Amigo GuarantorTroubles

[MRSP]

Re: Amigo GuarantorTroubles

I have another question.Can Amigo put a charging order on my house without first obtaining a ccj and without my knowledge?Is it possible that they have already done this and would the court write to me to let me know?

[MrsD]

Re: Amigo GuarantorTroubles

absolutely not

they would need to go to court first, get a ccj, then return for a charging order, so a long way off

[MRSP]

Re: Amigo GuarantorTroubles

I have been on chat with NDL and have copied and pasted the conversation.
I am not fully understanding what was said...can anyone clarify it a little for me?
Today at 7:45 PM

am reading on time orders and wonder if this would help me.I am guarantor for a loan which I am struggling with now my partner cant afford full repayments. I have a question.Can the creditor put a charging order on my house without first obtaining a ccj and without my knowledge?Is it possible that they have already done this and would the court write to me to let me know? I am reading on time orders and wonder if this would help me.

Received:A company would need to obtain a CCJ against you before they can apply for a charging order, you would be informed via the post if this had happened.Received:You would not normally need to apply for a time order on an unsecured debt as you can contact the compnay and try to negotiate repayment/stop interest without the court getting involved.Sent:That is good news.Do you think a time order would help me and what would be the advantages?The creditor is being difficult now agter several months of reduced payments and is threatening putting a charging order on my house if \i dont pay them enoughReceived:It is more common with secured debts such as HP agreements or secured loans.Sento does that mean I wouldnt get a time order granted?Received:If action is taken you will get the chance to offer instalments through the court anyway, as you get the chance to make an arrangment through the court with a CCJ a Time Order does not really benefit as this is all a time order is.Sent:doesnt the time order stop them getting a ccj and ultimately a charging order?Received:possibly, they cost £280 to apply and the court would need to decide its fair and reasonable to grant it, We aren't solicitors but as you get the chance to make an offer through the court anyway they may deem it as not reasonable.Received:This is different to a HP where the time order may stop them taking a car back.Received:You can apply on a form N1 but we have to be honest and say we can't say how likely it would be granted and you'd need to speak to a solicitor really.Sentk thanks for your advice.I will think it over and come back if any more questions.Received:

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

Basically she's saying a time order won't really benefit you so consider other options. IVA / DMP are a couple but you'd really need an income for either to succeed.

[PlanB]

Re: Amigo GuarantorTroubles

Basically she's saying a time order won't really benefit you so consider other options.

But is she right to 'advise' that especially when she knows absolutely nothing about our member's overall financial situation (I'm assuming this was a Web Chat advisor) and she knows f*ck all about the loan in question (because she didn't ask)

The 'advisor' seems to think that a CCJ with instalments agreed might be a better option without even asking our member whether they own a property with the ensuing charging order implications. Or whether a CCJ could harm their employment prospects. Or whether a CCJ on our member's CRA file (lasting six years) might just be a bad thing.

A Time Order may be "more common for secured debts" (so says the NDL *advisor* and I can't argue with that because I don't have the stats) but it's still an option for unsecured debts as posted on the NDL website (https://www.nationaldebtline.org/EW/...t/Default.aspx ) which our member might want to consider. It's not about what's "more common" it's about what is right for a particular person in a particular set of circumstances.

All I can add is that NDL's advice to our member is the crappiest financial/debt advice I've ever seen

Plan B x

[Never-In-Doubt]

Re: Amigo GuarantorTroubles

It's not about what's "more common" it's about what is right for a particular person in a particular set of circumstances.

I do agree - I must admit I didn't mention Time Orders because it didn't seem suitable to me either - but I totally agree that it is an option - whether it's suitable or not I cannot answer (like you) but I definitely think our member needs to know and FULLY understand each option; Time Orders included.

I wasn't agreeing or disagreeing with the NDL advisor; I was trying to interpret what they said from the chat - having read it fully it is pretty shitty but my brief interpretation is still about right

[PlanB]

Re: Amigo GuarantorTroubles

having read it fully it is pretty shitty

This forum knows more about how to handle debt from a debtor's point of view than anyone else.

Enough said

Plan B x

[MRSP]

Re: Amigo GuarantorTroubles

I see.I do have a regular income but my first priority before considering a dmp or anything else is to deal with Amigo as this needs to be sorted by Friday.
I believe that Amigo could just choose to ignore a dmp and so I need to decide what to do about them in isolation.
A question I have is why would Amigo go to the bother/expense of taking me to court to get a ccj and then a charging order when they could potentially end up receiving the same or less repayments as granted by a judge than they are receiving now?
Then, only if I couldnt keep up these repayments my house could then be sold.Surely the sensible thing for them would be to accept the not insignificant repayment arrangement we currently have?
I have also read that at 3:07 AM
"If you have a charging order, you need to keep making some payment to the debt. If you don’t, the creditor could apply to the court for an order for sale. This would force you to sell your house so the creditor can get their money back.
Orders for sale are very rare. In 2013 there were 47,769 final charging orders but only 222 orders for sale in all of England and Wales.
If a creditor applied for an order for sale, there would be another hearing and you would have a chance to explain your situation to a judge. The order for sale will only be granted as a last resort. See the 2013 figures, sourced from the Ministry of Justice, in the table below."

[PlanB]

Re: Amigo GuarantorTroubles

to deal with Amigo as this needs to be sorted by Friday.

