Amigo Loans

LizzieAnneP

I’ve been reading a lot about the current situation with Amigo Loans relating to claims for mis-selling. I have a loan with Amigo with a balance of over £3k and although it helped me at the time when I first took it out, I have really regretted it ever since. I won’t go into my personal situation but I am looking at making a complaint and have found the MSE page on this very helpful. 

My question is what would actually happen if they had to go into administration? Does another company take over the debt and you have to pay them? This is causing me anxiety as I’ve had a negative experience with third party collectors in the past. Thank you. 

[Deleted User]

Generally yes.  You just keep repaying as normal. Nothing much changes.

Why would you complain about Amigo helping you?

LizzieAnneP

Sorry I think it’s the way I phrased it. It was (I thought) my only avenue at the time, however I have struggled to meet the repayments with a large portion of my salary going to debt repayment.

[Deleted User]

That's fairly normal for high rate loan customers. The important thing is to keep up with repayments.

If you have other options and can refinance at a lower rate, then take it.

macman

If you believe you have a case for a mi-selling claim (not clear from your post), then you need to do it now before the company goes into administration. Once it does, you'll be at the back of the queue with all the other unsecured creditors. You can still submit a claim, but it'll take longer and you'll get less (if the claim is successful).

The loan book is sold on to another lender, you continue to pay them, the debt doesn't just get written off.

LizzieAnneP

Thank you that’s helpful  I wasn’t under the expectation of it being written off, I just worry about changes to repayment terms/amounts/interest if it was sold off to another company. It’s not something I had thought about until this news, so I will have to research what’s happened in the past with similar companies. Thanks again. 

macman

If the debt is sold on then it will be repayable on the same terms as before. Your contract does not change, you just owe the debt to a different creditor.

LizzieAnneP

Thank you, that’s reassuring