Credit, collections & insolvency news
The Chief Executive Officer (CEO) of subprime lender Amigo resigned from his role as the firm continues its wind down.
Danny Malone, who joined Amigo last year, will step down after serving his six-month notice period to ensure the continuation of the solvent and orderly wind-down of the business.
Amigo has been heading for a wind down since it stopped business at the end of March having failed to raise £15 million in emergency funds.
According to the wind down, £97 million will be offered to the firm’s creditors with a mechanism put in place to return excess cash to creditors of the scheme.
The subprime lender was suspended from lending by the Financial Conduct Authority (FCA) in 2020 for failing to perform adequate checks on consumers it lent to.
The FCA publicly investigated Amigo earlier this year but spared the firm a £72.9 million fine on the grounds it would prevent the firm from paying out compensation to customers.
Chair Jonathan Roe said “Danny was a tireless leader of the executive team in our search to secure commitments for new financing for Amigo, which unfortunately proved impossible to secure. He was also integral to getting our RewardRate product into the market.”