Amigo - "If" interest removed, possible outcome?

MoneyPanda

Hey all,

I don't know if I am being thick or not but I'm just looking to see if anybody was able to shed any light on guarantor loan claims.

I am currently paying off a £7,500 Amigo loan (which is a top up of a previous loan) and to date I have made 45 payments of £296.44, a whopping total of £13,339.80 and my outstanding balance is £3,923.33.  :'( Thus teaching me he world's biggest financial lesson. 

Interestingly if I deduct all the interest from the payments I've made I have actually paid off £3,576.67 of my loan, leaving me with a balance of £3923.33. 

So even if I was successful and had the interest removed from a currently active loan then I'd still be in the same boat. The outstanding balance will still be the same and if I continued to pay £296.44 p/m then it will still take me 13 months instead of 15 to pay it off.

Am I looking at this all wrong or should I just carry on with the repayment plan? I'm not too bothered about "reclaiming money", its paying £296.44 p/m that is crippling me and is an expense I can really do with out.

Any knowledge or experience anybody can share with me will be greaty appreciated. Thanks in advance. 

[Deleted User]

If all the interest was removed because it was deemed to have been mis sold, then all the payments you've made would have paid off the capital, meaning you would be owed money.

Willing2Learn

There are a couple of articles for you to read, linked below:

How the borrower of a guarantor loan can complain

and

How to complain when you are the guarantor for a loan

Fighter1986

You'd be owed money.

I've sent a formal complaint to Amigo regarding irresponsible lending too. They asked for bank statements around the dates they lent to me. I posted those to them last week. 

I've asked them to repay interest charged to my guarantor as she ended up settling the loan. 

You'll need a solid case for irresponsible lending with evidence. Don't be put off, just be strong and replete with your reasoning for accusing them for irresponsible lending and have evidence to hand.

Good luck. Keep us posted!

peteuk

Do loan companies not provide you this information at the start of the loan?
eg.
Loan Amount £1000
Interest payable £500
Total payable £1500
So if they did and at that point you still agreed to take out the loan, I dont see the cause of the complaint.  Such loan companies take the risk of lending to high risk customers with the pay off being higher interest and a guarantor for the loan.  

MoneyPanda

Hey all thanks for the answers and the helpful information.

Fighter1986 said:

You'll need a solid case for irresponsible lending with evidence. Don't be put off, just be strong and replete with your reasoning for accusing them for irresponsible lending and have evidence to hand.

Thanks for this. I submitted a complaint last night, so now its just a waiting game. I might have gone over the top with the evidence, but having reviewed it all myself I am astonished they even allowed me to top up my original loan! I'll keep you updated.

peteuk said:

Do loan companies not provide you this information at the start of the loan?  

Why yes. Yes they did. However I came here seeking an answer to a question. Not to be judged. If you have nothing helpful to say on the matter then please restrain from posting anything.

jjames1985

MoneyPanda said:

Hey all thanks for the answers and the helpful information.

Fighter1986 said:

You'll need a solid case for irresponsible lending with evidence. Don't be put off, just be strong and replete with your reasoning for accusing them for irresponsible lending and have evidence to hand.

Thanks for this. I submitted a complaint last night, so now its just a waiting game. I might have gone over the top with the evidence, but having reviewed it all myself I am astonished they even allowed me to top up my original loan! I'll keep you updated.

peteuk said:

Do loan companies not provide you this information at the start of the loan?  

Why yes. Yes they did. However I came here seeking an answer to a question. Not to be judged. If you have nothing helpful to say on the matter then please restrain from posting anything.

the question was "to claim or not to claim" and they did answer it, indirectly.  you have no grounds to complain if your sole reason for complaining is because you've suddenly decided that you think the interest you were charged is too much (4 years after you had the benefit of the money to boot) so their answer to your question is no, you should not claim.

Fighter1986

Nowhere did OP state that their reason for wanting to file an irresponsible lending complaint was due to the APR of the loan, they were just listing the particulars of how much they've paid so far.

Obviously OP will need to have evidence of irresponsible lending tactics in order to succeed. 

jjames1985

Fighter1986 said:

Nowhere did OP state that their reason for wanting to file an irresponsible lending complaint was due to the APR of the loan, they were just listing the particulars of how much they've paid so far.

Obviously OP will need to have evidence of irresponsible lending tactics in order to succeed. 

their question was "to claim or not to claim" and the only thing they moaned about that might give someone a reason to want to make a claim against amigo was how much interest they were being charged.  so either nobody can answer their question because we have no idea what they're claiming for or they are wanting to make a claim because the APR is high in which case they should be told to stop being silly and not to make a claim.

MoneyPanda

"To claim or not to claim" can you see what I did there? Its a nice little play on words. It's just a catchy just title, not the question, so calm down Karen. 

To clarify it was a general question that if a complaint was made, whether its for irresponsible lending or the fact they may have stole my lunch money, then what would would be a possible outcome based on my current circumstances. Would it be what I thought or was I wrong. Which looking at the replies, people got the general gist of the question.

Yes I know that since making that original post I have made a complaint but I wasn't asking for a general census on whether people think I should do it or not. 

chanz4

I wonder when firms could claim for irresponsible borrowing