Amigo GuarantorTroubles

[MRSP]

I have acted as a guarantor to a loan taken out with Amigo.

To cut a long story short, the situation is that after making payments for approximately a year, neither myself nor the person I guaranteed the loan for can no longer afford full monthly repayments following substantial loss of income.


We have tried to come to an agreement with Amigo and have both been making regular reduced monthly payments as agreed. However, Amigo keep moving the goalposts and demand more and more money every few months. They say that the loan will not be paid off in a reasonable amount of time.
The payments combined from the both of us comprise about 25% of the original amount so the loan would be paid in around 8 years I think. Amigo are saying this is unreasonable.


They have last week sent us both emails giving us ten days to offer sufficiently increased payments in order to "keep the account on hold and close the loan in a reasonable amount of time otherwise we will look at applying for legal action through the courts with a view to securing the debt on your property for long term security of the loan until it is repaid in full"


The property belongs to me and the person I acted as guarantor for the loan for lives in rented accommodation.
I have ten days to reply and also have other creditors who I am dealing with so cannot really afford to go much higher.

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

I have acted as a guarantor to a loan taken out with Amigo.

To cut a long story short, the situation is that after making payments for approximately a year, neither myself nor the person I guaranteed the loan for can no longer afford full monthly repayments following substantial loss of income.


We have tried to come to an agreement with Amigo and have both been making regular reduced monthly payments as agreed. However, Amigo keep moving the goalposts and demand more and more money every few months. They say that the loan will not be paid off in a reasonable amount of time.
The payments combined from the both of us comprise about 25% of the original amount so the loan would be paid in around 8 years I think. Amigo are saying this is unreasonable.


They have last week sent us both emails giving us ten days to offer sufficiently increased payments in order to "keep the account on hold and close the loan in a reasonable amount of time otherwise we will look at applying for legal action through the courts with a view to securing the debt on your property for long term security of the loan until it is repaid in full"


The property belongs to me and the person I acted as guarantor for the loan for lives in rented accommodation.
I have ten days to reply and also have other creditors who I am dealing with so cannot really afford to go much higher.

The person you acted as guarantor for - is it a friend, family member, partner?

The reason I ask, without sounding harsh - why would you allow this to happen? You could end up with a charge on your property based on you offering to guarantor a loan for a third party - then surely you need to demand that 3rd party pull their finger out and get the money needed to repay the loan then work out a repayment method to repay you - it really isn't your fault that they cannot afford their responsibility. However if it's a family member or partner then that may explain things, but sadly you really need to consider putting more pressure on them - you have to think of number one and risking your house is awfully extreme.

As previously stated (on your other thread), another option could be a formal route such as BR and / or an IVA or similar so at least things get sorted once and for all. You'd really be best seeking professional advice maybe from Citizens Advice then depending on what they suggest, come back and see if we can offer any further assistance but realistically you **might** be better off starting afresh and going down the formal option especially if there is no light at the end of the tunnel.

Food for thought.

[The Tech Clerk]

Re: Amigo GuarantorTroubles

well they can get a charging order no problem these days, as you guaranteed it and are a property owner ( Problem) once they (if they get a CCJ), others will be along I am sure see what they have to say as might have more experience on this particular subject

[MRSP]

Re: Amigo GuarantorTroubles

It is a partner who I felt I needed to help get back on his feet.Unfortunately and probably predictably this did not happen.I cannot put any more pressure on him as he is under enough already and it wont help mattters as he cannot afford mich more either.
I am going to have to up payments and just face up to it as I cant have a charging order on my only asset.

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

It is a partner who I felt I needed to help get back on his feet.Unfortunately and probably predictably this did not happen.I cannot put any more pressure on him as he is under enough already and it wont help mattters as he cannot afford mich more either.
I am going to have to up payments and just face up to it as I cant have a charging order on my only asset.

Ok fair enough, that makes sense and I fully understand what you're saying.

You might be best going down the formal debt management plan route - that way you will have an agreed amount set-aside to pay creditors, they won't take action so long as you do pay and if you find yourself in a better position financially then come back to us and we can help you settle the accounts at a lesser balance.

