Amigo loans compensation scheme

Jadey0885

hi could anyone please help me out on this... I'm completely confused. Many thanks 

Nasqueron

You got a refund from Amigo loans but as they collapsed, everyone gets pennies in the pound of refund 

£6171.60 would be the refund if they were still solvent
£294.18 is what you will get as refund

If they deduct tax on any interest element of your refund you can claim it back from HMRC provided you are below the threshold e.g. £1000 for basic rate tax payers in most circumstances

TrickyDicky101

Nasqueron said:

You got a refund from Amigo loans but as they collapsed, everyone gets pennies in the pound of refund 

£6171.60 would be the refund if they were still solvent
£294.18 is what you will get as refund

If they deduct tax on any interest element of your refund you can claim it back from HMRC provided you are below the threshold e.g. £1000 for basic rate tax payers in most circumstances

Are you sure?  The way I read it that £294 is the amount they could claim if Amigo were solvent - but they will only get pence in the pound of this £294 

Nasqueron

TrickyDicky101 said:

Nasqueron said:

You got a refund from Amigo loans but as they collapsed, everyone gets pennies in the pound of refund 

£6171.60 would be the refund if they were still solvent
£294.18 is what you will get as refund

If they deduct tax on any interest element of your refund you can claim it back from HMRC provided you are below the threshold e.g. £1000 for basic rate tax payers in most circumstances

Are you sure?  The way I read it that £294 is the amount they could claim if Amigo were solvent - but they will only get pence in the pound of this £294 

Yeah quite possibly re-reading it, 17p in the pound I have just seen so just short of £51

sourcrates

So many claimants reduces the amount available for redress, and as they are insolvent the final pay out will be pennies in the pound, its really not worth bothering for what you will get.

Soon as you see or hear the word "insolvency" forget any dreams of a payday.

Jadey0885

So basically they have just bumped people. I paid well over the amount I took out. Maybe I should decline it then

molerat

Jadey0885 said:

So basically they have just bumped people. I paid well over the amount I took out. Maybe I should decline it then

You won't get any more, there is no more money.

ManyWays

If I am reading that correctly, it says that almost all of your refund is being used to clear the balance you still owe Amigo. But you say you paid a lot more than the amount you borrowed. Both of those statements cant be correct.
Do you know how much you have paid to Amigo so far and what do you think the current balance is?

Nasqueron

Jadey0885 said:

So basically they have just bumped people. I paid well over the amount I took out. Maybe I should decline it then

To be fair, that is how any loan works - it's just the amount over what you borrowed that varies. Amigo and the like are upfront on their awful rates, they knew they only get people who can't get good rates and are desperate but still choose to use them.

Borrowing £4500 and repaying over £10k is shocking but as you'd expect for a loan at 50% APR