THE financial watchdog has extended the scope of its investigation into the Bournemouth-based lender Amigo.

Amigo told investors yesterday that the Financial Conduct Authority (FCA) would continue its lengthy investigation.

The authority launched the investigation last May into how Amigo assesses the creditworthiness of customers and its governance of the process.

The company provides money to borrowers who have a friend or family member willing to guarantee the loan.

However, it has faced accusations that it failed to properly assess whether customers could afford loans.

The investigation had covered the period from November 1, 2018, to May 20 last year, but will now be extended to cover complaints from May to the current date.

“The FCA investigation will consider whether those complaints have been handled appropriately and whether customers have been treated fairly,” Amigo said in a statement.

In its update to the stock market, Amigo said it “will continue to co-operate fully with the FCA”.

Last year, Amigo revealed that compensation provisions soared to £159.1million in its half-year after it received 25,000 complaints, with a jump in those from claims management companies representing customers.

The company also warned there was “material uncertainty” over its ability to continue as a going concern following a year which also its founder James Benamor attempt to overhaul its leadership team.

Greggs loss

HIGH street bakery Greggs has sunk to its first loss in 36 years.

The chain announced a pre-tax loss of £13.7million in 2020, compared with a £108.3m profit a year earlier, with sales dropping from £1.17billion to £811.3m.

But the has committed to opening 100 new stores this year.