By Reuters
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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.
