Amigo given more time for complaints backlog as shares jump

TROUBLED subprime lender Amigo has been given until the end of October to deal with a backlog of customer complaints it earlier promised to have dealt with by last week.

Amigo is at war with founder James Benamor who launched a bid to oust the board. He quit in March and accused the company of “committing slow-motion suicide”.

Since then it has faced thousands of complaints from customers who say they should never have been granted a loan in the first place.

The Financial Conduct Authority has given the firm longer to deal with the backlog.

The cost of dealing with the issue will be “substantially higher” than a previous estimate of £35 million. The shares jumped 5p to 13.5p on the news.

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