It’s been a busy week with lots of questions and queries from customers relating to Amigo Loans, after news broke that the High Court ruled against Amigo Loans proposed Scheme of Arrangement.

To help more customers by empowering them with information, we wanted to feature our top Frequently Asked Questions relating to Amigo Loans from this week:

Can I still submit a Loan Claim to Amigo Loans?

Yes, as the scheme has been refused, you can submit a claim to Amigo Loans for a mis-sold loan and/or irresponsible lending. This claim could be honoured, with a new scheme or a different alternative.

If Amigo goes go under, all outstanding claims could be settled with a percentage of the full amount, as part of the dissolving of the company. You have nothing to lose and potentially hundreds of pounds could be refunded.

Submit your Amigo Loans claim today, with the help and support of Reclaim Experts.

Are Amigo Loans submitting an appeal?

No, Amigo Loans are not submitting an appeal to the High Court, in response to their Scheme of Arrangement being rejected. Instead, Amigo will be considering other options, which include insolvency and another Scheme of Arrangement.

Could Amigo Loans go bust?

With the scheme not being approved and agreed on by the High Court, there is a risk that Amigo Loans could be on the brink of collapse. Amigo Loans share price fell by 50% today in response to the news.

However, the High Court judge has urged Amigo Loans to “go back to the drawing board“, with the FCA asking Amigo to find an alternative solution, that is fairer to it’s customers. This means that an alternative solution may be possible for customers with outstanding complaints with Amigo.

Are Amigo Loans being investigated?

Yes, Amigo Loans have been subject to numerous investigations by the FCA (Financial Conduct Authority). The latest development is that the High Court has rejected Amigo Loans SOA. Please read our post about this update here.

Are Amigo Loans refunding customers?

Currently, Amigo Loans is not refunding customers or paying out compensation. This is due to their proposed Scheme of Arrangement. On the website they stated: “To ensure equal treatment of customers with redress claims, Amigo announced on 21 December 2020 that it was stopping the ongoing payment of redress claims as set out in the announcement of that date, and that position will continue.”

This does NOT mean that Amigo Loans will not refund customers in the future. It just means that they are not refunding at the moment, as they do not know whether they will have to refund customers under a SOA or a different solution.

What happens if I can’t pay my Amigo Loan?

If you have taken out a loan with Amigo Loans, and are struggling to afford the repayments you need to get in touch with them to discuss your situation. You should continue to make your monthly repayments if you can do so.

However, if you feel that you cannot afford the loan due to irresponsible lending and they did not make the necessary checks before they gave you the loan, then you could claim against the loan. It is a lenders responsibly to ensure that people can afford the loan, and not struggle to make the loan payments. If you have found yourself in this situation, this is where we can help. Claim today!

Will Amigo Loans prepose another scheme?

At the moment, no-one knows, so it’s a case of “watch this space”. On their website Amigo Loans state: “We’re currently reviewing all options including an Appeal and a further update will be provided at the earliest opportunity.”

Are Amigo Loans still lending loans?

Yes, is it still possible to borrow loans from Amigo Loans. Amigo offer borrowers loans of £1,000-£10,000 over 1-5 years, with loans of under £2,500 available over terms of 1-3 years. One of their main offerings is a Guarantor Loan, where the responsibility for the loan is shared by both the customer and their guarantor – a friend or family member who would back the loan by agreeing to step in if the customer ever missed repayments.

Amigo Loans is a UK based lender specialising in loans for people who are self-employed, have low credit scores, have County Court Judgments (CCJ) or who simply find it difficult to get a loan from other providers.

Can I claim back interest on a loan?

If your lender did not make the necessary checks before they gave you the loan, this could be irresponsible lending. It is a lenders responsibly to ensure that people can afford the loan, and not struggle to make the loan payments. If you have found yourself in this situation, this is where we can help.

Is Amigo Loans part of Provident?

No, Amigo Loans is a completely different company to Provident Financial, however, both companies are looking to (or have tried) to introduce a Scheme of Arrangement to limit the amount of compensation they pay to their customers, to settle complaints.

Can you claim back late payment fees?

Yes, you can claim back late payment fees if your provider has charged an excessive amount for penalty fees for missed payments or going over your credit limit. You can reclaim fees higher than £12 from the past six years in England and Wales or the past five years in Scotland. Submit your claim today!

What is classed as irresponsible lending?

Many people have experienced Irresponsible Lending but do not realise it. It is sometimes not clear that Irresponsible Lending has occurred. We have seen so many situations of Irresponsible lending that we have put together a list of the most common examples of this situation, to help people discover whether they have experienced this circumstance. Do any of these statements sound familiar?

• Unclear Fees?
  When you took out the loan, where the charges and associated fees completely clear to you? You should know what fees will be charged before you take out the loan.
• Unpayable?
  Were your monthly payments for the loan so large that you were unable to pay for your essential bills, for example like your mortgage, food bills? No loan should leave you unable to pay your essential bills.
• Supported Borrowing?
  Did your lender encourage you to take out additional loans, even though it was clear that you could not afford to pay the first loan back? A lender should not encourage you to borrow more if you cannot afford it.
• Rolling Over Loans?
  Did you have to take out another loan just so you could pay the initial one back? Your lender should have checked that you could afford the first loan and the monthly payments.
• Automatic Payments?
  Did you lender take automatic payments from your account, causing financial difficulties and leaving you unable to pay for essential items? Your lender should be clear about when payments will be taken and how.
• Bigger Borrowing?
  Did your lender entice you to borrow more than you planned for with an offer that was bespoke you? Your lender should have looked at your financial situation and lent what you were requesting and what you could afford.
• Correct information?
  When you took out the loan, did you provide the correct information of your financial situation including other debts. Your lender should have checked that the loan

If you have found yourself in this situation, this is where we can help.

Our mission is to highlight the irresponsibility and injustice of some services, in particular mis-sold loans and mortgages, and give people the chance to correct this unfairness. We are not a claims management company but we work closely with our partners, who are CMCs, to help our customers receive loan refunds for a variety of mis-sold loans including Guarantor Loans, Payday Loans (short term) and Doorstep Loans, in addition to other services such as PPI and PCP Refunds, Marriage Tax Allowance and Mis-sold Mortgages.