Amigo Loans seeks buyer amid “increased pressure” from Ombudsman

Guarantor-based loans company Amigo has announced it is looking for a buyer for the controlling stake in the business.

Amigo has launched a formal sales process after its controlling shareholder, Richmond Group, announced its willingness to sell its 60.66 per cent holding in the company.

The company, which specialises in loans secured with a guarantor, is also undergoing a ‘strategic review’ of its proposition, which it said could impact future lending volumes.

In a statement this morning, the firm explained: “While Amigo remains confident in the robustness of its approach to lending decisions, we are concerned that there may be increased pressure on our business and a continual evolution in the approach of the Financial Ombudsman Service.

“We continually look to enhance our processes and are monitoring developments with a view to assessing the long-term impact on the company.”