Amigo Loans investigated fears he is lending to people who could not afford to repay their loans
HIGH-cost credit lender, Amigo Loans, is under investigation by the city watchdog over concerns it may have lent to people who could not afford to pay their bills. ready.
The guarantor loan provider, which was founded in 2005, offers loans of up to £ 10,000 over 12-60 months at an interest rate of 49.9% as long as a friend or family member agree to refund if you don’t.
But it is confirmed in a business update on the London Stock Exchange that the Financial Conduct Authority (FCA) launched an investigation into its lending practices on May 29.
Amigo says the FCA is investigating whether Amigo’s solvency assessment process and its governance are playing by the rules.
It comes as Amigo founder and former CEO James Benamor lambasted the company in March for distribute loans “irresponsibly”.
Are you owed a payday loan repayment?
MILLIONS of payday loan customers can be repaid.
Repayments or compensation are often given when the loan has been mis-sold or when affordability checks were not strict enough. Here’s all you need to know:
- Customers who have paid off their payday loan debts can still claim. Even if you have paid off your debts, you may still be able to get a refund if you struggled to repay the money at the time.
- If you are still paying off your payday loan debts, you can still complain. You can complain if you had trouble paying back. If your complaint is successful, it could reduce the amount you owe.
- You can always pretend that the business no longer exists. When payday lenders go bankrupt, you can still submit claims to the business administrator, although you are less likely to receive a refund because you will only be one of a long line of people who owe money. Also check the claim deadlines as some administrators, such as Wageday Advance and Wonga, have imposed deadlines.
According to the Financial Ombudsman Service’s latest date for the third quarter of 2019, nine in ten (90%) complaints about secured loans were upheld in favor of consumers.
While seven in ten (73%) complaints about payday lenders were upheld.
Amigo put on sale in january, and her latest business update reveals she’s in discussions with a potential buyer.
But the company is taking legal action to prevent Mr Benamor, who is still a majority shareholder in his Richmond group company, from voting in favor of Amigo appointing new directors and dissolving the board of directors.
Mr Benamor tweeted to say he didn’t agree with a sale that would leave the current board in place, but Amigo said he would dissolve the board in an “orderly process.”
Stephan Wilcke, Chairman of Amigo, said: “The board has offered to leave and will, but it has to be done in an orderly process.
“We cannot risk the ability of the Amigo Group to conduct its FCA regulated business or to continue as a London listed company operating in accordance with the UK Code of Corporate Governance.”
The FCA declined to comment.
High cost credit lenders must offer helping borrowers in difficulty during the coronavirus crisis, with assistance including up to three months of reimbursement leave.