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Grateful for any advice and guidance I can get please!!
My Uncle "CG" was a guarantor for another of my Uncle's "EG" loans with Amigo Loans back in 2015. The loan amount was £3,500 with an interest of £4,800.23 at 49.9%.
In August 2023 the account with Amigo Loans was transferred to Lantern DRS. No contact was made by Lantern DRS to CG.
Moriarty Law sent a letter before Christmas threatening court action against CG if he does not pay the balance of £2,856.07. We responded to Moriarty Law asking for a copy of the signed agreement, written notice that the debt was assigned to Lantern DRS, and an up-to-date statement of account for the debt. We also asked whether Mortiarty Law, Lantern DRS, or Amigo Loans have attempted any contact with the debtor, EG. We have not admitted/acknowledged the debt. CG and EG are unfortunately no longer on speaking terms before this issue even arose.
They have responded providing the requested documents. The statement shows that the regular monthly repayments in the agreed sum of £138.34 have always been paid by EG (with only 7 missed payments) until May 2023. We calculated that he has so far paid £13,557.32 - it will not let me upload the statement so I have copied a few on the first lines at the end of this post for you guys to confirm I am reading the table correctly!
Since 2015 CG has suffered serious health complications and is unable to work. He lives off of Universal Credit and PIP. He has no assets or savings, and has other non-priority debts. As such he cannot afford this looming over him due to health and financial difficulties. The plan is to request Lantern DRS to write off the balance due under the serious health complications that CG has together with his difficult financial circumstances.
We have to respond within 14 days. I wanted to double-check the following:
1. Do I have to provide them with a full budget breakdown that has been completed with the National Debtline?
2. Do we have a case to argue they have already received £13k so far? Would Section 140 of the Consumer Credit Act 1974 apply?
3. Is there anything important that we have missed, needs to be done, or something we should not do or say? If they refuse to write it off my Uncle CG will either decide to take the insolvency route or proceed to defend in court.
Thank you all - really appreciate the guidance and support as this is all new to us.
Please find below a breakdown of transactions during the period of the statement
(as mentioned this is only a few lines from pages of statements, but the pattern remains the same)
My Uncle "CG" was a guarantor for another of my Uncle's "EG" loans with Amigo Loans back in 2015. The loan amount was £3,500 with an interest of £4,800.23 at 49.9%.
In August 2023 the account with Amigo Loans was transferred to Lantern DRS. No contact was made by Lantern DRS to CG.
Moriarty Law sent a letter before Christmas threatening court action against CG if he does not pay the balance of £2,856.07. We responded to Moriarty Law asking for a copy of the signed agreement, written notice that the debt was assigned to Lantern DRS, and an up-to-date statement of account for the debt. We also asked whether Mortiarty Law, Lantern DRS, or Amigo Loans have attempted any contact with the debtor, EG. We have not admitted/acknowledged the debt. CG and EG are unfortunately no longer on speaking terms before this issue even arose.
They have responded providing the requested documents. The statement shows that the regular monthly repayments in the agreed sum of £138.34 have always been paid by EG (with only 7 missed payments) until May 2023. We calculated that he has so far paid £13,557.32 - it will not let me upload the statement so I have copied a few on the first lines at the end of this post for you guys to confirm I am reading the table correctly!
Since 2015 CG has suffered serious health complications and is unable to work. He lives off of Universal Credit and PIP. He has no assets or savings, and has other non-priority debts. As such he cannot afford this looming over him due to health and financial difficulties. The plan is to request Lantern DRS to write off the balance due under the serious health complications that CG has together with his difficult financial circumstances.
We have to respond within 14 days. I wanted to double-check the following:
1. Do I have to provide them with a full budget breakdown that has been completed with the National Debtline?
2. Do we have a case to argue they have already received £13k so far? Would Section 140 of the Consumer Credit Act 1974 apply?
3. Is there anything important that we have missed, needs to be done, or something we should not do or say? If they refuse to write it off my Uncle CG will either decide to take the insolvency route or proceed to defend in court.
Thank you all - really appreciate the guidance and support as this is all new to us.
| Period of this statement: | 19/05/2015 to 15/12/2023 |
| Original Creditor: | Amigo Loans Limited |
| Date of agreement: | 19/05/2015 |
| Amount of the principal loan advanced: | £3500.00 |
| Opening Balance at the start of the statement period: | £3500.00 |
| Current Closing Balance at the end of the statement period: | £2856.07 |
| Transaction Date | Description | Credit | Debit | Account Balance |
| 19/05/2015 | Original Principle Amount | £3,500.00 | £3,500.00 | |
| 02/07/2015 | Interest | £173.66 | £3,535.32 | |
| 02/07/2015 | Direct Debit | -£138.34 | £3,535.32 | |
| 02/08/2015 | Interest | £123.59 | £3,520.57 | |
| 02/08/2015 | Direct Debit | -£138.34 | £3,520.57 |
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