A first payment of 4.31p in the £ was paid in May/June 2021. A second, much smaller payment of 0.65p in the £ is being paid on 14 or 18 January 2022. If you do not receive this second payment, see below for what to do. Background to the Scheme This "Scheme of Arrangement" covers borrowers from the ICL brand names, Money Shop, Payday UK and Payday Express, who were given … [Read more...]
Amigo proposes a second Scheme – but is it fairer?
UPDATE - in May 2022, the court approved the new Amigo Scheme. See Amigo's Scheme for details On 13 December 2021, Amigo proposed its new Scheme of Arrangement. The Practice Statement Letter (PSL) is a 21-page overview of the new Scheme. The numbers in the PSL have now changed Amigo says: We hope a successful new Scheme will also allow a changed Amigo, under a new management team, … [Read more...]
“Should I stop paying Amigo?” – the pros & cons
This article is in 2 parts: your situation if Amigo says you have to continue your loan repayments but you either don't want to as they should owe you money or you can't afford to. the option of Equitable Set Off that Amigo introduced on September 2021 for some people - should you opt for it? Update - some people were told they could stop paying when the 2nd Scheme was underway - this … [Read more...]
Amigo – no second Scheme before April at the earliest
On 29 November 2021, Amigo published its results for the six months ended 30 September 2021. Amigo's first Scheme of Arrangement was rejected by the Court in May. Since then, Amigo has been trying to come up with a new Scheme that is fairer to the customers given unaffordable loans. Amigo says: "the proposed contribution to the new Scheme will be significantly increased from that of the … [Read more...]
Can I get a mortgage with recent defaults?
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
Bank accounts for all sorts of bad credit problems, even bankruptcy
In 2016 the major UK banks all introduced new "basic bank accounts". One of the main aims was to widen bank account access to groups of people who have found it difficult or impossible to open an account: people who have gone bankrupt previously found it very hard to get a bank account; people in an IVA, DRO or debt management need to change bank accounts and have the overdraft on their … [Read more...]
Gambling – get refunds from loans, credit cards & overdrafts
Many people with a gambling problem have been given unaffordable credit. This fueled their gambling and they got deeper into debt. Credit is affordable if you can repay it and still pay your other debts, bills and expenses. If it is unaffordable, then you can ask for a refund of interest and charges and take a complaint the lender declines to the Financial Ombudsman (FOS). But gambling … [Read more...]
What happens to your possessions in bankruptcy?
The bankruptcy application says "It is very unlikely that items you need for your daily life (eg washing machine, sofa, refrigerator) will be sold". Here are a selection of questions here that people have asked about what may happen to the things they own if in bankrupty. I may not have mentioned your exact situation, but the answers here try explain how the Official Receiver makes … [Read more...]
Is your name in a fraud database?
There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira. If your name is on one of these connected with fraud you may find it difficult or impossible to take out credit and your bank account may be closed. But sometimes the information on the databases may be wrong and you need to get it corrected. In … [Read more...]
Bankruptcy – should you get a new job? Or work overtime?
A couple of readers have asked recently about whether it's sensible to turn down a job or overtime when you are bankrupt. Two things matter in this sort of situation. First, have you been discharged from bankruptcy? Almost everyone is discharged from bankruptcy after a year. And secondly, do you have an Income Payments Agreement (IPA) set? In an IPA, you have to make monthly payments for … [Read more...]
Amigo’s Scheme 1st scheme – the timetable that ended in rejection
UPDATE In May 2022, the new Amigo Scheme was approved by the court and went live. See Amigo’s Scheme for details about this. This page on the old Scheme is now no longer relevant. Please leave any comments and questions on that new page. The approval process for the first Scheme (this ended in rejection) On 30 March, the First Court Hearing gave the go-ahead for Amigo to organise the … [Read more...]
Overtime, bonuses & pay rises – what happens in an IVA
A reader asked about a friend who is looking at an Individual Voluntary Arrangement (IVA): Mr X is 23 and owes just over 10k on various credit cards and loans. He earns £20k and hopes to get a £10k bonus this year. The IVA firm says the bonus doesn’t matter as it's not guaranteed. But won't the IVA take half of it? Would it be better if he got a job with a larger basic salary and no bonus, or … [Read more...]
Should I end my IVA and change to a DRO?
In 2024 the Debt Relief Order (DRO) rules have been relaxed so a lot more people qualify. For example, the maximum limit of debts in a DRO has now been increased to £50,000 and you can also own a car worth up to £4,000. Will you now qualify for a DRO? If you are in an IVA, you are renting and your IVA payments are less than about £120 a month, you may be much better off switching from an IVA … [Read more...]
Court rejects Amigo Scheme of Arrangement
On 19 May 2021 the Sanction Hearing was held for Amigo's proposed Scheme of Arrangement. On 24 May, judgment was given and the Scheme was rejected. The Amigo Board says : The Board is reviewing all options including an Appeal. A further update will be given in due course. This article looks at the Scheme, the judgment and what may happen next. The proposed Scheme The Scheme was proposed by … [Read more...]
Sunny administration. 500,000 had missold loans, only 3% refunds paid
Background to the Sunny administration Sunny went into administration on 29 June 2020. It was one of the largest UK payday lenders. It joined a long list of lenders who have collapsed in the last nine months: QuickQuid, Moneybox 247, Swift Sterling, Piggybank, Nextcredit, Peachy, Uncle Buck. Sunny’s payday lending model was unusual, often lending very small amounts but very … [Read more...]
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