Provident Financial Group (PFG) has 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 three stages in getting a Scheme approved. Provident is now in the second stage - Voting: On 22 April 2021, the voting arrangements for the Scheme were approved by the court. From … [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. 
“Should I stop paying Amigo?” – the pros & cons
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...]
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...]
The ICL / Money Shop Scheme – customers paid 4.3% in June
UPDATE A few people have not been paid by the end of June. And everyone will receive a second, much smaller payment in December 2021. See Money Shop Scheme to pay 2nd small refund for details. A "Scheme of Arrangement" is in place for borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. Background to the Scheme Failure to assess affordability … [Read more...]
Provident’s Scheme to cap refunds – the background
UPDATE Customer voting is now live. See Provident Scheme to limit refunds - how to vote on it for details of the Scheme, the timetable, what you might get in the Scheme and how to vote on it. This article gives the background to the Scheme and what happened before voting started. In March 2021 Provident Financial Group (PFG) proposed a Scheme of Arrangement to reduce the refunds it has … [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...]
Provident’s Scheme – will customers get less than 2% ?
Provident is proposing a Scheme of Arrangement to limit the refunds it has to pay to customers making affordability complaints about provident doorstep lending and Satsuma payday loans. This article looks at how much customers might hope realistically to get back from the Scheme. Further reading: Provident’s Scheme to cap refunds gives the background to the proposed Scheme Provident … [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...]