Discretionary Commission Arrangements - Compaints and refunds
This is just my opinion and take on the current situation with Amigo Loans.
The recently appointed board of directors at Amigo Loans came up with a very clever solution to the compensation claims. The number of claims being thrown at Amigo, often completely unwarranted claims, was definitely going to kill Amigo. There was no way that they could possibly afford to keep paying out on the claims and survive.
The Board of Directors (BoD) at Amigo came up with a solution and that was to create the Scheme of Arrangement (SOA) that most people are now aware of. This SOA would limit the amount of money the company had to pay out for claims and it would control and decide on all claims. Amigo was suggesting to put aside £15m and 15% of its profits over the next 4 years. If approved this would give claimants about 10% of the proper refund amount, so not good for claimants, but better than if Amigo went into Administration.
Amigo says that nearly everyone who voted wanted the SOA to go ahead. I believe that the issue is that Amigo basically said that if the SOA was not approved it would go into administration and claimants would get nothing. This is pretty well what they said to the Court as well.
When the SOA was put in front of the Judge in Court, it seems that maybe he did not like the way Amigo said it’s all or nothing. They were holding a gun to the Judge’s head and he did not react well to it. The FCA seems to have felt the same way as the Judge and felt that there was a better deal for claimants to be found. So, the SOA was not approved by the Courts and it told Amigo to go and find a different deal. This is a link to the Judgement
There has been very little news from Amigo since the Court case and while some people say that they have no option but to either enter Administration or to for the entire BoD to resign, I believe that they are putting together a new SOA which will allow claimants to be paid a bigger percentage.
We will have to wait and see what happens, but we are still making complaints to Amigo, although they ae pretty well ignoring all emails from us at the moment.