On September 13, Instant Cash Loans (ICL) updated the information about the Scheme of Arrangement it is asking customers to vote on, saying:
Over the previous weeks, we have been refining how we will assess complaints made to us in the Scheme, and there have been some important developments, which might affect how much consumers might get in the Scheme.
This Scheme will affect the 2.6million previous customers of Money Shop, Payday UK or Payday Express who had unaffordable payday loans from these lenders.
The regulator says that a loan is only affordable if you could repay it without hardship and without borrowing again. Millions of payday loans were unaffordable. The more loans you had, the more likely it is that the loans were unaffordable.
Contents
What is a Scheme of Arrangement?
A Scheme of Arrangement is a legal device which limits a company’s liability to its creditors.
If you were given a loan which was unaffordable, you have a Claim for a refund of the interest you paid.
Everyone with a potential claim is a possible creditor. And creditors can vote to approve or reject a Scheme of Arrangement.
Now more people will get refunds … so they will be paid a lower percentage
ICL has clarified some points about how it will assess which customers should get a refund in the Scheme, saying:
- it will look at all loans, including those over 6 years old. Previously the Money Shop, Payday UK and Payday Express had asked customers questions about older loans and why they had not complained sooner, and then rejected many of these complaints;
- to simplify its assessment, it will be giving customers “the benefit of the doubt” in some cases and so refunding more loans;
- more customers may apply for a refund under the Scheme than it had previously assumed.
As a result of these changes, it now expects the value of refunds it approves will be much higher, so people will get paid a small percentage of their refund.
On August 14, it had said that it expected to have enough money to pay out nearly 80p in the pound. But now:
- Including all loans over 6 years may reduce this to c. 44p.
- Simplifying the assessment may further reduce this to 27p.
- And if twice as many people apply for a refund, this may go down to 14p.
These numbers can never be exact. If the extra customers who apply all have a lot of loans over 6 years, the final figure could be lower. But if the extra customers only have a few recent loans, the final figure could be higher. And, of course, more customers could apply than ICL’s latest guess.
Some clarity at last! But why has it taken so long?
I am pleased ICL has provided better estimates. As I said in August, my first thought when I saw the 80p in the £ estimate was “and pigs might fly“… see Will the Money Shop really pay 80% of your payday loan refund?
It is also good that ICL has now agreed to stop being difficult about loans over 6 years old, coming into line with what the Financial Ombudsman has been saying for years.
I am disappointed it has taken ICL so long to admit that it is unlikely to payout anywhere near 80% of the calculated refunds.
Many people will already have voted on the Scheme on the basis of the previous information. Some of them may feel that they were misled.
But if the Scheme pays out 14p in the pound, it will still give a better result for customers than ICL going into administration.
Have you voted? The deadline to vote online is Friday September 20
In August I suggested that people wait a while before voting, as more information may come out. Now we have that information, it’s time to decide how you will vote, for or against the Scheme.
To vote online you need the Voting Reference Code you should have been sent in an email from ICL. That, with your date of birth is all you have to supply.
If you do not have this Code, email scheme@themoneyshop.co.uk or call 0203 901 7440.
You can also vote in person from 11am on 24th September 2019 at Notts County Football Ground, Meadow Lane, Nottingham, NG2 3HJ.
Background to the Scheme – increasing numbers of affordabilty complaints
ICL had two million customers, with three big payday lending brands:
- The Money Shop was once Britain’s largest payday lender on the high street. The Money Shop stopped making payday loans in August last year.
- Payday UK and Payday Express were two large online lenders. These both stopped making new loans in October 2017.
In summer 2018, the number of affordability complaints about payday loans increased significantly. Paying refunds on these complaints forced Wonga and Wageday Advance to go under.
In the last half of 2018, ICL received 45,000 complaints. So ICL has been facing escalating costs in the last year and it has been closing shops. Now the business is being closed completely because of the cost of these complaints.
How the Scheme will work
On August 9, ICL received court approval to call creditor meetings. It is now sending everyone an email with an Explanatory Statement with further details about the Scheme and how to vote. These started to go out on August 14.
