Amigo Loan Help

martinsimon1

Hi, I was a guarantor for a loan for a then friend, he defaulted and it was left for me to pay. At the time I was not in a position to pay the normal repayments so I defaulted, Amigo added a CCJ to my house that if sold they would recoup their money and I agreed a very small monthly repayment (£20) with a debt recovery company. I created a complaint case on the 22nd December 2020 which they did respond to on the 22nd January 2021 to advise of the "Scheme Arrangement" that they were proposing. The last email I received was 24th Feb supplying a generic response advising that Amigo were pursuing their Scheme of Arrangement. I have received an email today from Amigo asking to vote on the scheme. I have a few questions, should I vote yes? If I do I have read that if Amigo are successful I may receive 2-4p in the pound of what I am owed is that correct? Also should I continue to pay the debt recovery company? 

jjdc

The courts and FCA have given the greenlight to it. Yes, you'll receive only pennies in the pound back, whereas voting no will see Amigo enter administration and you will receive even less, possible nothing at all.

Recent Amigo loan shareholders would love it if the majority voted yes to the plans, many will more than double their money, and will see it as a huge triumph over the debt camel lady. I'm still surprised the FCA allowed it, but amigo have taken a couple of ex FCA staff on to help push the scheme through. 

And yes to the final question too.

yksi

Do you actually have a probably-successful claim with them, or have they acknowledged that they were in the wrong in making you a guarantor?

ManyWays

£20 a month isn't a lot. Unless it's unaffordable it may be simpler to pay until your claim is resolved by Amigo or the administrators.
You can still win your claim if the Scheme fails and they go into administration then your balance would be cleared.
Amigo would love you to votes yes. 

peteuk

martinsimon1 said:

Hi, I was a guarantor for a loan for a then friend, he defaulted and it was left for me to pay. At the time I was not in a position to pay the normal repayments so I defaulted, Amigo added a CCJ to my house that if sold they would recoup their money and I agreed a very small monthly repayment (£20) with a debt recovery company. I created a complaint case on the 22nd December 2020 which they did respond to on the 22nd January 2021 to advise of the "Scheme Arrangement" that they were proposing. The last email I received was 24th Feb supplying a generic response advising that Amigo were pursuing their Scheme of Arrangement. I have received an email today from Amigo asking to vote on the scheme. I have a few questions, should I vote yes? If I do I have read that if Amigo are successful I may receive 2-4p in the pound of what I am owed is that correct? Also should I continue to pay the debt recovery company? 

Without being condescending, did you not realise that should he not pay then you'd be liable for all the remaining payments? 

With the scheme, the email was sent to all loaners and guarantors and probably not in response to you complaint.  With the scheme there might be a pay out but if there's an outstanding balance then I would imagine it would be applied to the balance.  I doubt it would fully pay the balance.   Till then sadly as guarantor you are liable for the loan.
 

Batesy1976

peteuk said:

martinsimon1 said:

Hi, I was a guarantor for a loan for a then friend, he defaulted and it was left for me to pay. At the time I was not in a position to pay the normal repayments so I defaulted, Amigo added a CCJ to my house that if sold they would recoup their money and I agreed a very small monthly repayment (£20) with a debt recovery company. I created a complaint case on the 22nd December 2020 which they did respond to on the 22nd January 2021 to advise of the "Scheme Arrangement" that they were proposing. The last email I received was 24th Feb supplying a generic response advising that Amigo were pursuing their Scheme of Arrangement. I have received an email today from Amigo asking to vote on the scheme. I have a few questions, should I vote yes? If I do I have read that if Amigo are successful I may receive 2-4p in the pound of what I am owed is that correct? Also should I continue to pay the debt recovery company? 

Without being condescending, did you not realise that should he not pay then you'd be liable for all the remaining payments? 

With the scheme, the email was sent to all loaners and guarantors and probably not in response to you complaint.  With the scheme there might be a pay out but if there's an outstanding balance then I would imagine it would be applied to the balance.  I doubt it would fully pay the balance.   Till then sadly as guarantor you are liable for the loan.
 

And all of this is assuming the OP has a valid complaint.

That the OP has lost their job and can't afford the loan now isn't a valid reason to complain.  Many people have a change of circumstances that mean what was previously affordable isn't any more.  If that is the basis for their complaint it will fail.