Amigo loans help please

Niw132
Niw132 Posts: 1 Newbie
in Loans
Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.
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Comments

  • Edi81
    Edi81 Posts: 1,444 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Totally legal.
    How long is the loan for?
    You need to overpay as much as possible.
  • Clive_Woody
    Clive_Woody Posts: 5,853 Forumite
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    Now would be a good time to read that small print, see what APR you signed up to, what your the total amount of repayments will be and also confirm the duration of the loan.

    Pretty sure Amigo are legally compliant....if morally repugnant.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • antrobus
    antrobus Posts: 17,386 Forumite
    Niw132 wrote: »
    Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

    Representative 49.9% APR (variable)
    Representative Example: Borrowing £3,000 over 36 months, repaying £146.37 per month, total repayable £5,269.32. Interest rate 49.9% (variable).

    https://www.amigoloans.co.uk/

    49.9% APR is actually quite a good rate for someone with "terrible credit". You're only getting it because someone else with good credit has signed up as a guarantor.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Niw132 wrote: »

    And maybe I'm extremely naive but surely that is not legal?

    The correct answer is option A.
  • boo_star
    boo_star Posts: 3,202 Forumite
    First Post First Anniversary
    Niw132 wrote: »
    Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.

    I'd say it's normal for loan statements to "front-load" the interest so you can see exactly what you need to pay back.
    A monthly payment of:
    £146.39
    Total cost of credit:
    £2,270.04
    based on an APR of:
    49.9%
    That's a total of:
    £5,270.04

    So you'll be paying nearly 75% for the privilege of a 3 year loan.
  • tonycottee
    tonycottee Posts: 1,331 Forumite
    First Anniversary Name Dropper First Post
    Clive_Woody wrote: »
    Now would be a good time to read that small print, see what APR you signed up to, what your the total amount of repayments will be and also confirm the duration of the loan.

    Pretty sure Amigo are legally compliant....if morally repugnant.

    I disagree. A good time to read the small print is before you sign.

    Not that it helps, but avoid Amigo Loans like the plague.
  • antrobus
    antrobus Posts: 17,386 Forumite
    tonycottee wrote: »
    I disagree. A good time to read the small print is before you sign.

    Not that it helps, but avoid Amigo Loans like the plague.

    Small print?

    That representative 49.9% APR is in very big print on the Amigo Loans website. It's not a secret.

    But people who want or need a loan frequently don't take the time to consider what are the implications of that 49.9% APR. It's only afterwards that they look at their statement and go, blimey, that's a lot of interest.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Niw132 wrote: »
    Hi, about 4 months ago we were in a situation where we needed a car to get to work as our old car give our. Having terrible credit I went to amigo loans for a £3000 loan. The terms were it was 146.70 every month. I had a look recently at my statement and today noticed my balance had went up to above 3000 and we’ve been paying into it for 4 months. Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over. I’m paying 146 per month and 100 of that is just interest. It’s give me heart Palpitations just thinking of it. Does this sound correct? And maybe I’m extremely naive but surely that is not legal? Any advice really appreciated.




    Maybe you should post on the dfw board, its 1 from from the loans board.


    What is on your credit files ?
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
    Name Dropper First Post First Anniversary
    Niw132 wrote: »
    Admittedly I didn’t read any of the small print at the time and have come to the conclusion I’ve been totally screwed over.
    Sounds like you screwed yourself over
    poppy10
  • sourcrates
    sourcrates Posts: 28,848 Ambassador
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    tonycottee wrote: »
    I disagree. A good time to read the small print is before you sign.
    .


    I believe there was a touch of irony in that statement. ;)
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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