Amigo Loans Compensation: Were You Mis-sold? Claim Now
Amigo Loans: A Controversial Past and Your Right to Compensation
Amigo Loans, once a major provider of guarantor loans in the UK, has a troubled history. They specialized in lending to people with poor credit, often relying on a friend or family member to act as a guarantor. However, Amigo's lending practices came under fire, leading to regulatory action and a compensation scheme for those affected.
What Went Wrong with Amigo Loans?
Aggressive Lending: Amigo was criticized for targeting vulnerable borrowers and pressuring them into loans they couldn't afford.
Poor Affordability Checks: They often failed to properly assess whether borrowers could realistically repay their loans, leading to financial hardship.
High Interest Rates: Amigo charged high interest rates, making it difficult for borrowers to escape the debt cycle.
Misleading Information: Some customers reported being misled about the terms and conditions of their loans or the implications of being a guarantor.
The FCA Steps In:
The Financial Conduct Authority (FCA) investigated Amigo Loans and found serious failings. This led to:
A hefty fine: Amigo was initially fined £72.9 million (later waived due to the company's financial difficulties).
The Amigo Scheme: A redress scheme was set up to compensate customers who were mis-sold loans between November 1, 2005, and November 29, 2020.
How to Claim Compensation Through the Amigo Scheme:
If you believe you were mis-sold an Amigo loan, you might be entitled to compensation. Here's what to do:
Visit the Amigo Scheme website: https://www.amigoscheme.co.uk/
Gather your loan documents: You'll need your loan agreement and any other relevant paperwork.
Submit your claim: Follow the instructions on the Amigo Scheme website to submit your claim.
Provide evidence: You may need to provide evidence to support your claim, such as bank statements or correspondence with Amigo.
Important Deadlines:
May 26, 2023: This was the original deadline for submitting a claim.
Late Claims: You might still be able to submit a late claim under certain circumstances. Check the Amigo Scheme website for details.
Amigo Loans Today:
Amigo has stopped lending new loans and is focused on compensating customers through the Amigo Scheme.
Need Help with Your Claim?
If you're unsure about the process or need assistance, contact the Financial Ombudsman Service: