Amigo Guarantor Loans
All is not happy in the Amigo camp. It looks like the perfect setup for a company about to sell its shares on the Stock Exchange. The flotation made its owner, James Benamor a BILLIONAIRE, but it seems that the price of the company was inflated by rather underhand means.
Amigo Loans has admitted that it lent to a lot of people in the year before its float that it would not normally lend to. It changed its lending criteria to make it easier to let people with bad credit get the loan. It did this probably to make its figures look better than they really were and now there are a lot of customers with loans they cannot really afford.
If you are one of those customers, you should consider making a complaint against Amigo. You can do this yourself or by using a company such as Redbridge Finance.
Fast forward to August 2019 and Amigo Loans has announced that it will change its business model to “head off a regulatory crackdown”. This was really, really bad news for its investors and the City. Almost immediately its share price crashed, losing 50% of its value.
Why did this happen?
It happened because it looks like the price of Amigo was overstated at its float. It floated at 275p per share and then it slumped to 70.7p when it was announced that the lender criteria was flawed.
Is this good news?
Well, it is potentially good news if you are a customer of Amigo and you want to make a claim for irresponsible or unfair lending against Amigo. This admission makes it increasingly difficult for Amigo to reject any claim that it lent unfairly or irresponsibly.
Here at Redbridge Finance, we are getting some great pay-outs from Amigo. One of our recent “wins” was for a customer who still owed Amigo £14,000 and we achieved a £10,000 refund, reducing her balance with them from £14,000 to £4,000.
In situations where there is no money actually returned to the customer (like this case), we do not charge any fees. So we did the work for this customer for free and she got a £10,000 credit on your Amigo Loan Refund.
We would obviously prefer to earn a fee, but we were still really happy for this customer.