On 28 May 2021, the KPMG administrators announced they will be paying 3.21p in the pound to c 40,000 people who submitted a claim for unaffordable loans.
40,000 people is a low number as the administrators calculated that more than half a million were mis-sold loans. Many people may not have bothered to claim as the administrators warned the amount could be less than 1p in the £.
You will get an email saying how much you will receive.
Payment details:
– most people will be paid by electronic transfer
– this is likely to arrive in people’s bank accounts on Thursday 3 June 2021
– the payment reference will be “Elevate Sunny”
– a small number of customers who had not provided up-to-date bank details will be paid by cheque.
All 500,000 customers with mis-sold loans should have had their credit records repaired, see below.
Contents
Background to the Sunny administration
- Affordability complaints: How to get a payday loan refund – with template letters
- Sunny’s payday lending – concerns about regulatory clarity
- Kerrigan v Elevate – Sunny loses a major court case
- Sunny goes into administration
- Sunny administration – some loans written off & the rest sold to a debt collector
More than half a million customer mis-sold loans
KPMG, the Administrators of Elevate Credit International, developed a Claims Calculator to work out which loans were likely to have been “unaffordable”.
On 4 November 2020, they emailed more than 500,000 Sunny customers who this calculator shows were mis-sold loans.
Sunny had about 700,000 customers, so for 500,000 of them to have been mis-sold loans is a shockingly large number.
By contrast, the Wonga administrators only had to pay out to about 400,000 customers. (Although that was because not all Wonga customers put in a claim. The Sunny administrators have been fair and assessed all customers. So we know that half a million figure is right.)
The Administrators warned there may not be enough money to distribute if too many people make claims. Even less than the Wonga customers received.
People had to put in a claim to get a pay-out. But there credit records were automatically being cleaned, see below.
The administrators said people may get less than 1p in the £
The Administrators warned there was very little money to distribute – they call this “a dividend”. If too many people claimed, there may be nothing:
If a very high volume of claims and queries is received, it is likely that the operating costs of responding to queries and processing and adjudicating claims will become so high that no funds will be available for a dividend to be paid to creditors.
If a lower volume of claims and queries is received and a dividend can be made, the dividend is likely to be a very low percentage of your claim… we estimate that any dividend payable could be less than 1p in the £ and that any payment would likely be made in Spring 2021.
If your last loan was sold to SLL
If your last Sunny loan was sold to SLL, you will not be getting any “set off” in the administration.
But you can complain to SLL and ask for set off, see No set off in a Scheme/Administration when debt had been sold? for details.
Your credit record should have been cleaned
The only good news here is that the Administrators decided to automatically clean up your credit record if they decided you had unaffordable loans:
- for the first five of the loans that have been decided to be unaffordable they will remove any defaults or missed payment markers;
- all unaffordable loans after the first five will be deleted from your credit record.
This is trying to follow what the Financial Ombudsman typically did in Sunny cases where there were a lot of loans.
The credit record updates and deletions should have been done automatically by the administrators by the end of November 2020.
If there is any chance you may want to make an affordability claim in future about anything – credit card, overdrafts etc not just high cost loans – then I suggest you immediately take a copy of your credit records while they still show the Sunny loans. See Get your credit records for free for how to do this.
But what if your credit record still isn’t right?
In January 2021 people were still saying their credit records weren’t correct. Some people had loans deleted then added back again.
Experian seems to be sorting things out but not Equifax or TransUnion. But you need to check all three CRAs to be sure what has happened to your data.
If you think Sunny hasn’t corrected yours properly then it’s no use asking the administrators. They say:
We have transferred the control of maintaining any remaining records to the credit rating agencies, as we will not be maintaining these records going forward. Any further queries regarding entries on customers’ credit files in relation to ECIL loans should be raised with the relevant agency directly.
So many people have been asking how to do this that I have written a separate article on it: How to correct your credit record if the lender has gone under.
“Ripped off by Sunny, now let down by the regulators”
Many people will feel horrified when they see all the loans that have been assessed as unaffordable and the large amount of interest they paid on those loans.
It isn’t the Administrators fault the refunds will be so low, they are just dividing up what money there is.