The next steps are as follows. Each step assumes the previous steps were passed/approved:
- September – meetings of creditors will be held to vote on the Scheme. As a creditor you can vote online before 20 September or vote in person in Nottingham on September 24.
- After approval, customers who have not sent in a complaint will have 6 months to submit a claim.
- All claims will be assessed and if they are decided to be valid, a redress amount will be calculated. There will be some appeal mechanism.
- There will be c £13.6m available to be divided up between the successful Claims. How much you are likely to get will depend on how much interest you paid and how many people submit claims. If a lot of people make claims, you may only get a small amount, but if many people don’t bother it could be larger.
- Payouts are expected to be in late 2020.
I will be updating this article as there is more news. And the comments below show what other customers are thinking.
Existing complaints – and new ones
ICL has already settled some complaints in full.
All other complaints will go into the Scheme. This applies to complaints currently with ICL, including loans from the Money Shop, Payday UK and Payday Express. ICL will not be doing any further work on these complaints. If you are waiting for a response, or have sent in bank statements as requested, nothing further is going to happen.
FOS will not now look at these complaints so there is no point in sending them a new complaint. FOS has stopped work on complaints already with it.
If you send a complaint to ICL now, it will be on hold until the Scheme is approved. There is no hurry to do this and you will have to resubmit your claim after the Scheme is approved, so you may as well wait until then.
Don’t let a Claims Company send in a complaint for you now. The procedure to submit a Claim will be a simple form. A Claims Company will do nothing but fill out your name and address on this form – you can do that yourself!
Did you borrow from other lenders?
This email from the money shop may the first time you have heard about affordability complaints or getting a refund of payday loan interest.
If you have borrowed from other lenders, you may be able to get refunds from them. read How to make a payday loan affordability complaint which explains all this and has free template letters that have worked for thousands of people.
Updated September 16
Refunds from Provident & other doorstep loans
Why the FSCS doesn’t cover payday lenders
More refunds for Amigo loans
Kyle says
I have just recieved the THE MONEY SHOP SCHEME VOTING email. What is it all about?
Sara (Debt Camel) says
Hi guys – give me some time to read all this! At first sight the 80% figure looks surprisingly high….
Sara (Debt Camel) says
and my article saying why I think it’s high: https://debtcamel.co.uk/money-shop-80-per-cent-how-likelyund/
Dean says
If you read the email it says an additional £20million available so that reads lntop of the original £18million originally planned. If I am reading that right we may actually an ok amount if the scheme goes ahead, it will 100% be more than if the scheme fails and the company liquidated as we will get zero
Sara (Debt Camel) says
I don’t think that is 20m on top of the original 18m…
Vanessa says
Hello,
I am somewhat confused as to what to do and I am hoping for some clarity. I got an email today asking me to vote on the scheme. This is the first I have heard about it. I had payday loans from The Money Shop and PayDay UK years ago and eventually paid them off after getting into a lot of debt. I do not live where I did when I obtained them and my mobile number has changed. Do I need to contact them to update my details? Do I need to send anything else?
Sara (Debt Camel) says
I suggest you don’t do anything for a while. There is no hurry. There is a LOT of paperwork to look through, then I will be writing an article on this and what people’s options are.
Jo says
So what is the best thing to do for people who might be owed? Vote for the scheme or not?
Sara (Debt Camel) says
I can’t say which way you should vote.
I don’t believe the 80% of redress that ICL has talked about. I think either people will get much less, or some people may get that but others may get nothing with a case that the Ombudsman would have been likely to have accepted.
There will be more money to be divided if the Scheme goes ahead then if the vote is lost and the firm goes into administration. But it is possible that a specific individual may get more money through administration than through the Scheme… without knowing what criteria the Scheme will use to decide Claims, I can’t guess if this will be a very rare occurrence or could affect whole groups of people.
