Guarantor Loans

[LurgidBanana]

I have a sad tale to tell, and a warning, but to be clear, it concerns my daughter who is 20 weeks pregnant with our first grand-daughter.
2 years ago she was in an abusive relationship. It was serious enough for the police and C.P.S. to take the chap to county court on a charge of A.B.H. Unfortunately my daughter had been coerced and bullied into being a guarantor for a Loan with Amigo Loans. The loan is now in default and Amigo are threatening court action against my daughter with the debt standing at over £4k. This would be worrying at any time but worse now that she is pregnant and likely to have complications due to Crohn's. I have provided Amigo with a letter from her GP confirming that she was in an abusive relationship, had been treated for injuries received from the borrower and was being treated for depression. Also, they have been provided with contact details of the Police case officer that helped prepare for the court case.
Thankfully, apart from this guarantee hanging over her my daughter is free from this unsavoury character. So, my warning is to advise anyone you know that is thinking of acting as a guarantor to definitely NOT do it. Relationships break down, and Amigo will stop at nothing to enforce the guarantee - even in extreme situations such as this where I have provided clear evidence of coercion. Any thoughts?

Amigo loans are the worst. The APR is disgusting and a lot of people just don’t understand what they’re signing up for (even though it is all there in the small print).

HOWEVER Amigo are a business, even if it is an immoral one. Unfortunately, You can’t expect them to change the rules because of individual personal circumstances. I imagine all lenders would be like this, not just Amigo.

Can you afford to take out a lower APR loan to clear the debt, then your daughter can repay you? Not ideal, but this will save her a FORTUNE in interest. Then she can pursue the other party who originally took out the amigo loan, through the small claims court.

If they are treating your daughter unsympathetically send a letter of complaint. If they do not either write the loan off, or if your daughter has an affordability issue, accept a pound a month in payment, pursue the complaint with the financial ombudsm an. In situations li,e this one, I have been successful many times in having the loan written off. Do not just leave it thinking nothing can be done, the company are obliged to treat vulnerable people in this type of situation sympathetically and sometimes you just need to push the right buttons.