Lantern Chasing an Amigo Debt

NoTB

Hi,

My partner had an Amigo loan which I guaranteed, back in 2018. In 2019, I entered into a DAS (Scotland) and was advised at the time that I had to include this amount in my scheme as I was ultimately responsible for it. Fast-forward to 2024 and Amigo upheld an affordability complaint and discharged the loan from myself and got a nominal refund. I was told by my DAS administrator that it would be removed from my scheme as I am no longer responsible for said debt.

All of a sudden, a company called Lantern has turned up in person at my home address seeking payment of c£6k from a debt they claim they bought from Amigo. On my partners credit file, it shows the debt as "Paid and Closed", no default was logged and no payments have been made since mid-2023 when the decision was given. Lantern did not log a new entry on her credit file showing this was an active debt.

I asked Lantern for all of the information they have in relation to this and they've given me;

A "goodbye" letter from Amigo showing the debt is being transferred to Lantern (we never received this letter(s)).

An account statement from Lantern showing monthly payments that I made while in my DAS (again, never seen anything in relation to this).

The original credit agreement

I've put in a complaint and SAR to which they have said they'll respond to within the required timeframe.

Looking for some advice on how we handle this. Can we complain to the FOS re Amigo or would that be the FSCS?

Any advice on how to handle this would be appreciated.

sourcrates

What exactly are you complaining about here?

Your DAS may have removed your liability as a guarantor, but your partners liability as the debtor remains.

How much was repaid via the DAS, do you know?

Guarantor debts bear joint and several liability you see, which means if one party fails to pay, the creditor can claim the full amount of the debt from the other party, which appears to be what`s happening here.

The debt shows as paid and closed as Lantern have bought it from Amigo, but not yet made their own entry on her credit file.

The letter Amigo sent you will be key to this, what exactly did it say, did it say the debt was satisfied and would not be chased, or was that not mentioned?

NoTB

The loan was deemed to be unaffordable by Amigo before they went into liquidation so just surprised it is now being pursued perhaps, can I say aggressively given they've unexpectedly and unannounced, shown up at my property, nearly 3 years after the last payment was made.

I paid c£4k towards the loan via my DAS. The last payment made to them was May 2023.

The letter that Lantern has supplied today is from Amigo and says the agreement was being transferred to a third party, Lantern. Note, we never received this letter (or any correspondence from Amigo such as default notices, statements etc etc).

We were in a dire straits in 2018 (hence the Amigo loan), the loan was deemed to have been unaffordable/irresponsible, so my question is, where do we stand in terms of repayment of said loan?

I have repaid over £45k of debt in the last c.8 years via my DAS as a result of my financial difficulties, so I pay what I owe but given the circumstances surrounding this loan and it being the reason for having to enter into the DAS to protect my house, I am not sure where we stand in terms of repayment.

fatbelly

Can you clarify who they are saying is liable. If it's you, then you have an argument that could be tested in court.

If your partner, then I am not clear why they think they would not be liable. The amigo credit file entry will have been marked settled when it was sold to Lantern and they are not obliged to report to any, some or all of the credit reference agencies

HAving said that they will have bought this for pennies in the £, so would be open to a settlement deal if you want to go that way.

sourcrates

When you win an affordability complaint, the usual redress is a refund of interest paid on the agreement, but the capital amount borrowed still remains payable.

So it depends on who they are chasing for this debt, you or your partner, you will have a defence, your partner, as said before, as the debtor, remains liable for the full amount.

As fatbelly suggests, if you have a capital sum available, you may want to try making an offer to settle or try and ride it out with Lantern, but they are one of the more litigious debt purchasing companies out there, and not the best at following the rules either.

ManyWays

Fast-forward to 2024, Amigo upheld an affordability complaint and discharged the loan from myself and got a nominal refund
I think that must have been in the Scheme of Arrangement that Amigo set up?
Did you make a complaint to the scheme, or did your partner, or both of you? (I do not know if that matters, but it may be a useful piece of information.)

Do you have the email from Amigo saying this? If not, Do you have the email or letter from your DAS administrator saying you no longer have to pay this and it is being removed from the DAS?

An account statement from Lantern showing monthly payments that I made while in my DAS (again, never seen anything in relation to this).
Does this statement show the payments stopping in 2023 as you expected, or continuing?

I've put in a complaint and SAR
I assume that is to Lantern

Is your DAS still running?

Is the house in your name alone, or also your partner's?

NoTB

Thanks for the replies thus far.

ManyWays - to answer your questions;

1. Yes, was part of the Scheme. I believe we both did but can't remember.
   1. I believe all communication went through my DAS Administrator as it was they who came to me and told me that it was being removed from my scheme due to Amigo's insolvency and that my liability was removed and apparently only allowed debts you are legally liable for. Didn't complain, it knocked 18 months off my scheme.
2. Yes, shows payments made up until May 2023 and nothing since.
3. Yes, to Lantern.
4. Yes, DAS has c.1 year to go.
5. Old house was originally just in my house; recently moved house after having a baby and new house is in both names.

re fatbelly / sourcrates - for a capital sum to settle the account, what could I look to offer that has a realistic chance to close this out? I have c.£1k in immediate savings that was put aside for painting my new house, is an offer of 10-15% of the balance likely to be considered? On a monthly basis, we have very little spare funds so £10-£20/month is probably what we could afford.

The crux of my question is, how likely are Lantern to pursue court action?

ManyWays

The crux of your question ought to be: is there an enforceable debt?
I suggest you tell the DAS administrator you are being chased for this and ask what you should say, as you were told you were no longer liable.