Terence Thompson says
I’m confused as I cant remember who I had loans from I have had loans from a company called pounds to pocket there now called on stride but dont know if I payed to much back
Sara (Debt Camel) says
Sorry I have only just seen your comment as it is on a page about a different lender. If you had several loans from Pounds To Pocket then they may well have been unaffordable – send them a complaint ASAP using the template letter here: https://debtcamel.co.uk/payday-loan-refunds/
Desiree Seymour-Parris says
I am in a similar situation as you Vanessa. I paid the loans off as I needed the money urgently and whatever figure they wanted in return as interest I paid and was in deep debt after that too. It was a few years ago when I was working. I have changed address and mobile number. Its a little confusing. Where do I stand. I have not received an email but an invitation to vote from the money shop.
emma says
This was my email definitely says they have an additional 20 million sara
INVITATION TO VOTE: PROPOSED SCHEME OF ARRANGEMENT IN RELATION TO
INSTANT CASH LOANS LIMITED
We wrote to you on 19th July 2019 and sent you information about a Scheme of Arrangement
which we are proposing. If the Scheme is approved, we will have an additional £20 million
available to meet the costs of complaints from our former customers.
On 9th August 2019, the High Court gave us permission to ask people to whom we may own
money to vote on whether or not they would like the Scheme to go ahead.
We think we may owe you money because you previously took out a loan from us or one of our
other companies. If the Scheme goes ahead, we will ask you to submit a claim and, if we agree
that we should not have made you a loan or you have another valid complaint about a loan, you
will be entitled to a payment in 2020.
If you would like to vote for or against the Scheme, you must do so by 5pm on Friday 20th
September 2019.
Sara (Debt Camel) says
Yes, but this is not an additional 20 million over the 18 million which they talked about in their previous email.
emma says
Oh is it instead of x
Sara (Debt Camel) says
pretty sure it is …
Terry says
FYI
Just had voting form frim money shop, it was in my spam folder, results of vote expected September.
Loo says
Has anyone actually managed to get through to them on the 01903 number? I’ve been trying for over a week now and today I have been waiting for 3 hours and counting!!
Steve says
Hi, I was down for payment on the 9th and the money was in my account as promised. Sorry others are having a shitty time of it.
Katharine Bisset says
How did you get paid? I have only sent the VOTE YES when I got the email two weeks ago, since then no word. I am skeptical as Wonga never got in touch regarding the fact I tried to claim money back. I used the money shop to cash cheques and had the odd loan. I doubt anything will come back so quick if they are saying paid by 2020.
Thanks
Loo says
Hi Steve, was that within the 28 days? How did you get them to confirm? 28 days was last Wednesday and I just can’t get through to a single soul to confirm what is happening! Pleased you got your repayment
Charlotte says
It’s 28 working days just so you know cause I asked this week as I accepted mine 22nd July they said it could take upto 30th August that’s when it’s been 28 working days, they only make payments on a Friday x
Ljc says
Hi Loo
I accepted offer on 12th July and I’ve been told to expect payment on 23rd
Charlotte says
That number no longer is in use you need to call 08003161414
Turtle says
80% would be nice.
Sara (Debt Camel) says
wouldn’t it … but is it likely? See https://debtcamel.co.uk/money-shop-80-per-cent-how-likelyund/
Kerry Taylor says
Is the right thing to do to vote for or against?! I have no idea!
Sara (Debt Camel) says
I’m busy writing a post on the “80% figure” at the moment. I suggest you wait for a while – there is no hurry!
Sara (Debt Camel) says
Here is my new article on the 80% figure: https://debtcamel.co.uk/money-shop-80-per-cent-how-likelyund/.
I think more infomration needs to be provided before people vote. There is no hurry, so you could wait a few weeks! the online voting deadline is September 20th
Stephen says
Hi
I had my complaint rejected by payday UK but was successful with one from payday express. I complained to ombudsman and got acknowledged but nothing more just before the administration story broke. Will I have to complain again or will it be like Wonga with a portal etc?
Thanks
Sara (Debt Camel) says
I think you will have to submit a new complaint after the scheme is approved. A new Claims Portal will be set up.
stephen says
Thank you for this
simon says
Hi Sarah,
I’ve had this email, but I have had successful claims go through the FOS for all 3 companies and had pay outs early last year, why would they email me and does it really concern me now? Should I vote of just not bother as I dont think they would owe me ny more would they?
Simon
Sara (Debt Camel) says
I think it’s unlikely you would get any more! I think they are just emailing every customer.
