Amigo Loans Scheme 2025: Liquidation, Final Payments & What Happens Next
Amigo Loans, once the UK's largest guarantor loan provider, officially completed its Court-approved Scheme of Arrangement on August 28, 2025, and entered solvent liquidation in September 2025. The company's closure marks the final chapter in a contentious compensation process that saw over 210,000 customers receive just 18.51 pence per pound in compensation—far below the 42 pence originally promised when the scheme was proposed in 2021. For borrowers and guarantors who took out loans between 2005 and 2020, understanding what this liquidation means for outstanding claims, unclaimed compensation, and future legal rights remains crucial for financial recovery.
The Amigo loans scheme 2025 completion followed years of legal challenges, regulatory scrutiny, and customer complaints about irresponsible lending practices that led to over 14,000 complaints in 2020 alone—a staggering 2,304% increase from just 583 complaints in 2019. The scheme's conclusion demonstrates the severe financial consequences facing guarantor loan providers who fail to conduct adequate affordability assessments, with Amigo setting aside £345 million for compensation but spending an additional £319 million on processing costs, ultimately leaving the company insolvent despite the Court-approved arrangement limiting customer payouts.
Whether you received partial compensation, missed the payment deadline, or are still dealing with loan obligations sold to debt collectors, this comprehensive guide explains the final status of the Amigo loans scheme 2025, how to claim unclaimed funds now held by the court, and what legal options remain for guarantor loan victims dealing with other lenders. The lessons from Amigo's collapse also provide valuable insights for borrowers and guarantors facing similar irresponsible lending situations with remaining guarantor loan companies still operating in the UK market.
Table Of Contents
- • Amigo Loans Liquidation Timeline 2025
- • Scheme of Arrangement Final Statistics
- • What Customers Actually Received in Compensation
- • Unclaimed Compensation: High Court Application Process
- • Why Amigo Loans Collapsed: Irresponsible Lending Exposed
- • Guarantor Loan Claims Against Other Lenders
- • Lessons from the Amigo Collapse for UK Borrowers
- • Frequently Asked Questions
Amigo Loans Liquidation Timeline 2025
The Amigo loans scheme 2025 liquidation process concluded a five-year saga of regulatory failures, customer complaints, and ultimately insolvency for what was once the UK's dominant guarantor loan provider. Understanding this timeline helps customers grasp why compensation was limited, when final payments occurred, and what options remain for those who missed critical deadlines or still have outstanding claims related to their Amigo loan experience.
August 28, 2025: Official Scheme Completion
PwC, acting as Scheme Supervisors, passed a formal resolution on August 28, 2025 confirming that the Amigo Loans Scheme of Arrangement had been properly implemented according to Court-approved terms. This resolution marked the legal conclusion of the compensation process, with all scheme claims determined, adjudicated where disputed, and paid to customers who provided valid banking details by the May 17, 2025 deadline. The completion triggered Amigo's immediate closure, with the company ceasing all customer service operations and no longer responding to queries about claims, payments, or loan balances.
The scheme completion came after Amigo distributed final payments totaling 18.51 pence per pound of calculated compensation—dramatically less than the 42 pence originally proposed when the scheme was first submitted to creditors in 2021. This shortfall resulted from far higher claim volumes than Amigo anticipated, with over 210,000 customers submitting complaints compared to the company's initial projections of significantly fewer claimants requiring compensation for unaffordable lending practices.
April-May 2025: Second Scheme Payment Distribution
Amigo began distributing the Second Scheme Payment of 6.01 pence per pound in late March 2025, with most payments completing by May 2025 for customers who had provided accurate banking information through the official Scheme Portal. This second payment combined with the Initial Scheme Payment of 12.5 pence per pound distributed in late 2024 brought total compensation to just 18.51 pence per pound—meaning a customer owed £10,000 in calculated compensation received only £1,851 across both payments before any tax deductions on compensatory interest components.
