Amigo Loans Refunds

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Amigo Loans are the biggest guarantor loans company in the UK. They control about 80% of the market and claim to have lent to hundreds of thousands of people.

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Amigo Loans Refunds:

Amigo Loans Refunds

Slide 3:

Amigo Loans are the biggest guarantor loans company in the UK. They control about 80% of the market and claim to have lent to hundreds of thousands of people. In 2018 they decided they wanted to sell some of the company and floated on the UK Stock Exchange making its founder a Billionaire overnight. He name is James Benamor and he has featured on a UK television channel in a program called the Secret Millionaire.

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It appears that before the sale the company decided to change the lending criteria it used to allow more people with bad credit to borrow from them. On the face of it, this appears a strange decision as it would almost certainly increase the level of bad debt and put a lot of consumers in a very poor financial position. A cynic might say that they did this to boost the companies books so it looked bigger and stronger than it really was. After all they were about to float the company and make a lot of personal money, so it was in their interest to make it look stronger than it really was.

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Sadly, this cynical view is supported by the fact that the new CEO announced in August 2019 that the business was changing its business model and tightening up the criteria again (so I guess they are going back to the same criteria that they had previously). The impact of this announcement was massive, the share price crashed overnight, tumbling by 50%.

Slide 12:

It became obvious that a lot of consumershad been lent to who should not have been lent to and this opened the doors to Claims Management Companies like Redbridge Finance making claims on behalf of Amigo customers for a refund. Amigo is a PLC and it has no choice (under UK law) to respond in an accurate and professional manner. It is upholding a very high percentage of the Amigo refund claims and the level at which they are being upheld is much higher than might have been anticipated, especially when compared to other lenders.

Slide 14:

The Guarantor lending market is a strange one as the loan is guaranteed by someone other than the borrower. So if the borrower does not pay the money back, the lender goes to the guarantor to get the money. This has caused a lot of upset and distress for both borrowers and guarantors.

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For more update , visit us https://www.redbridgefinance.co.uk/amigo-loans

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