A boardroom row has gone public after the founder of sub-prime lender Amigo quit the board and accused the company of “committing slow-motion suicide”.
Amigo lends money to people with a poor credit rating, but who can offer family and friends as a back-up to guarantee any missed repayments.
Major shareholder and founder James Benamor left and published a highly-critical blog.
The company hit back, saying parts of it were “fundamentally incorrect”.
In January, Amigo – which controls 80% of the UK’s guarantor loan market – put itself up for sale.
Numerous complaints have been submitted by customers who feel they should never have been given a loan.
The sub-prime lending sector as a whole has faced a blizzard of complaints from customers who believe they were approved for loans which they could never afford to repay. This has led to the demise of some of the biggest names in the sector, such as Wonga.