The Financial Ombudsman (FOS) has recently emailed customers saying it has put Amigo complaints on hold because: ... even if we were to now investigate and even uphold your complaint, we understand that Amigo wouldn’t pay you the compensation we awarded. This follows a decision by the FCA to allow Amigo an "informal moratorium" on paying refunds. Many people now want to know if they should … [Read more...]
Articles about Amigo
These articles are about Amigo itself, the company and its finances.
For articles about guarantor loan complaints, including the templates for how to complain if you are a borrower or if you are a guarantor, see Guarantor loans complaints.
Amigo – what is happening with “Scheme 2.0”?
It is now three weeks since Amigo's proposed Scheme of Arrangement was rejected by the court. The FCA told the court the Scheme was not fair to customers, a more fair Scheme could be proposed and it didn't think Amigo would go into administration immediately. The judge concluded by saying: The FCA expects the directors to continue to explore and promote a restructuring which fairly allocates the … [Read more...]
Court rejects Amigo Scheme of Arrangement
On 19 May 2021 the Sanction Hearing was held for Amigo's proposed Scheme of Arrangement. On 24 May, judgment was given and the Scheme was rejected. The Amigo Board says : The Board is reviewing all options including an Appeal. A further update will be given in due course. This article looks at the Scheme, the judgment and what may happen next. The proposed Scheme The Scheme was proposed by … [Read more...]
Amigo’s Scheme rejected – now looking at a new Scheme
UPDATE The Scheme of Arrangement proposed by Amigo has now been rejected by the court after it was opposed by the FCA. See Court rejects Amigo Scheme of Arrangement for details. We do not know yet what Amigo will do. In June I looked at Amigo – what is happening with “Scheme 2.0”? In July, FOS emailed customers saying it was not working on their Amigo complaints. A lot of people with current … [Read more...]
Will Amigo’s Scheme reject too many claims?
On 24 March 2021, Amigo announced some feedback from the Financial Conduct Authority (FCA) on its proposed Scheme of Arrangement. Full details have now been given - the FCA's Letter of Concerns was published on 31 March 2022. This said: the FCA considers that the Scheme ... may not be compatible with the FCA's rules, principles and strategic objectives. In particular, the FCA is concerned … [Read more...]
Amigo should end unpaid interest deductions and remove CCJs
I asked Amigo about some details of the redress people will get if they make a claim to the proposed Scheme and Amigo upholds the claim. Amigo has had a complete change in its Board of Directors. It now likes to suggest that it will be handling complaints much better. But the answers to my questions are disturbing. The "unpaid interest" deduction Amigo applies this when it has decided a … [Read more...]
Amigo & Provident complaints soar – new Ombudsman data
On 3 March 2021, the Financial Ombudsman Service (FOS) published two sets of statistics. quarterly data for October-December 2020 summarises the types of complaints FOS has received. half-year data shows which firms had the most complaints in July-December 2020 and how often FOS upheld the customers' cases. Caroline Wayman, the FOS CEO says: "Excluding PPI, new complaints are up by … [Read more...]
Amigo’s Scheme – key points to think about
On 25 January 2021 Amigo announced that it is proceeding with the next stage of its proposed Scheme of Arrangement and published the formal Practice Statement Letter (PSL) that describes the Scheme for the customers affected. I have summarised the proposal in Amigo’s Scheme - timetable for approval & how it may work. This article looks at seven points of concern about the Scheme. A … [Read more...]
Amigo – many customers may do better in Administration than a Scheme!
When Amigo announced it was proposing a Scheme of Arrangement in December, it said: Amigo continues to explore alternative options but it is likely the alternative options would result in those with Redress Claims receiving considerably lower amounts (if any at all) than they would under the Scheme. But that isn't correct for one large group of borrowers who would be significantly better off if … [Read more...]
Is Amigo allowed to delay paying refunds? Does it have a DISP waiver?
When Amigo announced in December 2020 that it was seeking a Scheme of Arrangement to cap the amount it has to pay to customers owed refunds for unaffordable lending, it said: To ensure equal treatment of customers with Redress Claims, Amigo will stop the ongoing payment of all Redress Claims, except for those cases where the Redress Claims result from: (i) reviewed and upheld complaints where a … [Read more...]