Amigo Loans says repayments remain strong despite the rise in delinquencies

links patrocinados

Amigo Loans has said that repayments remain ‘robust’, despite ‘an increasing trend in delinquency’, as the troubled firm awaits approval to start lending again.

links patrocinados

In its results for the year to the end of March, the company said that overall debt collections, including early repayments, were still strong despite an increase in the number of people who were falling behind with repayments.

But it added that the financial squeeze caused by rising inflation will likely affect its customers in the coming months.

Amigo Loans, which saw revenue tumbles, is awaiting approval by the Financial Conduct Authority to start lending again

Amigo Loans, which saw revenue tumbles, is awaiting approval by the Financial Conduct Authority to start lending again

Amigo Loans, which saw revenue tumbles, is awaiting approval by the Financial Conduct Authority to start lending again

‘While unemployment trends are favorable, the cost-of-living crisis is expected to have an impact on our customer base,’ said chief financial officer Danny Malone.

‘Significant uncertainty remains in respect of future customer behavior and collections as the cost of living increases and the loan book decreases.’

links patrocinados

Revenues fell by 48 percent to £89.5 million, as a result of a halt to lending in November 2020 after a deluge of complaints from people who accused the firm of selling them loans that they could not repay.

The guarantor loans provider swung to a pre-tax profit of £167.9 million, from a loss of £283.6 million.

But it stressed that this was due to it taking a £156.6 million complaints provision release following the approval of its latest scheme to settle mis-sold customer claims.

‘The profit we are reporting today of £170 million should not be taken as an indication of company performance or shareholder benefit,’ chief executive Gary Jennison said.

‘It is a result of the recent Court ruling in favor of our Scheme of Arrangement to pay out compensation to customers who were mis-sold loans.’

Under the scheme, creditors are in line to receive at least £116 million between them, which represents around 41p for every £1 they are owed.

This is dependent on Amigo’s restarting lending within nine months of approval and completing a successful equity raise by May next year.

‘We are continuing to engage with the Financial Conduct Authority on the terms of Amigo’s return to lending, and we are grateful to them for working closely with us over such a long period of time,’ Jennison added.

Last month, Amigo said it was planning to offer two new products – a personal loan and a guarantor loan – under a new brand called RewardRate.

Amigo Loans shares were down 8.5 percent to 4.44p in early trade.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width: 636px; margin:0; padding:0; line-height: 120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height: 120%; text-decoration: none; font-family: Arial, Helvetica, sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color: #af1e1e; } #fiveDealsWidget .widgetTitle { color: #fff; text-transform: uppercase; font-size: 18px; font-weight: bold; margin: 6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width: 124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin: 10px by 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color: #004db3; font-weight: bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block! important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Leave a Reply

Your email address will not be published.