I'd not just pay more, as you've already said you cannot afford to - so speak to someone about going on a formal debt management plan - a good one to start would be --> http://www.stepchange.org/Howwecanhe...ementplan.aspx

[MRSP]

Re: Amigo GuarantorTroubles

I have already considered and looked into the other options you mention,including stepchange,who unfortunatley I found to be little help to me as an individual when I sent my expenditure form in.
I prefer to maintain control so far as I can, as who and how much to pay to my creditors.I can go higher with Amigo although I resent handing over my (very) hard earned money for something which I havent seen a penny for.My partner is going to offer more (as much as he can)into the pot so we will just se what they say.

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

You can remain in control if you do it yourself. We can help but I'm saying in your case based on the info you've already provided that you MIGHT be better seeking free professional help to get you started then take over the DMP yourself later. Step change etc all utilise CFS Trigger Figures, as do we, so you'd always pay the minimum amount and the creditor MUST adhere to CFS - if it shows they get £1 then that's what they get. If they hassle you having complied with CFS then that's naughty and you could argue for compo.

[The Tech Clerk]

Re: Amigo GuarantorTroubles

be advised as above - follow advice here and help is available

[PlanB]

Re: Amigo GuarantorTroubles

I think you should investigate the pros and cons of a Time Order

This is when the court can effectively rewrite the payment terms of an unsecured loan. In some cases the court can even vary the interest rate if it is punitive.

It's a useful device which you can read all about about here:

https://www.nationaldebtline.org/EW/.../Default.aspx#

Since you say you are a homeowner I would advise against going BR especially if the property is in your sole name. Is it?

Plan B x

[MRSP]

Re: Amigo GuarantorTroubles

be advised as above - follow advice here and help is available

I am considering what you are saying however a DMP is a formal arrangement where I would have no control over what I pay creditors.Am I correct in saying that?

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

No - if you don't agree you cancel / cease the DMP. You can't dictate what each creditor gets as its done by formula whereby each gets an equal share of any disposable income.

If youre talking the amount of income used towards a DMP we can help you do that first so your figures add up in accordance with CFS thus allowing you to kinda use the maximum allowed income per month leaving the minimum amount for creditor repayment.

[The Tech Clerk]

Re: Amigo GuarantorTroubles

No - if you don't agree you cancel / cease the DMP. You can't dictate what each creditor gets as its done by formula whereby each gets an equal share of any disposable income.

If youre talking the amount of income used towards a DMP we can help you do that first so your figures add up in accordance with CFS thus allowing you to kinda use the maximum allowed income per month leaving the minimum amount for creditor repayment.

in all fairness why not as an exercise work with Niddy on a personal DMP in accordance with CFS and see for yourself the outcome, it no doubt be to great advantage to you ?? only a suggestion!

[PlanB]

Re: Amigo GuarantorTroubles

It is a partner who I felt I needed to help get back on his feet.Unfortunately and probably predictably this did not happen.I cannot put any more pressure on him as he is under enough already and it wont help mattters as he cannot afford mich more either.
I am going to have to up payments and just face up to it as I cant have a charging order on my only asset.

I think it may make sense to include your partner in your decision-making especially over the Amigo loan which is in their name not yours (albeit you're a guarantor) so I doubt you can add it to your DMP. How much is outstanding on this loan?

You can have a joint DMP even if the debts aren't in joint names. If your partner has an income then this may be an option to consider. A lot depends on whether your partner has debts of their own.

Read about joint DMPs here https://www.citizensadvice.org.uk/de...-need-to-know/

Also read my earlier post # 9 on Time Orders which you may have missed.

Plan B x

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

I think you should investigate the pros and cons of a Time Order

This is when the court can effectively rewrite the payment terms of an unsecured loan. In some cases the court can even vary the interest rate if it is punitive.

It's a useful device which you can read all about about here:

https://www.nationaldebtline.org/EW/.../Default.aspx#

Since you say you are a homeowner I would advise against going BR especially if the property is in your sole name. Is it?

Plan B x

Good idea - might be beneficial as may IVA / BR (not all BR result in home loss - if negative equity, for instance). I'd certainly be speaking to a professional firm in the first instance - there's lots of free resources available (CAB / Nat Debtline etc)...

[MRSP]

Re: Amigo GuarantorTroubles

My partner is on benefits and also has other debt which he is not able to pay so I dont think a joint DMP would be in order here.There is just under five grand outstanding on the Amigo loan and in answer to the other question the mortgage is in my sole name.I did some reading on a DMP from the CAB and it appears that if one creditor doesn't agree with it then they dont have to be bound by it. it.So if Amigo dont agree then they could still pt a charging order on my house...would that be correct?
I will read up on a time order as I havent heard of this before and it sounds interesting.