Amigo loans vote

MidyB
MidyB Posts: 7 Forumite
First Post
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?

Comments

  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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 :smile:
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Second Anniversary Photogenic Name Dropper
    edited 17 March 2022 at 5:51PM
    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 :smile:
    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)
  • 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.)
  • 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
    Exodi Posts: 3,656 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    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.
    Know what you don't
  • Rob5342
    Rob5342 Posts: 2,291 Forumite
    1,000 Posts Third Anniversary Name Dropper
    There is some information here:


  • Exodi 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
    peteuk Posts: 1,931 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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. 
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.9K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.7K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.