High court allows troubled Amigo Loans to cap compensation payments

Payday loans

Court rejects fears deal would be unfair to customers by cutting payouts to 5% even though directors could earn £7m

High-cost lender Amigo Loans will press ahead with a rescue plan to cap compensation payments for nearly 1 million customers after the high court rejected concerns the proposed scheme would unfairly harm them.

Amigo, which is giving board directors the chance to earn £7m in long-term bonuses as part of the deal, said it welcomed the court decision, which would allow a meeting with creditors on 12 May to go ahead as planned followed by a vote of all customers.

Related: Amigo pauses new loans until 2021 as it faces flood of complaints

Continue reading…

Level 6 Domain Names are FREE – Register Now.

Related Posts