It is the Financial Conduct Authority’s (FCA) fault:
- despite the rules about checking affordability, Sunny was allowed to carry on lending;
- the FCA didn’t insist Sunny had enough capital to pay out compensation claims; and
- the FCA hasn’t provided any back-up scheme to pay the compensation. If a PPI firm went bust, you would still have received a PPI refund in full from the FSCS scheme – but that doesn’t apply to payday loans.
Could a Debt Relief Order help you?
Get a refund from a guarantor loan
Refunds from large loans & car finance
RH says
Haven’t received an email. I wonder if we’ll be told if our claims weren’t successful. No update since December.
SG says
I haven’t received one either, despite submitting my claim in December. I’ve checked my junk mail as well as my normal inbox. Fingers crossed it comes through soon!
Gloria says
They told me they were sending emails out in batches
Sg says
Ah ok, thats makes sense. Hopefully it’ll arrive soon
Aidan Fall says
I got an email from sunny today saying they were sending emails out this week, this was after I e-mailed them asking what’s going on. “ If your claim has been admitted, then we will be in touch via email once we are in a position to pay the dividend; we are expecting to send these emails throughout the week.”
Ben says
I’ve received £33.68 today under “Elevate Sunny”
Tracy says
I didn’t get am email but received a BACS payment overnight
Jules Nixon says
I have received emails and coming into bank tomorrow.
Thinking about these redresses I have lost tens of thousands through them all.
Can someone start a petition to government asking them to bail us out considering the amount they spend on useless stuff?
Becky Lands says
No email but I received 3.26 yesterday what a joke
RH says
Update. I called Sunny a couple of hours ago and very helpful chap checked my details. Whilst he said he couldn’t give me any amount he was able to confirm I was due a efund. Apparently emails sent throughout today and tomorrow. He advised me that their deadline is to have refunded everyone by Friday.
TC says
I called them just now had totally different reaction to RH the women couldn’t be less helpful. Got my address wrong and my email even though I said they would be older ones. She said she cannot tell me if I’m getting an email just check my inbox and also cannot tell me if they adjudicated in my favour but did say all claims were finalised last Friday so I skied why can’t you just say yes or no I’m on the system and she said ‘because I cannot do that’
The truth is I think they are overwhelmed overloaded and the staff there are losing their jobs too once this is sorted so the incentive to get this right left when the company went under and I feel for the staff.
Kat williams says
Received £22 this morning .. can’t work out how much it should have been lol
AM says
Received mine today. Please check your Junk folder.
Sarah says
No email received but do have a pending transaction from them for a whopping £36! Ive been so caught up in waiting for Money Shop I completely forgot about this one!
Chez21 says
I have not received an email or payment yet from the Money Shop, but on the other hand I’m getting a refund from Sunny for the massive amount of £8.31 which I can see in my online banking scheduled for tomorrow.
Emma says
I have no email either yet but I do have a pending incoming transaction of 1.97. I only borrowed £900 in total though and my main reason for claiming was to have the default removed from my file that is with Lanterns. Just waiting for email now so I hope they’ve deemed all unaffordable.
RS says
For your information the email you receive only provides you with your claim value & redress figure, it does not provide you with any breakdown. I received my email yesterday but no payment yet.
Lou says
I’ve not had an email yet.
I have just phoned them, and they said that they are still sending out emails over the next couple of days.
So I wait.
Mark says
Hi,
I hadn’t received anything yesterday but just had mine come through at 9:20am this morning so can confirm they are still in the process of being sent out
Daryl says
Email received this morning confirming dividend has been processed and payment should be received within 5 days of email.
Daryl says
UPDATE: Email received this morning. Payment is pending transfer in bank account due to clear tomorrow, so it looks like it’s rather quick once done.
Richard white says
Hi,how can i contact sunny? They have wrong email and address now! Thanks
Daryl says
claims@sunny.co.uk will be available until 30th June 2021
Tom says
I’ve spoken to sunny this morning as I haven’t yet received my email or any payment. The gentleman told me that if you haven’t received an email since you submitted your claim then your claim has been excepted. All emails regarding redress will be sent out in stages and will be received over the next 2/3 days. Hope that helps
GD says
Just under £100, which is better than I expected. Will pay for meal I’m taking daughter for next week. Nice.
