More than 200,000 customers are unsure how much compensation they will receive for mis-sold products. Regulators had criticized Amigo for not doing sufficient affordability checks on the borrowers it lent to, with interest rates going up to 49.9%. The company had tried to raise £15m to pay compensation, but after seeking various options, it will instead liquidate and use its available assets to pay redress to its customers.
The head of the Bank of England has raised interest rates to 4.25%, the highest in 14 years, due to unexpected inflation. Despite recent global financial issues, the UK financial system remains resilient and the country is no longer predicted to immediately head into a recession. The Bank governor, Andrew Bailey, is optimistic but warns that the UK economy will only marginally grow. The rise in interest rates will affect mortgage costs and may benefit some savers. Inflation remains high, at 10.4% in the year to February, more than five times the Bank’s target.
