Amigo Holdings PLC (LON:AMGO0, the controversial guarantor loans provider, has increased the estimated cost of dealing with a torrent of customer complaints.
The company has made a pledge to the Financial Conduct Authority (FCA) that it will reach a position by the end of October where all complaints are dealt with appropriately within eight weeks.
The beleaguered lender has previously estimated it would cost at least £35mln to deal with all of the complaints it has received and the “at least” part of that estimate has now been increased.
Amigo said it expects to report a material increase in the year-end provision in respect of the increased number of complaints being received.
The company’s controlling shareholder, the Richmond Group, continues to sell 1% of the company’s share capital every trading day in line with a commitment announced on June 5, 2020, and this will continue until the shareholding has been sold down.
Shares in Amigo were up 24% at 10.5p in early deals.