Amigo Holdings PLC, (Amigo), the leading provider of guarantor loans in the UK, announces results for the nine-month period ended 31 December 2020.
Commenting on the Q3 results, Gary Jennison, CEO of Amigo, said: “Amigo has made considerable progress over the third quarter of our financial year with an entirely new Board enabling a fresh and different approach, focused on customer outcomes. Following the period end, we initiated our Scheme of Arrangement process.
“When I started as CEO over five months ago, I knew we had to do something significant to deal with the complaints we were getting. We’re very focused on doing the right thing for all our customers, including the 700,000 past borrowers and guarantors who no longer have a loan with us. The Scheme was a difficult decision for us to make. We had to look at all the options, and we considered every possibility. We’re doing it to treat all our customers and other stakeholders fairly and we believe it is absolutely the right thing to do.
“We are paying redress due to customers with final response letters issued prior to 21 December 2020 and handling all final decision letters from the Financial Ombudsman Service (FOS) prior to this date. We are still getting new complaints in, and our team is dealing with them, responding to them, and we’re explaining to customers how they can benefit via the Scheme of Arrangement.
“We’re a small leadership team at Amigo and we will spend the coming weeks focusing on the Scheme. Once the Scheme has started going through the Courts and we’ve agreed the go forward business model with the FCA, then we can turn our attention to lending. We’ve seen our customer base shrink by over 30% over the last 12 months, as they’ve settled or finished their loans. We want to get Amigo back to life again.
“Amigo has a valuable role to play in the non-standard lending sector, when mainstream finance will not lend to people who are excluded from their lending proposition. We have a real purpose to help provide financial inclusion to millions of adults in UK society. The newly formed team of people here have gravitated towards Amigo to help us to work with regulators to fix the challenges from the past and to do the right thing for customers.”