You are here: Home - Credit Cards & Loans - News -

Amigo investigated over its ‘creditworthiness’ process

0
Written by:
01/06/2020
Amigo is being investigated by the financial watchdog over the way it assessed customers’ ‘creditworthiness’.

The guarantor lender revealed that regulator, the Financial Conduct Authority (FCA), is probing it over the way it handled applications, specifically relating to the way it assessed customers’ creditworthiness.

Subprime lender Amigo offers high interest loans of up to £10,000 to people with poor credit history, allowing them to name family or friends as guarantors.

As part of Amigo’s regulatory update, it stated: “On 29 May 2020 the FCA commenced an investigation (the “FCA Investigation”) into whether or not Amigo’s creditworthiness assessment process, and the governance and oversight of this, was compliant with regulatory requirements. The FCA Investigation will cover the period from 1 November 2018 to date.”

Amigo temporarily suspended new lending activity in March, except for loans to key workers in exceptional circumstances.

And in January, Amigo put itself up for sale as it launched a strategic review amid “a challenging operating environment”.

Richmond Group Limited, which owns a 60.66% stake in Amigo, kicked off the formal sales process and today it was confirmed that it is in ongoing discussions regarding the terms of any offer with a potential buyer.

It stated: “Amigo will provide further updates as appropriate, however there can be no certainty that any offer will be forthcoming nor as to the terms on which any offer will be made.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week