Hi...I am hoping someone can give me some advice regarding Amigo Loans.

I 'stupidly' went guarantor for a relative with Amigo loans about 2 years ago.

They paid their payments on time every month up until May 2018.

At this time, their partner lost their job and they could no longer afford the repayments.

Knowing this, they contacted Stepchange and went on a DMP straight away.

Amigo will not accept the payment that was offered by Stepchange and have started to chase me for the money which is expected.

I unfortunately am in the same situation as my husband lost his job last year and I went on a DMP 8 months ago.

We have both contacted Amigo and explained the situation but no matter what we offer it is not enough for them.

They have told us that due to our circumstances they can not tell us to make any additional payments as this would put is in financial strain, but the amount offered is not enough to keep the account on hold and that it would be passed to their litigation team on the 19th of this month to pursue a county court judgement.

We have repeatedly asked them what they would accept as a reasonable repayment as we would try and get help and support from relatives but they keep stating it is not enough to repay it in an acceptable time frame.

The debt stands at around £10.1k from a loan of £9.5k with £345 a month interest and a normal monthly payment of £375. We are offering them £175 between us.

We do not want this to go to court but unfortunately can not afford to pay any more. Can anyone give me advice on how to avoid legal proceedings or is this inevitable?

How have you been offering them a payment plan? Not over the phone is it??

If you have been conversing with them via phone, then of course they're going to tell you what you're offering isn't enough, the telephone jockey is getting a percentage of what they tell you to pay.

Put it IN WRITING, obtain 'proof of posting' which is free from the PO counter, and TELL them, DON'T ask, what they will be getting each month/week.

If they continue to add interest and charges, then the payment drops to £1 a month for the life of the debt.

THEY don't call the shots, YOU DO!!

Be very careful amigo go for CCJ's and a charge on your home at the drp of a hat

Did they loan this money when their credit file was shot too bits and full of defaults and other debts??

I recently had a twitter exchange with Amigo and they stated that court action was a last resort. I had to buy another keyboard! My old one got wet after I spat my coffee out.

They also stated that there was 'only' 80 complaints with the Ombudsman with two thirds being rejected. I couldn't fine definitive proof of this even when I searched the FOS decisions.

I would suggest that a formal complaint be instigated as they are supposed to treat customers in difficult fairly and it is blatantly obvious they are not in this case. Ideally, they should be freezing interest and allowing you to pay a small amount each month and they really should be recognising the DMP.

As advised, in writing with proof of postage or if you wish to ensure that the letter has arrived, Signed Delivery (around £1.60 second class)

If they try to ring you, just state that you will only deal with them in writing and put the phone down. If your phone has call blocking, block the numbers they ring on.