British moneylender 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 October 20th; the previous deadline was June 26th.
The cost of dealing with the backlog would be “substantially higher” than a previous estimate of at least £35 million, 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.
The moneylender started lending in the Irish market in February last year, targeting people who have been turned down by traditional lenders, and offering loans of up to €5,000 at an annual rate of 49.9 per cent.
The company said in December its Irish loan book stood at €4.8 million. – Reuters
