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Has anyone thought that the FCA are concerned that Amigo chose to take a more favourable approach to those who were more likely to vote yes?
Personally, they wont vote against the scheme itself but if the FCA's role is to protect current customers then Amigo has been seen to encouraged ex customers and not current customers then this could be why the FCA have intervened so late in the day.
They knew that from the start as it was made perfectly clear at the outset and they had plenty of time to object before the first Court hearing
The voting hadn't commenced at the first hearing.
No but the FCA knew the details of the scheme and wo would be eligible to vote
Dunc, you are absolute right about the knowledge of the details.
However, they didnt know that Amigo could potentially favour those who would vote yes. There is a very good reason why the FCA are intervening now, I'm just unsure as to why.
And I don't accept "they have to be seen to be doing something"
The FCA have been 100% aware of who is eligible to vote from day one - they were also aware that the votes of past customers would count for more in monetary terms as the loans had all been settled. All this information has been perfectly clear from day one.
I 100% accept this objection is purely because Amigo notified them of the vote results and they thought they had better make some representation just in case there is backlash at a later stage. If I was the Judge I would say that they had plenty of time to object to the scheme prior to the first Court hearing and didn't so their objections are now totally invalid and a case of closing the stable door after the horse has bolted.
Dunc, it doesn't sound like to understand my point.
The FCA are looking at what's coming from Westminster both what's released in the media and privately communicated and that's what's pushed them into action.
I really do not see this fca action turning into administration, at the end of the day we held a gun to there heads and said
'' here is the scheme work with us or send us bust and they get nothing''. The fca got cornered what ever it did it would be on the wrong side, so it washed its hands. Now they have the gun, we have the scheme through and sp has take a big rise and lots of investment and they are using it now to extract some more blood out of us at court for the customers so they can say look what we did to help customers.
Our lawyers and board will negotiate at court and we will get this through, a little more pain for amigo such as more contribution and maybe even a swipe at shareholders pockets. Fine so be it
The end game is we get lending again and have the biggest demand built up in the subprime market ever, with new products and best of all one of the biggest competitors (provident) leaving the pitch its all ours to take.
The company will make massive profits in the next 2 years that will out weigh any extra blood the fca are after in court next week. They will not let us go bust, just poke us for some more money.
Hold and we will be rewarded
The FCA allowing consumers to go ahead with a scheme voting procedure, and then adding further uncertainty at the 11th hour, is reactive and ill thought through.
They were made aware of the vote result to this stage and felt a need to comment (such is the political risk associated with companies like Amigo, and their own reputation).
Thats all I can summaise at this stage but keen to hear other peoples views.
Does the FCA have to sign off if we are to lend again?
@grant1987
100% agree, the FCA are never going to force us into admin. That’s in no one’s interest! Would also be more damaging than doing nothing. - this is either going to be a larger share of profits, or a larger initial fund.
The political fallout by forcing admin would be awful, this is just a balancing act now!
As the FCA are required to sign off if we are to lend again I suspect the BOD are stewing over how they can position themselves before next week to stand the best chance of getting through the court case. The risk is that even if it does pass the court, the FCA can delay is lending again.
The court hearing of the scheme takes place on 19 May, and my guess is it will still be successful. Even if the FCA thinks the deal is unfair, 95% of creditors appear to be happy with it. And they’ll get nothing if the company goes bust. I’d be surprised to see the court going against the clearly-expressed wishes of creditors and forcing a worse outcome.
Judges hate wasted court time ! I believe they knew this was coming and there is a little sweetener (prob at shareholders expense) being worked on. The only issue is any proposed deal would need approval....again.
ATrades, if Amigo, for example, up the redress rate from 10% to 20%, then this would need customers approval?
I thought that wasnt the case.
The Fca didn’t stop us lending in the first place
Agreed mark
Not once has the board stated it’s the fca that has stopped them. They stopped to concentrate on the redress and have held off until they can lend with limited risk of further sanctions.
Maybe in future the FCA look at ways to include Amigo in the FSCS scheme. The FOS gets about £800 per complaint they are asked to investigate, where does that money go to ?
The FCA are just covering there own arse. They have probably had lots of complaints from Sarah and people from debt camel. And when all this goes threw and approved it would look bad on FCA if people never got what the expect. At least if they put up a token objection then no one can blame them if it goes pair shaped for the customers. Its obvious FCA dont want Amigo to fail or they would have brought this letter out before voting had finished. They know the judge wont stop this now because its the customers who have voted yes. Read between the lines, Amigo is more or less telling us the outcome of the vote in that RNS today. Hold them golden tickets
The FSCS scheme is only for companies that have gone bust
The £800 for FOS is to cover the running cost for FOS to deal with the case
FCA notified Amigo and SchemeCo after market close on 23 March 2021 that, having completed its assessment of the terms of the Scheme, while the FCA does not support the Scheme, it is not currently proposing to take any additional regulatory action that might stop the Scheme were it to be agreed by the Scheme creditors and sanctioned by the Court, but the FCA reserves the right to change its position. This is based on information currently made available to the FCA, including the skilled persons report, relating to the Scheme, which is in the process of finalisation. The Scheme creditors are Amigo's 700,000 past customers, 300,000 present customers and the Financial Ombudsman Service (the 'FOS').
24th March 2021 let the judge look at this statement from fca
The fca need to investigate debt camel as I bet she was shorting.