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Yeah maybe/hopefully..i do believe that of all the lenders in the guarantor space that Amigo is probaly most responsible.. for starters they actually lend the least as an upper limit so hints at not taking p#ss and also JB set the tone and culture of biz which is a good thing you d think.
their website and their adverts make it clear as day that "guarantors to pay if you dont". im sure the paperwork people sign explain it fully too.
cant comment on the incorrect admin side, there will always be some issues when it comes to humans filling in paper work but these should be limited to maybe a dozen or two a year, cant be with the majority of loans.
The 7 day cooling off period - thats standard across every contract for every business, no reason to not allow people to pay you back in full and cancel the debt within this period, can see this being misused with people knowingly taking on the loan using the money and trying to have interest free cash for a week but thats part of the risk of the business. (only the car industry seem to get around this one every day)
We have laws about enforcement in this country, if the law was upheld while trying to enforce people to repay their dues and it was to vigorous then the law need to change.
im sure the majority of staff did and do their job right, everyone makes the odd mistake.
Another day another 1% closer.
Amigo Advert : https://www.youtube.com/watch?v=AiriJfsGXvE&list=PLIHJyBJKF0EcrT50r5-weT9D8Cq3ruwqe
But affordability is only 1 of 5 other issues which includes things like not enough clear information for the guarantors. There are complaints about them thinking they were acting as a referee not being on the hook for the loan. There are complaints about enforcement processes being too vigorous. Complaints about the loans being recieved in 48 hours with sellers chasing for signed docs, when they should get a full 7 days with no contact to weigh things up. Also that Guarantors are seen as an easy backstop not a last resort. There is some real root to branch change that is going to happen as this is not a single issue about Affordability.
the APR isnt the issue, its the FCA / FOS changing the afordability criteria and trying to backdate it.
If it was then simply changing the top rate to 39.95% and undercutting the big banks, loaning to less people who really need access to finance would solve the issue.
and if FCA still think amigo is not affordable then they can investigate every bank, credit card, car financing company and everyone else under the sun that is charging more.
dont forget that even the likes of Halifax charge *up to* 29.9% for standard loans to sub prime customers (and they do actually charge these rates to some people too). not much difference between 49% and 29%, if one is not affordable the other is aswell.
Malpenn - amgo doesn't have 49.9% apr, it's "UP TO ...", thus weighted average is lower (especially if only non-defaulted loans taken as basis)
Secondly - all these political (Claims/FOS stance, Brexit/Impairment etc.) concerns were clearly outlined in Richmond Group annual report for year ending Mar-2019 (!!) - check "Director's Report" - "Going concern" part on page 10.
We all forget that customers are coming to Amigo, not the other way around. At the end of the day Amigo did not approach or force anyone to get a loan from them. It is a free country and market, everybody has a choice.
Same thought for credit cards Malpenn
Not sure how the FCA / MPs can be supportive of banks changing 40% APR for overdrafts but take a totally different approach to guarantor loans which are charging 49.9% APR. Certainly if there has been irresponsible Lending then that not right but why doesn't Amigo go more main stream with good credit guarantors/lenders to offer a lower APR rate and challenge the banks who are reducing their lending. Come on Glen gives us a direction update RNS..
Buys coming back in now should move up
Not going well for NSF this week, firstly FCA investigation into the guarantor arm and now HSBC sold out all their shares. No placing while the FCA are investigating, surely this presents a massive opportunity for Amigo to introduce new lending criteria including Open Banking, gain approval from FCA to confirm new processes and restart lending. If only it was that simple...