Ronald says
So I just called Sunny and spoke to someone. According to her some people will have dividend pending payments on their bank accounts but all dividend payments are to be paid in by tomorrow.
According to her again some emails have been sent out, and will continue to do so over the next few working days and that if I have not received anything by next Friday to email or call them.
Alison says
Hi
So regardless if you have had the email or not payments should be in the bank tomorrow? I did actually receive my email yesterday but I don’t have the facility to see pending payments
Thanks
Ronald says
Well that’s according to what the lady told me. Now I just received my email saying it will be paid within 5days
Ronald says
And just not long after posting my previous comment, I just received an email from ECIL that I’ll be paid a dividend of £26.74 to be paid within 5days. Finally it’s coming to an end, my main thing was getting these unaffordable loans removed from my credit file.
Aidan says
Have you had much luck with Experian removing the loans?
Ronald says
It was a bit of a hassle, and annoying but I kept on at them. Took me to make a complaint and explain to them the ECIL are past the point of dealing with CRA’s eventually they gave in apologised and removed them
RH says
No email received as yet a ‘whopping’ £39.13 pending on my account. Better than a kick in the teeth I guess. I will view it as a little bonus following the rather more substantial payout I received from the Money Shop a week ago.
David says
Result..had one email sent saying £7.337.21p was going to be transfered to my bank account…wow result..only to then be told that was wrong.and £236 pound will be paid instead…arrrrg shall i complain🤔
Shirley Gorry says
I have just received 2 pound!! I thought I was getting 2.3 in the pound which should have given me more than 2 pound
Carl says
Had no email or payment at all 🤷♂️
Jay says
Apparently the money will be paid in at some point tomorrow, if you had the confirmation email at the end of last year I’d imagine you will get your redress, I wouldn’t worry too much about the latest email.
Jane Y says
No email but just received a whooping 70.12 in my bank account. Should have been over 2100! Even so better than nothing which is the reply I got when I originally sent complaint in.
Fred says
I just received randomly £21ish.
Hadn’t heard anything from the scheme since last November.
Robert says
no emails since august but got 2.89 this morning
Jane Y says
Just waiting on Moneyshop and Quick Quid. Nit had emails re these recently. Anyone else in the same boat?
Sara (Debt Camel) says
Moneyshop emails and payments are going out in batches, see https://debtcamel.co.uk/money-shop-to-close-two-million-customers-will-be-informed/
QQ isn’t close to paying out, see https://debtcamel.co.uk/quickquid-casheuronet-administration/
Laura says
Just received 1.33 from elevate sunny in my bank was sent a email awhile back staying £300 and something to be told it was a mistake and my redress was actually £39 and been paid £1.33….. and the debt company that has the account won’t write it off so lose lose situation.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ as you may have a complaint against SLL
Sabrina says
I’ve had no email from them however I checked my bank just now and payment has gone in !
Craig says
Had my payment and hadn’t received any emails since December. Got £63!! Annoyingly sunny had rejected my claims when I attempted to claim in 2017, the full amount of 2k would have been nice but hey ho!
I also had outstanding loans which had been frozen since 2017, which I just ignored when they rejected my claim they were wiped as part of this process which was around £600 so suppose I shouldn’t moan too much!
Hope everybody else gets payments quickly this week
paul says
Never got email, in fact forgot abt this but paid in to a/c today – looks like faster payment
Sam says
Is it too late to claim? They rejected my claim through a third party in 2017 but my credit file is full of Sunny/Elevate. I didn’t know there was a scheme in place. I’m not bothered about the money, that’s long gone but I think it’s now one of the main historic thing on my file that has negative markers.
Sara (Debt Camel) says
It’s too late too claim, but read https://debtcamel.co.uk/correct-credit-records-lender-administration/ about cleaning up your credit record.
Lisa says
No email notification but £63.34 in account
So better than nothing!!!
Main thing is my credit score is slowly repairing…..
