Yahoo Finance Amigo Loans in further hot water with FCA as complaints spiral and shares tumble 22%
Amigo Loans is in further hot water with the FCA after failing to deal with a backlog of customer complaints.
At the end of May Amigo entered into a Voluntary Requirement in order to clear a backlog of 9000 complaints.
But since then the rate of complaints has continued to balloon and Amigo wants more time and is trying to extend the agreement with the FCA to clear the backlog.
It added it continues to assess each complaint on a case by case basis to ensure fair outcomes for customers.
Two weeks ago the firm reckoned the extra costs could be at least £35 million, so it scrapped the final dividend for the year to March 31 to save cash.
Amigo said in a statement: "Since our announcement on June 8, Amigo has continued to see a substantial increase in the rate of complaints.
"The Company is currently in discussions with the FCA to reach agreement on a variation of the VReq. The variation is anticipated to agree to extend the date of completion beyond 26 June 2020 and a corresponding expansion of the backlog of complaints to be resolved."
Shares tanked 22% to 7.19p in early trading.
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