Amigo told to spell out risks of guarantor loans

Industry News | 28/11/19

Amigo Holdings has been ordered to explain more carefully the risks that people are taking on when they agree to guarantee a loan for a family member or friend.The company, the market leader in guarantor loans, admitted yesterday that the Financial Conduct Authority had identified areas where there was room for improvement, but it insisted that the regulator had not raised any concern about its main product or its business model.

Shares in the company crashed by more than 50 per cent in August after it reported a rise in bad debts, earmarked more cash for customer complaints and said that loan growth would slow to a standstill after a regulatory crackdown.

Source: The Times