Under-fire Amigo founder quits role

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 nonexecutive 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-yearold will sell down his 63.5pc stake in Amigo, which is worth £731m. He sold part of it for £350m when the lender went public.

With a business model that is criticised, Amigo charges 49.9pc 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.