The Financial Conduct Authority (FCA) has expanded its probe into how Amigo Loans handled mis-selling complaints from customers.
The regulator has been looking into how the lender assessed its clients’ creditworthiness since May 2020 and has now announced that it is extending the scope of the investigation to include the company’s complaints handling process.
The FCA will consider whether complaints have been handled appropriately and whether customers have been treated fairly. Amigo said it will continue to cooperate fully with the FCA
Consumer campaigners have also called on the Government and FCA to intervene in a rescue scheme proposed by lender Amigo, saying it could benefit the firm’s directors while borrowers miss out on up to £ 1 billion in compensation.
The regulator is been urged to block plans to limit redress payments to current and former customers who were potentially mis-sold unaffordable loans by Amigo.
Amigo has asked courts to approve a “’scheme of arrangement’ that would cap the amount it paid out to consumers, saying it will collapse into administration if the scheme is blocked.
Martin Lewis, Founder of MoneySavingExpert, said “I would call on the FCA to intervene, to make sure a fair and proportionate balance of the money available from Amigo for redress is given back to customers.”