Amigo loans vote

MidyB

I have received an email saying that I can vote on Amigo loans but I really don't understand how I should vote. 
Any thoughts?

Ebe_Scrooge

That's a bit of an ambiguous question.  Who is the email from?  What exactly is it asking you to vote on?  Sounds like spam to me, but if you can give more details I'll be happy to give an opinion.

Although, I suspect the overriding reaction would be something to do with bargepoles and touching

DevCoder

Amigo Loans Scheme | Scheme of Arrangement (amigoscheme.co.uk)

[Deleted User]

Ebe_Scrooge said:

That's a bit of an ambiguous question.  Who is the email from?  What exactly is it asking you to vote on?  Sounds like spam to me, but if you can give more details I'll be happy to give an opinion.

Although, I suspect the overriding reaction would be something to do with bargepoles and touching

Amigo have been told to repay some % of their loans - the debtors need to either agree (by majority) to accept the pennies in the pound offer, or the company may simply go into administration. I think the last one was rejected so this is probably the final attempt to get an agreement, it is legitimate and OP should vote how they feel (or ask for a proxy vote)

FeaturelessVoid

Personally I'd vote against this scheme.

They're paying 41p in the pound as that amounts to their cash reserves, but they also have a massive loan book that is profitable if it sells for anything less than one pound in the pound, which it will.

These loans are not unenforceable, the interest might be.  But if you buy them for 20p in the pound there's going to be a tidy profit to be made, and more money for claimants (IMO.)

[Deleted User]

FeaturelessVoid said:

Personally I'd vote against this scheme.

They're paying 41p in the pound as that amounts to their cash reserves, but they also have a massive loan book that is profitable if it sells for anything less than one pound in the pound, which it will.

These loans are not unenforceable, the interest might be.  But if you buy them for 20p in the pound there's going to be a tidy profit to be made, and more money for claimants (IMO.)

If they go under, you won't see the money from their loan books, profitable or not as the buyer won't take on the liability so you get nothing. Like it or not, Amigo did do legitimate loans, albeit overpriced ones, alongside their dodgy behaviour - the loans were needed and people wanted them - the guarantors in this scheme should be suing the "friends" and family who got them to stand for their loans

Exodi

FeaturelessVoid said:

Personally I'd vote against this scheme.

They're paying 41p in the pound as that amounts to their cash reserves

As a layperson, if I got 41p in the pound for a loan I took out several years ago, my wrist would be aching from all the people I'd have high-fived.

Rob5342

There is some information here:

https://debtcamel.co.uk/amigo-which-way-to-vote/

FeaturelessVoid

Exodi said:

FeaturelessVoid said:

Personally I'd vote against this scheme.

They're paying 41p in the pound as that amounts to their cash reserves

As a layperson, if I got 41p in the pound for a loan I took out several years ago, my wrist would be aching from all the people I'd have high-fived.

As would I, unless I smelled blood, which lets be honest is all these claimants are after.

If this company can stay in business and repay 41p in the pound, presumably on the interest rather than the capital, it can repay even more if it also sells its loan book.

peteuk

Very cleaver Amigo...

You vote for two schemes - one which allows them to continue trading (and is reliant on attracting enough new customers and investment) if this is a) not voted for by customers and then approved by a judge or b) does not get enough customers and investment when trading restarts then they fall back to an insolvency plan

Second vote is for a wind down - which closes Amigo, customers less likely to get redress and Amigo stops trading. Again if this is not voted for by customers and then passed by a judge they fall back to an insolvency plan (which wind down is akin to) 

IMO - the carrot is the possible payout (someone has mentioned 41p to the pound, where as other loan companies have been paying 4-6p to the pound) but in the end the payout will be less, the company folded, as previous scheme for Amigo was kick out by the judges. 

However as an Ex - Amigo customer, I went into the loan fully aware of the interest rate, fully aware of the cost of the loan and with the blessing of my guarantor (my wife) I paid the loan early however I calculate I paid £3k  (24 regular and agreed payments) on a £2.5K loan which had £1.2K left when I paid it early.  Which is £1.7K in interest.  Daylight robbery I know, but at the time with poor credit rating and the need for a car then we did what we needed to do.