Amigo shares slip after watchdog expands investigation into troubled lender

Shares of troubled lender Amigo fell further after he said the financial watchdog extended the scope of an investigation into the company.

The guarantor lender told investors on Tuesday that the Financial Conduct Authority (FCA) would continue its lengthy investigation.

The FCA launched the survey last May into how Amigo assesses clients’ creditworthiness and its governance of the process.

The company provides money to borrowers who have a friend or family member willing to guarantee the loan.

However, he was accused of failing to properly assess whether clients could afford loans.

The investigation had covered the period from November 1, 2018 to May 20 of last year, but will now be extended to cover complaints from May to the current date.

“The FCA’s investigation will examine whether these complaints were handled appropriately and whether customers were treated fairly,” Amigo said in a statement.

In his stock market update, Amigo said he “will continue to cooperate fully with the FCA”.

Last year, Amigo revealed that claims provisions climbed to £ 159.1million in its six-month period after receiving 25,000 complaints, with an increase in those from claims handling companies representing clients.

The company also warned that there was “significant uncertainty” about its ability to continue as a business after a year in which its founder James Benamor also attempted to reshuffle its management team.

Amigo shares were down 13.8% to 11.8p at the start of trading on Tuesday.

Source link

About Jamie Collins

Jamie Collins

Check Also

Former chief of China’s top state lender Xiaomin executed for corruption

Lai Xiaomin, the former head of China’s largest state-owned asset management company, was executed on …