As an expert in the field of financial compensation, I have seen many cases where borrowers have been taken advantage of by lenders. One such case is with Amigo, a company that offers loans to individuals who may not have the best credit history. While these loans may seem like a lifeline at first, they often come with high interest rates and hidden fees that can quickly become unmanageable for the borrower. If you have found yourself in a situation where you have repaid more than the initial amount borrowed from Amigo, you may be eligible for compensation. This means that you can claim back the excess amount that you have paid, and this will be used to calculate any dividend payments that you are owed.
Additionally, if your loan was deemed unaffordable, you may also be entitled to compensatory interest at a rate of 8%. This is a significant amount that can help alleviate some of the financial burden caused by these loans. For those who have declared bankruptcy, there is also an option to submit a claim to the Financial Services Compensation System free of charge. This is a great opportunity for those who are struggling financially and need some relief from their debts. If your loan has been sold to another company and you have submitted a claim to the Plan, but it has not been evaluated, it is important to ask Amigo why. In the past, guarantors were expected to be reimbursed if a borrower won a claim stating that the loan was unaffordable.
However, this was only if the guarantor had also filed a claim. This is no longer the case, and it has become clear that Amigo is reducing payments to borrowers and refusing to pay guarantors who have not filed claims. It is important to note that while your claim is being reviewed and resolved, you must continue to make your loan payments as agreed. This is unless you are told otherwise by Amigo. Failure to do so may result in further financial consequences. One common issue that has arisen with Amigo loans is that they often sell the loan to another company, such as Intrum, even after the borrower has repaid the full amount borrowed.
This means that the borrower is still being pursued for more money than they actually owe. This is a clear example of how Amigo has taken advantage of their customers and their lack of understanding of the loan terms. As an expert, I can confirm that payments have begun to Plan creditors who have a confirmed claim. This is only applicable if the bank details have been updated on the Plan portal and there is no active or open loan balance with Amigo. The amount that each creditor will receive is subject to change and cannot be confirmed until all claims have been resolved. It is understandable that some of the terminology used when discussing the Plan and the value of a claim can be technical and potentially confusing.
However, it is important for borrowers to understand their rights and what they are entitled to when it comes to compensation from Amigo. One important thing to note is that interest will not be reinstated if a claim includes a loan that was lent responsibly, followed by other irresponsible loans. This means that if you have taken out multiple loans with Amigo, but only one was deemed unaffordable, you will not receive interest on all of the loans. However, this compensation is in addition to the cash claim and is subject to the dividend payment process. For example, if your total cash claim was quoted at £1000, you may receive a final payment of £170. This may not seem like a significant amount, but it can make a big difference for those who are struggling financially. In conclusion, if you have taken out a loan with Amigo and have repaid more than the initial amount borrowed, you may be eligible for compensation.
This can include a refund of interest and compensatory interest at a rate of 8%. Additionally, if you have declared bankruptcy, you can submit a claim to the Financial Services Compensation System free of charge. It is important to continue making your loan payments as agreed while your claim is being reviewed and resolved. And remember, if you have any questions or concerns about your claim, do not hesitate to reach out to Amigo for clarification.
