The Money Shop and Payday UK Launch Payday Loan Compensation Program

MILLIONS of payday borrowers who have obtained loans from The Money Shop and Payday UK can now submit abuse claims as lenders have implemented an indemnity program.

The Money Shop, Payday UK and Payday Express are all payday loan brands operated by a parent company called Instant Cash Loans (ICL).

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Millions of borrowers could be owed cash by payday lendersCredit: Getty – Contributor

ICL stopped providing new loans to borrowers in August 2018, while between March and July of this year, closed or sold all of its high street stores.

But the current company, which will officially shut down once claims are processed, this week put in place an indemnity scheme for borrowers who have been loaned out despite their inability to repay the loans.

Borrowers now have until April 9, 2020 to submit abuse claims, with all payments due by the end of 2020.

ICL says it will send an email or letter to affected customers by October 19, 2019 to explain how they can make a complaint – an online portal being set up for this purpose.

How to request a refund from payday lenders

YOU can seek compensation from a payday lender if the loan was unaffordable, even if you have finished paying it off.

If you believe you are entitled to compensation, you should follow these DebtCamel steps to find out how to make a claim.

1. Check if you sold the loan incorrectly

Before a lender gives you a loan, they must check whether you are able to repay it.

For a payday loan to be affordable, you need to be able to pay it off the next month as well as pay your other bills and debts.

The loan was unaffordable if:

  • you often renewed loans or borrowed again soon after repaying a loan;
  • your loans from a lender increased in volume;
  • some reimbursements were late; Where
  • the loan was a big part of your income.

Ask the lender for a copy of your loan details, such as when you took out it and how much interest you paid.

Compare it to your bank statements from the time you took it out and see if you could have paid off the loan after paying your bills.

2. Make a complaint
There are websites that will help you submit your complaint to the lender, but be aware that if you are successful, they will take part of your compensation.

DebtHacker.fr and Resolver are completely free tools that will help you in the same process.

If you prefer to do it yourself, you should write a letter or email citing “unaffordable loans” and request a full refund of the interest and fees you paid, plus the 8% interest on the loan. ombudsman in addition.

Also request that the loan be removed from your credit report.

You can find free letter templates at DebtCamel and on the MoneyTipsService, – although some lenders have their own recovery tools.

You can complain even if the lender has been the subject of administrative proceedings, but then you will need to submit the complaint to the administrator.

3. Contact the Mediator

If you haven’t heard from you after eight weeks, you should bring the issue to the Financial mediator.

You should also contact them if your claim is rejected, the repayment is too low, or the company refuses to consider loans that are over six years old and have been sold to a debt collector.

But be aware that you usually can’t complain to the ombudsman when the business has been foreclosed.

People who are not comfortable making a claim online will receive a support number to call, but it is not yet available.

If you believe the company owes you money and you have not heard from ICL, you should contact them at [email protected]

The group said in September that it expected to have a pot of £ 20million to pay for complaints from its 2.6million customers.

But he is also warned that people could get as little as 14p out of every £ 1 owed, though that depends on how many people claim.

ICL says it’s still more than 1 pence in £ 1 that it estimates you would have gotten if it went into liquidation.

You will also receive 8% more interest.

You do not need to resubmit claims submitted before July 19, 2019.

    The Money Shop now has a program in place to reimburse borrowers who have been mis-sold to

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The Money Shop now has a program in place to reimburse borrowers who have been mis-sold to

The only complaints that need to be resubmitted are those that the ICL or the Ombudsman has already rejected.

If your claim is denied by ICL, you can ask an independent third-party arbitrator to review it – we’ve asked ICL what this means in practice and we’ll update this story as soon as we have a response.

Sara Williams of the Debt Blog Debt camel said: “Hundreds of thousands of people have received repeat payday loans from Money Shop, Payday UK and Payday Express.

“If you had loans with them month after month, they were probably ‘unaffordable’ – paying off a loan left you with so little time that you had to borrow again.

“This is your chance to get back some of the interest you paid – it won’t be all, but it will be easy to file a complaint.

“You won’t have to prove that the loans were unaffordable or send proof of the loans.”

Payday lenders have recently been accused of target students heading to college by offering loans carrying up to 1,294% interest.

They were also target skint parents and the imposition of 1,333% interest on children’s school materials.

But you can recoup badly sold payday loans yourself, don’t use ‘scam’ companies that take almost HALF of refunds.

Mother of Three Trapped by Poverty Bounty and High Cost Credit ‘Scammers’ Believes She ‘Exists, Does Not Live’


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