High Court allows troubled Amigo Loans to cap compensation payments | Consumer rights
High-cost lender Amigo Loans to continue efforts a rescue plan to cap compensation payments for nearly a million customers after the High Court dismissed fears the proposed scheme would harm them unfairly.
Amigo, who is giving directors the opportunity to earn £ 7million in long-term bonuses under the deal, said he welcomed the court ruling, which would allow a meeting with creditors on May 12 to go as planned, followed by a vote. of all customers.
The controversial agreement was not opposed by the regulator, the Financial Conduct Authority, despite concerns that mis-sold customers could receive just over 5% of a successful claim after Amigo capped its compensation pool to a maximum of £ 35million and 15% profits over the next four years.
On weekends, Shadow City Minister Pat McFadden, and the head of the Treasury Select Committee, Mel Stride, said that FCA had questions to answer about how it regulated companies like Amigo and whether it was fulfilling its obligation to protect consumers.