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Amigo loans urgent help

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Kerriw_2Kerriw_2 Forumite
24 posts
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Hi all

really hoping someone can help. I had 4 amigo loans, 3 were top up loans. I put in a complaint for irresponsible lending due to affordability and not doing substantial checks such as wage slips bank statements etc on the top up loans. I also put in a subject access request. Within 3 weeks (so before the deadline for the SAR) I received a final rebuff to my complaint, in which amigo loans upheld my complaint against the First two loans (so the original loan in which they did request wage slips etc) but defended the second two (both being the larger amounts of £7,000 and £10,000). Over 7 years and 4 loans I have paid about £26,000 in interest. The offer from amigo loans was £6,000. I have referred to the financial ombudsman as I strongly believe that amigo loans should have upheld the complaint against all four, not just the first two? Two questions I have 

1 - does this sound like I have a strong case given the quick timeframe of the response from amigo and that they upheld first two (where checks were more likely to have been done)
2 - I have to let amigo loans know if I accept or rebuff. Do I have to state rebuff and wait for the financial ombudsman to get in touch with them?

many thanks! 

Replies

  • Kerriw_2Kerriw_2 Forumite
    24 posts
    Ninth Anniversary 10 Posts Combo Breaker
    At the time I was very young taking out these loans (21) and really
    didnt know any better. I had no idea of the financial impact it would have on me or any understanding of the interest I was paying. Getting myself further and further into debt I needed the top up loans to help me, and was quite frankly desperate and naive. It’s now almost eight years on and I feel so strongly that these loans and lending are so irresponsible, particularly to people who are desperate and don’t know any better as was on my case. My credit deteriorated during the course of these loans and I never should have been lent to. 
  • jonesMUFCforeverjonesMUFCforever Forumite
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    ......Did you default and did the guarantor have to stump up any money?
    What goes around - comes around
    give lots and you will always receive lots
  • Clive_WoodyClive_Woody Forumite
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    Kerriw_2 said:
    At the time I was very young taking out these loans (21) and really
    didnt know any better. I had no idea of the financial impact it would have on me or any understanding of the interest I was paying. Getting myself further and further into debt I needed the top up loans to help me, and was quite frankly desperate and naive. It’s now almost eight years on and I feel so strongly that these loans and lending are so irresponsible, particularly to people who are desperate and don’t know any better as was on my case. My credit deteriorated during the course of these loans and I never should have been lent to. 
    It certainly sounds like there was also a strong element of irresponsible borrowing involved too. Sadly this is a familiar tale on here of people who took out loans but had no idea what interest they would pay or in many cases understanding that they would have to pay them back according to the contract they read and signed.

    It does seem the regulators are clamping down on lenders for not checking affordability, while apparently excusing borrowers of any responsibility for deciding themselves whether they could afford the repayments.


    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • foxy-stoatfoxy-stoat Forumite
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    Kerriw_2 said:
    At the time I was very young taking out these loans (21) and really
    didnt know any better. I had no idea of the financial impact it would have on me or any understanding of the interest I was paying. Getting myself further and further into debt I needed the top up loans to help me, and was quite frankly desperate and naive. It’s now almost eight years on and I feel so strongly that these loans and lending are so irresponsible, particularly to people who are desperate and don’t know any better as was on my case. My credit deteriorated during the course of these loans and I never should have been lent to. 
    Shame there isn't a legal mechanism in the UK to stop young people getting into a contract they do not understand....oh wait there is, you have have to be 18 to be deemed responsible enough to understand the English written word....even if the interest rates are equal to !!!!!! Turpin's level.

    Good that you have 2 loans upheld, try and push for the other 2 or just take the offer they give you and get on with your life, hopefully you have learned the lessons required.
  • Kerriw_2Kerriw_2 Forumite
    24 posts
    Ninth Anniversary 10 Posts Combo Breaker
    I completely agree, sadly not everyone have parents to educate them on financial matters and with it not being anywhere in the educational system, many people end up in my position, typically lower class or those who just simply don’t know any better. Through very tough lessons and self education I am now thankfully wiser and know what one of the important lessons I have to teach my children. 

    I  am in no doubt that irresponsible borrowing was half a factor, however had I of gone to a reputable loan company or bank I never would have be given any kind of loan with the credit score I had at the time and expenses, let alone the amount I was given amigo 
  • DCFC79DCFC79 Forumite
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    Kerriw_2 said:
    I completely agree, sadly not everyone have parents to educate them on financial matters and with it not being anywhere in the educational system, many people end up in my position, typically lower class or those who just simply don’t know any better. Through very tough lessons and self education I am now thankfully wiser and know what one of the important lessons I have to teach my children. 