The May 17, 2025 deadline for providing or updating bank details proved critical, as customers who failed to meet this cutoff found their compensation funds transferred to High Court custody rather than paid directly. These customers must now navigate a formal court application process under the Trustee Act 1925 to access their money, involving legal paperwork, identification verification, and a non-refundable £54 court fee that many find prohibitive given the small sums involved after Amigo's reduced payout percentages.
September 2025: Grant Thornton Liquidation Appointment
Following the scheme completion, Amigo Holdings PLC appointed liquidation specialists from Grant Thornton to conduct solvent liquidation of Amigo Loans Ltd and ALL Scheme Limited—the special purpose company created to manage the compensation scheme. This liquidation process focuses on winding down remaining company operations, addressing final administrative matters, and ensuring any residual assets are handled according to insolvency law requirements, though Amigo confirmed that remaining funds were too small to justify further distribution to scheme creditors given the administrative costs involved in processing additional payments.
The liquidation appointment marked Amigo's complete exit from the UK guarantor loan market after operating from 2005 to 2020 and briefly attempting to restart lending under new brand names in 2022. The company's failure demonstrates the financial consequences of widespread irresponsible lending practices, with regulatory enforcement and customer compensation requirements ultimately exceeding Amigo's capacity to continue operations despite being once valued at over £1 billion on the London Stock Exchange before the lending scandal emerged.
Scheme of Arrangement Final Statistics
The Amigo loans scheme 2025 final statistics reveal the massive scale of compensation required when guarantor loan providers systematically fail to conduct adequate affordability assessments. These numbers demonstrate both the widespread nature of Amigo's lending failures and the financial impossibility of full compensation when irresponsible lending affects hundreds of thousands of customers over extended periods, creating lessons for both consumers and remaining lenders in the high-cost credit sector.
Compensation Fund and Distribution Breakdown
Amigo set aside £345 million for customer compensation in the financial year ending March 2021, representing the largest single provision for consumer redress in the UK guarantor loan sector's history. However, the company simultaneously incurred £319 million in processing costs associated with handling over 210,000 claims, conducting affordability assessments, managing appeals through the Independent Scheme Adjudicator, and operating the Scheme Portal infrastructure for customer communications and payment distribution throughout the multi-year process.
These combined costs of £664 million resulted in Amigo reporting a £284 million loss for the 2021 financial year, fundamentally undermining the company's solvency and necessitating the Scheme of Arrangement rather than normal business operations. The disproportionate administrative costs particularly frustrated customers who saw nearly half of the compensation fund consumed by the claims processing infrastructure rather than distributed to victims of unaffordable lending, though Amigo maintained these costs were necessary to comply with Court requirements for fair claim determination and proper scheme administration.
- Total Claims Received: Over 210,000 customer complaints submitted for adjudication under the scheme
- Compensation Fund: £345 million set aside for customer redress payments across all upheld claims
- Processing Costs: £319 million spent on claim handling, adjudication, and scheme administration
- Company Loss: £284 million total loss for financial year 2021 related to compensation liability
- Final Payout Rate: 18.51 pence per pound of calculated compensation (vs. 42p originally proposed)
- Eligible Loan Period: All Amigo loans issued between January 28, 2005 and December 21, 2020
Complaint Volume and Regulatory Scrutiny
The explosion in Amigo loan complaints between 2019 and 2020 provides stark evidence of the company's systematic lending failures. Amigo received just 583 complaints in 2019, suggesting customers either weren't aware of their rights to challenge unaffordable lending or believed Amigo's affordability assessments were adequate. However, complaints surged to 14,017 in 2020—a staggering 2,304% increase—following increased media coverage of guarantor loan issues, regulatory guidance clarifications from the Financial Conduct Authority, and customer awareness campaigns by debt charities highlighting potential grounds for compensation claims.
