Since Amigo Loans’ last proposed Scheme of Arrangement was rejected by the High Court, the FCA has continued to engage with the firm and seek to get a better, fairer deal for Amigo’s customers due redress.
Ahead of the convening hearing on 8 March of Amigo Loans’ proposed Scheme of Arrangement, we have written to the firm to confirm that we do not intend to attend the hearing to oppose its proposals. The firm’s Scheme proposal represents an improvement on last year’s failed proposal and has the support of the Independent Creditors Committee that was set up to advance the best interests of those customers owed redress. The proposal has not yet been voted on by eligible creditors (eg customers) and the FCA reserves its rights to intervene if facts and circumstances change.
The FCA has also confirmed that the firm could, subject to it meeting certain conditions, resume lending if its Scheme is sanctioned by the Court. The letter sets out the conditions the firm would need to satisfy to be able to return to lending, which include it meeting the threshold conditions, testing of the firm’s new lending system being completed to the satisfaction of the FCA and the firm addressing any other issues that may arise.
If the firm were to return to lending, the FCA will continue to supervise it closely.