Sub-prime lender fails to find investor to help repayments

Struggling high interest rate lender Amigo has failed to find an early stage investor to help it pay back customers who were mis-sold loans.

The sub-prime lender said it has been “unable to secure a commitment from a cornerstone investor to underwrite the whole of the capital raise”, which would have included £15m set aside for compensating customers.

Under the High Court-approved compensation scheme the lender is obliged to repay 42p on the pound of interest payments made by borrowers, who paid rates as high as 50pc. Amigo was given permission to resume trading last October, and is attempting to raise £45m from a syndicate of investors to fund its restart.