Wednesday, 26 June 2013

Amigo Loans

My complaint to the ASA:

The AMIGO advert makes claims that their lending model is like banking of old when a bank manager would take a personal guarantee when a lending proposition doesn't stand on its own merits.
The simple fact is that banks DID NOT used to do this: lenders who did were castigated and even fired. I worked for Lloyds Bank from 1973 to 1996 and spent the last dozen years as a lending Trainer, finishing up as the Lending strand manager for Thames Valley and East Region. (1/8 of the bank).
At no time did Lloyds (or any other) bank lend money based only on the availability of a personal guarantee or any other form of security. Before credit scoring took over, every lending proposition had to stand on its own two feet before any security was contemplated. Ask the Chartered Institute of Bankers. The availability of security may have made a banker feel happier and secured lending would be cheaper than unsecured lending. At the time, maybe 3% rather than 5% over base rate. Amigo are charging something like 700% APR (~698% OBR) and this also bears no resemblance to banking of old.

Please can we stop them using false nostalgia to justify their horrible practice of preying on the vulnerable. Thanks.

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