ever ask the guarantor to pay in line with their agreement and in the best interests of both the borrower and guarantor. Doing so helps prevent any negative implications of the account remaining behind, such as the arrears increasing and the loan term extending.

If the borrower was to enter into an IVA, go bankrupt, simply stop paying or pass away, then the guarantor would become solely responsible for each monthly repayment until the loan is cleared.

When considering if you should be a guarantor, we recommend you ask yourself the following questions:

· Do you trust this person to make all the payments on time every month?

· Is the monthly repayment something they can afford?

· Are you comfortable with making these payments on their behalf should anything go wrong?

If you are comfortable with the guarantor responsibilities, meet the criteria above and trust the borrower, then we will too.

And ;

Why is the money paid into the guarantor’s account?
We pay the money into the guarantor’s bank account to protect them against fraud. This way we can make sure they’re aware of the loan.

Your guarantor can then either transfer the money to you, pay it to you by cheque or withdraw the funds for you as cash.

^^^^^ So there can be NO mistakes - the loan is the responsibility of the Guarantor, not the person who spends the money. The money is paid into the Guarantor's account so it is their money - its then "gifted" to the person who tricked them into the loan.

If the loan HAS to be paid by the Guarantor on death of the Borrower then it clearly isn't the Borrower who has taken out the loan - same is said if the Borrower goes Bankrupt or IVA - the loan isn't included on such agreements.

Oh I totally agree with what you are saying here and yep folks are adults and should read what they are signing. Now my understanding is the guarantor is sent a link for them to "sign" so I'm not sure how their T&Cs are displayed to the guarantor.

Companies like Amigo are clearly very good at manipulating guarantors and know people find it difficult to say no especially to family in these circumstances.

But none of their T&Cs actually discuss alternatives which might exist. Of course they aren't going to do this off their own backs and throw business away hence I think there should be some sort of requirement to make them do this sort of thing.

My opinion is unless their are some curbs put into this area of the market then we will see more and more scenarios like that of the OP.

As I said in my earlier post we received a letter from Amigo which was addressed to an old occupant. Their interest charges and other charges are eye watering.

Paul_DNAP

JasonHand wrote: »

Judging by how many posts there are on this subject there does seem to be a requirement to bring in some new legislation on these things. The advice here always seems to be that the guarantor should have simply taken out a much cheaper loan themselves, clearly good advice.

Or you could pass a law that states people must read things before they agree to them, and not just say "yes, I read your leaflet" when they haven't. As I mentioned before, as poor as business model as you may think it is, Amigo have done absolutely nothing wrong in this case.

JasonHand wrote: »

On this subject we received a letter from Amigo addressed to a previous occupier chasing up one of their loans. So I need to give them a call today to ask them not to send me anymore letters.

You ought to put it in a post box, unread, marked "return to sender, not known at this address" and keep well clear of getting tangled up in someone else's disastrous financial affairs. I certainly would not be wanting Amigo to know my name.

JasonHand wrote: »

But none of their T&Cs actually discuss alternatives which might exist. Of course they aren't going to do this off their own backs and throw business away hence I think there should be some sort of requirement to make them do this sort of thing.

It would be highly unusual to force a commercial entity to inform customers of their competitor's products.

foxy-stoat

Paul_DNAP wrote: »

Or you could pass a law that states people must read things before they agree to them, and not just say "yes, I read your leaflet" when they haven't. As I mentioned before, as poor as business model as you may think it is, Amigo have done absolutely nothing wrong in this case.

Isn't there something like that already - its called Duty of Care.

Nn140294

I think the best thing would be to avoid going to court and try and pay it off before it goes any further.

Theres a go fund me page called amigo ccj who has had a similar issue