    I  am in no doubt that irresponsible borrowing was half a factor, however had I of gone to a reputable loan company or bank I never would have be given any kind of loan with the credit score I had at the time and expenses, let alone the amount I was given amigo 
    You are aware credit scores aren't used for anything financial.
    Your history is whats seen.
  • declan199210declan199210 Forumite
    152 posts
    Sixth Anniversary 100 Posts Combo Breaker
    Kerriw_2 said:
    Hi all

    really hoping someone can help. I had 4 amigo loans, 3 were top up loans. I put in a complaint for irresponsible lending due to affordability and not doing substantial checks such as wage slips bank statements etc on the top up loans. I also put in a subject access request. Within 3 weeks (so before the deadline for the SAR) I received a final rebuff to my complaint, in which amigo loans upheld my complaint against the First two loans (so the original loan in which they did request wage slips etc) but defended the second two (both being the larger amounts of £7,000 and £10,000). Over 7 years and 4 loans I have paid about £26,000 in interest. The offer from amigo loans was £6,000. I have referred to the financial ombudsman as I strongly believe that amigo loans should have upheld the complaint against all four, not just the first two? Two questions I have 

    1 - does this sound like I have a strong case given the quick timeframe of the response from amigo and that they upheld first two (where checks were more likely to have been done)
    2 - I have to let amigo loans know if I accept or rebuff. Do I have to state rebuff and wait for the financial ombudsman to get in touch with them?

    many thanks! 
    Take there offer.

    it will take a good 6-12 months for the FOS to even deal with your complaint I’m afraid and by that time there’s no saying they’ll be around as Amigo are rapidly going down the pan so to speak.

    If they file for administration during your referral you’ll be lucky to see £100 after all is said and done and that’s with years of waiting.

    take the money, learn your lesson and draw a line in the sand 
  • 20ewindmill20ewindmill Forumite
    3 posts
    Sixth Anniversary First Post Combo Breaker
    Kerriw_2 said:
    Hi all

    really hoping someone can help. I had 4 amigo loans, 3 were top up loans. I put in a complaint for irresponsible lending due to affordability and not doing substantial checks such as wage slips bank statements etc on the top up loans. I also put in a subject access request. Within 3 weeks (so before the deadline for the SAR) I received a final rebuff to my complaint, in which amigo loans upheld my complaint against the First two loans (so the original loan in which they did request wage slips etc) but defended the second two (both being the larger amounts of £7,000 and £10,000). Over 7 years and 4 loans I have paid about £26,000 in interest. The offer from amigo loans was £6,000. I have referred to the financial ombudsman as I strongly believe that amigo loans should have upheld the complaint against all four, not just the first two? Two questions I have 

    1 - does this sound like I have a strong case given the quick timeframe of the response from amigo and that they upheld first two (where checks were more likely to have been done)
    2 - I have to let amigo loans know if I accept or rebuff. Do I have to state rebuff and wait for the financial ombudsman to get in touch with them?

    many thanks! 
    Take there offer.

    it will take a good 6-12 months for the FOS to even deal with your complaint I’m afraid and by that time there’s no saying they’ll be around as Amigo are rapidly going down the pan so to speak.

    If they file for administration during your referral you’ll be lucky to see £100 after all is said and done and that’s with years of waiting.

    take the money, learn your lesson and draw a line in the sand 
    Agree 100% with the above- take the offer.  If they go down the toilet like these other mad lenders then it is likely you won't see a penny.

    I submitted a claim and accepted the amount offered despite it being nothing near the amount of interest I had paid over the years.  A hard lesson and a bitter pill to swallow now I can look back with some clarity.  I'd tell my 20 year old self to run a mile and know that there were other options.

    Wish you all the best :)
  • edited 18 September at 12:53PM
    sourcratessourcrates Forumite, Board Guide
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    edited 18 September at 12:53PM
    The thing is, for better or worse, many people are winning affordability claims against Amigo.
    When this happened in the payday loan sector, many big name lenders went under, and because of the tactics most of them used, its no suprise.
    There is no way of knowing if Amigo will wether the financial storm or not, i would be sorely tempted to make hay whilst the sun shines, as if they do go down the pan, you will end up with nothing basically.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
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