Sign up Thank you for subscribing We have more newsletters Show me See our privacy noticePayday lender Amigo Loans says it is facing insolvency after judges rejected its plans to cut payouts for miss-sold loan victims last month. The company today said it would not be pursuing an appeal against the High Court after judges refused to approve a controversial proposal to cap customer compensation claims. Amigo Loans said it had to cut the payouts to as little as 10p for every pound owed or it would go bust, leaving nothing for customers at all. (Image: Getty)All pending and new compensation claims remain on hold until an arrangement is agreed, it said. Gary Jennison, chief executive of Amigo, said: "Without a scheme, Amigo faces insolvency as it will be unable to satisfy its customer compensation claims as well as meeting the legally binding funding obligations owed to its secured creditors.

Source: Daily Mirror June 01, 2021 07:36 UTC