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LONDON (Reuters) - London s High Court has rejected a rescue plan from subprime lender Amigo that would have cut compensation payouts to customers for mis-selling loans, sending the company s shares plunging more than 50% on Tuesday.
Britain s Financial Conduct Authority (FCA), which opposed the scheme in court, said it thought Amigo could propose a fairer deal for customers.
Subprime lenders in Britain have been hit by a regulatory clampdown in recent years that has led to a wave of claims, and in some cases compensation payouts, for mis-selling loans. The effect of the COVID-19 pandemic has added to the strain.