Amigo Holdings (AMGO)

Sector:

Financials

Index:

FTSE Fledgling

9.00p
   
  • Change Today:
      1.26p
  • 52 Week High: 29.50
  • 52 Week Low: 5.80
  • Currency: UK Pounds
  • Shares Issued: 475.33m
  • Volume: 2,285,072
  • Market Cap: £42.78m
  • RiskGrade: 543
  • Beta: 1.02

FCA not planning to oppose Amigo rescue

By Sean Farrell

Date: Wednesday 24 Mar 2021

LONDON (ShareCast) - (Sharecast News) - The Financial Conduct Authority is not planning to challenge Amigo's rescue plan but the regulator failed to support the scheme and said it was concerned about low compensation payments to customers.
The crisis-hit company has proposed a plan that would limit redress payments to almost a million current and former customers mis-sold unaffordable loans.

Borrowers who successfully complain to the financial ombudsman usually receive are usually refunded all the interest they were charged plus other charges. But Amigo has asked a court to cap the amount it pays, meaning consumers could get significantly less.

The company said: "The FCA notified Amigo and SchemeCo after market close on 23 March 2021 that, having completed its assessment of the terms of the scheme, while the FCA does not support the scheme, it is not currently proposing to take any additional regulatory action that might stop the scheme were it to be agreed by the scheme creditors and sanctioned by the court, but the FCA reserves the right to change its position."

Amigo shares jumped 13.5% to 14.6p at 09:10 GMT. The shares have plunged from 276p in June 2019 as the company's troubles have mounted.

Amigo, a subprime lender whose loans are guaranteed by the borrower's family or friends, has said it will go bust if the plan does not go through. The company has been in a state of crisis for almost two years after a regulatory clampdown and a torrent of compensation claims threatened its viability.

The FCA said the plan may not be compatible with its rules, principles and objectives. The regulator said it was concerned that customers with valid claims would receive reduced payments and about the methods used to assess claims. The FCA has pointed these concerns out to Amigo and will alert the court to its misgivings.

Gary Jennison, Amigo's chief executive, said: "[The FCA's] letter is a significant step forward ahead of the first court hearing next week. We look forward to our customers having an opportunity to vote and support the scheme, which after careful consideration, we believe, is the only real option for customers who are due redress to receive cash compensation.

"We are seeing significant pent up demand for loans from those who are unable to easily get credit from mainstream finance. It is vital that these millions of UK adults are able to access credit from, regulated business such as Amigo, rather than less reputable alternatives."

The plan is opposed by Labour MP Stella Creasy and Martin Lewis, founder of MoneySavingExpert, has called on the FCA to make sure redress was fair and proportionate. The Guardian reported on 18 March the FCA was preparing to tell the court it had reservations about Amigo's plan and it was not clear whether the regulator would oppose it.

Email this article to a friend

or share it with one of these popular networks:


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 9.00p
Change Today 1.26p
% Change 16.20 %
52 Week High 29.50
52 Week Low 5.80
Volume 2,285,072
Shares Issued 475.33m
Market Cap £42.78m
Beta 1.02
RiskGrade 543

Amigo Holdings Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
20.74% below the market average20.74% below the market average20.74% below the market average20.74% below the market average20.74% below the market average
24.03% below the sector average24.03% below the sector average24.03% below the sector average24.03% below the sector average24.03% below the sector average
Price Trend
79.15% below the market average79.15% below the market average79.15% below the market average79.15% below the market average79.15% below the market average
78.26% below the sector average78.26% below the sector average78.26% below the sector average78.26% below the sector average78.26% below the sector average
Income Not Available
Growth
43.32% below the market average43.32% below the market average43.32% below the market average43.32% below the market average43.32% below the market average
51.26% below the sector average51.26% below the sector average51.26% below the sector average51.26% below the sector average51.26% 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 01-Dec-2021

Time Volume / Share Price
11:16 150 @ 8.22p
11:16 62 @ 8.95p
11:14 30,000 @ 9.00p
11:14 30,000 @ 9.00p
11:08 103,357 @ 8.22p

Amigo Holdings Key Personnel

CEO Gary Jennison
CFO Michael Corcoran

Top of Page