Not sure how to go about this one. Basically, I took out a 3k loan from Amigo last year to pay off some rent arrears from the time i was unemployed. The loan was paid into my guarantors account and he paid over £1k the week he received it and then another £400 some time later. He never paid over the remaining balance and continued to make excuses. This went on for 6 months and I had contacted Amigo to explain the situation and asked for advice. They couldn’t really help and said i was still liable and should continue to pay off the loan at the agreed £185.00 per month.
Come January this year I stopped paying, partly a reason i thought might make my guarantor pay up! But the main reason was that I couldn’t afford to continue to pay as I needed that money to pay off my rent arrears which of course I couldn’t fully do, so was still paying that off as well!
My guarantor has never paid a penny to them so they have continued to write and call on my mobile and work phone multiple times a day. I emailed them saying i would pay off what I have received and my guarantor to pay the amount he kept but they said this had to be agreed by them.
Through advice of this site, i sent the three bank letters and i got back the same response each time saying that a debt is owed and i am liable to pay and the agreement is enforceable by UK law. The third letter I sent i have since realized is the debt collectors one and not the bank one i should have sent! I also sent a letter of intention of estoppel. After this is when I received a letter from Amigo;
I am writing today in response to your letter dated x xxx xxx.
We have decided that the best way we can resolve your query is to submit the account to court which has been requested today.
This will allow an impartial judge to review all the evidence and decide on a fair outcome for all parties involved.
If you need to contact me please feel free to do so on xxxxxxxx.
What does this mean? Will i get a CCJ? What would be the best way to defend myself??
If it goes to court and you lose you will get a ccj which will remain on you credit file for a period of 6 years. However before going to court, if you can’t pay then they will have to chase your guarantor for payment as per their website and I quote
What happens if the borrower misses a payment?
You should read our 10 promises about how we deal with missed payments. If a payment is missed we’ll inform you within 24 hours by text and email. We’ll always attempt to collect the payment from the borrower by Direct Debit and then by card.
If we cannot collect from the borrower we’ll use the details which you (THE guarantor) have given us to take payment from you.
So….. Remind them of point #9. We will only use courts to enforce a debt as a last resort, when all other possible alternatives have been exhausted.
Basically they will enforce through the court if you and the guarantor both can’t pay.
Write back (not email) and inform them of such
Also they state “We have decided that the best way we can resolve your query is to submit the account to court which has been requested today.” ….. So if they haven’t started the process like they say they have, then this is against OFT Guidelines and is obviously being used as a scare tactic to get you to pay
They have been chasing the guarantor for payment since January and have had no response or payment from him.
Have they sent you a bill, reminder, notice before action, default notice.
If not, they have not followed any process.
And if you do get ANY court papers through, feel free to drop me a PM and i will give you immediate help with this issue. I normally reply in 30 minutes or so.
This is helpful because, rather than wait for a forum reply you are guaranteed to know that someone is on the other end to reply quickly.