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  • FIRST POST
    • HoofHarted
    • By HoofHarted 30th Jul 18, 2:17 PM
    • 2Posts
    • 0Thanks
    HoofHarted
    Was I missold into taking Amigo loan?
    • #1
    • 30th Jul 18, 2:17 PM
    Was I missold into taking Amigo loan? 30th Jul 18 at 2:17 PM
    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?
Page 1
    • foxy-stoat
    • By foxy-stoat 30th Jul 18, 2:19 PM
    • 2,815 Posts
    • 1,593 Thanks
    foxy-stoat
    • #2
    • 30th Jul 18, 2:19 PM
    • #2
    • 30th Jul 18, 2:19 PM
    You mis-bought the loan.

    Keep paying unless you wont your guarantor to pay for your debt.
    • k3lvc
    • By k3lvc 30th Jul 18, 2:27 PM
    • 2,409 Posts
    • 4,004 Thanks
    k3lvc
    • #3
    • 30th Jul 18, 2:27 PM
    • #3
    • 30th Jul 18, 2:27 PM
    Any advice? Words of wisdom?
    Originally posted by HoofHarted
    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
    • By societys child 30th Jul 18, 2:29 PM
    • 5,440 Posts
    • 6,059 Thanks
    societys child
    • #4
    • 30th Jul 18, 2:29 PM
    • #4
    • 30th Jul 18, 2:29 PM
    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
    • By bigisi 30th Jul 18, 2:31 PM
    • 369 Posts
    • 664 Thanks
    bigisi
    • #5
    • 30th Jul 18, 2:31 PM
    • #5
    • 30th Jul 18, 2:31 PM
    Poor friend!
    • sourcrates
    • By sourcrates 30th Jul 18, 2:37 PM
    • 15,560 Posts
    • 14,637 Thanks
    sourcrates
    • #6
    • 30th Jul 18, 2:37 PM
    • #6
    • 30th Jul 18, 2:37 PM
    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?
    Originally posted by HoofHarted

    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 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.
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    • foxy-stoat
    • By foxy-stoat 30th Jul 18, 3:34 PM
    • 2,815 Posts
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    foxy-stoat
    • #7
    • 30th Jul 18, 3:34 PM
    • #7
    • 30th Jul 18, 3:34 PM
    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
    • By poppy10 30th Jul 18, 6:27 PM
    • 6,011 Posts
    • 7,265 Thanks
    poppy10
    • #8
    • 30th Jul 18, 6:27 PM
    • #8
    • 30th Jul 18, 6:27 PM
    Could this be a case of irresponsible lending on their part?
    Originally posted by HoofHarted
    No, just irresponsible borrowing on your part.
    I feel sorry for your friend.
    • oldhand
    • By oldhand 31st Jul 18, 3:28 PM
    • 3,378 Posts
    • 7,417 Thanks
    oldhand
    • #9
    • 31st Jul 18, 3:28 PM
    • #9
    • 31st Jul 18, 3:28 PM
    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
    • By iolanthe07 31st Jul 18, 3:41 PM
    • 5,079 Posts
    • 4,764 Thanks
    iolanthe07
    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.
    Last edited by iolanthe07; 31-07-2018 at 3:42 PM. Reason: typo
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • redpete
    • By redpete 1st Aug 18, 11:02 PM
    • 4,290 Posts
    • 3,812 Thanks
    redpete
    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.
    Originally posted by HoofHarted
    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.
    • meer53
    • By meer53 2nd Aug 18, 9:35 AM
    • 9,305 Posts
    • 13,534 Thanks
    meer53
    YOU didn't take out a loan, your friend did. Be a GOOD friend and make sure you repay the loan.
    • tight4rse
    • By tight4rse 6th Aug 18, 1:09 PM
    • 30 Posts
    • 6 Thanks
    tight4rse
    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.
    Why did your friend agree to be your Guarantor when you were allready struggling to pay your previous debts?
    Did you tell your friend, that you were on a Debt Management Plan?