Dave R says
Have been paid by Sunny this morning. £42.97… a tiny chunk of what they should have refunded me but hey ho. Another company to cross off the list and never think about again. Interestingly, no email from them whatsoever. Imagine something will come through later…
Now, back to waiting on the Money Shop…
Dave R says
Email then came through about 4pm that afternoon. Just depressing to see what you actually should have got.
Ben says
No email but had £34 land in my account today, was expecting about £7 based on the outcome of my Ombudsman complaint. Now I just need the Moneyshop to finally payout. 118 to actually issue the refund promised to me. Mr Lender to accept the FOS findings and for 3 other complaints with the FOS to be resolved!
Gulliver G says
£21.50 into my account today and email following!
Finally…claim value was at £670 though…I wonder if there’s a way to challenge and get what we’re owed back? KPMG who took over administration have enough money to offset that I’m sure :)
If anyone has any info on if we can challenge and try to get back what we’re entitled to, I’d appreciate any help!
Mike_p says
Where are you expecting the to money come from? The administrators wind up the company by gathering all it’s assets and then distibuting those to it’s creditors, the net result is that the company is dissolved with no assets remaining.
Sara (Debt Camel) says
This is the FCA’s fault. They have not provided a backup mechanism to pay customers when a lender goes under. When a PPI firm went bust people owed refunds had them paid IN FULL by the FSCS scheme but that doesn’t apply to loans.
Melanie says
Paid this morning
Carlos says
Paid last night £4.58 😂😎 that will get me a pint!
Kayleigh says
Checked my bank and I received a whopping £4.61 😂😂😂 get me a bottle of wine suppose lol
Carlos says
Yes Kayleigh enjoy 😎😎😎
Mark says
As nice as it is to have some money back, and our credit files cleared, my last loan was sold to SLL who will continue to chase me for the full amount.
Its just wrong.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ as you may be able to complain to SLL. Worth a try?
Dave says
Totally forgot about this, assuming I did put a claim in as £21 ended up in my account last night paid for the takeaway haha. I put an affordability complaint in a few years ago and got a decent sum back so mustn’t grumble. Still not heard from Moneyshop but did get about 4K from PDUK and Payday Express about 4 years ago. Checked my credit score on Experian and it’s 881 ‘good’ I remember when I was in the 500s so good progress.
Darrell says
Same as all companies who go bust. They soon send you to a debt collector for not paying them and make you pay all back plus interest. However they get away with paying 3.21p in the pound. Bet the owners of these companies still sit in their big homes and have money in the bank. It’s all a joke for people getting refunds. These companies all used high interest on vulnerable people.
Laura says
This is the email I was sent back in March and again today in response to me asking for the balance to be off set with SSL that sunny sold my account too after explain everything SSL will not budge and it’s frustrating.
Sunny Loans have recently sent you an email relating to any accounts that you still held with them, advising that the balance has been written off.
You will note that the sixth paragraph on this communication (copied below) clearly states that you must still pay any outstanding balances that you have with a third party debt purchaser such as SLL Capital.
Your account remains outstanding to SLL Capital and needs repaying, please note SLL reports your payment performance to the Credit Reference Agencies’.
Extract from Sunny email:
Please also note that this email does not impact your obligation to continue to pay any outstanding loan balance owing to a third party debt purchaser. i.e. if you have previously taken out a loan(s) from ECIL and you were subsequently notified (before ECIL entered administration) that the loan(s) had been sold by ECIL to a third party debt purchaser, then any amount owing on such loan(s) remains payable.
In addition to this, you can visit the Sunny FAQs on the Sunny website (www.sunny.co.uk/faqs) where under “Customers + Has my loan been sold” you can substantiate
the Sunny email that you need to repay any outstanding loan balance owing to a third party debt purchaser.
Sara (Debt Camel) says
I suggest you ask SLL if that is their final response to your complaint as you will be sending it to the Financial Ombudsman.
How much do you owe SLL?
Laura says
According to their email £620 I’ve asked for a breakdown as I know the original loan from sunny wasn’t anywhere nearly £200 let alone the amount they are stating.
The hyperlinks in the email is a dead link and at no point did I see the statement that sunny customers were still liable to pay if the accounts were sold.
