Amigo warns of 'material' hit as customer complaints rise

Guarantor loans provider Amigo Holdings warned on Monday of a "material" hit to results following a big increase in the rate of customer complaints.

The company, which said in May that it would enter into a voluntary requirement with the Financial Conduct Authority to clear a backlog of around 9,000 complaints, said it has continued to see a "substantial" increase in the rate of complaints.

Amigo is currently in discussions with the FCA to reach agreement on a variation of the voluntary requirement. The variation is expected to agree to extend the date of completion beyond 26 June and a corresponding expansion of the backlog of complaints to be resolved, it said.

"Amigo will continue to assess each complaint on a case by case basis to ensure fair outcomes for our customers," the company added.

The additional cost of complaints received subsequent to 31 March is expected to be "material" due to the increase in complaints.

At 1158 BST, the shares were down 15.1% at 8.32p.