Amigo avoids £73m fine despite exposing 25% of guarantors to loan debts

The guarantor lender Amigo has evaded a £73 million FCA fine even though a quarter of the loans it made had to be repaid by guarantors after the borrowers defaulted.

By Neasa MacErlean

The Bournemouth-based company, Amigo Loans Ltd, has been publicly censured for its failure to carry out adequate security checks during the 16 months to March 2020. It has avoided the fine because the Financial Conduct Authority is supporting it through a scheme of arrangement that will pay redress. The scheme, says the regulator, will be "better for customers, in these parlous circumstances, than any other likely outcome".