Was I missold into taking Amigo loan?

HoofHarted
HoofHarted Posts: 2 Newbie
in Loans
First time poster here needing to vent after sitting and struggling with debts.

Unfortunately, I came under stressful times a few years ago. This led to me needing to contact stepchange who put me on a DMP to help pay back my loans. They've been great, no problems with them.

However, last year, I feel under even more hard times and couldn't turn to anyone else for money which was desperately needed.... In stepped Amigo Loans.

Despite being on a DMP, they approved my loan as I managed to get a friend as a guarantor despite his pleads for me not to take it.

So whilst I'm on a DMP with Stepchange - Amigo approved my loan. The interest is shocking (50%).

However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?

Could this be a case of irresponsible lending on their part?

I want to pursue this avenue if there's just cause - I just don't want to cause any agro for my guarantor who's been supportive and not just financially.

Any advice? Words of wisdom?
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Comments

  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    You mis-bought the loan.

    Keep paying unless you wont your guarantor to pay for your debt.
  • k3lvc
    k3lvc Posts: 4,174 Forumite
    First Anniversary Name Dropper First Post
    HoofHarted wrote: »
    Any advice? Words of wisdom?

    1) Pay your debts and stop trying to blame another for your financial (mis)management

    2) Keep on the good side of your guarantor and don't try to hide things from them - you're risking ruining their financial future too
  • societys_child
    societys_child Posts: 7,110 Forumite
    First Anniversary Name Dropper First Post
    However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?
    No, they're only interested in your friends ability to repay the loan.


    Your friend should probably have done more though, like not agree to be a guarantor. Did you ask them to guarantee you, or did they offer?
  • bigisi
    bigisi Posts: 925 Forumite
    Poor friend!
  • sourcrates
    sourcrates Posts: 28,876 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    HoofHarted wrote: »
    First time poster here needing to vent after sitting and struggling with debts.

    Unfortunately, I came under stressful times a few years ago. This led to me needing to contact stepchange who put me on a DMP to help pay back my loans. They've been great, no problems with them.

    However, last year, I feel under even more hard times and couldn't turn to anyone else for money which was desperately needed.... In stepped Amigo Loans.

    Despite being on a DMP, they approved my loan as I managed to get a friend as a guarantor despite his pleads for me not to take it.

    So whilst I'm on a DMP with Stepchange - Amigo approved my loan. The interest is shocking (50%).

    However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?

    Could this be a case of irresponsible lending on their part?

    I want to pursue this avenue if there's just cause - I just don't want to cause any agro for my guarantor who's been supportive and not just financially.

    Any advice? Words of wisdom?


    Hi,


    Companies such as Amigo provide finance to people who otherwise would be rejected by mainstream lenders.


    They do this by insisting a guarantor will make your payments should you not be able to.


    They are actually lending to the guarantor, not to you, the funds are released to the guarantor initially, who then makes the funds available to you.


    Your guarantor is credit checked to make sure they can afford the payments, really you are not even a part of the equation, you would of been made well aware of your guarantors role in this, it is fully explained before hand.

    Anyone who stands in this role should be acutely aware they will most likely end up paying for the loan, next time, listen to your friend.
    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
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Did your guarantor know you where on a DMP as well? He really should of taken out a loan himself with a lower rate - it will save himself a LOT of money in the future.
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
    Name Dropper First Post First Anniversary
    HoofHarted wrote: »
    Could this be a case of irresponsible lending on their part?
    No, just irresponsible borrowing on your part.
    I feel sorry for your friend.
    poppy10
  • oldhand
    oldhand Posts: 3,748 Forumite
    First Anniversary
    Full marks for effort but as others said you needed the money Amigo (for all their faults and they are many) provided it,hope your "friend" has the cash to cough up when they come calling..
  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
    edited 31 July 2018 at 3:42PM
    However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?



    The point is that they didn't really lend the money to you. They lent the money, in effect, to your guarantor. That's who they would have done the financial checks on. These loans are a really bad idea, and it would have been much better for your friend to borrow the money him/herself (probably at a much lower interest rate) and you to repay him/her directly. I don't think you have been missold, tbh.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • redpete
    redpete Posts: 4,692 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    HoofHarted wrote: »
    However, last year, I feel under even more hard times and couldn't turn to anyone else for money which was desperately needed.... In stepped Amigo Loans.

    So if Amigo hadn't stepped in what else could you have done in your desperate situation?
    loose does not rhyme with choose but lose does and is the word you meant to write.
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