migo Loans has seen its buyer base halved and its income reduce by two-thirds because the troubled lender stays afloat regardless of its almost two-year lending “pause”.
The corporate stopped lending in November 2020 and has struggled to renew enterprise amid high-profile mis-selling claims however stated it plans to restart lending by late February.
However Amigo noticed buyer numbers nearly halve to 61,000 within the three months to June 30, from 118,000 in the identical interval final yr, in line with its monetary outcomes printed on Thursday.
Income additionally dropped yr on yr from £32.5 million to £10.4 million within the newest quarter, which Amigo stated was pushed by a discount in its mortgage ebook.
The corporate stated it has been working with the Monetary Conduct Authority (FCA) to realize regulatory approval for its new lending platform, RewardRate.
That is the following step in our restoration, forward of a proposed capital elevate, and would allow a brand new begin for the enterprise, having taken on board the learnings from the previous
Chief government Gary Jennison stated the brand new model “goals to supply a extra inexpensive, accountable and versatile choice to underserved clients who at present have only a few selections”.
Amigo spent round a yr combating for survival within the courts after a swathe of buyer complaints from debtors who had been mis-sold high-interest loans that they might not afford to repay.
However in Could, clients voted in favour of a compensation bundle that might permit it to maintain buying and selling. The scheme was accredited by the Excessive Courtroom.
Mr Jennison stated: “We proceed to interact positively with the FCA round our return to lending.
“That is the following step in our restoration, forward of a proposed capital elevate, and would allow a brand new begin for the enterprise, having taken on board the learnings from the previous.”
The cash can be used to fund the minimal £15 million contribution to the compensation scheme and to help future lending, Amigo stated.
Bosses added that it’s more likely to want approval from shareholders and that it should be accomplished by late Could to ensure that the corporate to proceed lending.
A report from auditors PwC, which supervises the compensation scheme, can be printed in early September.
