Amigo customer numbers halve in a year

Sub-prime lender Amigo has witnessed its customer numbers half in just a year even facing the worst cost of living crisis in decades a key time for consumers to take out “non-traditional” loans.

The troubled group that has had run ins with the Financial Conduct Authority (FCA) that led to its self-imposed departure from the lending market two years ago has seen customer numbers dive by 48.3% from 118 million in the three months to the end of June last year to 61 million during the same period this year.

Revenue at the lender, now involved in a customer compensation scheme as a result of mis-selling complaints, also slid by almost 70% during the period from £10.4 million from £32.5 million last year.

Amigo will return to the market later in in the year with a loan product called RewardRate with a personal loan starting at 49.9% APR while its guarantor interest level for the product begins at 39.9% APR.

Gary Jennison, boss of Amigo, said: “We continue to engage positively with the FCA around our return to lending. This is the next step in our recovery, ahead of a proposed capital raise and would enable a new start for the business having taken on board the learnings from the past.

“Our new lending proposition, under the RewardRate brand, aims to offer a more affordable, responsible and flexible option to underserved customers who currently have very few choices.

“We believe fair and responsible non-standard lending choices are vital to creating greater financial inclusion and mobility.”