Amigo shares jump on plan to resume lending

LONDON - Shares in sub-prime lender Amigo jumped by nearly a fifth on Tuesday after the company outlined plans to resume lending after a more than two-year hiatus.

Amigo suspended new lending in March 2020 to focus on processing a deluge of customer claims that it mis-sold loans.

The company was granted court approval last month for a rescue plan that included a compensation scheme for past customers.

Amigo said on Tuesday that it plans to resume lending by offering guarantor and personal loans under a different brand, RewardRate.

The company's shares rose 19% in early trade on Tuesday.

Amigo said the move is conditional on consent from the Financial Conduct Authority regulator.