Lender Amigo could be put up for sale following a strategic review of the company as it comes under increasing pressure from the industry watchdog.
The guarantor lender - which allows people with poor credit history to borrow money by naming friends or family members as guarantors - has seen its value dive sharply over the past year on the back of regulatory scrutiny.
Amigo said that Richmond Group, which owns a 60.6% stake in the business, has said it would be a "willing seller" of Amigo. The company has hired RBC Capital Markets to lead the review and sale process.
Amigo said its review will look at the "company's strategy, ownership and operating model", and consider the sale of the business as a whole or selling separate parts of the company.
This could lead to a "reorganisation of entities within the group, the sale of the UK business or the sale of certain books of business including a potential de-listing of the company's shares", it said.
The lender said that its loan book growth and impairments have been in line with expectations for the past nine months.
In an update to the stock market, the company said it continues to face a "challenging operating environment".
It said: "While Amigo remains confident in the robustness of its approach to lending decisions, we are concerned that there may be increased pressure on our business and a continual evolution in the approach of the Financial Ombudsman Service.
"We continually look to enhance our processes and are monitoring developments with a view to assessing the long-term impact on the company."
Last month, Hamish Paton stepped down as chief executive after just five months as founder and Richmond Group chief James Benamor returned to the business as a non-executive director.