You're being bullied pure and simple. This has to stop.

Tell us a bit more about this Amigo loan.

I've looked at their website and see the interest charged is a whopping 49.9% APR

They specialize in lending to subprime customers with guarantors because they know the borrower can't afford the loan. Is that irresponsible lending?

http://www.amigoloans.co.uk/YHF?&mkw...FcN92wodNHkMHA

The website says maximum loan is £5k yet you say you've got more than £5k still owing even though you've been paying each month. How much of that outstanding balance is added interest? And is it compound interest where they charge interest on the interest they've already added?

So, how much was the original loan taken out by your partner?

What is the interest rate applied?

What date did you take out this loan and how long was the term?

How much is the outstanding balance?

Was the interest front-loaded or is it part capital and part interest payment each month? (I see interest is calculated daily so probably not front-loaded).

Were you asked to provide your own financial details when you became the guarantor and did you sign an agreement/contract?


Plan B x

[MRSP]

Re: Amigo GuarantorTroubles

Thanks very much for your help Plan B.
I am at work right now and am here until late tonight but will dig out the relevant info when I get home and I'll post it up on here as soon as possible
MRSP
x

[PlanB]

Re: Amigo GuarantorTroubles

I do have a regular income but my first priority before considering a dmp or anything else is to deal with Amigo as this needs to be sorted by Friday.

What did Amigo say would happen to you if you don't increase your repayments by Friday?

Has there been any correspondence which could be considered a Letter Before Action which may require a response?

Or are they just huffing and puffing and threatening to blow your house down.

They are a long long way from getting a Charging Order, and even further away from getting an Order for Sale.

Try to stop fretting

Plan B x

[MRSP]

Re: Amigo GuarantorTroubles

Hello Plan B,
I'm back home and have managed to get the following figures together:


Amount of loan £5000
Closing balance on 31/08 £5012.86
Arrears included of £2,561.92
Current rate of interest is 0%
Interest rate on 1st of July 2013 was 41.16%
The loan was paid out on 1st of July 2013
I signed the loan guarantor form on 27th of June 2013 according to a letter here.
Original payments were £243.95 per month.
Loan duration is 60 months.
On the 12th of Feb 2014 a top up of £500.73 was made effectively cancelling the existing loan and commencing a new one with payments of £197.62 and for which I am also guarantor.
Interest rate of new loan 41.16%


I will look asap to see what notes I have about any financial info I gave to them if any and will also check to see if Letter Before Action has been received and the exact wording of any threats of action..
But for now, I am off to bed. Got very early start tomorrow.
MRSP
x

[PlanB]

Re: Amigo GuarantorTroubles

Does this mean the interest on this current loan has been frozen because you say it's 0%? Or does that refer to the first (now closed) loan?

The original loan was for £5k with 60 monthly payments of £243.95. This means you'd have paid back over £14k if it had run the full term if I've got the maths right. That would be £9k in interest alone. Can you say when you first got into arrears with this loan (i.e. after how many payments). Hopefully they've sent you a statement breakdown when the loan was closed.

Then it seems the replacement loan was for £5.5k with monthly payments of 197.62. If that is also for 60 months (is it?) then you'll be paying back over £11k. I expect the second loan 'paid off' the outstanding balance on the first loan but you didn't get any more money paid out by Amigo. Is that right?

Why was there a need for the second loan? Whose idea was it to have the replacement loan? The APR remained the same (41.16%) so what was the advantage to you of taking out a new product?

Sorry for all the questions but we need to see if anything unfair (in legal terms) or irresponsible behaviour by the lender took place along the line.

Plan B x

[MRSP]

Re: Amigo GuarantorTroubles

Hi Plan B


The original loan taken out on 1/7/13 was for five thousand pounds
All repayments were made on time on this loan.
Closing balance on 31/12/13 was £4510.17
Amigo allow and indeed make a point of top ups being available to the loan which, when my partner opted for proved to be effectively a new loan that paid off original one and gave some surplus to use.
Not sure though how the interest seemed the same but payments dropped. Neither of us can remember how that came about.

The top up loan was taken out on 7/2/14 for 60 months. This was a last ditch attempt to get my partners new venture going. It's something I was keen to help him with.
No more money was borrowed after top up loan and two payments were made on it when we found we could both not now afford full repayments as the venture failed and also my work came to crisis point then.
We contacted Amigo and sent an income/expenditure form asking them to freeze interest and charges to enable the loan to be repaid. Interest was frozen around April 2014.
Initially we were making very small payments each but that has now risen to £50 per month combined.


Hope I am answering all your questions and clearly enough. I am at work so is slightly difficult.


One thing that may or may not be relevant but may be worth mentioning is that my partner had gradually worsening health problems culminating in a major operation and he is to be assessed for further surgery next month. This has affected him very badly indeed.
In the New Year sometime hopefully his health will improve.


MRSP

[SaltnVinegar]

Re: Amigo GuarantorTroubles

Hi MRSP

When you both took out the 'top up' loan what documentation did Amigo provide you with?

• Did you have to make a new application and provide new financial details, or sign a statement that your circumstances hadn't changed etc?
• Did you receive any pre-contractual credit information regards the new 'top up' loan?
• Did you receive any pre-contractual explanation, detailing aspects of the loan (such as APR, consequences of non-payment etc), explaining its purpose was so that you could decide if the product was correct for you?
• Did you recieve a new consumer credit agreement?