Amigo loan on a DMP

noobinvestor

Hello all,


I hope you're well.


I have a friend who is in a lot of debt than she can manage. Unfortunately one of her loans is amigo loans, say if she goes on a debt management plan would she be able to include the amigo loan or would they go after the friend who agreed to co-sign it?


I don't understand how amigo have given her this loan, looking at her credit history she has accounts in arrears and defaulted on some of them. She also has a bamboo loan too.


Grateful for advice.

Sea_Shell

As I understand it, that is the whole point of a Guarantor loan. If she can't pay, they WILL expect the guarantor to pay!

So I doubt it could be added to a DMP, as they have a way of getting full payment.

Are you "the friend" who signed as guarantor?

Astar1809

They will take the easiest route to get the money, if there is a viable Guarantor then they will pursue them for payment. It is like their insurance policy as they expected this to happen to a degree.

noobinvestor

Sea_Shell wrote: »

Are you "the friend" who signed as guarantor?

Luckily it's not me


Because I would never sign one of these loans!


I'm just really concerned about her debt. She's over 20K in the red, and some how amigo has given her 10K loan last year, already in arrears.

Astar1809

noobinvestor wrote: »

Luckily it's not me


Because I would never sign one of these loans!


I'm just really concerned about her debt. She's over 20K in the red, and some how amigo has given her 10K loan last year, already in arrears.

My Brother has CCj's coming out of his ears, about £30k in debt and not a stable job either. Still in this situation (if he lied on the affordability questions) he would be eligible for £5k+ loan if I were to act as his security on the loan, The credit would be based on what they felt I could pay if/when he defaulted.

noobinvestor

It's terrible these loans exist to prey on vulnerable people.


Hopefully the next global recession will wipe out these sort of companies and pay day loans.

[Deleted User]

I think the next global recession is more likely to see their numbers increase dramatically.

WhenIam64

I don't understand how amigo have given her this loan, looking at her credit history she has accounts in arrears and defaulted on some of them.

Raise it with the Financial Ombudsman. Amigo have form for this sort of action.

https://www.financial-ombudsman.org.uk/files/239434/DRN3847539.pdf

Willing2Learn

noobinvestor wrote: »

It's terrible these loans exist to prey on vulnerable people...

Maybe the borrower should make an affordability complaint about Amigo...
https://debtcamel.co.uk/how-to-complain-guarantor-loan/

And the guarantor can also complain to Amigo.
https://debtcamel.co.uk/amigo-complaints-by-guarantor/

Both of the links include complaint letter templates.

Edit: If Amigo says No (or if they haven’t had a reply within 8 weeks), then the borrower and/or guarantor can escalate the complaint to the FOS.

[Deleted User]

noobinvestor wrote: »

It's terrible these loans exist to prey on vulnerable people.


Hopefully the next global recession will wipe out these sort of companies and pay day loans.

I think you will find the industry has been cleaned up - nowadays there is breathing space before even making payments and the last time I had reason to call one of these lenders, they were nothing more then very polite and reasonable. Going to these lenders doesn’t mean suddenly your attractive to every other lender in sight which is no bad thing on the reverse of the coin...

But equally it say’s something about the debt support out there.
Not everyone gets to pop along to their bank to borrow at favourable rates.

There was a panarama programme on nearly 6 months ago, someone didn’t mind when their pet was saved and still chucked in the claims as this subject is well easy money. In that same prog Amiga was mentioned.

What sort of sane house owning or ‘impeccable’ credit file holder agrees to a mega massive unable to control 10k loan from a high risk lender. Your bank or building society would repo your house for failure to pay and whack on charges so why should borrowers of this sector get off Scott free.

I don’t really want break your legs lender if you default thanks. I’m confident I can pay back my modestly borrowed £200 over 3/4 months. It would be criminal if payday & short term loans went to guarantor basis too but sadly I see it happening : /

noobinvestor

Deleted%20User wrote: »

I think you will find the industry has been cleaned up - nowadays there is breathing space before even making payments and the last time I had reason to call one of these lenders, they were nothing more then very polite and reasonable.

Thank you for your comment. I am glad to hear about this.