UPDATES Mid August 2024 And the deadlines have slipped yet again. There are just under 4,000 people still waiting for a decision, or a revised decision after winning an appeal, or a recalculation. There are also now (21 August), about 8,000 people where Amigo has wrong or missing bank details: this includes £1.7m of redress to be paid "in full", and £2.4m of Initial … [Read more...]
Schemes of Arrangement
These have been proposed, and rejected, by several bad credit lenders.
So far only the Money Shop has had one approved - and that was only because they were heading for liquidation anyway, with no aim to carry on lending. This one will eventually payout c.4% to customers.
In 2021 Amigo and Provident have proposed Schemes.
See What is a Scheme of Arrangement and why do lenders want one? for an overview of what a Scheme is. 
NSF’s scheme for Everyday Loans, George Banco & Trust Two – waiting for decisions
Non-Standard Finance group (NSF) proposed a Scheme of Arrangement in March 2023. This Scheme was approved in June 23. NSF had three brands: Everyday Loans (lending from high street shops) and George Banco and Trust Two (two guarantor lenders). All customers with loans that started before 31 March 2021 had to make a claim to the Scheme before 31 December 2023. That date has now passed and no … [Read more...]
Making a claim to the Morses Scheme [old article]
UPDATE - Morses Club went into administration on 17 November 2023. This scheme has now been terminated. See Morses Club goes under – in administration – Scheme fails for details and what customers should do. Morses sent out a batch of decisions on 6 July 2023. Many people have found these confusing - see the comments below this article. At one point the email says in a grey box: "Morses … [Read more...]
Morses considers Scheme to cut refunds to customers [July 2022]
UPDATE - in November 2023 the Morses Scheme failed - see Morses Club goes under – in administration for details Comments are now closed on this old article. Britain's largest doorstep lender, Morses Club, announced in July 2022 that it was considering a plan to reduce its liability to pay compensation to customers mis-sold unaffordable loans. The announcement of a possible Scheme of … [Read more...]
Provident is paying 4.2557p in the £
Quick overview Provident's Scheme of Arrangement is now in the final stages. The Scheme was proposed because Provident could not afford to carry on paying full refunds to customers winning affordability complaints. The Financial Ombudsman was upholding 75% of complaints against Provident. The FCA, Provident's regulator, said it did not approve of the Scheme. But as Provident has stopped … [Read more...]
Amigo’s new Scheme – approved by the Court
UPDATE the Scheme is now live After the court approved the Amigo scheme in May 2022, the Scheme is now live. The deadline for making claims has now passed. See Amigo’s Scheme – waiting for claims to be decided for details. UPDATE on the result of the voting Amigo announced on 13 May that c. 89% of people voting had voted in favour of the new Business Scheme. the next stage in the … [Read more...]
ICL / Money Shop Scheme ends
A first payment of 4.31p in the £ was paid in May/June 2021. A second, much smaller payment of 0.65p in the £ is being paid on 14 or 18 January 2022. If you do not receive this second payment, see below for what to do. Background to the Scheme This "Scheme of Arrangement" covers borrowers from the ICL brand names, Money Shop, Payday UK and Payday Express, who were given … [Read more...]
Amigo proposes a second Scheme – but is it fairer?
UPDATE - in May 2022, the court approved the new Amigo Scheme. See Amigo's Scheme for details On 13 December 2021, Amigo proposed its new Scheme of Arrangement. The Practice Statement Letter (PSL) is a 21-page overview of the new Scheme. The numbers in the PSL have now changed Amigo says: We hope a successful new Scheme will also allow a changed Amigo, under a new management team, … [Read more...]
“Should I stop paying Amigo?” – the pros & cons
UPDATE In May 2022 the Amigo second Scheme was approved by the court. In November the deadline for making a claim to the Scheme passed. See Amigo's Scheme for details. With a current loan, you have three options once you have made a claim: you can carry on paying it if it is affordable. if you have paid more to this last loan than you borrowed, you can ask Amigo to let you pause paying … [Read more...]
Amigo now lets some people pause paying – the right of Equitable Set Off
UPDATES In November 2023, Amigo started deleting some loans from people's credit records. it says "In this situation, it is probable that the claim has been either fully or partially upheld" That may make you feel more comfortable choosing equitable set-off. The deadline for making a claim to the Amigo Scheme was in November 2022 - it is now too late to make a claim. If you have not made a … [Read more...]