Amigo loans are provided to customers who are unable to secure borrowing from traditional lenders, usually due to poor credit ratings or low income. The loans are guaranteed by a family member or friend who acts as ‘guarantor’ and in the case of default would be responsible for repaying the loan.

Any loan should take into account the affordability, and whether after making the monthly payments, the borrower would have any money left over to cover their monthly expenses without requiring further lending. Amigo may have only carried out brief affordability checks because of the guarantor’s circumstances. Regardless of the financial status of the guarantor’s financial status, the loan needs to have to have reflected your repayment potential.

If your complaint is successful, if your loan has been repaid, you will be in line to receive a refund of the interest in addition to 8% of the amount of your statutory interest. Should you still have an amount outstanding, your interest will be removed and you simply repay back the amount borrowed.

We work on a No Win, No Fee basis, so this means that if your claim is not successful, you will not owe us a thing. Only in the event of a successful compensation claim would you be required to pay us a percentage of your settlement, so there is absolutely no risk involved in making an Amigo loans claim.

Amigo has been providing loans since 2005, so if you have had any borrowing from them since then, regardless of whether they are still in place or have been paid off, it is worth checking to see if any compensation is due to you.

As a guarantor of a loan you may have been responsible for repaying the debt when the borrower could not meet the repayments. If that was the case it is worth contacting the borrower in order to check the validity of the loan and see if compensation might be due.