Nearly a year following the Britian's finance regulator banned Amigo Holdings PLC from issuing loans within the U.K., the tide is turning.
The Financial Conduct Authority (FCA) announced Monday (March 7) that it will not block an effort through the company that operates Amigo Loan to begin issuing loans again.
Amigo is expected to appear before Her Majesty's High Court of Justice working in london Tuesday (March 8) to address the way it will reimburse customers who were charged as much as 50% interest for loans.
\”We wrote towards the firm to confirm that people do not intend to attend the hearing to oppose its proposals,\” the FCA wrote.
The company offered loans of up to 10,000 euros ($13,128) to customers with poor credit scores. The loans were guaranteed by a family member or friend with good credit in case of default.
Last week, within an interview with PYMNTS, LendingClub Financial Health Officer Anuj Nayar said 64% of shoppers live paycheck to paycheck.
\”I believe that will increase, and also the savings cushion will drop,\” he explained.
The February \”Paycheck-to-Paycheck Report: Wealth Divide Edition,\” a PYMNTS and LendingClub collaboration, revealed the amount of consumers living paycheck-to-paycheck has increased steadily since April 2022.
It has become 12 percentage points higher than it had been then, with a three-percentage-point jump between December 2022 and January 2022. Consumers of all income brackets are increasingly living paycheck to paycheck, including those earning higher incomes.