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    • Niw132
    • By Niw132 7th Jul 18, 10:38 PM
    • 1Posts
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    Niw132
    Amigo loans help please
    • #1
    • 7th Jul 18, 10:38 PM
    Amigo loans help please 7th Jul 18 at 10:38 PM
    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 weíve been paying into it for 4 months. Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over. Iím paying 146 per month and 100 of that is just interest. Itís give me heart Palpitations just thinking of it. Does this sound correct? And maybe Iím extremely naive but surely that is not legal? Any advice really appreciated.
Page 1
    • Edi81
    • By Edi81 7th Jul 18, 10:45 PM
    • 557 Posts
    • 512 Thanks
    Edi81
    • #2
    • 7th Jul 18, 10:45 PM
    • #2
    • 7th Jul 18, 10:45 PM
    Totally legal.
    How long is the loan for?
    You need to overpay as much as possible.
    • Clive Woody
    • By Clive Woody 7th Jul 18, 10:48 PM
    • 4,534 Posts
    • 5,118 Thanks
    Clive Woody
    • #3
    • 7th Jul 18, 10:48 PM
    • #3
    • 7th Jul 18, 10:48 PM
    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.
    Rugby Union - The Greatest Game
    • antrobus
    • By antrobus 7th Jul 18, 11:08 PM
    • 16,237 Posts
    • 23,095 Thanks
    antrobus
    • #4
    • 7th Jul 18, 11:08 PM
    • #4
    • 7th Jul 18, 11:08 PM
    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 weíve been paying into it for 4 months. Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over. Iím paying 146 per month and 100 of that is just interest. Itís give me heart Palpitations just thinking of it. Does this sound correct? And maybe Iím extremely naive but surely that is not legal? Any advice really appreciated.
    Originally posted by Niw132
    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.
    • zx81
    • By zx81 7th Jul 18, 11:15 PM
    • 19,406 Posts
    • 20,746 Thanks
    zx81
    • #5
    • 7th Jul 18, 11:15 PM
    • #5
    • 7th Jul 18, 11:15 PM

    And maybe I'm extremely naive but surely that is not legal?
    Originally posted by Niw132
    The correct answer is option A.
    • boo_star
    • By boo_star 7th Jul 18, 11:46 PM
    • 1,651 Posts
    • 984 Thanks
    boo_star
    • #6
    • 7th Jul 18, 11:46 PM
    • #6
    • 7th Jul 18, 11:46 PM
    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 weíve been paying into it for 4 months. Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over. Iím paying 146 per month and 100 of that is just interest. Itís give me heart Palpitations just thinking of it. Does this sound correct? And maybe Iím extremely naive but surely that is not legal? Any advice really appreciated.
    Originally posted by Niw132
    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
    • By tonycottee 8th Jul 18, 1:36 AM
    • 1,140 Posts
    • 2,142 Thanks
    tonycottee
    • #7
    • 8th Jul 18, 1:36 AM
    • #7
    • 8th Jul 18, 1:36 AM
    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.
    Originally posted by Clive Woody
    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
    • By antrobus 8th Jul 18, 7:59 AM
    • 16,237 Posts
    • 23,095 Thanks
    antrobus
    • #8
    • 8th Jul 18, 7:59 AM
    • #8
    • 8th Jul 18, 7:59 AM
    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.
    Originally posted by tonycottee
    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
    • By DCFC79 8th Jul 18, 8:15 AM
    • 32,966 Posts
    • 20,759 Thanks
    DCFC79
    • #9
    • 8th Jul 18, 8:15 AM
    • #9
    • 8th Jul 18, 8:15 AM
    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 weíve been paying into it for 4 months. Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over. Iím paying 146 per month and 100 of that is just interest. Itís give me heart Palpitations just thinking of it. Does this sound correct? And maybe Iím extremely naive but surely that is not legal? Any advice really appreciated.
    Originally posted by Niw132



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


    What is on your credit files ?
    • poppy10
    • By poppy10 8th Jul 18, 12:18 PM
    • 6,037 Posts
    • 7,298 Thanks
    poppy10
    Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over.
    Originally posted by Niw132
    Sounds like you screwed yourself over
    • sourcrates
    • By sourcrates 8th Jul 18, 12:27 PM
    • 15,761 Posts
    • 14,820 Thanks
    sourcrates
    I disagree. A good time to read the small print is before you sign.
    .
    Originally posted by tonycottee

    I believe there was a touch of irony in that statement.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • sourcrates
    • By sourcrates 8th Jul 18, 12:34 PM
    • 15,761 Posts
    • 14,820 Thanks
    sourcrates
    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 weíve been paying into it for 4 months. Admittedly I didnít read any of the small print at the time and have come to the conclusion Iíve been totally screwed over. Iím paying 146 per month and 100 of that is just interest. Itís give me heart Palpitations just thinking of it. Does this sound correct? And maybe Iím extremely naive but surely that is not legal? Any advice really appreciated.
    Originally posted by Niw132

    Hi,


    As with most loans, the interest is front loaded, so basically you pay back the interest first, then the capital amount.


    Are you able to afford the loan repayments, because if you can`t, your guarantor is not going to be best pleased.


    With a bad credit history, you must of known sub prime lending was your only option.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • zx81
    • By zx81 8th Jul 18, 12:47 PM
    • 19,406 Posts
    • 20,746 Thanks
    zx81
    Hi,


    As with most loans, the interest is front loaded, so basically you pay back the interest first, then the capital amount.
    Originally posted by sourcrates
    No loans are front loaded. Interest is charged daily on the outstanding balance.
    • sourcrates
    • By sourcrates 8th Jul 18, 12:56 PM
    • 15,761 Posts
    • 14,820 Thanks
    sourcrates
    No loans are front loaded. Interest is charged daily on the outstanding balance.
    Originally posted by zx81

    As the principal balance at the start of the loan is quite large, you pay more in interest, as the balance decreases over time, you pay less interest, maybe i did not make that very clear.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • zx81
    • By zx81 8th Jul 18, 1:35 PM
    • 19,406 Posts
    • 20,746 Thanks
    zx81
    That's correct, but it's not front loading, which was banned several years ago.
    • sourcrates
    • By sourcrates 8th Jul 18, 1:40 PM
    • 15,761 Posts
    • 14,820 Thanks
    sourcrates
    That's correct, but it's not front loading, which was banned several years ago.
    Originally posted by zx81

    Just my incorrect use of words ZX
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • zx81
    • By zx81 8th Jul 18, 1:43 PM
    • 19,406 Posts
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    zx81
    Forgiven for this one time only.
    • dealer wins
    • By dealer wins 8th Jul 18, 3:09 PM
    • 6,088 Posts
    • 11,790 Thanks
    dealer wins
    Not legal lol Why not go to the firms that charge 4 figure APRs, like Lending Stream etc tc. They make Wonga look cheap!!!
    Choose life
    • Clive Woody
    • By Clive Woody 8th Jul 18, 9:14 PM
    • 4,534 Posts
    • 5,118 Thanks
    Clive Woody
    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.
    Originally posted by tonycottee
    Unless you have access to a time machine that option is no longer available.

    Now would be a good time for the OP to read the T&Cs to see what they agreed to.
    Rugby Union - The Greatest Game
    • foxy-stoat
    • By foxy-stoat 9th Jul 18, 9:22 AM
    • 3,067 Posts
    • 1,722 Thanks
    foxy-stoat
    You have several options;

    Keep paying the contracted payments and pay a total of £2269 in interest payments.
    Sell as much stuff as you can, and overpay the loan.
    Stop paying and let your guarantor pay for it.
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