This complaint surge overwhelmed Amigo's customer service infrastructure and made continuation of normal business operations impossible, as the FCA imposed restrictions on new lending while requiring the company to address the mounting backlog of historical affordability complaints. The Financial Ombudsman Service also stopped accepting new Amigo cases once the Scheme of Arrangement received Court approval, instead directing customers to participate in the scheme process for their compensation claims rather than pursuing individual FOS adjudications that would have entitled customers to full compensation rather than the scheme's reduced percentage payments.
What Customers Actually Received in Compensation
Understanding what Amigo customers actually received requires examining the complex calculation methodology that determined individual compensation amounts, the percentage reduction applied through the scheme, and the tax treatment of compensatory interest components. Many customers express confusion about their final payments, particularly when comparing their calculated entitlement against the drastically reduced amount received through the Amigo loans scheme 2025 liquidation process.
Compensation Calculation Methodology
For upheld claims, Amigo calculated compensation by determining the total interest and charges customers paid on their loans, adding 8% statutory interest per annum to reflect the time value of money, and then subtracting this from customers' total repayments where they had paid back more than the original borrowed principal amount. Guarantors who made payments on behalf of defaulting borrowers received similar calculations based on their payment contributions, with their compensation reflecting the fact they shouldn't have been accepted as guarantors if Amigo had conducted proper affordability assessments considering their financial circumstances and ability to meet potential payment obligations.
However, these calculated compensation amounts were then subject to the scheme's percentage reduction, with customers receiving only 18.51 pence per pound of their calculated entitlement split across two installments. The first payment of 12.5 pence per pound distributed in late 2024, followed by the final payment of 6.01 pence per pound in April-May 2025, bringing the total to just 18.51% of what customers would have received through normal Financial Ombudsman Service adjudication or court proceedings if Amigo had remained solvent enough to pay full compensation awards.
Tax Treatment and Deductions
Amigo withheld 20% tax on the compensatory interest component of customer payments, treating this as taxable income subject to basic rate income tax and remitting these deductions directly to HMRC on customers' behalf. This tax treatment reduced actual cash received by customers, though individuals whose total taxable income remained below personal allowance thresholds or whose savings income qualified for personal savings allowance exemptions could reclaim overpaid tax by submitting form R40 to HMRC, a process many customers found complicated and weren't aware they could pursue for tax refunds.
The tax withholding particularly impacted customers receiving small compensation amounts under the scheme's reduced percentage payments, with the 20% deduction on interest components sometimes reducing final payments to trivial sums that hardly justified the years spent waiting for the scheme to complete. Higher rate taxpayers faced additional tax liabilities beyond the 20% withheld by Amigo, requiring them to declare compensation payments on self-assessment tax returns and pay additional tax at their marginal rates, though these cases were relatively rare given guarantor loans typically targeted customers with lower incomes and limited access to mainstream credit facilities.
Unclaimed Compensation: High Court Application Process
Customers who failed to provide valid bank details by the May 17, 2025 deadline found their compensation funds transferred to High Court custody under the Trustee Act 1925 rather than paid directly by Amigo. Accessing these funds now requires formal court applications involving legal paperwork, supporting documentation, and non-refundable court fees that create barriers for many customers, particularly those owed small amounts after the scheme's percentage reduction making the £54 court fee economically unjustifiable relative to potential recovery amounts.
Required Court Application Documentation
Applications for payment out of funds held by the court require completion of specific legal forms addressed to the Business & Property Courts of England & Wales, Chancery Division - Miscellaneous Payments Team at 7 Rolls Building, Fetter Lane, London EC4A 1NL. Applicants must clearly state they're applying for "payment out of funds held by the Court on behalf of Amigo Loans under the Trustee Act 1925," provide comprehensive factual explanations of how Amigo came to hold money for them, and supply supporting evidence including claim correspondence, scheme decision letters, and documentation proving their identity and entitlement to the compensation amount in question.
