RE: Number of Complaints7 Jul 2020 20:28
"We currently lend to approximately 15% of people who start the loan application with us and over 90% of loan repayments are from borrowers, as opposed to guarantors. This demonstrates the effectiveness of our affordability processes."
https://www.amigoplc.com/investors/investor-faqs
"How do you assess affordability? Are these checks robust?
We have confidence in our affordability processes which have been thoroughly reviewed during the Financial Conduct Authority authorisation process and are supplemented by regular internal reviews.
It’s not in Amigo’s interest to give out loans to individuals who are unable to repay them and our affordability processes go above and beyond standard industry practice by asking for a detailed line by line breakdown of expenses from both the borrower and the guarantor. Amigo Loans charges no additional fees or costs, including to customers in arrears, and already caps the total interest a customer will pay.
Customers must be able to demonstrate they can meet all their commitments, rent, bills, food, clothes etc. and any other credit commitments, as well as their payments to Amigo Loans, and still be left with an £100 buffer.
We then undertake extra levels of questioning where needed to help us make a more informed decision about affordability. We speak to all guarantors over the phone to ensure they are aware of their responsibilities.
We currently lend to approximately 15% of people who start the loan application with us and over 90% of loan repayments are from borrowers, as opposed to guarantors. This demonstrates the effectiveness of our affordability processes."