Amigo Loans Irresponsible lending complaints thread

antrobus

onwards&upwards wrote: »

At nearly 50% interest, you don’t think that’s outrageous?

Compared to:

1421% APR representative (variable)
https://www.oakam.com/

it's an absolute bargain.:)

Despite it's guarantor model, Amigo currently has a 30.5% impairment to revenue ratio - for every £10 it earns it writes off £3.
https://www.proactiveinvestors.co.uk/companies/news/901700/amigo-warns-of-higher-impairments-as-it-prepares-for-regulatory-crackdown-and-hard-brexit-901700.html

It is basically sub prime lending supported by just about creditworthy guarantors.

onwards&upwards

Willing2Learn wrote: »

Personally, I do not think 50% is outrageous. Their target market are for borrowers with a poor credit history. Borrowers who are unable to get a loan without a guarantor. The borrower has the choice whether or not to accept the lenders terms and conditions.

Their marks are people who are desperate and have no other options.

societys_child

BUT, they don't lend to people with poor credit history, they only lend to the guarantor, who was stupid enough to take on a high interest loan when they could have got one much cheaper . . . someone who could afford to repay it. How is that irresponsible?


A rip-off, but not irresponsible.

[Deleted User]

onwards&upwards wrote: »

Their marks are people who are desperate and have no other options.

There are always other options. Always. People might not like them, but they are there. Anyone who uses Amigo for a loan is an idiot. Anyone who guarantors someone is a bigger one.

Imagine a world where people took responsibility for their own actions and managed their money properly. Amigo wouldn't exist.

boo_star

camelot1971 wrote: »

There are always other options. Always. People might not like them, but they are there. Anyone who uses Amigo for a loan is an idiot. Anyone who guarantors someone is a bigger one.

Imagine a world where people took responsibility for their own actions and managed their money properly. Amigo wouldn't exist.

Nor would the FOS.

onwards&upwards

camelot1971 wrote: »

There are always other options. Always. People might not like them, but they are there. Anyone who uses Amigo for a loan is an idiot. Anyone who guarantors someone is a bigger one.

Well exactly, the whole business model is based on exploiting idiots and the desperate. I don’t think that’s great, personally.

Do you think Amigo tell people about the other options and direct them to Step Change before taking their loan application?

boo_star

onwards&upwards wrote: »

Well exactly, the whole business model is based on exploiting idiots and the desperate. I don’t think that’s great, personally.

Do you think Amigo tell people about the other options and direct them to Step Change before taking their loan application?

Do Halifax, or RBS, or any other prime lender?

Why do you think different rules apply to subprime lenders vs prime ones?

Willing2Learn

This is why I hate threads like this one as mostly it is full of posts from people who have a total lack of empathy and compassion. It is always the most vulnerable in our communities that are negatively impacted by businesses such Amigo, who gorge themselves off of misery, anguish and pain.

boo_star

Willing2Learn wrote: »

This is why I hate threads like this one. Mostly it is full of posts from people who have a total lack of empathy and compassion. It is always the most vulnerable in our communities that are negatively impacted by businesses such Amigo, who gorge themselves off of misery, anguish and pain.

No, they have a business model that requires they charge more because their customers stand a greater chance of defaulting vs Mr and Mrs "Bucket" from middle England.

I'd rather these companies didn't exist at all, but I do understand that people from all walks of life have a need to borrow money from time to time and they're simply satisfying the demand from one part of the market.

molerat

The problem is that there are many that are willing to jump in and fill the void if the payday lenders scale back and they have a much better success rate in recovering what is owed. Be careful what you wish for.