The court requires identity verification through official documents like passports or driving licenses, proof of address through recent utility bills or bank statements, and evidence of any name changes since dealing with Amigo through marriage certificates or deed poll documentation. Applicants must also pay the £54 court fee by cheque, postal order, or bank draft made payable to "His Majesty's Court and Tribunal Service," with this fee being non-refundable regardless of application outcomes, creating particular hardship for customers owed small sums where the court fee consumes a significant percentage of their compensation entitlement under the Amigo loans scheme 2025 reduced payment rates.
- Court Application Form: Formal written application stating request for Amigo Loans funds under Trustee Act 1925
- Identity Documents: Passport, driving license, or other official photo ID proving applicant identity
- Address Verification: Recent utility bills, bank statements, or council tax bills confirming current address
- Entitlement Evidence: Amigo scheme decision letters, claim correspondence, or scheme portal screenshots
- Name Change Proof: Marriage certificates or deed poll documents if name changed since dealing with Amigo
- Court Fee Payment: £54 non-refundable fee by cheque, postal order, or bank draft to HMCTS
Cost-Benefit Analysis for Small Claims
The £54 court fee creates a significant cost-benefit dilemma for customers owed small compensation amounts under the scheme's reduced payout percentages. A customer entitled to £100 in calculated compensation received only £18.51 through the scheme's percentage payments, meaning the £54 court fee represents nearly three times their actual compensation entitlement, making the application process economically irrational despite their legal right to access these funds. Even customers owed £200 in original compensation—receiving £37.02 under the scheme—find the court fee consuming over half their potential recovery, raising questions about whether pursuing these applications makes financial sense.
This situation particularly disadvantages vulnerable customers who were Amigo's target market in the first place—individuals with poor credit histories, limited financial resources, and often minimal experience navigating legal processes. The court application requirement effectively denies many customers access to their compensation through administrative and financial barriers rather than direct refusal, creating a de facto forfeiture of funds that benefits the liquidation estate at the expense of victims of Amigo's irresponsible lending practices who missed arbitrary deadlines often due to changed addresses, limited digital access to the Scheme Portal, or simply being overwhelmed by complex legal processes during difficult financial circumstances.
Why Amigo Loans Collapsed: Irresponsible Lending Exposed
Understanding why Amigo Loans collapsed requires examining the systematic failures in the company's lending assessment processes, the regulatory framework breaches that rendered thousands of loans unaffordable, and the FCA enforcement actions that ultimately made continued operations impossible. The Amigo collapse wasn't simply a business failure—it represented a regulatory reckoning for an entire lending model that prioritized growth and profitability over customer welfare and proper affordability assessment, with consequences extending throughout the UK guarantor loan sector beyond just Amigo's specific circumstances.
Systematic Affordability Assessment Failures
Amigo's lending failures centered on inadequate affordability assessments that failed to properly verify borrowers' income and expenditure, ignored obvious warning signs of financial difficulty, and approved loans that would clearly prove unsustainable for customers already struggling with existing debt obligations. The company's automated decisioning systems prioritized speed and volume over thorough assessment, with minimal human oversight of individual applications and insufficient challenge to questionable financial declarations provided by desperate borrowers seeking credit despite their obvious inability to afford additional debt burdens alongside existing commitments.
Evidence from upheld complaints revealed Amigo routinely approved loans for customers with multiple active payday loans, consistent overdraft usage, CCJs, defaults, and negative bank balances—all clear indicators that additional borrowing would be unaffordable and unsustainable. The company also failed to properly assess guarantors' ability to meet payment obligations if borrowers defaulted, treating guarantor acceptance as a risk mitigation tool rather than a serious obligation requiring independent affordability assessment considering guarantors' own financial circumstances, existing commitments, and realistic capacity to service additional debt if required to step in for defaulting borrowers.
