FCA allows Amigo to re-start lending in pilot

FCA has published a letter sent to Amigo Loans which approves its request to start lending again on a pilot basis.

In 2020, following a large number of customer complaints, Amigo paused new lending and announced that it intended to enter into a Scheme of Arrangement. FCA has assessed the changes made and the current position, and it has now set out a number of conditions for Amigo to follow. These are:

  1. the New Business Scheme is sanctioned by the court;
  2. the FCA is satisfied that the Firm meets FCA threshold conditions;
  3. outcomes testing of the Firm’s new lending system is completed to the satisfaction of the FCA; and
  4. dealing with, to the FCA’s satisfaction, any other issues that may arise.

FCA also released a statement explaining that it expects Amigo to deliver good customer outcomes, and that the pilot will enable Amigo to test its updated approach in a controlled environment. Amigo is to keep FCA updated throughout the pilot so that assessment of its lending can continue.

Nicola Radford