Amigo Loans Comments On Citizens Advice Report Findings
Press Release - 28 May 2013
James Benamor, CEO and founder of guarantor loan company Amigo Loans comments: "The findings from today’s Citizens Advice report are shocking and demonstrate irresponsible lending in its worst form. Unless we see tougher regulation, and the enforcement of existing regulation, without delay, more vulnerable consumers will continue to be exposed to immoral practices within the industry. We support anything that goes towards stopping payday lenders selling loans to anyone who isn’t in a position to take on and pay off this debt."
"People deserve better and the industry needs to learn from the likes of credit unions and other alternative providers, where decisions are made in a human way rather than by (profit-based) "Credit Scoring". Payday lenders are failing borrowers by not assessing their financial and personal situation and allowing reckless borrowing to take place."
"Borrowers have complex financial situations and irresponsible lending has ballooned directly in line with the computerisation of decision making. Lenders need to remember why they exist - to help and serve customers, not just to monetise them as effectively as possible."
"The industry urgently needs to get back to basics. Only humans can decide if a loan is appropriate for someone, a computer can’t. Amigo Loans offers an old-fashioned lending model, widely used by banks before the local bank service was replaced by computerised credit scoring. Lending is based on trust, human relationships and through lengthy real discussions where affordability and appropriateness are considered thoroughly."