RE: 2018 Mcap was GBP1.31 billion. 275p!!!15 Aug 2020 13:18
Its not going to be completely right but the actual cost to the company for the interest is bugger all in the scheme of things on their capital, it will probably end up costing more in admin and will defiantly have the potential to cost them more in legal fees if they still charged the interest over the period.
At the end of the day Amigo has what £300-£400m from Bonds that are costing amigo interest, the rest of their pile is made up of cash raised by shareholders and profits which has a zero maintenance cost to amigo now the div has been suspended.
Its much easier and cheaper in the long run to say to the customer - you have "X" payments to repay which comes to a total of "£Y", at the end of this holiday you will still have "X" payments to pay which comes to a total "£Y".
Y + interest over the holiday period makes it to complicated for the customer base and would create more issues, when you are having court battles over the fact that the customer doesnt understand the role of a guarantor or that the money they receive is not actually free and needs to be repaid its pretty obvious that they would not understand extra fees and interest added to their loan.
Im sure a court would take the customer side against amigos with their promise of "We hate fees as much as the next person, that’s why we don’t charge any. That’s right - no fees whatsoever!" the extra interest could be used as an attempt to charge fees, mis-sold the customer, and whatever other excuse the CMC / FCA / lawyers would like to insinuate.
and i didnt know they made it 6 months, thought it was 3.
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