Tracey says
I’m really annoyed with FOS. I rang them in September with 3 pay day loan complaints over 6 years old – money shop, payday uk and express payday and was advised to send the bank statements to them which covered the 5 consecutive years of loans. This took me 3 months to scan. Eventually I completed sending all documentation in December. I then got a reply in June advising they were on my case. I also received a phone call 2 weeks before this happened to confirm they were being looked at. I did point out to them that they had received my paperwork 7 months ago and i had heard rumours of all 3 company’s going under so could they please make a decision and then this happened. Its not fair. I think because there was so much paperwork to go through, it kept being put on one side.
Dean says
Hi, if you ask the FSO you can put a service complaint in to a team manager, this in turn will mean they look at your case and if it is framed they took too long they can offer redress of post money as compensation. If you are not happy with the outcome you are then entitled to go to alter independent assessor who looks at complaints against FSO
Leesharratt says
I waiting over a year. For them to decide if to look at the loans over six years. They decided to. In this time. Money shop have all this going on and the fo refuse to go any further. Very annoying
Sara (Debt Camel) says
Unfortunately those timescales are not unusual. There was a huge backlog of ICL cases at FOS. I very much doubt your case was handled more slowly because there were a large number of loans. And even if there had been an adjuicator decison, ICL may well have rejected it and there would not have been enough time to get an Ombudsman decision.
GM says
I find a bit strange that I didn’t receive the original email sent in July and I didn’t get this one either, And have been checking my junk mail box! My complaint was upheld by the adjudicator, a few days before the original announcement.
Yvonne says
This is my predicament I havent got anything from ICL since the adjudicator upheld my complaint.
Charlotte says
Have you rang them I haven’t heard from them since I accepted so I called them and they said it would just go in within 28 working days. I accepted on 22nd July and they said it will be in by Friday 30th August as they only pay on Fridays
Yvonne says
Rang who?? FOS upheld ICl havent answered my case is best described as in limbo. I was unlucky re timing. But I have not had any emails at all re voting etc..
Sara (Debt Camel) says
Charlotte, it sounds as though ICL accepted your adjudicator decision, so it is being paid out.
Yvonne, it sounds as though ICL did not accept your decision – is that correct? Your adjudicator at FOS would know.
Yvonne says
Hi Sara yea that’s correct. Adjudicator sent response a week before announcement. So ICL ignored.
So looks like I’ve got to resubmit it again to scheme even though adjudicator upheld. Very very frustrating.
Stephen says
Hello,
I tried to make a complaint against Payday Express some time ago but failed as none of the contact details worked. Emails were bouncing back undelivered.
This seems to be good news for me as I can now pursue my claim, is this right?
However, I didn’t receive an email from ICL. Should I contact them? If so, using which contact details?
Sara (Debt Camel) says
it is a pity you did not pursue this issue earlier.
You can send in a complaint now, but it won’t be looked at because at the moment ICL, who owns the payday Express brand, is asking for approval for its Scheme of Arrangement as described in the article above.
If the Scheme is approved, then there will be a way for all customers to submit a claim for payment in the scheme. You will not get back the full amount of any refund that is calculated though.
Jono says
Hi DebtCamel,
I sent PaydayUK an email for a statement of borrowings, I received a reply today saying
“Thank you very much for your request for a Statement of Account/Data Subject Access Request.
We will have written to you or your client separately to explain that Instant Cash Loans Ltd is planning to go into a Scheme of Arrangement, which will set a process for considering and, where appropriate paying out redress for Irresponsible Lending Complaints. Given the current plan, we have limited resources to produce the documentation you have requested, we therefore ask that you only request this information where absolutely necessary, and instead encourage you or your client to make a claim in the customer portal when Live. This is likely to be after the Scheme has been approved at the end of September.
If you still believe you require a Statement of Account/Data Subject Access Request then please reply to this email.”
My question is, reply saying I would like my statement or wait and also when will I know the customer portal is live?
Any advice would be amazing,
Thank you!
Sara (Debt Camel) says
Why do you want this information? If it is for an affordability complaint, then as the reply to you said, there isn’t much point in it :(
If you are in dispute with a debt collector or something, that would be different.
