RE: AMGO, PFG SP rise23 Mar 2021 00:10
Early in Q2.
Guarantor loans - Following the FCA's review of the Group's guarantor loans division as part of a wider review of the guarantor loan sector, resulting in a GBP16m provision for redress announced in our 2020 half year results, lending volumes were minimal in the second half of 2020. Economically, the younger customer base has been harder hit by the pandemic than our other two divisions and calls on guarantors have been constrained due to the pandemic, resulting in a marked increase in impairment. Collections nevertheless remained robust during the second half of 2020 with the result that the net loan book reduced by c.40% versus the prior year. We are working hard on the redress methodology and hope to have concluded the process with the FCA early in the second quarter.