Amigo Loans warns it will go bust unless it resumes lending

Sub-prime lender says it has set aside £344m for customers who said they were mis-sold loans at high rates The troubled sub-prime lender Amigo has said it will go bust unless it is allowed to resume lending and raise new equity under a proposed new rescue plan. Amigo said that in the six months to the end of September it had set aside £344m for customers who complained they were mis-sold loans at interest rates that were so high they could not hope to repay them. The sub-prime lender, which grew in popularity after the demise of its rival Wonga in 2018, was banned from lending in May by the Financial Conduct Authority. Amigo has submitted a new rescue plan to the after the high court rejected the terms of its initial compensation scheme, which would have handed customers as little as 5% to 10% of any successful claim, and capped the pool at £35m and 15% of profits over the next four years. While details of the scheme were not made public, Gary Jennison, the Amigo chief executive, said the company had taken onboard the view of an independent customer committee that it was ordered to set up...

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