Re: Amigo Loans Irresponsible Lending Complaint

Fighter1986

Following on from a formal written complaint to Amigo regarding a suspected issue of irresponsible lending, they have now issued me with this response.

I had three loans with them over the years the most recent of which formed part of my Bankruptcy in April 2019, and the outstanding balance was settled by my guarantor.

Whilst I've been able to repay my guarantor some of this, Amigo have offered to refund her the entire amount, which naturally she is accepting.

I've said she can keep the difference too for the trouble I caused her. 

[Deleted User]

Fighter1986 said:

Following on from a formal written complaint to Amigo regarding a suspected issue of irresponsible lending, they have now issued me with this response.

I had three loans with them over the years the most recent of which formed part of my Bankruptcy in April 2019, and the outstanding balance was settled by my guarantor.

Whilst I've been able to repay my guarantor some of this, Amigo have offered to refund her the entire amount, which naturally she is accepting.

I've said she can keep the difference too for the trouble I caused her. 

If you went bankrupt last year is that money yours to give to your guarantor?  Does it not have to be handed over to the IP to distribute to your creditors? 

Fighter1986

Lover_of_Lycra said:

Fighter1986 said:

Following on from a formal written complaint to Amigo regarding a suspected issue of irresponsible lending, they have now issued me with this response.

I had three loans with them over the years the most recent of which formed part of my Bankruptcy in April 2019, and the outstanding balance was settled by my guarantor.

Whilst I've been able to repay my guarantor some of this, Amigo have offered to refund her the entire amount, which naturally she is accepting.

I've said she can keep the difference too for the trouble I caused her. 

If you went bankrupt last year is that money yours to give to your guarantor?  Does it not have to be handed over to the IP to distribute to your creditors? 

Allow me to clarify.

I'm not receiving a refund.

The guarantor paid my loan balance at the point I declared bankruptcy.

Amigo have offered the guarantor to directly refund her the money she paid them, as they have released her from her responsibility as guarantor.

Following this, they will re-calculate how much I owe, deduct all interest and charges from that balance, and the remaining balance becomes part of my bankruptcy. I receive no money, I pay no money, and my guarantor receives all of her money back. 

A stellar outcome. 

Grumpy_chap

As much as I applaud the OP on their success, I don't know how that was a special case.  I thought Amigo loans only offered irresponsible lending to people that cannot afford to repay as their very raison d'etre.  Does it mean Amigo loans have to refund all interest, fees and charges they have ever received from anyone?  Bye bye mi Amigo!

Fighter1986

Grumpy_chap said:

As much as I applaud the OP on their success, I don't know how that was a special case.  I thought Amigo loans only offered irresponsible lending to people that cannot afford to repay as their very raison d'etre.  Does it mean Amigo loans have to refund all interest, fees and charges they have ever received from anyone?  Bye bye mi Amigo!

Considering that the FOS are upholding over 90% of complaints against guarantor loan lenders it certainly seems this way.

Take a look at Amigo's share price and latest annual reports. Add their historical story spread across various Financial Times articles and you'll see a lesson in many scurrilous business practices. It's like reading the memoirs of how a business owner walked away with millions at the expense of all their investors, shareholders, and customers. He knew this was gonna happen from day one I'm sure. 

The founder is laughing despite being kicked off the board of his own company, he sold his shares before they were worth about as much as Zimbabwe dollars. 

I doubt very much that Amigo are going to find a way out of this. They're going to be in the hands of receivers within the year I'm sure. 

gingeralan

Hopefully this predatory lending practice will go the way of the dinosaur. Guarantor loans are a disaster for the guarantor