Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Subprime lender Amigo warned that the cost of remedies related to a UK regulator's probe of its lending practices would be materially higher than a previous estimate of at least £35m.
Britain's Financial Conduct Authority has been investigating the way Amigo assessed the creditworthiness of its customers, which were able to sign up family members or friends as guarantors.
Amigo on Friday said that the regulator had extended a deadline to deal with customer complaints to 20 October, back from 26 June.
The extension implied that the number of complaints would increase substantially.
Amigo said it expected to report a 'material' increase in the year-end provision related to the increased number of complaints.
On the positive side, Amigo said it had sufficient financial headroom and cash on its balance sheet to continue to fund operations and support its customers 'during this challenging time'.
Amigo had a cash balance of over £136m at the end of June.
At 2:06pm: (LON:AMGO) Amigo Holdings Plc share price was +3.55p at 12.05p