Amigo announces that it has received the outcome of the FCA’s Guarantor Understanding Multi Firm Work (the “Review”).
The aim of the Review was for the FCA to understand better the role of the guarantor. The feedback received from the FCA has not raised concerns with the guarantor loan product itself nor made comments about the underlying business model at Amigo.
The Review focused on the information made available to potential guarantors and how sufficient this is to ensure potential guarantors reach an informed decision ahead of becoming a guarantor.
As expected, the Review identified areas where our customer journey could be enhanced, including increasing the explanation of key information provided to potential guarantors and increasing disclosure on the likelihood that guarantors could be called to make payments.
Amigo has sought to stay ahead of regulation and is reassured that a number of the action points raised in the Review are already in the process of being changed. We will prioritise efforts to adopt the relevant operational changes as soon as reasonably possible.
Amigo believes implementing these enhancements will not fundamentally alter the attractiveness of the guarantor loan product relative to higher cost alternatives for our borrowers, nor will it deter willing guarantors from supporting deserving friends and family to allow them to be financially included.
Hamish Paton, CEO of Amigo, said: “We are grateful for the significant amount of time and effort that the FCA has committed to the Review and we take on board all of the improvements they have identified. These will be good for customers and other stakeholders, and further reinforce our strategy of doing the right thing for all our borrowers and guarantors.”