Amigo Loans guarantor agreement deemed unenforceable by court

Guarantor loan provider Amigo Loans, which markets itself as a loan option for people with bad credit, has had a recent claim against a guarantor dismissed by a district judge after it was found that the company had breached principal obligations under the Consumer Credit Act 1974, as well as other acts and regulations. This has resulted in the guarantor agreement being deemed unenforceable.

Amigo Loans was seeking a guarantor, Miss Abbas, to pay debt in excess of £5,000. However, the case was dismissed and permission to appeal refused after District Judge Beck concluded that the guarantor agreement could not be enforced because there was no evidence to suggest that a copy of the borrower’s agreement was provided to the defendant, who was supported by Landlord Advice UK, before numerous requests from Miss Abbas. Initially, it is understood that Amigo Loans believed the guarantor was not entitled to the agreement due to data protection laws. The evidence also indicates that Amigo Loans failed to serve a cancellation notice on the guarantor.

Sasha Charles, Housing Lawyer and Director of Landlord Advice UK, said, “The case highlights the poor conduct of Amigo Loans and their failure to protect consumers as required. The conduct of Amigo Loans puts all of their guarantors at an unfair disadvantage due to non-compliance. The case should also serve as a warning for landlords and agents, who commonly use unenforceable guarantor agreements and may not be able to claim back their debts should their tenants default on payments.”

The Amigo Loans Limited v Abbas trial took place at Reigate Country court on 14th September 2016. Amigo Loans did not attend the court but was represented and submitted a witness statement as evidence. The district judge advised that the evidence was heavily disputed on a point of law before adjourning the hearing so the claimant’s representative could take instructions.

To find out about Landlord Advice UK visit http://www.landlordadvice.co.uk/ .

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Dakota Digital for Landlord Advice UK

Press contact: Charlotte Malone

Email: charlotte@dakotadigital.co.uk

Tel UK: 01623 428996

Tel US: 917-720-3025

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Landlord Advice UK is an independent specialist landlord support services company that assists landlord throughout England and Wales. All of the organisation’s clients are represented by lawyers who are regulated by the SRA. Landlord Advice UK’s consultants are eviction specialists with 28 years of experience in dealing with problem tenants. 

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