Amigo Loan

SJMBWOODS · 18 June 2019 at 2:43PM

Hi,
I have today found out that my step father has signed as a guarantor for an Amigo loan.
He is a pensioner and is not in good health. He suffers from Cirrhosis of the liver and has regular bouts of confusion. Indeed he has been hospitalized with this condition a number of times over the passed 4 years..
I do look after his finances such as ensuring his bills are paid etc although nothing legal has been drawn up.
I am wondering if there is any way that i can get him removed as a guarantor for the loan on medical ground as i do not feel he could have signed up being of sound mind. Had i have been consulted at the time i certainly wouldn't of allowed it to happen.
I am just looking for any advice before i call them.
I have a feeling that this is going to be tough so any help is appreciated. Thanks in advance.

[Deleted User] · 18 June 2019 at 2:44PM

Unlikely, unless he told them of his condition and impaired decision making at the time.

Candyapple · 18 June 2019 at 2:45PM

Who did he become a guarantor for?

The money would have gone into your step-dad’s bank account – is it still there?

SJMBWOODS · 18 June 2019 at 2:50PM

The money was for a so called friend! It was done a few months ago without my knowledge. I have only just found out as i have seen a letter stating that a payment has been missed.
I am sure that the "friend" must have sorted all of the paperwork as my dad wouldn't be able to.
Sadly i expect he has signed a form consenting to it all.

[Deleted User] · 18 June 2019 at 2:53PM

If it looks like he needs to now pay it, try to do it as cheaply as possible - is not letting the interest rack up.

normanna · 18 June 2019 at 3:07PM

The friend couldn't have sorted it all as the money goes into the guarantor's bank account first.

SJMBWOODS · 18 June 2019 at 3:14PM

Yes i am sure that has happened and the money has been handed over. I am sure everything has been done through the right channels. I think my dad just thought he was just helping a friend out without understanding exactly what he was signing up to. Obviously i am unhappy with said friend and i feel that i will probably have to take the issue up with him instead, as i probably won't get anywhere with Amigo.

MallyGirl · 18 June 2019 at 3:57PM

SJMBWOODS wrote: »

He is a pensioner and is not in good health. He suffers from Cirrhosis of the liver and has regular bouts of confusion. Indeed he has been hospitalized with this condition a number of times over the passed 4 years..
I do look after his finances such as ensuring his bills are paid etc although nothing legal has been drawn up.

I would look to setting up Lasting Power of Attorney (LPA) while he still has the ability to consent to it. Things will get quite tricky in the future if he loses capacity and there is nothing formal in place.

gary83 · 18 June 2019 at 4:35PM

Oh god, second time today I’ve sort of defended amigo, it’s a crappy situation to find your father in, Ive got a lot of sympathy, I’d hate to be in that situation but i think you have no chance of getting him removed. If anyone has taken advantage of your father, it’s his “friend” who would have been aware of his condition & the confusion he suffers with, not the loan company that weren’t. Realistically all financial providers can’t be expected to get all potential customers to prove they’re in sound mind & capable of making decisions. Amigos entire business model is guarantor loans if they let one guarantor off as a goodwill or sympathetic gesture then everyone would be ringing up claiming diminished responsibility.

I think your best bet might be, if his so called friend can’t or won’t repay to pay it off as quickly & cheaply as possible & try to move forward.

Mattmoo71 · 18 June 2019 at 5:35PM

In order to give you the best advice to tackle this mess, you need to provide more detail. Please answer concisely and objectively the following questions. Please answer in the numerical order that I've asked.
1) How much was borrowed?
2) What is the duration of the loan?
3) How much is the monthly payment?
4) What is your father's monthly income?
5) What is the borrowers monthly income?
5) Can your father, after his living costs, meet the payments in the event of the borrower defaulting?
6) Does your father have the funds to pay the current outstanding balance of the loan in full?
7) Would your father's GP agree with your layman's assessment that he was not of sound mind when the agreement was signed?
8) How old is your father?
9) How old is the borrower?
10) Does your father rent, mortgage or own outright his home?

Mattmoo71 · 18 June 2019 at 5:59PM

Also. I advise you immediately create a free Noddle account for your father and check no further applications have been made in his name by his so called friend. You'll also be able to keep an eye on the payment progress of the loan in question.

Amigo Loan

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