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From Amigo's website:
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.
JB sold 60 % of the company and so far we got only 1 RNS from Glen buying extra 1.5 %. Still for me this is a mystery, where are all these shares ?
It is up to 2 trading days for UK holders and up to 4 for non-UK.
OK, and the company did confirm this.
Yes, and they will start lending again by the year end.
Why would they prepare to start lending again ?
Guys, come down, company confirmed what we what to know, everything else is a history, lets look to the future and forget JB and his games:
As we said in the AGM statement, the whole team at Amigo is focused on addressing our legacy issues and building a sustainable business for the long term. Operationally we are making progress in our handling of complaints, we are in proactive dialogue with the FCA and we are preparing to start lending by the end of 2020. We have adequate liquidity and funding to support this.
James wants to become CEO of the holding company, for which is not needed FCA approval. There are x2 separate companies and positions.
Hi Richmond, what ever happens on the vote, we have 1 hint from the board that lending will resume by the year end, that is the most important, everything else is just politics, dont forget as well that even without new lending the company still managed to make a small profit
Yes, if you have the funds or income. What do you do if you do not have the income or funds ?
This only can mean 1 thing - increased demand for Amigo's products and loans. People need to have access to finance and Amigo will be there to support them.
Sky is blue today. JB should be completely out by now. Lets celebrate.
That is excellent, thank you Guys. So if Amigo continues collecting only loan repayments with the same speed, then the actual unrestricted cash at the end of September should be around 200m. Plus I would expect the actual amount paid out to claim to be much, much lower. Happy times ahead.
Agree it is unrestricted, and in my opinion 116.4m should not be included and should be separate. What do you think is that correct ? If it is separate, that means that their cash is over 261m inclusive of provision for complains.
Guys in Q1 results the unrestricted cash is GBP 145.2m, is that inclusive of the 116.4m provision for the complains or not ?
Guys, come down, JBs plan is working and is in place. I do fully support him in his actions. Last step is to have a confirmation that Glen is staying and willing to work together with JB, this is final; piece of the puzzle. Then is party time.
I would of thought that JB's lawyers are aware of this. In any case episode 2 is coming, let see how JB will react, it is becoming interesting drama and fight for control and shares
No mentioning of JBs offer, should that happen at the AGM or we have to have a separate EGM, I am a bit confused, any ideas ?
Contract will be finalised and published tomorrow ( which is today).
https://tinyurl.com/y3f27cy8