Ahead of the hearings on 23 and 24 May regarding Amigo Loans’ proposed Scheme of Arrangement (the Scheme), we have written to the firm to confirm that we do not intend to attend the hearings to oppose its proposals. The purpose of the Scheme is to deal with the firm’s redress liabilities.
The firm’s Scheme represents an improvement on last year’s failed proposal and has the support of the Independent Creditors Committee, which was set up to advance the interests of those customers owed redress. The Scheme is still being voted on by eligible customers. The FCA reserves the right to intervene if facts and circumstances change.
If the Scheme is sanctioned by the Court, the FCA has confirmed that the firm could resume lending if it meets certain conditions. These include meeting the threshold conditions and testing of the firm’s new lending system being completed to the satisfaction of the FCA.
If the firm were to return to lending, the FCA will continue to supervise Amigo closely.