Amigo Loans is a UK-based lender that specializes in guarantor loans. The company was founded in 2005 by James Benamor and went public in 2018, with an initial public offering (IPO) on the London Stock Exchange.
The company’s revenue has grown consistently over the years, with an increase from £126.6m in 2019 to £138.1m in 2020. However, the company has also faced some challenges, particularly regarding its affordability checks and complaints handling processes. In 2019, the company faced criticism from the UK’s Financial Conduct Authority (FCA) for not properly assessing customers’ ability to repay loans, and in 2020, the company was fined £30m by the FCA for mistreating customers who fell behind on repayments.
In terms of its forecast, the company’s financial performance has been impacted by the COVID-19 pandemic, with a reduction in loan volumes and revenue in 2020. However, the company remains optimistic about its future prospects and has implemented cost-saving measures and efficiency improvements to streamline its operations.
In terms of its director details, the founder and former CEO of Amigo Loans, James Benamor, resigned from the company’s board of directors in 2019 but remains a major shareholder. The current CEO is Gary Jennison, who joined the company in 2020. The company also has an experienced board of directors, including former chief executives and finance directors of major UK banks.
Overall, Amigo Loans has had a mixed track record, with both positive and negative news surrounding its business operations. The company is facing challenges in navigating the regulatory landscape and maintaining customer trust, but its experienced board of directors and cost-saving measures could help position it for future growth.
information about Amigo Loans includes the fact that it has been involved in controversy around its business model, which involves lending to borrowers who find it difficult to access credit from traditional lenders. The company’s guarantor loans require a third-party guarantor to guarantee repayments, which has led some to accuse the company of taking advantage of vulnerable borrowers.
In addition to criticisms from regulatory bodies, the company has also faced legal challenges from customers who claim they were misled when taking out loans. In 2020, the company announced it was putting aside £35m to cover potential complaints from customers who felt they had been treated unfairly.
Despite these challenges, Amigo Loans has continued to operate and has implemented changes to its processes and policies to respond to regulatory concerns. The company has also invested in new technology and data analytics to improve its affordability checks and enhance customer experience.
The COVID-19 pandemic has had a significant impact on the company, with loan applications and revenues declining. The company has responded by tightening its lending criteria and cutting costs. However, it has also faced criticism for its handling of customers who have experienced financial difficulties as a result of the pandemic.
The current forecast for Amigo Loans remains uncertain, with ongoing regulatory scrutiny and uncertainty around the impact of the pandemic on the lending market. The company’s directors will need to navigate these challenges to ensure the long-term viability and success of the business.