June 8, 2020 / 6:36 AM / 2 months ago

UK subprime lender Amigo abandons sale, chairman resigns

LONDON (Reuters) - British subprime lender Amigo AMG.L is no longer up for sale after a potential bidder pulled out of the process and its chairman Stephen Wilcke resigned on June 7, it said on Monday.

There were no other offers for the company, Amigo said in a statement.

The Financial Conduct Authority said last week it had launched an investigation into Amigo’s creditworthiness assessment process.

Amigo was not recommending a final dividend for the year ending March 21 2020 and expected to report a “material increase in provision” due to customer complaints in its full-year results.

It said the cost of clearing a backlog of complaints covered by a voluntary arrangement with the FCA would be at least 35 million pounds ($44.43 million) and could be “materially higher”, with customer complaints increasing significantly in recent weeks.

Reporting by Carolyn Cohn; Editing by Rachel Armstrong

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