Amigo Loans warns of £35m complaints hit

Subprime lender, Amigo Loans has warned that a new urge in complaints could cost the company £35million.

In a company announcement the company has that it had also scrapped its dividend, and said a prospective buyer for the business had walked away.

The company, which is being investigated by the Financial Conduct Authority (FCA), has agreed a deal with the regulator to clear the backlog by the end of the month but said the cost of doing this would be around £35 million. Amigo warned that provisions to cover complaint settlements could also “material increase”.

Amigo Chairman Stephen Wilcke has now served formal notice of resignation.

Stephan Wilcke said “I have chosen to resign now to make it crystal clear to everyone that the assertions made by Richmond Group about the motivations of myself and the board as clinging to our seats for our own ends are completely false.”

“The EGM vote is about the Relationship Agreement and compliance with regulatory obligations, and nothing else. I feel able to resign at this point in time as the two key matters keeping me on the board being the FSP and the Relationship Agreement dispute with Richmond Group are now settled.”