Amigo Loans CEO threatens to resign if former boss joins company: CityAM
The managing director of troubled subprime lender Amigo Loans today threatened to resign from the company if founder James Benamor takes over a management position.
Amigo told the stock market this morning that he had agreed that new chief executive Glen Crawford could step down if Benamor joined the company.
Benamor released a statement Friday evening arguing for his return to the company as the CEO of the limited company group while retaining Crawford as the managing director of the company regulated by the Financial Conduct Authority (FCA).
He also called for the resignation of interim president Roger Lovering and chief financial officer Nayan Kisnadwala.
Benamor threatened to call a shareholder vote this week to pressure his demands if the board did not accept them.
Amigo’s board of directors said: “Mr. Crawford and the board are… also aligned in their unanimous rejection of the views and proposals put forward by Mr Benamor on Friday night.
“The board therefore urges Mr. Benamor not to waste more time and expenses for the Richmond or Amigo group by seeking to submit his proposals to a vote of the shareholders.”
Crawford served as the company’s managing director from 2016 until last year and joined the company this month pending FCA approval to take all of his role as managing director.
Lender guarantor Amigo has been inundated with thousands of complaints from clients who say they should never have gotten a loan.
Amigo said a loss of £ 37.9million for the year ended March 31, compared to a profit of £ 111million the year before.
This was due to the fact that the cost of complaints soared to £ 126.8million from £ 100,000 in 2019.
Benamor is pushing for the company to withdraw money from its regulated UK lending activities to avoid what he has described as “consumer fraud against lenders and a campaign of looting by asset management companies complaints ”.
Amigo Loans‘ share price fell a third to 11.8 pence today.