FCA response to Amigo’s scheme being approved by the High Court

The High Court today approved Amigo Loans Limited scheme of arrangement (the scheme) to provide redress to customers who are due it for being mis-sold loans and who raise a complaint.

The court-approved scheme is an improvement on last year’s failed proposal and has the support of the Independent Creditors Committee, which was set up to protect the interests of those customers owed redress. The majority of eligible customers who voted on the firm’s proposals voted in favour of the scheme.

We objected to Amigo’s previous scheme because we believed that a fairer compromise could have been offered to customers. The FCA has, through its continued engagement with Amigo since the previous court hearing, sought to get a better, fairer deal for those customers due redress. 

We will continue to monitor Amigo closely as it launches the scheme and seeks to meet the conditions for it to resume lending. Our investigation into the firm is on-going. 

Notes to editors

  1. The FCA has been engaged with Amigo on this issue for some time. Amigo had a scheme proposal rejected by the court in May 2021, which we had opposed on fairness grounds. Amigo responded to the reasons for the court’s judgment in its current scheme proposal and in March 2022 the FCA confirmed that it would not object to the proposed scheme. The FCA did not attend the hearing on 23 May 2022.