July 3, 2020 / 6:17 AM / a month ago

UK lender Amigo to set aside more cash to settle complaints

LONDON, July 3 (Reuters) - British lender Amigo said on Friday it had extended a deadline with the Financial Conduct Authority to deal with a backlog of customer complaints and set aside more money to settle them.

Amigo has entered into an amended voluntary requirement with the regulator where it has agreed to ensure all complaints are dealt with by Oct. 20; the previous deadline was June 26.

The cost of dealing with the backlog would be “substantially higher” than a previous estimate of at least 35 million pounds, it said, adding it would report “a material increase” in year-end provisioning linked to a rise in the number of complaints being received.

The company, which provides loans to borrowers who struggle to obtain credit from mainstream lenders if a friend or family member can act as a guarantor for them, said its liquidity remains strong and it has sufficient financial headroom to fund operations. (Reporting by Simon Jessop Editing by Rachel Armstrong)

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