Jono says
Hi,
I wanted to open a case with FOS about irresponsible lending so I wanted to get a list of the loans I had with them, then got this response.
Sara (Debt Camel) says
FOS will not currently look at at any Payday UK complaints. Can I ask if you used a template letter from somehwere else, as my templates for payday lon refunds do not ask for a SAR.
Jono says
The message I sent them said
“Dear Customer Services,
Could you please forward me on the statements in full of the 5 loans I took out with you please, so I can send these to the FOS.
Regards”
Purely because with the complaint regards LS, The FOS asked for copies of the statements of my loans with the interest etc
Sara (Debt Camel) says
OK, that was a sensible idea, but it has been overtaken by events as now FOS will not look at these cases.
Mark says
This may be a silly question, if I have complained and got my refund already from TMS, yet I am still getting the communciation on the vote and being told a payment is forthcoming, is this because I am still owed or because they havent worked out I ve been paid already ??!
Lou says
If I’m still paying off a loan from payday express to bw legal
Do I carry on paying them
Can I still claim
I did receive the email regarding voting
Sara (Debt Camel) says
Yes you can still claim.
You may though be one of the groups of people who are better off if the Scheme is not approved, but the company goes bust! So you may not want to vote in favour of it. It depends how the Scheme will handle “the right of set off” and how the administrators would, I will ask about this.
James Michael says
I have had a fos decision in my favour for Themoney shop, it all seemed to be agreed, they said I would have the money in 10 working days, so 15 days later I still don’t have anything so I rang again and said it would definitely be in my account on Friday the 16th. It’s not Saturday the 17th and I have had nothing and I am starting to get worried because just after the amount was agreed by me fos and money shop they have started sending emails out about going bust and voting on options but it does say in the email if you already have an amount agreed the email don’t apply to me yet they still haven’t paid. Is there any advice you can give please?
Sara (Debt Camel) says
Ring them again :(
I do think you are going to be paid in full. It’s annoying their administration seems rather hit and miss.
Confused says
I recently had a CCJ registered by PRAC for Payday Express. Should they have been able to do this and can I get it set aside due to this case?
Sara (Debt Camel) says
This news about these lenders has no impact on existing debts. I assume you didn’t defend the Claim? Had you already submitted an affordabilty complaint?
Confused says
I didnt even know it was happening. And I believe I oreviously did but it was rejected. I am in such a mess
Sara (Debt Camel) says
OK, well if the debt collector wasn’t aware that you had a complaint in progress then there is no reason why they shouldn’t have gone for a CCJ.
You can put in a complaint to the Scheme in September, but it will be a long while before anything is paid out and it is uncertain how much of your refund you may get.
How bad is your current situation? Do you have other CCJs? Other debts you arent paying which may go to CCJs?
Loans from other payday lenders you haven’t yet complained about?
Victoria says
I never had an email re voting. What shall I do?
Ljc says
I haven’t either Victoria
GM says
That makes three of us. I called them last week and they said they had my details and that emails would take up to two weeks to be sent.
I never received the original email or the one about the vote.
My complaint was upheld by the adjudicator less than two weeks before their announcement and they had my details all the time.
Sara (Debt Camel) says
Anyone who has not had the email about voting – probably because you have changed your email address – should eirher phone ICL on 0203 901 7440 or email them at scheme@themoneyshop.co.uk giving your name, date of birth, address including postcode where you were living when you were borrowing from them and (if you know it) your old email address.
Charlotte says
I got my email today I’m receiving my refund from payday express within 10 working days. I sent my acceptance to fos on 22nd July. I am so thankful they finally accepted my complaint after 2 years of waiting and just before they stopped paying.
jesy says
Good luck with getting payment ! They breached on 10 working days as well as breached on 28 days as per FOS email .No communication from them.
Ian says
As it stands I have a loan from The Money Shop which I am paying back monthly. As it states in the scheme, a claim can not be put in against them until its accepted. As it stands my credit file is showing a mess and this one of the companies that is causing it. Whilst all this is being sorted out with the Money Shop is it worth asking the credit reference agencies to remove the entry until such time The Money Shop has sorted themselves out and can take on the complaint? Because of the amount of time it may take to get sorted and I would expect The Money Shop to be upholding a fair amount of claims if they have put £18m to one side should they be removing or suppressing the credit file data for now?
