Monday, 2 October 2017

Amigo Loans being thick

As some of you have asked, why did I not lend money rather than guaranteeing it to Amigo?

Well, I was sort of bullied in to it - I have lent money before to others, and nearly a decade later do not see it repaid. I am out of pocket to well in to six figures now. I should learn, and not lend to friends or relatives, ever. It is always a mistake. (to be fair, one relative, where I applied a charge on her property, was good, thanks)

Am I a miserly old sod? I think not, as there are so many cases I give gifts and money, but when they push too far and I cannot really afford to "give", I have made the mistake of "lending". I would say to anyone considering it, just don't. If you cannot afford to give, then do not, simple as that. Really, if you cannot afford it now, say no!

The guaranteeing a loan thing was a half way house, not lending, not actually, but being there as guarantor, just in case. It does not work. It is amazing amounts of hassle, especially with Amigo Loans. They hassle like mad.

Tonight I got really cross, and sadly the call was not recorded or I would post it.

It was a simple matter - Amigo - give a settlement figure and bank details to make settlement. How hard is that as a request?

They KEPT on saying "it can take 3 to 5 days for the payment to arrive".

I had to shout a lot at them to explain that BACS allows FAST PAYMENTS that take a few seconds normally and at worst a couple of hours (though I have never seen more than a minute to two). They seemed not to understand this. They are, IMHO, fucking stupid.

The UK banking system has had fast payments for years now. Strangely enough when making a loan Amigo are happy to boast that you can have the money within 24 hours. Indeed "Borrow up to £10,000 within 24 hours" is big on https://www.amigoloans.co.uk

So they fully understand that money can be transferred quickly. When it suits them!

Yet offer to settle a loan and now it is suddenly 3 to 5 working days during which interest will accumulate at the massive rate they charge.

Let's be clear, for comparison, they are charging 49.9% APR. BoE base rate is 0.25% APR, so one 200th of the rate. Even my mortgage is 0.59% APR. To charge 49.9% APR interest is extortion.

I have explained that, having made payment, if they charge interest purely on the basis that their internal systems take time to realise that they have been paid, I will have to consider that fraudulent and worthy of reports to FCA and police. I should not have to resort to such threats. What ever happened to ethics (I ask when looking at 49.9% APR, D'Oh).

So I am charging 1% APR, is that fair? Will I get paid? Will it just live on for decades like others to which I have loaned money? Who knows? I hope not.

I really think this is the end now - no more loans to anyone - ever! Why does it take so long to learn these lessons. Why are people close to you so keen to stitch you up? Life is not fair.

P.S. Sorry I need to explain more, maybe

When a friend or family member asks for money, as a gift, and you can, then fine, give it. Ideally do so if you can before they ask..

When they ask for so much it causes you problems, then maybe say it is a problem. What if they then say "OK, lend it to me and I'll pay it back"? Well in that case it is a FUCKING LOAN, and needs to be PAID BACK.

It is not a hard concept, really, is it?

P.P.S if I borrow £10 as my round and no cash in the pub, I feel compelled to make sure I make a point of paying it back!

6 comments:

  1. I'm not sure why loans to friends and family go wrong so often. Perhaps because "friens and family" don't feel the same urgency to repay that they would to a commercial lender?

    I did once lend a substantial amount to a family member and partner to use as a house deposit. But I did put a legally-enforceable agreement in place, making them "jointly and severally" responsible with monthly repayments and it was all repaid.

    But, in general, it does seem a foolish thing to do and risks destroying relationships. I would definitley draw the line at encouraging borrowing from loan sharks.

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  2. Replies
    1. 49.9% is positively gentile compared to some of the other loan companies - I suspect because of the guarantor side of things.

      Sunny loans website - Representative 1277% APR
      Wonga have various rates - 1086%, 1286% and 1509%

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  3. I've lent a fair few quid in my time and I have always had one rule, PUT IT IN WRITING even when you are borrowing off your own mum. You say what they are repaying and when and what happens if they cannot pay it back.

    It is amazing how many people snark at this, but it is so important to manage expectations.

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    Replies
    1. Yes, definitely - put it in writing.

      The last time I moved house (20 years ago - golly), my sister and brother-in-law lent me a five figure sum for a matter of 4 weeks to help with the gap between buying and selling. No interest, but we felt it was very important for it to be down in writing.

      Who knows - I could have been run over by a bus in that short time. Much better if it's all clear on paper.

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    2. Absolutely right. I have done two estates for the deceased now and if I was the executor of your estate (after your fight with the bus) then I would only honour your debts which were proven to me in writing. Indeed as executor I have a legal duty to the deceased to administer his/her final affairs correctly and properly but also a legal duty to the beneficiaries of the estate and the Will to ensure that maximum value is retained in the estate by all legal means so that it can be distributed as per the instructions of the Will. Any alleged or claimed debt would get short shrift with me until proven and would not get my signature to be paid out from your estate to settle an unproven debt. I challenged a solicitor on one estate as her fees were just insanity compared to the work and complexity that actually existed and although I wasn't even a beneficiary of the Will so I had nothing to gain, I felt I had to do everything to preserve the assets of the deceased who had entrusted me to do things properly.

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