FCA Enforcement and Lending Ban
The Financial Conduct Authority's enforcement actions against Amigo escalated throughout 2020 as the scale of lending failures became apparent through complaint volumes and FOS adjudication patterns showing consistently upheld irresponsible lending findings. The FCA imposed restrictions on new lending in May 2020, effectively banning Amigo from issuing fresh loans while requiring the company to address the mounting backlog of historical complaints and implement robust remediation programs for affected customers, though these requirements proved financially impossible given the sheer volume of unaffordable loans the company had issued throughout its operating history.
The lending ban destroyed Amigo's business model, as the company could no longer generate revenue through new loan origination while facing massive compensation liabilities for historical lending failures. Combined with the administrative costs of processing over 210,000 compensation claims, Amigo's financial position became untenable, forcing the Scheme of Arrangement as the only alternative to immediate insolvency that would have left customers with potentially zero compensation if the company entered ordinary administration proceedings before any compensation scheme could be established and Court-approved for customer protection.
Guarantor Loan Claims Against Other Lenders
While Amigo Loans no longer accepts claims following its liquidation, customers who took out loans from other guarantor loan providers may still have active compensation rights through Financial Ombudsman Service complaints, direct lender complaints, or in some cases participation in other lenders' own schemes of arrangement. The Amigo loans scheme 2025 completion doesn't affect claims against TFS Loans (now in administration), George Banco, Everyday Loans, Bamboo Loans, or other guarantor loan companies that operated using similar lending models with potentially comparable affordability assessment failures requiring investigation and customer compensation where irresponsible lending can be demonstrated.
Active Guarantor Loan Complaint Opportunities
The legal principles established through Amigo complaints apply equally to all guarantor loan providers, with Financial Ombudsman Service guidance confirming that lenders must conduct reasonable and proportionate affordability assessments for both borrowers and guarantors regardless of which specific company issued the loans. Customers experiencing financial difficulty with guarantor loans from any provider should review their original application circumstances, checking whether lenders properly verified income, assessed existing debt obligations, considered credit file information, and made reasonable lending decisions based on sustainable affordability rather than simply approving loans because guarantor backing reduced lender risk exposure.
Current guarantor loan complaint procedures involve initially complaining directly to your lender through their customer service channels, providing details of your financial circumstances at the time of lending and explaining why you believe the loan was unaffordable considering your income, expenditure, and existing commitments. If the lender rejects your complaint or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service for free independent adjudication, with FOS having authority to award full compensation without percentage reductions unlike the constrained Amigo scheme that operated under insolvency constraints rather than normal regulatory procedures.
- TFS Loans: In administration since 2024, claims should be directed to administrators Begbies Traynor
- George Banco: Still operating and accepting complaints through normal FOS complaint procedures
- Everyday Loans: Active lender with established complaint handling procedures and FOS representation
- Bamboo Loans: Operational guarantor loan provider subject to standard FCA regulations and FOS jurisdiction
- Buddy Loans: Ceased trading, administrators handling residual claims and complaint processing
When Other Lenders Might Face Schemes
The success of mass complaints against Amigo creates precedent risk for remaining guarantor loan providers, potentially forcing similar schemes of arrangement if complaint volumes overwhelm these companies' financial capacity to pay full compensation through normal FOS or court proceedings. TFS Loans already entered administration in 2024 following similar complaint patterns to Amigo, suggesting the broader guarantor loan sector faces existential threats from historical lending failures that continue emerging years after the original loans were issued as customers become increasingly aware of their rights to challenge unaffordable lending through regulatory complaint mechanisms.
Customers considering guarantor loan complaints should act promptly rather than waiting to see if lenders enter schemes of arrangement, as direct FOS complaints while lenders remain solvent offer prospects of full 100% compensation plus 8% statutory interest rather than the reduced percentage payments typical of insolvency schemes. The Amigo experience demonstrates that schemes benefit lenders and shareholders at customer expense, with administrative costs consuming substantial portions of compensation funds and customers receiving pennies on the pound compared to what they'd obtain through successful FOS adjudications or court judgments against financially sound defendants capable of paying full awards.
