ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

Richmond Group puts stake in Amigo Loans up for sale

Amigo Loans’ major shareholder has confirmed its intention to sell its controlling stake in the guarantor lender.

Richmond Group, which owns 60.66 percent of the lender, has launched a strategic review and formal sale process, which it said “may result in a sale of the company or a sale of some or all of the company’s business”.

 

In December 2019, three board members, including chief executive Hamish Paton, announced they would step down as its founder James Benamor, who heads up Richmond, returned to its board.

 

Amigo is the UK’s largest provider of guarantor loans and offers an interest rate of 49.9 percent APR.

 

In November, the Financial Conduct Authority (FCA) told Amigo it must more clearly explain the risks to people when they agree to act as a guarantor for a friend or family member.

 

In an update to the stock market today (January 27, 2020), the company said it continues to face a "challenging operating environment".

 

It added: "While Amigo remains confident in the robustness of its approach to lending decisions, we are concerned that there may be increased pressure on our business and a continual evolution in the approach of the Financial Ombudsman Service. Future lending volumes could be impacted by the strategic review of the business model."

 

Mergers and acquisitions in the alternative lending sector will be discussed at the Credit Summit, where Hamish Paton will be among the speakers.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Upcoming events

Credit Summit 2021

Women in Credit Awards 2021

Car Finance Awards 2021

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

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, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group