24th Mar 2021 13:06
(Alliance News) - Amigo Holdings PLC on Wednesday said the Financial Conduct Authority won't take action that might stop its scheme of arrangement to resolve complaints, if the scheme is approved by customers and sanctioned in court.
Shares jumped 22% to 15.59 pence in London.
Amigo proposed the scheme in January after an FCA investigation into customer complaints about unaffordable loans. The company expects to pay at least GBP15 million in compensation claims under the scheme, according to a statement in December.
The FCA does not approve of the scheme and reserves the right to change its position, Amigo said. The regulator's concerns include the fact that customers may receive significantly less than the value of their claims, and the methodology for claims assessment. The FCA will raise its concerns at the court hearing, which starts next week.
Amigo said the scheme is better for customers than the alternative option of an insolvency proceeding.
Chief Executive Gary Jennison said: "We look forward to our customers having an opportunity to vote and support the scheme, which after careful consideration, we believe, is the only real option for customers who are due redress to receive cash compensation."
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Amigo