Lessons from the Amigo Collapse for UK Borrowers
The Amigo loans scheme 2025 completion offers important lessons for UK consumers about high-cost credit, the importance of timely complaint submission, and the limitations of regulatory remedies when companies become insolvent before customer compensation can be fully addressed. These lessons extend beyond guarantor loans specifically, applying to payday loans, rent-to-own agreements, motor finance, and other high-cost credit products where aggressive lending practices may create future compensation liabilities that consumers should address proactively rather than waiting years for regulatory intervention that may ultimately provide minimal financial recovery through insolvency schemes.
Importance of Early Complaint Submission
Customers who submitted Amigo complaints in 2019-2020 before the Scheme of Arrangement received full compensation through normal FOS procedures, while those who delayed complaint submission until after May 2022 found themselves trapped in the scheme receiving only 18.51% of their calculated entitlement. This timing difference created massive disparities in compensation outcomes, with early complainants receiving £1,000 in full compensation while later complainants with identical lending circumstances received just £185.10 for equivalent claims simply due to when they became aware of their rights and submitted complaints relative to Amigo's scheme of arrangement implementation.
This lesson applies to all high-cost credit products where consumers suspect unaffordable lending or mis-selling. Waiting to see what happens or assuming regulators will force companies to compensate customers ignores the reality that companies facing mass compensation liabilities often become insolvent before full remedies can be achieved, leaving late complainants with reduced percentage payments through insolvency schemes rather than full compensation awards. Proactive complaint submission while lenders remain financially sound provides the best prospects for meaningful compensation, making awareness of consumer rights and willingness to challenge potentially unaffordable lending crucial for financial recovery.
Warning Signs of Irresponsible Lending
The Amigo collapse highlights specific warning signs that indicate potentially unaffordable lending warranting immediate complaint consideration. Loans approved despite multiple existing payday loans, consistent overdraft usage, recent CCJs or defaults, or minimal income verification likely breach FCA responsible lending requirements and justify compensation claims if customers experienced financial difficulty servicing these obligations. Guarantors accepted without independent affordability assessment, inadequate explanation of guarantee obligations, or failure to consider financial links between borrower and guarantor similarly indicate lending failures creating potential compensation entitlement for guarantors who shouldn't have been accepted or who weren't properly informed about their obligations and risks.
Customers experiencing any form of financial difficulty with high-cost credit should review their original application circumstances rather than simply struggling with unaffordable repayments that may have resulted from lender failures to conduct adequate affordability assessments. The existence of financial difficulty doesn't automatically mean lending was irresponsible, but difficulty combined with evidence that lenders failed to properly verify income, assess expenditure, or consider existing commitments creates strong grounds for complaints that may result in interest refunds, debt write-offs, and compensation for financial and emotional harm caused by unaffordable lending that should never have been approved in the first place.
Frequently Asked Questions
Can I still make a claim against Amigo Loans in 2025?
No. Amigo Loans permanently closed on August 28, 2025 following completion of its Court-approved Scheme of Arrangement. The company no longer accepts new claims, queries, or complaints. All scheme claims were determined and paid by May 2025. If you missed the scheme deadlines, your only option is applying to the High Court for funds transferred to court custody under the Trustee Act 1925, requiring formal application with £54 court fee and supporting documentation.
How much compensation did Amigo loans scheme 2025 customers actually receive?
Customers received just 18.51 pence per pound of their calculated compensation entitlement—dramatically less than the 42 pence originally proposed. This comprised 12.5p paid in late 2024 and 6.01p paid in April-May 2025. For example, someone entitled to £5,000 compensation received only £925.50 total before tax deductions. The massive reduction resulted from over 210,000 claims exceeding Amigo's expectations and £319 million in processing costs consuming nearly half the compensation fund.
What happened to Amigo Loans after the scheme completion?
