Amigo Loans has said it plans to wind down its business and halt all lending with immediate effect as it realised it would not be able to meet the terms of a High Court scheme which was intended to compensate customers. The business said that after exploring several options it had been forced to use its "fallback option" and would wind down by the business and use the money to pay off customers who were due redress.
It said: "The fallback solution requires that the trading subsidiary, Amigo Loans Ltd stops lending with immediate effect and is placed into an orderly wind-down, with the result that all surplus assets after the wind-down are transferred to the scheme creditors. In due course, (Amigo Loans Limited) will be liquidated."
It means that customers who were due redress payments will lose out on the £15 million that Amigo hoped to raise from private investors. But they will still get the rest of the compensation they have been promised.
