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Subprime lender Amigo suspends lending amid coronvirus turmoil

LONDON, March 24 (Reuters) - Subprime lender Amigo holdings said on Tuesday it would temporarily cease all new lending activity, barring emergency loans to key workers in financial distress as Britain steps up its fight against coronavirus.

Amigo, which provides guarantor loans to borrowers who typically struggle to obtain credit from mainstream lenders said it had taken the decision given "ongoing uncertainty" of the economic implications of covid-19 and the possible impact for its customers.

The company said employees freed up from the pause in lending activity would transition into customer service teams, particularly where customers have a need for forbearance, given changes in their financial circumstance.

It said it would reassess its approach to new lending on a regular basis and has ensured that as many employees as possible were working remotely from home, in accordance with UK government advice. (Reporting By Sinead Cruise, editing by Huw Jones)