Amigo loan on a DMP

User_101122

I formerly worked for Stepchange and we came up against this problem all the time.

Unfortunately if you include an Amigo loan in a DMP, Amigo can and will request the guarantor to make up the shortfall. If the guarantor makes the shortfall in the payments then there will be no risk to their credit file.

In the event they don't or can not afford to, Amigo will pursue the guarantor for payment and they routinely enforce their debts through the County Courts.

If the Amigo loan isn't included in the DMP and shown preference you are running the risk of your other creditors objecting, you're then at a higher risk of them refusing to reduce interest and charges, and taking further action against them if they think they're not getting a fair slice of the pie. Your other creditors will not deem Amigo loans to be a priority debt.

Karonher

It would be criminal if payday & short term loans went to guarantor basis too but sadly I see it happening : /

With the number of payday companies that have gone under I can see it happening more and more. My concern will be the number of grannies/grandads thinking they are helping the families, or worse being pressured into signing and then being left with a big bill.