Monetary loan

Loan customers could get payments worth thousands

THOUSANDS of Amigo loan customers are on the verge of compensation.

The UK’s financial watchdog said it would not object to the guarantor lender’s latest repayment plans.

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Amigo loan customers move closer to compensation

Amigo was accused of providing unaffordable loans, meaning customers could not repay the money they borrowed.

He tried to find a way to meet the demands for reimbursement without going bankrupt himself.

A court hearing tomorrow will decide whether Amigo’s new plan to repay borrowers can go to a customer vote.

A previous proposal was rejected as unfair to consumers.

Under the new scheme, consumers would receive up to 42p for every pound owed to them.

The Financial Conduct Authority (FCA) said it would not attempt to block the new proposals.

He also agreed that Amigo can resume operations within nine months, which is another criterion for approval of the reimbursement scheme.

However, its lending will be limited at first.

Despite the progress, however, payments are not expected to start until May 2023 at the earliest.

Indeed, two more hearings are scheduled for May this year.

Amigo must also raise at least £70 million within 12 months of program approval for proposals to go ahead.

How can I get a refund?

Secured loans are for people who cannot borrow from other sources due to a bad credit history or low income.

This involves another person, such as a friend or family member, agreeing to make the repayments if the borrower cannot pay.

More than 16,500 complaints were filed about guarantor loans last year, a 178% jump from 2020.

More and more borrowers are not meeting their repayments, which means lenders are then suing the guarantor for the money.

If a loan was mis-sold or the affordability checks weren’t rigorous enough, you could get a refund.

First, you need to determine if a loan was sold to you in error.

Start by looking at your old bank statements from when you borrowed the money – you should be able to access them through online banking.

If you were having trouble paying the repayments, then you were mis-sold the loan.

This includes if you cut other essential expenses such as food, rent, and bills.

The lender should never have given it to you if you were unable to pay the repayments.

You were treated unfairly if the lender did not help you when you were told you were having trouble paying it back.

Even if you have repaid the loan, you can still claim if you had trouble making the payments at that time.

If you are still paying your debts, you can file a lawsuit if you are having trouble repaying the money.

If the company you borrowed from has gone bankrupt, you should contact the lender’s administrator for a refund.

To file a complaint with Amigo, you should contact us as soon as possible.

Send a short email to [email protected] with COMPLAINT in the subject, describing your situation.

You will need to include information such as the amount of the loan and the date it was taken out, and explain that this is an affordability complaint.

MoneySavingExpert and DebtCamel have sample letters you can use – all you have to do is fill in your specific details.

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