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Amigo shares surge as it reaches new agreement with the FCA

The company is going to set aside a lot more money than it originally envisaged to cover the torrent of complaints but it was confident enough to assure the FCA it will be on top of things by the end of October

Amigo Holdings PLC -

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.

Quick facts: Amigo Holdings PLC

Price: 8.84 GBX

LSE:AMGO
Market: LSE
Market Cap: £42.02 m
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