Amigo Loans granted court approval to pay compensation

24th May 2022

Amigo Loans has been granted court approval to pay compensation to past customers’ mis-sold loans and a chance to stay in business and resume lending. The High Court approved a new scheme that will see the sub-prime lender pay a higher proportion of the value of claims to customers than previously proposed.

Commenting on the announcement, the Financial Conduct Authority (FCA) said in a statement  “The High Court today approved Amigo Loans Limited scheme of arrangement (the scheme) to provide redress to customers who are due it for being mis-sold loans and who raise a complaint.”

“The court-approved scheme is an improvement on last year’s failed proposal and has the support of the Independent Creditors Committee, which was set up to protect the interests of those customers owed redress. The majority of eligible customers who voted on the firm’s proposals voted in favour of the scheme.””

“We objected to Amigo’s previous scheme because we believed that a fairer compromise could have been offered to customers. The FCA has, through its continued engagement with Amigo since the previous court hearing, sought to get a better, fairer deal for those customers due redress.”

“We will continue to monitor Amigo closely as it launches the scheme and seeks to meet the conditions for it to resume lending.  Our investigation into the firm is on-going.”