Gary Jennison, chief executive of Amigo, said: “In the last 10 months we’ve built an entirely new management team at Amigo to address the historic problems facing the business. We’re currently working night and day to do everything we possibly can to reach a solution that is best for all of our stakeholders.
“We want a scheme of arrangement that delivers fair recompense to customers; we want to deliver returns to our 8,000 individual shareholders and security to our bondholders; we want the regulator to be satisfied with our actions and we want to keep our 220 remaining staff in employment. In future we want to stay in business to serve the 15 million British people that can’t get a loan from a high street bank and can’t get a loan anywhere else at less than 100pc [interest rate].”
But given those compensation costs it’s unlikely that you are going to be able to do that. In fact, given those compensation costs it would be better to start all over again inside a new corporate shell…..or not, as the case may be.
In larger terms this is a lesson for all about all that high cost credit and all. It’s expensive to make loans to low credit rating customers. Which is why the companies that do it don’t make excess profits. Or, as it appears here, any. At which point complaints about APR rates rather fade away – it’s an expensive thing to do therefore it’s an expensive thing to buy.