LONDON (ShareCast) - (Sharecast News) - Amigo's chief executive has pledged to turn the ailing loans business around as he looks to move on from a lengthy dispute with founder James Benamor.
Gary Jennison, who was appointed in August, said Amigo had endured "a tough couple of years" and that many shareholders "will have lost a lot of money" by investing in the firm, a specialist in guarantor loans.

But he insisted he was well placed to turn Amigo around, pointing to both a career turning around other financial services firms and to his "good relationship" with the Financial Conduct Authority and Prudential Regulatory Authority.

In an open letter to investors, he said: "My job is to lead the turnaround, but I can't do it on my own. Amigo is full of good people at all levels and we are working hard to fix the complaints, fix the relationship with the regulator and get Amigo lending again.

"I have seen a lot of evidence that we do things properly. We ask a lot of questions to really understand our customers' outgoings and in-goings.

"There are undoubtedly cases where we have done the wrong thing, but a significant number of the claims that we are getting are not genuine claims."

Amigo lends to people with weak credit scores if a friend or family member acts as a guarantor. But it has been hit by a surge in customer complaints and increased regulatory scrutiny as a consequence. Covid-19 then compounded its problems, forcing it to freeze new lending and offer payment holidays.

Benamor has become an increasingly vocal critic, quitting the board in March in protest and first attempting to wrest back control in June this year. That failed, however, and in September a second attempt also failed when 57% of votes cast at a general meeting rejected his proposal.

The one-time majority shareholder wanted to return to the board and to oust most of the existing management, who he accuses of mishandling customer complaints and regulatory concerns.

As at 1130 BST on Monday, shares in Amigo - which initially traded at close to 300p following their 2018 debut - were ahead 6% at 10.84p.

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