Amigo entered solvent liquidation in September 2025, with Grant Thornton appointed as liquidators to wind down the company. All customer service operations ceased permanently. The scheme supervisors confirmed all claims were determined and paid according to Court-approved terms. Residual funds were deemed too small to distribute to customers due to administrative costs exceeding available amounts, effectively ending any prospect of additional compensation beyond the 18.51p per pound already distributed.
How do I claim unclaimed Amigo compensation held by the court?
Apply to the Business & Property Courts, Chancery Division at 7 Rolls Building, Fetter Lane, London EC4A 1NL. State you're seeking "payment out of funds held by the Court on behalf of Amigo Loans under the Trustee Act 1925." Submit identity documents, proof of address, evidence of entitlement (scheme letters), and name change documentation if applicable. Pay £54 non-refundable court fee. Consider whether this cost-effective given the small amounts involved after scheme's percentage reduction.
Why did Amigo Loans pay so much less than originally promised?
Over 210,000 claims were submitted—far exceeding Amigo's projections when proposing the scheme. With limited compensation funds (£345 million) divided among more claimants, percentage payments dropped from the proposed 42p to actual 18.51p per pound. Additionally, £319 million in processing costs consumed nearly half the total available funds, covering claim assessment, adjudication, scheme portal operations, and legal compliance over the multi-year process, further reducing amounts available for customer distribution.
Can I still complain about other guarantor loan companies after Amigo closed?
Yes. The Amigo liquidation doesn't affect complaints against other guarantor loan providers like George Banco, Everyday Loans, Bamboo Loans, or companies in administration like TFS Loans. The same irresponsible lending principles apply to all lenders. Submit complaints directly to your lender first, then escalate to the Financial Ombudsman Service if rejected. Acting while lenders remain solvent offers prospects of full 100% compensation rather than reduced percentage payments through insolvency schemes.
What were the main reasons Amigo loans were found to be irresponsible?
Amigo systematically failed to conduct adequate affordability assessments, approving loans despite obvious financial stress indicators including multiple active payday loans, persistent overdraft usage, CCJs, defaults, and negative bank balances. The company relied on automated decisions without proper income verification, ignored credit file warning signs, approved loan top-ups without reassessment, and failed to independently assess guarantors' ability to pay. These failures breached FCA Consumer Credit Sourcebook requirements for reasonable and proportionate lending assessments.
Was tax deducted from Amigo loans scheme 2025 compensation payments?
Yes. Amigo withheld 20% tax on the compensatory interest component (8% statutory interest on refunded payments) and remitted this to HMRC on customers' behalf. Customers whose total income remained below personal allowance thresholds or qualified for personal savings allowance exemptions could reclaim overpaid tax by submitting HMRC form R40. Higher rate taxpayers faced additional tax liabilities beyond the 20% withheld, requiring declaration on self-assessment returns at their marginal rates.
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While the Amigo loans scheme 2025 has concluded with the company's liquidation, the lessons and legal principles from this landmark case continue affecting guarantor loan claims across the UK high-cost credit sector, with thousands of borrowers and guarantors still possessing active complaint rights against other lenders who may have employed similar irresponsible lending practices.
The dramatic difference between early complainants who received full compensation and later scheme participants receiving just 18.51% demonstrates the critical importance of timely complaint submission while lenders remain financially solvent, making proactive assessment of potential irresponsible lending claims essential for meaningful financial recovery rather than reduced percentage payments through insolvency proceedings.
Whether you're dealing with unclaimed Amigo compensation requiring High Court applications, considering complaints against other guarantor loan providers, or facing contractual disputes involving high-cost credit agreements, specialist financial services disputes lawyers can assess your circumstances, explain realistic prospects, and develop strategic approaches maximizing compensation entitlement through appropriate regulatory or legal channels.
For expert guidance on guarantor loan claims, understanding guarantor loan rights, or pursuing compensation for unaffordable lending across the UK consumer credit sector, professional legal advice ensures you understand your options and pursue the most effective strategies for financial recovery while navigating complex complaint procedures and regulatory frameworks governing high-cost credit provider obligations.
