Amigo Loans Liquidation and Scheme of Arrangement Outcome
Amigo Loans was once the UK’s largest guarantor lender, with around 88% of the market in 2018 and a £1.3bn London Stock Exchange valuation at IPO. Following a flood of affordability complaints — over 14,000 in 2020 alone — Amigo collapsed into a Court-approved Scheme of Arrangement, paid out a final 18.51p in the pound on upheld claims, and entered solvent liquidation in September 2025. This page explains where things stand for Amigo customers and guarantors now.
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About Amigo Loans
Amigo was founded in 2005 by James Benamor and pioneered the modern guarantor loan market. By 2018, Amigo had grown to dominate the sector — at IPO it claimed roughly 150,000 active customers and the great majority of the UK guarantor loan market.
From 2019 onwards, the FCA raised significant concerns about affordability practices across the guarantor lending sector. The Financial Ombudsman Service began upholding Amigo complaints at very high rates, with complaints rising 2,304% from 583 in 2019 to over 14,000 in 2020. Amigo could not absorb this volume of redress while continuing to operate.
The Scheme of Arrangement
Following an initial 2020 scheme proposal that the FCA opposed and the Court rejected in 2021, a revised Scheme of Arrangement was approved by creditors and sanctioned by the High Court in May 2022. The scheme:
- Compromised affordability redress claims for loans taken between 2005 and 2020.
- Required customers to submit claims by the scheme deadline (varied by category).
- Originally promised approximately 41p in the pound payout, conditional on Amigo raising £15m of new equity capital.
- Switched to a “fallback” wind-down route in March 2023 when the £15m capital raise failed.
- Resulted in a final payout of 18.51p in the pound — split as 12.5p initial payment in late 2024, plus 6.01p second payment in April 2025.
Over 210,000 claims were processed under the scheme, with around £345m made available for customer redress and £319m absorbed by claims processing and scheme administration costs.
Liquidation and current status
The Scheme of Arrangement officially completed on 28 August 2025. Amigo Loans Ltd entered solvent liquidation in September 2025, with Grant Thornton appointed liquidators of Amigo Holdings PLC and the underlying companies.
No new affordability claims can be brought against Amigo after the scheme deadline. The scheme was a court-approved compromise of all such claims. The liquidation is winding up the remaining business affairs.
For customers whose claims were upheld
Customers with upheld claims under the scheme should have received their two payments by spring/summer 2025. For those who did not provide or update bank details by the 17 May 2025 deadline:
- Their compensation funds were transferred to High Court custody.
- Releasing the funds requires a formal application to the Court under the Trustee Act 1925.
- A non-refundable Court fee of £54 applies, plus identification verification and paperwork.
- For small payouts the cost can be disproportionate to the recovery available.
What about RewardRate?
Amigo had announced plans for a successor brand called RewardRate, which was intended to launch as part of the preferred scheme outcome (using £15m of new investor capital plus a contribution to creditor redress). When the £15m raise could not be achieved, the RewardRate plan was abandoned along with the preferred scheme route. RewardRate is therefore not an active lender.
Customers with active loans
For customers whose loans were not yet repaid at the time of liquidation, payments continue under the original loan terms. Any redress under the scheme has been applied to the balance. Where the loan has been sold or transferred to a debt purchaser, the purchaser handles ongoing servicing.
Why complaint compensation was so reduced
Three factors combined to compress the payout:
- The volume of claims (210,000+) was higher than originally modelled.
- Scheme administration and claim-processing costs absorbed roughly half the gross fund.
- The £15m investor capital that would have boosted the fund could not be raised.
- The 41p original estimate was always conditional on the preferred scheme route — the fallback was always going to be lower.
Tax on Amigo redress
For the compensatory interest element of the redress only, basic-rate (20%) tax was deducted at source by Amigo before payment. Customers who are non-taxpayers, or whose total interest income is within the unused savings allowance, can reclaim this from HMRC using form R40 within four years.
Frequently asked questions
Can I still complain about Amigo?
No — the scheme is closed. Court-approved schemes of arrangement compromise existing claims, and the deadline has passed. Even where the original lending was unaffordable, the scheme outcome has settled the position legally.
My funds went to the Court — how do I get them?
You need to make a formal application to the High Court under the Trustee Act 1925. The £54 Court fee is non-refundable. Specific advice on the procedure is sensible — for small amounts the cost can exceed the recovery.
What about Amigo guarantors?
Guarantors who made payments on upheld claims received their proportionate share of the 18.51p in the pound. Where the borrower’s loan was found unaffordable, the guarantor was released from further liability and credit-file entries were corrected.
Related guides
- What if the lender has gone into administration?
- Guarantor loans claims hub
- How far back can I claim?
- Section 140A and the unfair relationship test
- Do I have an unaffordable lending claim?
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