NEED HELP ASAP! Amigo Loans

mc1234

Hi there,
I am hoping somebody can help. 
I just checked my credit file and have a late payment from Amigo in February. I was abroad with work and had my passport , phone and wallet including all cards stolen.
At the time i was able to log online and shift my money over to my parents account incase they used the cards.
Straight away i emailed my mortgage, car finance and Amigo. The first 2 understood and said to make payment on my return with no credit late payments.
I was 7 days late with Amigo and also emailed them at the time with my circumstances. I emailed just recently to ask for it to be removed considering I have had a loan for over a year with zero late payments.

They told me it is illegal and that I am trying to manipulate the finance system in my favour. I think this comment is totally out of order as I could understand not getting any help from them if it was late intentionally.

I have just had my mortgage declined at the last minute due to this and dont know what to do!!

Please help. 

D3xt3r5L4b

They’re reporting something that is factually correct. They have no right to remove it. 

Your mortgage was mode than likely rejected when they saw it was a PDL rather than a late payment (or maybe a combination of both). 

sambaird

Amigo have a duty to record correct information to CRAs. As you did make a late payment, they have a duty to report that - regardless of the circumstances.

While some companies may choose to take those circumstances into account, Amigo don’t have to - and clearly Amigo have taken a firmer line.  Amigo have not acted irresponsibly in this regard.

I’m pretty sure the way they worded their response isn’t as you make it out to be and that you’re reading a little bit too much into what they’ve said.

If you don’t agree with their decision, then you submit a formal written complaint - but do so from the starting point that Amigo haven’t actually done anything wrong... show a bit of humility and they may take the marker off as a gesture of goodwill (though the odds are low).

After they make their final decision, you can take it up with the Ombudsman if you still don’t agree.

DCFC79

Why would you not phone the bank or at least login and request a new card.

Do you know where it happened ?

MinuteNoodles

A Payday or sub-prime lender loan on a credit record, especially a recent one in the last few years, is like a massive red flag to a mortgage company, one lit up with a massive neon arrow pointing at it with a siren shouting "Danger Will Robinson" even if there's no missed payments. Amigo Loans are a company that those which mainstream lenders won't touch go to. Borrowers who use Amigo Loans are in such financial straits that they're willing to suck up an APR of 49%, drop one of their friends and family in it as a guarantor for the amount they're borrowing and be happy repaying two and a half times what they borrowed which is why such a loan on a credit record pretty much results in a "computer says no" answer from a mortgage company.

Sorry but with that on your credit file, especially if the loan is still current, you're unlikely to get a mortgage whilst things are currently as they are with mortgage companies massively tightening up on lending.

Fighter1986

Amigo aren't a payday loan company.

Other lenders don't see the name of each financial institution on a borrowers credit file, only the type of account it is.

Amigo report as a Personal Loan, not a Payday Loan, and would therefore be indistinguishable from any other loan company on a borrowers credit file from the lenders perspective.

The fact OP have a loan with Amigo won't be the reason his mortgage was declined. 

However, if OP was forced to take a loan from Amigo it is indicative that they may have other historic credit issues that may contribute towards a lender declining their mortgage application.

OP - are you remortgaging or buying? The market the way it is right now, underwriting a mortgage will be strict. 

If you're a first time buyer, wait until you've paid off all outstanding debt before trying to buy a house. Especially high APR borrowing like Amigo. 

If you're an existing homeowner, find a new fixed rate deal with your existing lender. 

Malkytheheed

The problem is, they are a payday lender. You arent going to get any favours from them at all. Proper lenders might throw you a bone with a one off missed payments, but no chance with a payday lender. Also, as mentioned above, simply having an amigo loan on your credit file is the main worry here. not the missed payment. Combine the two together and you have a major problem now trying to get a mortgage. sorry! Best you pay that loan off right now and dont apply for a mortgage for the next 12 months. 

Fighter1986

Malkytheheed said:

The problem is, they are a payday lender. You arent going to get any favours from them at all. Proper lenders might throw you a bone with a one off missed payments, but no chance with a payday lender. Also, as mentioned above, simply having an amigo loan on your credit file is the main worry here. not the missed payment. Combine the two together and you have a major problem now trying to get a mortgage. sorry! Best you pay that loan off right now and dont apply for a mortgage for the next 12 months. 

See my post above bud.

They aren't a payday lender, they are a loan company, and Amigo accounts are reported on borrowers credit files as "Personal Loan".

