Amigo Holdings (AMGO)

Sector:

Financials

Index:

FTSE Fledgling

7.70p
   
  • Change Today:
    -0.32p
  • 52 Week High: 29.50
  • 52 Week Low: 5.80
  • Currency: UK Pounds
  • Shares Issued: 475.33m
  • Volume: 6,291,008
  • Market Cap: £36.60m
  • RiskGrade: 543
  • Beta: 1.06

Amigo proposed payout cap to deal with mis-selling claims

By Frank Prenesti

Date: Monday 21 Dec 2020

LONDON (ShareCast) - (Sharecast News) - Troubled sub-prime lender Amigo Holdings on Monday put forward a proposal that would see borrowers who believe they have been mis-sold loans receive capped payouts.
The proposal involves the company setting aside a compensation pool of £15m - £35m. Amigo last month said it had had to increase its provision for customer complaints over mis-selling and that it won't resume lending until 2021.

The company, which lends to people with bad credit histories if they provide a guarantor, said it expects the provision for complaints to rise to more than £150m from £116.4m in the first quarter, leading to a profit & loss charge of more than £85m. It cited an increase in complaints received, mainly from claims management companies.

Amigo was found by the Financial Conduct Authority to have failed to properly evaluate whether customers were able to afford their loans. As a result, the FCA banned the company from paying dividends to directors and ordered it to deal with all compensation claims by the end of October.

A total of 25,571 complaints were included in the FCA ruling. Amigo has 150,000 current customers, and 500,000 past customers.

Those who have already been informed in a letter how much compensation they will receive will still receive a payout. However, under Amigo's company's proposals, any unfinished or subsequent complaints would be capped, with the option of having their existing debt reduced, or - for previous customers - receive a share from the compensation pot.

Amigo said the proposal would allow it to start lending again in early 2021.

"Whilst the directors consider that Amigo has adequate liquidity for the medium term, they believe that without the scheme the level of redress claims would jeopardise the group's future," the company said in a statement.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Amigo Holdings Market Data

Currency UK Pounds
Share Price 7.70p
Change Today -0.32p
% Change -3.93 %
52 Week High 29.50
52 Week Low 5.80
Volume 6,291,008
Shares Issued 475.33m
Market Cap £36.60m
Beta 1.06
RiskGrade 543

Amigo Holdings Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
22.89% below the market average22.89% below the market average22.89% below the market average22.89% below the market average22.89% below the market average
25.58% below the sector average25.58% below the sector average25.58% below the sector average25.58% below the sector average25.58% below the sector average
Price Trend
84.82% below the market average84.82% below the market average84.82% below the market average84.82% below the market average84.82% below the market average
85.51% below the sector average85.51% below the sector average85.51% below the sector average85.51% below the sector average85.51% below the sector average
Income Not Available
Growth
43.27% below the market average43.27% below the market average43.27% below the market average43.27% below the market average43.27% below the market average
53.33% below the sector average53.33% below the sector average53.33% below the sector average53.33% below the sector average53.33% below the sector average

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 0
Sell 0
Strong Sell 1
Total 1
strong_sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Amigo Holdings Dividends

  Latest Previous
  Interim Final
Ex-Div 09-Jan-20 18-Jul-19
Paid 29-Jan-20 31-Jul-19
Amount 3.10p 7.45p

Trades for 03-Dec-2021

Time Volume / Share Price
16:35 775 @ 7.70p
16:28 66,503 @ 7.66p
16:27 136,000 @ 7.46p
16:25 25,000 @ 7.68p
16:23 26,000 @ 7.47p

Amigo Holdings Key Personnel

CEO Gary Jennison
CFO Michael Corcoran

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