AMGO8 May 2021 19:14
Amigo’s Scheme – how to vote & timetable for approval
You can now vote on Amigo’s Scheme.
Amigo is proposing a Scheme because it can’t afford to pay refunds to all the customers who were given unaffordable loans. It says it will go into administration if the Scheme is not approved.
Amigo says customers may get a cash refund of about 10% of their proper refund value. I think the amount may be lower.
Customers with a current loan, however, will be able to have the full amount of their refund deducted from their balance and their guarantor released in the Scheme if Amigo upholds their claim. And they can also get this if Amigo went into administration if the administrators uphold their claim.
About a million Amigo customers have been texted or emailed about the Scheme. This includes current customers – the borrowers and guarantors for the current 137,000 loans – and all previous customers whose loans have been repaid. If you haven’t received an email about this, check your spam folder!
Amigo has set up a website with information for customers about the Scheme. This contains the Practice Statement Letter (PSL) which sets out more details. And a longer Explanatory Statement.
Customers can now vote on the Amigo Scheme
Contents
The approval process for the Scheme
An overview of the Scheme
Amigo customers – voting on the Scheme
Vote Yes or No?
Current borrowers and guarantors
Borrowers and guarantors where the loan is repaid
Do you think getting only 10% is fair?
The approval process for the Scheme
On 30 March, the First Court Hearing gave the go-ahead for Amigo to organise the creditor voting after the FCA said it does not support the Scheme but it won’t oppose it.
From here the approval process is as follows:
late April – 10 May – Online voting
You can vote now on a page that Amigo has set up. First you need to log in to the Scheme Portal here.
12 May – Formal creditors’ meeting
A formal creditors’ meeting will be held on 12 May where customers can vote on whether the Scheme should go ahead. But you don’t need to attend this online meeting to vote – most people will already have voted online.
19 May – Second Court Hearing
The second court hearing will consider whether the Scheme should go ahead and whether it is fair to customers.
late-May – provisional start date for the Scheme.
An overview of the Scheme
When the Scheme starts, all open FOS cases will be sent back to the Scheme.
Under the Scheme, customers can put in a claim if they have affordability complaint or if they have any other complaint about a loan or the way Amigo treated them.
There will be a six month period for these claims to be sent in after the Scheme start date. After that time you will not be allowed to make a claim in the Scheme and will not be able to take a complaint to the Ombudsman either.
Amigo will decide whether to uphold each claim:
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