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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 Provided Duration Amount Borrowed
Loan 1 March 2014 12 months £2,500
Loan 2 August 2015 24 months £4,500
Loan 3 February 2016 24 months £7,000
Loan 4 March 2017 24 months £9,000
Loan 5 January 2018 24 months £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.

Our client Mr X has just received a refund from WONGA for
£12,775
Could you be entitled to a claim?

Brought to you by Sanderson Drake

Welcome to guarantor loan claims

Time Scales

We’ll keep you up to date throughout the guarantor loan claim process by sms and email however sometimes this can take between 4 and 8 weeks.

Claim Audit
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Claim Processing
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Negotiation
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Guarantor Loan Claim FAQs

Why can I make a claim?

There are many different reasons why you could make a claim, however every case is unique and would be wrong to tell you why you can and can’t make a claim.

Not all reasons on there own are necessarily enough to win a claim.

What can I claim?

This depends on the current status of your guarantor loan and who is currently paying the loan? For example;

Consumer Paid In Full

  • Refund of any charges
  • Refund of interest paid
  • 8% interest
  • Removal of adverse credit history

Consumer Paying – In Arrears

  • Removal of any outstanding interest
  • Refund of any charges
  • Refund of interest paid
  • 8% interest
  • Removal of guarantors responsibilities
  • Removal of adverse credit history

Guarantor Paying – In Arrears

  • Removal of any outstanding interest
  • Refund of any charges
  • Refund of interest paid
  • 8% interest
  • Removal of guarantors responsibilities
  • Removal of adverse credit history
What is the cost?

We work on your behalf on a Conditional Fee Agreement (CFA) which allows us to work on your behalf without any upfront fees.

If your claim is successful, we charge a fee of 30% plus VAT.
This is 36% of the total refund.

If your claim is deemed unsuccessful, there will be no fee to pay.

If you cancel your claim outside of your cooling off period, a fee will be payable.

For more information, please refer to our CFA.

Will my claim be successful?

Before we start a claim, we will first review all of the information available to us.
We will also obtain information from your lender to cross check and verify the details.

If you don’t have any information, don’t worry.
This takes us 30 days to obtain once your lender accepts our request.

How long will my claim take?

We first request information to build a claim against your lender.

Once received, we review your claim and the evidence and build a claim against your guarantor loan lender.

If we find a claim, we will let you know and obtain some additional information from you to cross check.

Once confirmed, we will issue our claim against your guarantor loan provider.
They will then under the current Financial Conduct Authority (FCA) regulations have 8 weeks to issue their response (Final Response).

How long does payment take?

Payment is issued within 28 days of an acceptance being received.

We often find this is much quicker however your lender has 28 days to issue the refund to you.

Make your claim now before it's too late...

With lenders such as Wonga, Wage Day Advance and Instant Cash Loans
no longer accepting claims, now is the time to act.

Worried about your guarantor?

When making a claim, your guarantor will not be involved directly.

They won’t even know you’ve made a claim unless they’re already paying the loan on your behalf.

If your guarantor is currently paying your loan, they may be due a refund and so could you.

Make a claim!