Save, make, understand money

Credit Cards & Loans

Amigo pauses new lending

Paloma Kubiak
Written By:
Paloma Kubiak

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

In a covid-19 trading update, guarantor lender Amigo said in light of the government’s effort to combat the virus and the economic uncertainty at this time, it has taken the decision to temporarily pause all new lending activity.

The exception is for lending to key workers and only in ‘exceptional circumstances’.

Amigo said employees freed up from the pause in lending activity will be moved to other teams to increase capacity to help existing customers, particularly where they may need forbearance given a change in financial circumstances.

The statement read: “We will reassess our approach to new lending on a regular basis.

“Amigo is mindful that it has a requirement to maintain as normal a service as possible to existing customers, while also protecting the health of our employees. We have ensured as many of our employees as possible are working remotely from home, in accordance with the UK government advice.”

Amigo confirmed it is continuing with its sale process announced in January following concerns about increased regulation and “a continual evolution in the approach of the Financial Ombudsman Service.”