The sub-prime lender Amigo faces potential collapse after confirming that it will not appeal against a high court decision that blocked a scheme to cap customer compensation.
Amigo, which charges 49.9% interest and requires borrowers to provide a friend or family member to act as a guarantor, said it would consider all options and was looking at an alternative scheme to manage the costs of a surge in customer compensation claims.
However, crafting a new scheme could be costly and take months to complete, and would still need to be approved by its creditors and the courts.
The lender would also need the support of its regulator, the Financial Conduct Authority, which criticised its first scheme for being unfair to some of the UKs poorest bor…
Read the full article at: https://www.theguardian.com/business/2021/jun/01/amigo-lender-insolvency-court-compensation-cap-shares-appeal
