Claims Handling21 Jul 2020 12:29
The handling of the claims is going to be what is the make or break of things. This is an article JB wrote a while ago explaining his share sale. I'll not post the whole article as it can be accessed via the link and has probably been posted on this board. However one of the comments caught my eye which I have posted under the link.
https://medium.com/@jamesbenamor/you-will-have-seen-the-the-amigo-board-has-decided-to-pursue-an-injunction-against-richmond-group-86cf453d51d8
"Bank rates ??. I took out a loan with Amigo Loans in 2015 for £5500.00. I have one more payment remaining and to date have paid them £12,468.78, over double the initial amount borrowed. When applying for the loan, i was £15,000.00 in debt, had several CCJ’s and was in arrears with multiple creditors. During the application process over the telephone, a basic income and expenditure was gone throgh in which it was found I had more outgoings than incomings. Their response, lets ‘re-jig’ these figures, dont worry we will be able to get this loan paid out, knowing that my guarantor had faultless credit and no matter what they would get their money back, no thought for their irresponsible lending with false affordability checks, saddling people who are already struggling, with further worry and debt. Glorified loam sharks who will hopefully end up up the same way as Wonga, Quick Quid and the rest. Raised this issue with them and 18 weeks down the line they are inundated with complaints so are unable to confirm when they will respond, no doubt my phone call during the application process will have been accidentally deleted as well ??"
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There needs to be some culpability on both sides. This is obviously an individual who cannot get mainstream credit for whatever reason he requires it. If someone takes you through an affordability test and you can see that your outgoings are more than your incoming then why on earth would you take out a loan? I can perhaps suggest a reason why.....
The gentleman goes on to say he had a number of CCJ and was in arrears with multiple creditors. A lot of these people used doorstep loan companies at ridiculous rates i.e. Sunny = 1,293% APR and then came to Amigo with the help of a guarantor to clear their ridiculous high interest loans onto something more manageable which is roughly 10% above High st bank overdraft rate. Which is an infinitely better situation to be in, since no bank would touch them.
He then goes on to say he only has one more payment left, which obviously suggests he has been able to pay the loan.
You can tell from how this is written that this particular gentleman now sees an opportunity to try and recoup money by complaining about the affordability of his loan. If claims like this are not handled robustly this is going to be very difficult for the company. Particularly with the press coverage this getting
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