27th Nov 2019 16:20
(Alliance News) - Amigo Holdings PLC said Wednesday a review of guarantor loan products by UK regulators had not raised concerns, but did offer areas where "our customer journey could be enhanced".
Amigo provides loans to consumers in which payments are guaranteed by a friend or family member.
Amigo was provided with the outcome from the Guarantor Understanding Multi Firm Work review undertaken by the UK Financial Conduct Authority. The review was intended to help the FCA "understand better" the role of the guarantor in the loan.
The firm said the FCA review had not "raised concerns with the guarantor loan product" nor "made comments about the underlying business model at Amigo".
It did, however, propose areas where customers could be better informed, Amigo said. These include providing more explanation of the key information given to providers and increasing the disclosure of the likelihood that guarantors could be asked to make payments.
Amigo believes the proposed changes will "not fundamentally alter the attractiveness of the guarantor loan product relative to higher cost alternatives for our borrowers".
"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," Chief Executive Officer Hamish Paton said. "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."
Shares in Bournemouth-based Amigo were 0.5% higher at 59.90 pence in London on Wednesday.
By Ahren Lester; [email protected]
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