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Registriert: Sa 19. Dez 2020, 12:11
Amigo Loans: Survival Bid with Plans to Set Compensation Lim
Borrowers who believe they have been sold in the slotxo wrong credit by sub-prime lender Amigo may see payouts under the new plan.Amigo wants anyone whose complaint has not been resolved to take the pot allocated to compensate.Lenders have received numerous claims for reparations in recent months, a trend that has killed other big names in the sector.Amigo has 150,000 current customers and 500,000 existing customers.That makes it the biggest tycoon on the market, offering loans to people with cash. Instead, give the surety a name to join to compensate for the outstanding repayment.
The future of the company is skeptical by businesses involved in boardroom battles. Stop all new lending in November.The subprime lending sector as a whole has faced numerous complaints from clients who believe they have received loan approval that they cannot repay.Regulators say the loan can't be paid if repayments are made, meaning someone borrows more or gets the necessary money.Amigo has seen "high-profile" complaints sometime in 2020 and there is no sign the trend is slowing down.It said many of these complaints come from claims management companies, one of which charges people 50% of their payments for any service.
New plan
People who have been informed in the letter how much compensation they will receive, whether as a result of a complaint against Amigo or from the Financial Ombudsman Service, will still be paid.But under the company's proposal, any unfinished or subsequent complaints will be limited.They may see their existing debt drop, or - for previous clients - receive a share of the combined pool between £ 15 million and £ 35 million.It is not clear how many pence the compensation will be paid. Eventually, customers will be able to vote for a proposal called a Scheme of Arrangement.
Wonder in the future
The company said it would allow the loan to be released again in early 2021. In a statement to investors, Amigo said that without a plan - "the level of compensation claims will endanger the future of the group".But Sara Williams, moderator of blog Debt Camel, said the plan raised many questions.It is unclear why [regulator] FCA has agreed to allow Amigo to limit refunds paid and to continue to operate. Out of pay Give the customers the right return, ”she said.Amigo's announcement was very brief, until we knew more, it was not possible to tell whether customers should vote to approve the project.
