Amigo Loan Claim Refund

Amigo Loan Claim Refund

Very similar to a payday claim, the Financial Ombudsman Service has recently published their findings on a claim against Amigo Loans with case ref; DRN2108651

Within the Amigo Loan Claim, the Financial Ombudsman Service ruled against the guarantor loan lender finding Amigo Loans failed to conduct an adequate assessment of the consumers income and expenditure.

The client had taken 5 Amigo Loans over a period of 4 years as follows:

 Term Amount Funds paid Paid to previous loan Repayment

Loan 1
Provided: March 2014
Duration: 12 months
Amount Borrowed: £2,500

Loan 2
Provided: August 2015
Duration: 24 months
Amount Borrowed: £4,500

Loan 3
Provided: February 2016
Duration: 24 months
Amount Borrowed: £7,000

Loan 4
Provided: March 2017
Duration: 24 months
Amount Borrowed: £9,000

Loan 5
Provided: January 2018
Duration: 24 months
Amount Borrowed: £7,500

Upon review of the clients credit report, it found that the clients poor credit record meant Amigo Loans should have verified the figures provided rather than accepted the figures as accurate.

The clients recorded income from the Loan 1 was £1,400
The clients disposable income (available after expenses) was nearly £1,000

At the time of Loan 2, the client also had debts of £5,600 and by Loan 4 debts of close to £6,000 and additionally the client had 6 unsecured loans.

It therefore seemed unreasonable to determine that the clients disposable income was £1,000 per month.

As a result, the Financial Ombudsman Service ruled against Amigo Loans and requested that they refund all the interest and charges she paid along with 8% statutory interest.

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