FCA responds to Amigo’s Scheme of Arrangement proposal

Published on

Following the rejection of Amigo Loans’ last proposed Scheme of Arrangement by the High Court, the FCA has continued to engage with the firm and seek to get a better, fairer deal for Amigo’s customers due redress.

Ahead of the convening hearing on 8 March of Amigo Loans’ proposed Scheme of Arrangement, the regulator has written to the firm to confirm that it does not intend to attend the hearing to oppose its proposals.

The FCA said the firm’s Scheme proposal represents an improvement on last year’s failed proposal and has the support of the Independent Creditors Committee that was set up to advance the best interests of those customers owed redress. The proposal has not yet been voted on by eligible creditors (eg customers) and the FCA reserves its rights to intervene if facts and circumstances change.

The FCA has also confirmed that the firm could, subject to it meeting certain conditions, resume lending if its Scheme is sanctioned by the Court. The letter sets out the conditions the firm would need to satisfy to be able to return to lending, which include it meeting the threshold conditions, testing of the firm’s new lending system being completed to the satisfaction of the FCA and the firm addressing any other issues that may arise.

If the firm were to return to lending, the says it FCA will continue to supervise it closely.

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...