ao link
Credit Strategy homepage
Intelligence, insight and community
for credit professionals

Dear visitor,
You're reading 1 of your 3 free news articles this quarter

 

Register with us for free to get unlimited news, dedicated newsletters, and access to 5 exclusive Premium articles designed to help you stay in the know.

 

Join the UK's leading credit and lending community in less than 60 seconds.



Register now  or  Login

FCA tells Amigo Loans to better explain risk to guarantors

The Financial Conduct Authority (FCA) has told guarantor loans lender Amigo Loans it must more clearly explain the risks to people when they agree to act as a guarantor for a friend or family member.

Share on LinkedInShare on Twitter

It comes after the regulator undertook a review of Amigo to “better understand the role of guarantor”.

 

The review focused on the information made available to potential guarantors and how sufficient this is to ensure potential guarantors reach an informed decision ahead of becoming a guarantor.

 

The feedback Amigo received from the FCA has not raised concerns with the guarantor loan product itself, nor made comments about its underlying business model, the lender said.

 

In a statement to the London Stock Exchange, Amigo said the review identified areas where its customer journey could be enhanced, including “increasing the explanation of key information provided to potential guarantors” and increasing disclosure on the likelihood that guarantors could be called to make payments.

 

Amigo chief executive Hamish Paton said: "We are grateful for the significant amount of time and effort that the FCA has committed to the Review and we take on board all of the improvements they have identified. These will be good for customers and other stakeholders, and further reinforce our strategy of doing the right thing for all our borrowers and guarantors."

Share on LinkedInShare on Twitter
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

Stay up-to-date with the latest articles from the Credit Strategy team

READ NEXT

Via Atal: Unlocking global growth

Via Atal: Unlocking global growth

The Budget - 2p National Insurance cut confirmed by the Chancellor 

The Budget - 2p National Insurance cut confirmed by the Chancellor 

2024 Credit 500 unveiled

2024 Credit 500 unveiled

Credit Strategy

Member of

Get the latest industry news 

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, 1-2 Paris Garden, London, SE1 8ND. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group