This article relates to Amigo's first Scheme, which was rejected in May 2021. In December, Amigo published details of its proposed new Scheme. See Amigo's new Scheme for the latest news. Surprise, surprise, the new Scheme also gives no details about how many claims may be upheld. In 24 March 2021, Amigo announced some feedback from the Financial Conduct Authority (FCA) on its proposed … [Read more...]
Articles about Amigo
These articles are about Amigo itself, the company and its finances.
In March 2023 it announced that it could not raise the money it needed from shareholders so it will be would down and liquidated.
Amigo's Scheme continues in the Fallback option, but there will be less money for refunds.
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 should end unpaid interest deductions and remove CCJs
This article relates to Amigo’s first Scheme, which was rejected in May 2021. Amigo's second scheme was approved in May 2022. See Amigo's Scheme for details. The good news is that Amigo has agreed to remove CCJs in the second scheme. The bad news is that it has retained the unfair "deductions for unpaid interest" which it is calling "reinstated interest". I asked Amigo about some details … [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 1st Scheme – key points to think about
This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. 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. This article looks at seven points … [Read more...]
Amigo – many customers may do better in Administration than a Scheme!
This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. 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 … [Read more...]
Is Amigo allowed to delay paying refunds? Does it have a DISP waiver?
This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo’s Second Scheme for the latest news. 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 … [Read more...]
Lessons from Amigo & Provident – FOS needs to be faster
In administration, customers with complaints at the Financial Ombudsman (FOS) have them returned to the administrators to resolve. The same happens in a Scheme of Arrangement which has been proposed by Amigo in December 2020 and by Provident in March - there FOS complaints are returned to the Scheme to be determined. FOS said in January 2021 it had about 13,000 open Amigo cases and about 500 … [Read more...]
Amigo’s Scheme – who’s next? Implications for the bad credit market
UPDATE - the FCA opposed Amigo's first Scheme on the ground that it was not the fairest possible for customers. The Scheme was rejected by the court in May 2021. Amigo proposed a new Scheme in December 2021, see Amigo's Second Scheme for the latest news. If Amigo's proposed first Scheme of Arrangement is allowed to go forward by the Financial Conduct Authority (FCA), what would be the impact on … [Read more...]
Will an Amigo Scheme of Arrangement abandon vulnerable customers?
A whole book could be written about the different ways vulnerable customers can have problems with guarantor loans - I wrote about some of them in Guarantor loans – why guarantors & borrowers need extra protection. But here are a couple of very recent cases for illustration. Case 1 - mental health problems The borrower informed Amigo when he made an affordability complaint in September 2020 … [Read more...]
Amigo first Scheme – my estimated numbers don’t look good
This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo’s second Scheme for articles on the second Scheme. When Amigo announced it was seeking a Scheme of Arrangement on 21 December 2020, I said there were very few details and asked some questions. On 25 January more information about the Scheme was given. But there weren't any of the useful numbers I … [Read more...]