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Martin lewis - Money Saving site has targeted guarantor loans, and names Amigo multiple times in their article, but no other company has been named ??.
He’s basically suggesting every loan for the last 6 years can raise a claim, sighting 90% successful payouts, regardless of if the person had any issues paying the loan back! The borrower can claim for all the interest paid plus 8% for each year, but not the loan amount.
He’s providing templated letters to help, what a joke!
It looks like Amigo and others offered Top Up loans and didn’t seek further authority from the guarantors, not good practice I would have to agree.
I need Amigo to do well, so want to see more statements of this, historical issue, being brought under control, and the scale.
“Nine in 10 complaints about guarantor loans are successful - that's even higher than for PPI”
“It is my understanding that they are not due until 2024.”
Aslong as amigo can operate without breaching any covenants on the bonds and continue to pay the coupon this is plenty of time to sort out legacy issues and get them refinanced before hand if needed. (Or continue to buy them all back slowly at a discount to face value Once the main issues are resolved)
Terry
The was a link put on here last night around 8pm ish
The FOC publish the list of shame
We had an upheld rate of 87%
A quick recap would be useful to me at least. Was reminding myself of JBs original tirade where he stated..
"Now, irrespective of the budget plan, any indication that the customer had been living beyond their means (or might do in the future) became a reason to retrospectively refund all interest payments as far back as 2010". Elsewhere it was suggested from November 2018 which was the most plausible but TBH this has dragged on enough for me to forget..i do know its not systemic faillure at least aka you pay out everyone regardless of whether they claimed or not...anyone remember how far back this goes categorically.....
Terrytibbs54
I do not think the bonds can be called in until 2024 as this would be a breach of their agreement.
It is my understanding that they are not due until 2024.
So plenty of time there for the company to get back on track:
"At the year end we had a diversified capital structure including senior secured notes in the form of high yield bonds, a super senior revolving credit facility (RCF) and a securitisation facility, in addition to cash generated from our operations. There are no near-term maturity dates in our financing structure; the maturity of our senior secured notes is 2024"
Unless anything has changed since the statement?
Sorry RNS not email.
I suspect bondholders will sit tight as everyman and his dog read the last email and realised AMGO are shackled by the FCA for the time being, albeit interest payments are not dividends so they will IMHO honour the next call payment anyway from cash reserves as this is an expense of the business and not a discretionary payment.
£4,500 is the average refund (regardless if it is a cash refund or loan right off or a mixture)
the £650 fee will become a few Million but not end of the world.
No thoughts on bondholders.
Thanks blind. Should come in under target/provisions then.
£10k is not the maximum claim - there are an estimated 20k claims submitted - average refund £4.5k
I think AMGO will have a massive surplus after this has unwound. By my calc we had £145 mn cash which should be about £165 mn minus deductions.
Just waiting for the next string of RNS’s to give us a well overneeded re-rate, byt buying what l can at these levels with what cash l have as in 3-6 months l suspect we will all be in a much happier place!
Maybe that's why the Asset Voluntary Requirement was put in place. If they do have money over from what was put aside for claims the FCA wanted to put a process in place before that money is used for Divs or Director bonuses??
They already told us the vreq will cost atleast £35m, lots of claims being dealt with in-house.
64amg .... the 1100 odd claims are referrals to the FOS, not the FCA. The FOS claims / appeals cost Amigo £650 each to be referred to the FOS + any refund and compensation the FOS deem is due.
If amigo have 1000 claims as indicated by the FCA even if they paid them all back on
The basis of refund at the maximum £10,000 per individual loan you would still
Only repay £10,000,000 not the £116,000,000 provision taken
Ummmmmmm ........