If you have or had any Amigo loans then you could potentially be due a refund of compensation as the firm have been found to fail in the way that it lent money to clients and the affordability checks that were in place. A total of £115 million as a minimum has been set aside to address this problem. So if you fall in the category of having one of their loans or being a guarantor whether the loan is in place or not you to could be due compensation if we make a claim.
How Could an Amigo Loan been Mis-sold?
There are several reason why an Amigo loan compensation claim could apply to you.
If there was a difference between the details you provided and information on your credit file as a lender they should have checked and documented why.
If your financial position was worsening as a lender they should have established this from your credit file and noted why after bringing this to your attention.
Amigo would have been more focused on the guarantor but as a lender they should have been focused on your ability to reply not theirs.
All of the financial details you provided should have been checked for accuracy and any details which were low should have been discussed and detailed.
The lender should have looked into your income either employed or self-employed for constancy and ability to reply.
If you were refinancing your Amigo loan checks should have happened again as if you were applying for the first time. Especially to check if your finances had worsened.
Amigo Loans Refund
What is an Amigo Loan?
Amigo loans are provided to clients who are unable to secure borrowing from traditional lenders. Either due to poor credit ratings or lower income. The loan is guaranteed by either a family member or individual who have the finances to justify the borrowing and ultimately in the case of default will have to repay the loan.
The loans test friendships and family loyalties especially when in default. Clients repay the loan by monthly repayments at a high interest rate.
Am I due a refund from my Amigo loan?
Anyone who had an Amigo loan is potentially due a refund as it is not until contacting would we be able to establish if the borrowing was provided in accordance with their regulatory guidance. From establishing the information provided for its validity through to working out your affordability and not as they generally did rely on the financial position of the guarantor.
What if I paid back my Amigo Loan, do I still Qualify for a Refund?
Amigo started in 2005 so if you have had any loans from them since then regardless of whether they are still in place it is worth checking to see if any compensation is due to you.
I Guarantee an Amigo loan, will the Compensation Help me?
As a guarantor of the loan you may well have had to repay the debt in case of default. If that was the case it would certainly be worth contacting the borrower in order to check the validity of the loan and see if compensation is due.