Amigo loans refund!!

nursey46

Hi all first time posting on the forum.I stood as guarantor for my son on an Amigo loan of £3500 over 60 months back in 2016.I took over the payments as guarantor as my son was having trouble keeping up the payments.On 1st March 2021 I made a final payment of £1087.00 to clear the balance ,so the balance is shown as £0.00 on my Amigo account.. I have through Resolver placed a complaint re the affordability for me as guarantor and Amigo has upheld the complaint and said both myself and my son should not have been given the loan at the time.
So on 27th July 2021 Amigo pay £5133.44 into my bank account !! I tell my son who contacts Amigo to be told he now owes them £4,684.58 ! The exact amount that is now showing up on my Amigo account as outstanding ,I have no clue what the heck is going on as I understood the account was cleared. The £4,684.58 shows on my Amigo account statement as a Refund and also compensation. Can they demand this payment off my son?

p3ncilsharpener

Yes.

He needs to make his own affordability complaint.  Until he does (and they agree) he's responsible for the debt.

nursey46

He has already made his own affordability complaint. The loan has been paid off by me so I don't see how he is liable for anything !

Caz3121

nursey46 said:

The loan has been paid off by me so I don't see how he is liable for anything !

It was only paid off until they issued a refund 

Bradden

Caz3121 said:

nursey46 said:

The loan has been paid off by me so I don't see how he is liable for anything !

It was only paid off until they issued a refund 

That doesn't make sense.. they refund and then reapply the debt?

nursey46

:

nursey46 said:

The loan has been paid off by me so I don't see how he is liable for anything !

It was only paid off until they issued a refund 

That doesn't make sense.. they refund and then reapply the debt?

My thoughts exactly ! They have also offered my son a refund of his payments but no money was paid to him despite him sending them his bank details and statements as requested.I have no idea what to do, as a Mum I can't accept this money if it puts my son in debt !! So Amigo will probably end up winning anyway as I will return the money to them.

warby68

Guarantors get back interest and charges plus 8% interest on that amount plus payments they have made to the loan.

Borrowers get back interest and charges plus interest on that amount but the original loan itself is not refunded.

Between you, you should be able to pay off the loan and still have whatever proportion of charges are due back as a refund.

This assumes your son's affordability complaint is also successful.

p3ncilsharpener

nursey46 said:

He has already made his own affordability complaint. The loan has been paid off by me so I don't see how he is liable for anything !

And what is their response to his affordability complaint?  Or is it still ongoing?

nursey46

They have actually offered him a refund of £3500 ironically the value of the original loan  but no money has been forthcoming as of yet !

p3ncilsharpener

nursey46 said:

They have actually offered him a refund of £3500 ironically the value of the original loan  but no money has been forthcoming as of yet !

How much did you pay as a guarantor?

I suspect as warby68 says, you've been refunded both capital and interest repayment and if that's the case they won't be refunding him anything.

Think about it, you've had five grand and he's getting 3.5.  He borrowed 3.5k and they're paying out eight and a half grand?

sourcrates

Debt Camel is always a good source of information for anything financial, they cover guarantor loan refunds here -

Guarantor loans - more refunds being paid! · Debt Camel

You can also search their site for more specific examples.