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Amigo Loans - Scheme of Arrangement FAQs

Why have you stopped processing complaints? Amigo is considering a proposal called a Scheme of Arrangement ("Scheme") for customers - both borrowers and guarantors. Amigo’s objective with the Scheme is to ensure that all of our customers are treated fairly and no customer receives a benefit that disadvantages another.  We have not stopped processing complaints but have stopped paying out redress. This is so that those customers are treated consistently with all customers under the Scheme.

What is the Company's plan regarding complaints? Amigo is considering a Scheme for its customers. Customers will have an opportunity to vote on this proposal. If approved by customers and the Court, a Scheme would provide all borrowers and guarantors with the chance to submit a claim for potentially unaffordable lending which, if upheld, would result in settlements which are fairly divided across all customers with a valid claim.

What is a Scheme? A Scheme is a Court-approved process. Amigo will send customers the proposal, and customers will be invited to vote on this. The timetable is not fixed, but the vote is expected to be in March 2021.

If customers and the Court approve the proposal, customers will have six months to submit any claim they have for unaffordable lending. The Scheme will enable valid claimants to receive redress payments that are assessed and distributed in a transparent, fair and efficient manner.

Do I need to continue to repay my loan? Loan repayments need to continue to be made. The loan terms and conditions remain as agreed with Amigo, and repayments on your loan still need to be made.

Will both borrower and guarantor be able to claim? Yes. Provided an individual borrower or guarantor has not previously received a settlement for unaffordable lending with Amigo, they will be able to submit a claim to be assessed in the Scheme.

What is the Scheme timeline? We will contact you with more information about the proposed scheme, including the likely timeline, in the new year.

How much will I receive if I have a valid claim? The ultimate amounts to be paid will depend on a number of factors which will only become clear during the process. In addition to cash payment of redress, customers with a valid Scheme claim may also benefit from a reduction in loan balance outstanding. 

Customers will be contacted in the new year with details of how they can review the proposal. The proposal will include a fair and equitable method to assess, value and pay claims. This methodology will be in line with Amigo’s objectives to treat our customers fairly.

What if the Scheme is not approved? The design of the Scheme is still being worked on by our advisers, and this includes the possible alternative if the Scheme is not approved by our customers or the Court. This alternative will be clearly illustrated in our proposal.

What should I do if a third party indicates they can ensure I get a larger claim amount? The Scheme will be designed so that no customer will be able to receive more if they use a third party to submit a claim. We know that Claims Management Companies (CMCs) have contacted some of our customers. CMCs will not be able to achieve a higher payment for you customers than if you submit your own claim. In these circumstances, CMCs provide no benefit, but will typically demand up to 40% of any payment made to a customer that has used them.