Amigo Loans has temporarily suspended lending to new customers amid the Covid-19 pandemic.
Amigo is the UK’s largest provider of guarantor loans, offering an interest rate of 49.9 percent APR.
The guarantor lender will now only accept new applications from key workers in “exceptional circumstances”, which will be reviewed on a case by case basis.
Amigo Loans says this decision was taken due to the ongoing uncertainty that the economic implications of Covid-19 has for its customer base.
Existing Amigo Loans customers should not be affected by this change. In a statement from Amigo Loans, it said: “The employees freed up from the pause in lending activity will transition into other teams to increase the capacity of the teams that talk to our existing customers.”
This decision comes after the lender’s founder, James Benamor, resigned from its board in March, after reinstating himself just three months prior. The listed firm’s board and Benamor have had public disputes over its approach to lending, regulatory requirements and the ongoing sale process.
In early March, Benamor took to a blog to publicly criticise alleged actions of the board.