Court Rejects Amigo Loans Scheme

25th May 2021:

The High Court has rejected Amigo Loans Scheme of Arrangement (SOA) to limit the amount of compensation paid to settle customer complaints. The judge refused to approve the scheme, even though Amigo Loans reported that it “was essential to its survival” and over 74,866 Amigo Loans creditors approved it.

Amigo Loans reported, on their website, that they are “currently reviewing all options including an Appeal and a further update will be provided at the earliest opportunity.”

Amigos Loans wanted to introduce a compensation scheme to limit the amount paid in compensation to customers that had issued a complaint against the firm. As reported in the Evening Standard, “Amigo loans said it had to cut the payouts to as little as 10p in every pound owed or it would go bust“.

The scheme was opposed by the Financial Conduct Authority (FCA) which said that “the proposals would unfairly protect shareholders at the expense of people with compensation claims“. They also said that those customers who had voted for the scheme “lacked the necessary information or experience to assess the alternatives“, The FCA have also asked Amigo Loans to continue to look at different solutions.

The High Court has rejected Amigo Loans SOA

What does this mean now?

With the scheme not being approved and agreed on by the High Court, there is a risk that Amigo Loans could be on the brink of collapse. Amigo Loans share price fell by 50% today in response to the news.

However, the High Court judge has urged Amigo Loans to “go back to the drawing board“, with the FCA asking Amigo to find an alternative solution, that is fairer to it’s customers. This means that an alternative solution may be possible for customers with outstanding complaints with Amigo.

Can I submit my Loan Claim to Amigo?

Yes, as the scheme has been refused, you can submit a claim to Amigo Loans for a mis-sold loan and/or irresponsible lending. This claim could be honoured, with a new scheme or a different alternative.

If Amigo goes go under, all outstanding claims could be settled with a percentage of the full amount, as part of the dissolving of the company.

You have nothing to lose and potentially hundreds of pounds could be refunded.

Submit your Amigo Loans claim today, with the help and support of Reclaim Experts.


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