Scheme progress update - 7th February 2024
We apologise for the delays in the claim process. This has been driven by both the unexpected volume of claims and the complexity of redress calculations.
To date, we have issued over 181,000 outcomes in the form of Final Response Letters to customers. This represents approximately 86% of total claims.
We anticipated that all responses would be issued by the end of January 2024, however, the remaining work and complexities in assessing and calculating certain claims, especially for some claimants with outstanding loan balances, has taken longer than initially anticipated. Although responses are still being issued, and will continue to be, our intention is to issue all responses by mid-March 2024.
In November 2023, we updated credit records for customers with either a full or partially upheld claim, which removed any reference to an upheld agreement. In December 2023, we stopped automatic collection of any future payments from customers whose Scheme outcome is likely to be fully or partially upheld and where redress will likely exceed the amount owing on their outstanding loan. We have communicated this by email to the relevant customers. It is important that customers continue making payments, unless we tell them to stop, to avoid any detrimental impact to their credit report.
The adjudication (claim dispute) process continues to work well and we expect that all adjudications will be completed by the end of May 2024. The Independent Scheme Adjudicator has provided clear guidance on the evidence they expect a customer to provide if choosing to dispute their outcome. This information can be found under Section B of our Frequently Asked Questions.
We anticipate that refunds and initial Scheme payments will begin to be paid by the end of February 2024, followed by a second smaller payment 6-9 months later, once there is certainty around the timing of Amigo’s liquidation. We are confident, at this stage, that Scheme redress payments will not be less than 17p.
Following the previous announcement of a potential takeover, we can confirm that the exclusivity agreement has been terminated and the takeover will not be proceeding. We remain open to any opportunities that will enhance creditor payments.
Answers to Frequently Asked Questions and key contact points can be found here.