Update: Information for Amigo customers

Amigo Loans has recently issued a Practice Statement Letter starting the legal process of applying for a revised scheme with its creditors. We understand that Amigo is proposing a preferred scheme and a fallback scheme, which it will put to its creditors to vote on.

This means we still need to continue to pause progressing complaints about Amigo, including not taking on any new cases, until we know the outcome of whether a new scheme will be sanctioned or not.

More information can be found on Amigo’s scheme website. We will continue to monitor the situation and will update our website if the position changes.

Amigo Loans has confirmed that it will not be appealing the recent Court judgment and is engaging with the Financial Conduct Authority (“FCA”) to identify an appropriate way forward – this could result in a revised scheme of arrangement being proposed, or to it entering into insolvency.

In the meantime, we understand Amigo continues to pause on paying compensation to consumers. This because of what the Court described as an “informal moratorium” on complaint handling and the payment of compensation, allowed by the FCA whilst Amigo developed its scheme and whilst it now considers its next steps.

This means that even if we were to now start investigating complaints about Amigo again, we understand it wouldn’t pay any compensation we awarded. So we’re continuing to pause progressing complaints about Amigo, and we will not be taking on any new cases.

More information can be found on Amigo’s scheme website and also on the FCA’s website. We will continue to monitor the situation and will update our website if the position changes.

We are aware that Amigo Loans’ application to enter a scheme of arrangement with its creditors (which includes both current and former customers of Amigo) was rejected by the Court on 24 May 2021.

Amigo has announced that it is currently considering all options in response to the judgment, including the possibility of an appeal.  We are considering what this means for both new and existing complaints against Amigo and will be updating affected consumers as soon as we’re able to.  But for now, we continue to pause on progressing complaints and taking on new cases.

You can find more information about the scheme on Amigo’s scheme website.

We understand that Amigo Loans will be going to court on 30 March to seek its approval to ask creditors (which includes consumers with complaints about it) to approve its proposed scheme of arrangement.

Amigo has said that it isn’t in a position to pay any further redress outside of this scheme. It has also now confirmed that the alternative to this scheme is insolvency. In light of this information, and the court hearing on 30 March, we will not be progressing complaints against Amigo Loans further at this stage – and we will not be taking on any new complaints. We’ll reconsider our position once the court hearing has taken place, and will keep affected consumers updated.

More information about Amigo’s proposals can be found on its website.

We are aware that Amigo Loans issued a Practice Statement Letter on 25 January 2021 starting the legal process of applying for a scheme of arrangement with its creditors. If it’s approved by creditors and the court, customers with complaints will be able to make a claim for redress directly through the scheme.

We are currently considering what this means for complaints at the ombudsman service, but in the meantime we will continue to receive and process complaints in line with the FCA’s DISP rules. We’ll be contacting affected consumers who already have complaints with us to let them know the next steps.