I will email and say I am contacting financial ombudsman and see what happens thankyou sara.
Sara (Debt Camel) says
It is well worth pushing on this and going to FOS if SLL don’t give in. What do you have to lose?
Laura says
Thank you for your recent correspondence. We are sorry to hear that you have been dissatisfied with the service you have received.
Your original lender Sunny Loans sold your unpaid loan accounts and this has been purchased and assigned to SLL Capital on 26/05/2016. This means that all rights in to and under the terms of your original lender’s agreement now belongs to SLL Capital Limited.
Please note the loan was sold to SLL Capital before Sunny Loans entered into administration.
To help resolve this matter we have reduced your account balance to the principal amount sold to SLL Capital (£483.06) minus any payments made to SLL Capital (£95.00) meaning your account is free of any interest and charges.
The outstanding balance remaining is now the principal remaining of £388.06. (They have reduced the original £600 plus since mentioning the financial ombudsman)
The Financial Ombudsman Service (FOS) supports our view that it is fair that customers repay the capital amount they’ve borrowed. We believe that our offer to remove all interest, fees, and charges associated with the loan is fair and reasonable
Just received this as my reply today.
Sara (Debt Camel) says
Well that is a step forward…
When was this loan taken out? Are you sure it was only £200?
Mark says
SlL capital will have bought the debt for a few pence in the pound as per normal debt book purchase practice.
For them to say they are not charging interests or charges is also common place.
They are simply playing hard ball to make a profit on a loan that shouldn’t have been given in the first place.
Sara (Debt Camel) says
unless the loan is pre 2015, it is actually illegal to carry on adding interest and charges as the loan will have hit the price cap before it is sold.
Mark says
I’m in the same situation as well.
Sara (Debt Camel) says
SLL will be charge £650 for every FOS complaint, win or lose. So if it realises that many people are serious and will take cases to FOS it may start being more reasonable.
Robert says
Do not pay this company any money – take it to the FoS – do not engage in negotiation
.. Sunny shouldn’t have given you the loan hence why they are having to pay customers back.
I cannot believe the FOS would rule that one company has to pay you compensation for giving loans to people they didn’t correctly assess but then allow another company to then take money more than the actual redress recieved from the individual despite what their email says.
Liza says
Sunny was the worst company I had over £4000 in loans with them over the years. I received a payment of £1.36 today. The FOS ruled in my favour and they went into administration on the final day they were due to pay me out.
Robert says
Yes all have them have done the same – go into administration to avoid the payouts and then pop up as a different company name and continue fleecing people. The worst is they are having to pay back money to people for loans they should have given and they are using that money to pay themselves the full amount and giving customers who have paid back their loans £2.31.
Brad Warner says
This is utter rubbish. If we owed that money, we’d have defaults and would be forced to pay it back. I was owed £786 but got £25. I haven’t got a job and really could have done with that money. How they can get away with this crap, I don’t know.
Bill says
I think it’s great Sunny still boasts about the awards Sunny WON (For treating customers fairly)!! at the bottom of an email regarding a settlement being for selling loans unfairly, ultimately resulting in the demise of Sunny.
Tom says
No email but got £33.50 today 😁
John says
386. Paid in today from sunny I was 1 month off getting 11k and they went bust. But this is a help
Fm says
Interesting I too had an fos decision then delayed response by sunny then adminstration really feels like a game we are going bust so do nought awfull and yet FCA etc do nothing shocking .. my awarded 1900 from fos was 48 quid from sunny admin 48quid they are taking the biscuit but as FCA refuse to deal we are over a barrell
Ashley Clark says
Yay got 0.14 paid
Simon says
Hi Sara,
I have not heard from Sunny or Moneyshop about how much I am due since I made the claims on the portals, although other customers have received from Sunny on 3rd and 4th June. Would they contact me to tell me my claim was rejected if it it has been or are they still et to pay out some customers?
Sara (Debt Camel) says
So you sent a claim to ICL/Money Shop but have never heard back? The chances are an email went into your junk folder I am afraid.
Sunny – had Sunny told you you were eligible to claim?
I have deleted the rest of your complaint as you also posted it on the provident page where i have replied to it.