As lenders do not see the name of each financial institutions on a borrowers credit file when they do a credit check - only the type of each account - an Amigo loan will be indistinguishable from any other loan provider from a lenders perspective.

Additionally, a lender does not see the APR of your other accounts when assessing you. 

Having had an Amigo loan doesn't have the same impact a Payday loan would have had. They're entirely different types of account.

Malkytheheed

Fighter1986 said:

Malkytheheed said:

The problem is, they are a payday lender. You arent going to get any favours from them at all. Proper lenders might throw you a bone with a one off missed payments, but no chance with a payday lender. Also, as mentioned above, simply having an amigo loan on your credit file is the main worry here. not the missed payment. Combine the two together and you have a major problem now trying to get a mortgage. sorry! Best you pay that loan off right now and dont apply for a mortgage for the next 12 months. 

See my post above bud.

They aren't a payday lender, they are a loan company, and Amigo accounts are reported on borrowers credit files as "Personal Loan".

As lenders do not see the name of each financial institutions on a borrowers credit file when they do a credit check - only the type of each account - an Amigo loan will be indistinguishable from any other loan provider from a lenders perspective.

Additionally, a lender does not see the APR of your other accounts when assessing you. 

Having had an Amigo loan doesn't have the same impact a Payday loan would have had. They're entirely different types of account.

I didn't know that. 

jjames1985

Fighter1986 said:

Malkytheheed said:

The problem is, they are a payday lender. You arent going to get any favours from them at all. Proper lenders might throw you a bone with a one off missed payments, but no chance with a payday lender. Also, as mentioned above, simply having an amigo loan on your credit file is the main worry here. not the missed payment. Combine the two together and you have a major problem now trying to get a mortgage. sorry! Best you pay that loan off right now and dont apply for a mortgage for the next 12 months. 

See my post above bud.

They aren't a payday lender, they are a loan company, and Amigo accounts are reported on borrowers credit files as "Personal Loan".

As lenders do not see the name of each financial institutions on a borrowers credit file when they do a credit check - only the type of each account - an Amigo loan will be indistinguishable from any other loan provider from a lenders perspective.

Additionally, a lender does not see the APR of your other accounts when assessing you. 

Having had an Amigo loan doesn't have the same impact a Payday loan would have had. They're entirely different types of account.

they don't see the apr, or who the loan is with but they do see the amount, what you're repaying and the balance each month.  it's trivially easy to tell if a loan is a high interest or not from this information.  whether the mortgage company cares about this or not is a different matter of course.

Fighter1986

jjames1985 said:

Fighter1986 said:

Malkytheheed said:

The problem is, they are a payday lender. You arent going to get any favours from them at all. Proper lenders might throw you a bone with a one off missed payments, but no chance with a payday lender. Also, as mentioned above, simply having an amigo loan on your credit file is the main worry here. not the missed payment. Combine the two together and you have a major problem now trying to get a mortgage. sorry! Best you pay that loan off right now and dont apply for a mortgage for the next 12 months. 

See my post above bud.

They aren't a payday lender, they are a loan company, and Amigo accounts are reported on borrowers credit files as "Personal Loan".

As lenders do not see the name of each financial institutions on a borrowers credit file when they do a credit check - only the type of each account - an Amigo loan will be indistinguishable from any other loan provider from a lenders perspective.

Additionally, a lender does not see the APR of your other accounts when assessing you. 

Having had an Amigo loan doesn't have the same impact a Payday loan would have had. They're entirely different types of account.

they don't see the apr, or who the loan is with but they do see the amount, what you're repaying and the balance each month.  it's trivially easy to tell if a loan is a high interest or not from this information.  whether the mortgage company cares about this or not is a different matter of course.

Yeah that's not how it works.

When a lender assesses a borrowers ability to repay they look at how much they owe and what their monthly commitment are. They don't then back calculate an APR - this can't be standardised, as some loan companies report the balance as how much is owed including all the interest, some report how much is owed today without future interest. It would totally screw any kind of calculation or prediction about what the borrowers APRs are on their other accounts.

Absolute bunk.

The chastising behaviour towards borrowers who have had Amigo loans coming here for help is frankly disgusting. I'm going to raise this to admin / Martin Lewis. 

This is a nationally acclaimed forum for helping those who've made mistakes or fallen foul of things in the past, not an elitist "lets chastise those who made mistakes" group. This isn't school. 

A lot of us here would do well to grow up a bit.