BOURNEMOUTH-based loan company Amigo has laid out plans to start lending again under a new brand name.

Amigo Holdings will no longer lend under the Amigo name but will offer two kinds of loans as RewardRate.

There will be personal loans with an annual percentage rate (APR) of 49.9 per cent and guarantor loans with an APR of 39.9 per cent.

For both products, customers could see their rates cut to an equivalent 34.9 per cent APR for making payments on time.

The loans will be aimed at those who cannot borrow from a mainstream lender, including those with poor credit or no credit history.

Amigo, based in Commercial Road, employs around 200 people.

It suspended lending in March 2020 amid a backlog of complaints about mis-selling.

The business spent around a year fighting for survival. Last month, the High Court agreed a plan to rescue the business by limiting compensation to past customers.

Amigo said on Tuesday it would bring new lending products to the market and start lending by next February, subject to approval by the Financial Conduct Authority. It aims to raise money over the next year to help pay creditors.

The company said it “aims to offer more affordable, responsible and flexible finance for underserved consumers who currently have few borrowing options”.

“RewardRate also seeks to provide a pathway out of higher cost finance to cheaper credit by enabling those who make their loan payments on time to reduce their APR by up to 15 percentage points,” it said.

“In shaping the proposition, Amigo’s new management team has taken learnings from Amigo’s past to ensure a customer-centric compliant and responsible culture is at the core of the business as well as an improved underwriting process with enhanced affordability checks for customers.”