Guarantor Loan - Can I claim the money back from the borrower?

MattCoot

Hello,
I'm new to this site but I was wondering if some advice could be given please. Two years ago, I was manipulated into signing up to being a guarantor for my toxic ex-girlfriend to get a loan from Amigo Loans and have been saddled with repaying this loan since Day One because she has defaulted each month. I have paid just under £3000 to Amigo Loans on behalf of the borrower. Would I be entitled to request that the borrower pay this money back to me? If she refuses, would I be entitled to start legal proceedings against her to force her to pay the money back? Any advice on what I can do - and any advice on how to do this - would be gratefully received.
Thank you

[Deleted User]

Only if you had a separate enforceable agreement with her that said she would reimburse you.  The Amigo agreement will say that you're happy to make up any missed payments. 

Your best bet is to pay it off as soon as you can, even if you need to take out a lower rate loan to do it.

foxy-stoat

You are/were better off getting a cheaper rate loan and settling the Amigo loan as soon as possible.

You could try and pursue through the small claims courts but I doubt you will get anywhere, after-all it was your loan, you agreed to the terms and gave her the money and if she has no money to pay you then all you would only give her a CCJ if you won, getting the money off her would be another loan of grief.

MattCoot

Thanks for the feedback!
Thankfully the loan is almost all repaid (just one more month to go) so I was just wondering where I stood with regards to reclaiming the money from the ex. Oh well, I'll just have to accept that I'll never see that money again and learn from the experience. Thanks for responding!

Clive_Woody

MattCoot said:

Hello,
I'm new to this site but I was wondering if some advice could be given please. Two years ago, I was manipulated into signing up to being a guarantor for my toxic ex-girlfriend to get a loan from Amigo Loans and have been saddled with repaying this loan since Day One because she has defaulted each month. I have paid just under £3000 to Amigo Loans on behalf of the borrower. Would I be entitled to request that the borrower pay this money back to me? If she refuses, would I be entitled to start legal proceedings against her to force her to pay the money back? Any advice on what I can do - and any advice on how to do this - would be gratefully received.
Thank you

You could send her a letter before action (see link) to see if that panics her into repaying you any of the money but not sure there is much to be gained from following through with no agreement.

https://www.citizensadvice.org.uk/law-and-courts/legal-system/small-claims/making-a-small-claim/

onlyfoolsandparking

MattCoot said:

Hello,
I'm new to this site but I was wondering if some advice could be given please. Two years ago, I was manipulated into signing up to being a guarantor for my toxic ex-girlfriend to get a loan from Amigo Loans and have been saddled with repaying this loan since Day One because she has defaulted each month. I have paid just under £3000 to Amigo Loans on behalf of the borrower. Would I be entitled to request that the borrower pay this money back to me? If she refuses, would I be entitled to start legal proceedings against her to force her to pay the money back? Any advice on what I can do - and any advice on how to do this - would be gratefully received.
Thank you

Look on the bright side, you could still be with her   
Think of how much that COULD have cost you!!

Fighter1986

You can raise a formal written complaint to Amigo stating that the money should never have been lent in the first place, if you believe this to be true. You can state in your complaint that you wish to be put back in a financial position you'd have been in had they not lend your ex any money without due scrutiny. 

If you don't believe they scrutinized her finances sufficiently, and can back up where they failed, e.g. her credit file showed multiple defaults and / or accounts in arrears with balances that weren't reducing, or they failed to verify her income and expenditure, etc. Then you have an irresponsible lending case.

The more you can quantify and evidence, the better. 

In the cases of irresponsible lending, all involved parties have a right to be put back in the position they would have been in had the irresponsible lending not taken place.

You may have to escalate this to the FOS if Amigo don't find in your favour.

Over 90% of all guarantor loan irresponsible lending complaints that are escalated to the ombudsman, are being upheld. 

Good luck. You deserve better. 

Grumpy_chap

BUT, it looks like Amigo did undertake due scrutiny on the ex.  They found she could not afford the loan so asked for a guarantor to cover the payments.  Amigo also undertook due scrutiny on the guarantor (OP) and found they could afford the loan and cover the payments.

Fighter1986

I'd suggest Grumpy_chap said:

BUT, it looks like Amigo did undertake due scrutiny on the ex.  They found she could not afford the loan so asked for a guarantor to cover the payments.  Amigo also undertook due scrutiny on the guarantor (OP) and found they could afford the loan and cover the payments.

You may wish to check the thread I just started in this forum  

Grumpy_chap

Yes, I saw that and realised it totally contradicts what I said and thought above:
https://forums.moneysavingexpert.com/discussion/6167062/re-amigo-loans-irresponsible-lending-complaint#latest
Only the OP will be able to assess whether there is any difference between the two cases.

At the extreme, I thought all loans from Amigo were sold to people that could not afford the loan...

Grumpy_chap

I have just noticed, in @Fighter1986's case, if I read the thread correctly, it was the Applicant that made the complaint to Amigo loans and not the Guarantor.  This would require the OP to get the estranged GF to make the complaint.  Unless, the OP can argue he was sold and accepted as Guarantor even though he could not afford the loan.