Thousands of Amigo Loan customers will have to wait a YEAR for compensation – are you affected?
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.
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 and May 23 and 24.
This means it won't be approved until late May and payouts won't begin until at May 2023 at the earliest, .
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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.
What are your rights?
Refunds or compensation are often given when the loan was mis-sold or where affordability checks weren't stringent enough.
You can still claim, even if you've paid off the loan, if you struggled to make the payment at the time.
If you're still paying of your debts, you can still complain if you're finding it hard to pay the money pack.
If the firm you borrowed from has gone bust, you should contact the lender's administrator about getting a refund.
To make a complaint to Amigo, you should get in touch as soon as possible.
Send a short email to [email protected] with COMPLAINT as the subject.
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