UPDATE on the result of the voting voting has now closed. 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 Scheme approval process is the second court hearing which will be on 23 and 24 May. Over 160,000 people voted, which was twice as many as voted on the first Scheme in 2021. The first Scheme was voted for … [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.
Quick overview Provident's Scheme of Arrangement is now in operation. 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 providing … [Read more...]
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...]
UPDATE - on 15 March, the court approved the voting arrangements for this new Amigo Scheme. This does NOT mean that the Scheme has been approved as "fair" - that decision will be made in late May after customers have voted. Customers will now be able to vote on the new Scheme. See Amigo's new Scheme - which way should I vote? for my thoughts on this. On 13 December 2021, Amigo … [Read more...]
UPDATE In December Amigo has published its new second Scheme. From March you can now vote on this - see Amigo's New Scheme - which way should you vote . This new Scheme includes a Trust Account that was set up in December 2021. If you have made a complaint, all your payments from here on will be kept in this Trust Account. They will then be repaid in full (not at 42p in the £) if your … [Read more...]
UPDATE In December Amigo published details of its new second Scheme. From March 2022 you can now vote on this - see Amigo's New Scheme - which way should you vote. This contained details of a Trust Account that was set up. If you have made a complaint, your payments from now on will be kept in this Trust Account. They will then be repaid in full (not at 41p in the £) if your complaint is … [Read more...]
On 29 November 2021, Amigo published its results for the six months ended 30 September 2021. Amigo's first Scheme of Arrangement was rejected by the Court in May. Since then, Amigo has been trying to come up with a new Scheme that is fairer to the customers given unaffordable loans. Amigo says: "the proposed contribution to the new Scheme will be significantly increased from that of the … [Read more...]
UPDATES This page refers to Amigo's first Scheme of Arrangement which was rejected in May after it was opposed by the FCA as unfair to customers and too generous to shareholders. See Court rejects Amigo Scheme for details. On 13 December 2021 Amigo published details of its new Scheme. See Amigo proposes a new Scheme – but is it fairer? On 15 March 2022 the court approved the voting … [Read more...]
UPDATE - the Scheme has now been approved by the court. See Provident Scheme – 4 million people can now claim a refund for how to make a claim and what will happen in the Scheme. Provident Financial Group (PFG proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers given unaffordable loans through its Provident Personal Credit (PPC) subsidiary. There are … [Read more...]
In May 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 benefits and losses … [Read more...]