Amigo CEO comments on payday loan charter
Press Release - 15 October 2013
Responding to the launch today of the cross party Charter to Stop the Payday Loan Rip-off, James Benamor, CEO and founder of Amigo Loans, commented:
It’s great to see Parliament taking a stand against these payday predators and calling for tighter regulation across the industry. We’ve long been campaigning for better regulation across the industry and we give this charter our full support, but there is obviously still so much more that needs to be done to clean up the sector and like everything, it’s all taking too long to sort out.
Payday loan companies prey on the most vulnerable people out there, charging extortionate interest rates and misleading consumers with hidden charges, and they have been allowed to get away with their shady practices for far too long. What’s vital now is that the FCA presses on with its changes to the sector and that more is done to support those who have fallen victim to payday loan companies. Thorough affordability checks need to become essential so that loans are only given out to those who can actually pay them back. Consumers also need to be aware of the cheaper, alternative lending options available to them such as credit unions and guarantor loans, so they don’t feel pushed down the dangerous pay day route.
Amigo Loans’ lending is based on trust, personal endorsement and one-to-one interviews offering loans using friends and family as guarantors. An Amigo loan gives borrowers the opportunity to build or rebuild their credit score, as opposed to destroying it through the use of payday loans. Interest is calculated daily, there are no charges or fees for early or late repayment, and it can work out thousands of pounds cheaper than regularly using payday lenders.