As you may be aware Amigo Loans floated on the Stock Exchange recently. This made the company worth £1.3billion!
But, despite all the lovely adverts and little blue people, it appears that Amigo might have been pretty naughty just before they floated, and this thought is being investigated by the City watchdog.
It seems that Amigo invented something called “Pilot Loans”. Pilot loans were given to people who would not normally meet the lending criteria and it is believed that Amigo may have done this in order to make the company worth more just before the float (public sale).
Amigo says they released £99million worth of Pilot Loans in the year to March 2018 which is about 20% of its total loan book. This is a lot of high-risk loans being lent to consumers who cannot afford them.
So, there is potentially a lot of people who maybe have an existing or closed loan from Amigo and they really should not have been lent the money at all. Amigo may well have known that the loan was unaffordable but the lent anyway.
An Amigo spokesman said: 'The pilot lending program enables research on the benefits of lending to borrowers who have guarantors who fall just outside of the boundaries of our credit scorecards.'
At Redbridge, we specialise in making loan claims. In fact, that is all we do, nothing else but make complaints to lenders about their loans.
Amigo Loans is a very big company, worth a lot of money and we can help you get a refund from them if the loan was unaffordable and should not have been lent to you.
We are different from most Claims Management Companies in that we only charge our fees on money actually sent to the customer. So if you owe Amigo £14,000 and we get you a refund of, say, £10,000 you would owe us nothing at all. It really is “No Win No Fee” and we believe that we offer great value for money and you will only ever have to pay us a percentage of the money received.