I made the mistake (and it was a mistake) of guaranteeing an Amigo loan for someone I know. If you are asked to do this my advice, in my opinion, is DON'T DO IT!
The interest is stupid anyway, but that is not the issue.
I don't say this simply because you may have to repay some or all of their loan, but because of the hassle you suffer.
It should be simple, IMHO, in that you guarantee the payments, so if they do not pay then maybe a letter or an email to say I have to pay, charge me, and done.
But no - it is weeks of calls (sometimes several a day), letters (sometimes several a day) and emails hassling you. Why is this not simple?
The calls and letters and emails are not just that I have to pay the missed payment but they talk of court action and recovery and all manner of nasty things.
What is worse, they are calling my office - seriously! Whilst they say very little they do say they are calling from "Amigo" and their number, so clearly Amigo *LOANS* calling me. That is embarrassing to say the least.
IT IS NOT MY LOAN!!! I AM NOT REFUSING TO PAY!!!
I wonder how this is not a simple breach of Administration of Justice Act 1970 section 40.
After all, they have means and the contract in place to charge me, why not do that and be done with it? Why all the harassment? Why call my office?
I have emailed them :-
You have a contract in place with me to guarantee payments for XXXXXXXXX. You have the means to collect those payments. I have the funds to cover those collections. However, if you continue to harass me, or if you EVER call my office again I will have to consider you in breach of section 40 of The Administration of Justice Act 1970 and report you to the POLICE for consideration of CRIMINAL charges against you. Is that clear?
P.S. The option of paying Amigo off and lending the money myself may well happen, so I checked! As well as owning me several hundred for missed payments, in 19 months of the loan it has gone down by £9.11 in total. Wow...