Amigo Loans Refunds

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Amigo Loans Refunds
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Amigo Loans are the biggest guarantor loans
company in the UK. They control about 80 of the
market and claim to have lent to hundreds of
thousands of people. In 2018 they decided they
wanted to sell some of the company and floated on
the UK Stock Exchange making its founder a
Billionaire overnight. He name is James Benamor
and he has featured on a UK television channel in
a program called the Secret Millionaire.
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It appears that before the sale the company
decided to change the lending criteria it used to
allow more people with bad credit to borrow from
them. On the face of it, this appears a strange
decision as it would almost certainly increase
the level of bad debt and put a lot of consumers
in a very poor financial position. A cynic might
say that they did this to boost the companies
books so it looked bigger and stronger than it
really was. After all they were about to float
the company and make a lot of personal money, so
it was in their interest to make it look stronger
than it really was.
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Sadly, this cynical view is supported by the fact
that the new CEO announced in August 2019 that
the business was changing its business model and
tightening up the criteria again (so I guess they
are going back to the same criteria that they had
previously). The impact of this announcement was
massive, the share price crashed overnight,
tumbling by 50.
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It became obvious that a lot of consumershad been
lent to who should not have been lent to and this
opened the doors to Claims Management Companies
like Redbridge Finance making claims on behalf of
Amigo customers for a refund. Amigo is a PLC and
it has no choice (under UK law) to respond in an
accurate and professional manner. It is upholding
a very high percentage of the Amigo refund claims
and the level at which they are being upheld is
much higher than might have been anticipated,
especially when compared to other lenders.
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The Guarantor lending market is a strange one as
the loan is guaranteed by someone other than the
borrower. So if the borrower does not pay the
money back, the lender goes to the guarantor to
get the money. This has caused a lot of upset and
distress for both borrowers and guarantors.
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For more update , visit us
https//www.redbridgefinance.co.uk/amigo-loans