FCA expands probe into Amigo Holdings

imageStock Markets8 hours ago (Mar 16, 2021 09:13)

© Reuters.

By Samuel Indyk

Investing.com – Troubled UK lender Amigo Holdings PLC (LON:AMGO) has provided an update on the ongoing Financial Conduct Authority (FCA) investigation, first announced on 1st June 2020. The probe was launched to investigate the company’s creditworthiness assessment process and the governance and oversight of the process.

The company has been informed that the FCA has decided to expand the scope of the current investigation so that it can examine whether Amigo appropriately handled complaints after 20th May 2020 and whether they deployed sufficient resources to address complaints in accordance with the Voluntary Requirement announced on 27th May.

The updated investigation will consider whether those complaints will be handled appropriately and whether customers have been treated fairly in accordance with the FCA’s rules.

The latest update to the investigation comes after reports from the Financial Ombudsman Service earlier this month that showed Amigo was the UK’s most complained about financial firm in the final quarter of 2020.

According to the Ombudsman, there were over 10,000 complaints about guarantor loans in Q4 of 2020 compared to just 303 in the same period of 2019. Although this covers several companies, Amigo is the largest supplier and had the most complaints, the Ombudsman said.

The company has also been impacted by the pandemic. In its latest results, the lender said payments holidays had been granted to over 63,000 customers and it has seen the number of customers fall by a third to 156,000.

Amigo has said they will continue to cooperate with the FCA in relation to the updated investigation.

At 09:12GMT, Amigo Holdings shares were trading lower by 13% at 11.98p.

FCA expands probe into Amigo Holdings

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave A Reply

Your email address will not be published.