Landlord Advice UK took on a major UK Loan company Amigo Loans assisting the defendant the Guarantor in September 2016 and won.
Mr Sasha Charles of Landlord Advice UK said “This case ought to focus the minds of all landlords and lettings agents when preparing guarantors agreements. Ideally the Guarantors agreement should be incorporated in the tenancy agreement where the Guarantor and the tenant(s) all sign the agreement so there can be no contention.”
Brief case details:- 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. 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 Amigo Loans case was dismissed and permission for Amigo Loans to appeal refused. 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 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 may put 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, they decided to continue and did not succeed in claiming they had complied with relevant laws.
The Lawyer who dealt with the Amigo Loans case was Mr Sasha Charles.