You can get compensation if the Amigo loan that you have or had was mis-sold. The FCA launched an investigation into the firm due to the concerns it had in the way that loans were provided and whether the correct affordability checks were undertaken. Complaints are now being seen on a large scale where clients are challenging the sale of their Amigo loan and obtaining compensation as a result,
The FCA Investigation into Amigo loans.
The FCA launched an investigation in May 2020 to establish if the lender was undertaking the correct credit worthiness assessments of its clients that met with the regulatory requirements that the FCA requires. There has been an increase in complaints over the last few years as a result of the company’s failure to provide reasonable and proportionate checks when lending money to clients via the guarantor loans.
The FCA became concerned at the level of guarantors being requested to make payment which highlights the firm’s policy of not assessing borrowers correctly and relying on guarantors to repay their debt.
Amigo Loans Refund?
Amigo loans which have been mis-sold will often obtain compensation which includes refunds of interest paid and on occasions the refund of borrowing in place. However, the level of compensation is calculated on a case by case basis but relates to the costs, difficulties and level of breach by Amigo.
Refunds can run into several thousand pounds as interest refunds can be high due to the high interest rate charged on the borrowing. Amigo have set aside over £100 million to cover mis-selling cases but this figure is likely to grow.
Amigo Loans Compensation

What is a Guarantor Loan?
Loans that are provided are guaranteed by either friends or family who agreed to pay back the loan should the borrower be unable to meet the monthly commitment. Interest is often high, where the concerns in relation to the mis-selling are as a result of the firm concentrating on the guarantor providing them ultimate protection rather than understanding and assessing the borrowers ability to take on any form of debt both with initial applications and future loan borrowing.
With any borrowing the lender is required to undertake affordability checks and clarify information that is provided by the prospective borrower to establish if any lending is fair, reasonable and appropriate. If loans were then subsequently given in effect one on top of the other again fresh affordability checks would need to be undertaken to establish if there is a case of mounting financial pressure. Unfortunately these checks were not undertaken by Amigo.
Can you get a refund if you have an Amigo loan?
If you have had a loan in the past or which is ongoing with the firm it is certainly worthwhile checking as to whether the loan itself was mis-sold. The fact that the loan was repaid does not mean that the correct process in relation to the sale took place. Too many of these loans were not assessed correctly and in many instances led to financial suffering for the borrower as well as the guarantor.
Amigo have been in business since 2005 and lent considerable sums of money to borrowers, if you are one of these we can certainly look into this for you to establish if any malpractice took place. Obtaining compensation if any is subsequently found all of which is on a no win no fee basis.