THOUSANDS of Amigo Loans customers will have to wait a year until they receive compensation.
The guarantor lender, which could owe customers millions of pounds worth of refunds, has delayed the process by three to four weeks.
1
Amigo has been accused of giving out unaffordable loans, meaning customers couldn’t repay the money they borrowed.
A court hearing was set for this month to consider Amigo’s new plan to repay borrowers but this has been pushed back to March.
A previous proposal was rejected as it was found to be unfair to customers.
Under the new scheme, consumers would get up to 42p for each pound they’re owed.
Court hearings have been delayed from February 16 to March 8, 23 and 24.
This means it won’t be approved until late May and payouts won’t begin until at March 2023 at the earliest, according to Debt Camel.
Most read in Money
Amigo warned last year that it could collapse under the weight of customer refund requests.
Amigo Loans was founded in 2005 and offers loans of up to £10,000 over 12 to 60 months at an interest rate of 49.9% to borrowers who are typically turned away from traditional lenders.
The lender will supply loans to those with poor credit histories as long as a friend or family member agrees to make repayments if they can’t.
In March 2020, the firm’s founder claimed customers had been given “irresponsible” loans.
We pay for your stories!
Do you have a story for The Sun Online Money team?