    The interest is shocking (50%).
    Why are you shocked at their interest rate? It's clearly stated they have a representative APR of 49.9% APR!


    However, should Amigo have done more thorough checks on my ability to comfortably afford this loan?
    Why would they? They only need to satisfy themselves that the Guarantor can pay the loan back if you can't. They are not interested in your ability to repay the debt.


    Could this be a case of irresponsible lending on their part?
    No. They give you a loan content in the knowledge that your Guarantor would be paying it back if you could not.


    I just don't want to cause any agro for my guarantor
    Too late for that. If you are unable to pay Amigo loans WILL be contacting your guarantor, if they are unable to pay their cridit file will be affected and Amigo loans are also well known for taking County Court action against Guarantors and have a good track record of getting charging orders.


    Any advice? Words of wisdom?
    Tell your Guarantor your situation, and you should contact Stepchange to get the Amigo Loan added to your Debt Management Plan.
    The Guarantor should also contact Stepchange if the loan has put them into financiall difficulty also. There is no way arround this, either you make the full monthly payment or they will make your Guarantor pay it on your behalf.
    • Westminster
    • By Westminster 6th Aug 18, 2:43 PM
    • 897 Posts
    • 529 Thanks
    Westminster
    Tell your Guarantor your situation, and you should contact Stepchange to get the Amigo Loan added to your Debt Management Plan.
    The Guarantor should also contact Stepchange if the loan has put them into financiall difficulty also. There is no way arround this, either you make the full monthly payment or they will make your Guarantor pay it on your behalf.
    Agree with the first part - but adding the loan to the DMP will simply trigger recovery action against the guarantor. You need to ensure you get this paid off yourself and will have to suck up the high interest unfortunately if you don!!!8217;t want to cause significant hardship and financial damage to your guarantor.
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • foxy-stoat
    • By foxy-stoat 6th Aug 18, 4:09 PM
    • 2,815 Posts
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    foxy-stoat
    I doubt Hoof will be coming back.
    • eschaton
    • By eschaton 6th Aug 18, 4:48 PM
    • 1,819 Posts
    • 1,603 Thanks
    eschaton
    You mis-bought the loan.

    Keep paying unless you wont your guarantor to pay for your debt.
    Originally posted by foxy-stoat
    The thread could have been locked after this reply.

    Irresponsible borrowing and the friend has been taken for a mug.
    • AnotherJoe
    • By AnotherJoe 6th Aug 18, 7:26 PM
    • 11,036 Posts
    • 12,713 Thanks
    AnotherJoe
    I think the OP should sue their friend for enabling them to get a loan. Reprehensible behaviour.
    • tight4rse
    • By tight4rse 11th Aug 18, 1:19 PM
    • 30 Posts
    • 6 Thanks
    tight4rse
    Agree with the first part - but adding the loan to the DMP will simply trigger recovery action against the guarantor. You need to ensure you get this paid off yourself and will have to suck up the high interest unfortunately if you don!!!8217;t want to cause significant hardship and financial damage to your guarantor.
    But then if you can't pay the DMP creditors because you're showing preference to another non-priority debt this increases the risk of the other creditors taking action as they won't be getting treated fairly.
    If any of the other creditors get a CCJ and seek an instalment order, the Court don't class Amigo Loans as a priority debt and will pro-rata the payment accordingly.

    I think what ever happens here the guarantor isn't coming out of this with their credit file intact.
    • dealer wins
    • By dealer wins 11th Aug 18, 3:45 PM
    • 6,020 Posts
    • 11,639 Thanks
    dealer wins
    If only people like the OP had all these deep thoughts about their loan/affordability etc BEFORE they take them out!
    Choose life
    • gycraig
    • By gycraig 13th Aug 18, 9:07 AM
    • 473 Posts
    • 376 Thanks
    gycraig
    Or even better before they spend the money ...
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