Founder of ‘legal loan shark’ Amigo quits amid growing criticism of the company’s methods
James Benamor is quitting as a non-executive director of Amigo at the end of this month
The founder of ‘legal loan shark’ Amigo is stepping down from its board amid growing criticism of the company’s methods.
James Benamor, who floated the high-interest lender earlier this summer, is quitting as a non-executive director at the end of this month to focus on developing private companies.
The self-confessed former petty criminal’s exit will spark questions over whether the 41-year-old will sell down his 63.5 per cent stake in Amigo, which is worth £731million.
He sold part of it for £350million when the lender went public.
With a business model that is criticised, Amigo charges 49.9 per cent on what customers borrow and demands they have a guarantor who will take on responsibility for paying if they default.
Labour MP Stella Creasy has called Amigo and fellow high-interest lenders ‘legal loan sharks.
But the firm claims to offer a valuable service for customers who are frozen out by the big banks.