Sara (Debt Camel) says
how much do you owe on the loan?
I would be very surprised if the CRAs will be prepared to remove any entries at the moment. And the Money Shop is busy trying to sort out the scheme and the voting.
Ian says
There is about £700 left on it. Its been sold to a 3rd party debt collection agency now.
Sara (Debt Camel) says
ah ok, if it was still with TMS you could stop paying it until they settle the complaint.
David b says
Hi there,
I have an outstanding loan with nothing paid since the scheduled repayments were missed in Dec 2015 and Jan 2016. Notice of default given on March 2016 but not heard a sausage since.
Repayments were about £100, so I think a loan value of approx £200.
Any advice on how to proceed? Stay quiet until it becomes statute barred in March 2022? Many thanks.
Sara (Debt Camel) says
Was this your only loan from any of these lenders?
David b says
Hi Sara,
Not the first loan:
1st 01.10.15 for £100 (£120.80 repaid 27.10.15)
2nd 03.11.15 for £200 (£238.40 repaid 30.11.15)
3rd 30.11.15 (same day!) for £150 and never repaid as CPA never taken.
Grateful for your advice!
Sara (Debt Camel) says
Well that is a problem. I would expect ICL to sell off thir defaulted loans to a debt collector. Are they likely to delay until after the debt is statute barred – it’s not impossible but it’s surely pretty unlikely.
If you wait and make a claim in October, the amount you might get would be tiny.
You could try emailing them at account.services@themoneyshop.co.uk and say you are happy to settle the outstanding loan at £150 – I have no idea how likely they are to accept that.
David b says
Hi Sara,
Agree probably not worth complaining.
If I contact them, does it reset the clock on the debt becoming statute barred?
It’s already in default, so the way I see it as worst case – they sell it, I complain and have it removed from my credit file (other loans at same time have had that result from FOS) and interest refunded and settle the capital.
Best case they don’t sell and don’t make contact until March 2022 and then I can forget about it.
Do you see any benefit in settling up now, rather than waiting for them to chase me? Not unwilling to pay, just have other priority debts which aren’t frozen to deal with first! Many thanks
Sara (Debt Camel) says
“other loans at same time have had that result from FOS” have you had this result with any cases where the original lender no longer exists or is in liquidation?
David b says
Not liquidated no, uncle buck, wage day advance both had all interest and charges refunded and negative credit information removed (FOS decision). Cash4unow and sunny both wrote off balances without going to FOS. Mr lender and lending stream currently with FOS. Just weird that PAydayUK have forgot about me!
Sara (Debt Camel) says
So the problem is that your debt is very likely to be sold soon. And ICL will be being wound up. If you wait for a year or two until the debt collector contacts you, at that point you can’t claim the loans were mis-sold as you have to complain to the original creditor who no longer exists.
Lou7 says
Hi
I had a complaint rejected at FOS for payday uk so is it highly unlikely I will get anything from them? I had the letter yesterday about voting for or against the scheme. Any info would be appreciated.
Sara (Debt Camel) says
I too think it’s pretty unlikely!
Vicky says
I got a letter today… i have previously made s claim that was rejected which I didnt refer to FOS.
How will this effect me?
Thanks
Sara (Debt Camel) says
It may be that if you submit a claim in October tot the Scheme, you will be assessed as having a valid complaint, but then you will only get a percentage of that back.
Andrew says
Everyone saying they’ve had an email. I haven’t, I’ve received a letter today. saying the same!
Zara says
I’ve not made a claim yet. Is it too late?
Sara (Debt Camel) says
You can’t put in a claim now, but if the Scheme goes ahead you will be able to put in Claim when they set up the new claim page in October.
Sarah Harrison says
I’ve had news from the Ombudsman who upheld my claim against cashnurnet (pounds to pocket) they give them till the 23rd August 2019. This is the latest updateI have requested some clarity on the business’ response to my view. So I have given them until 2 September to respond at which point I will be in touch to let you know. So not sure how this will go
Stephen says
Hi there. I have just received an email from the fco stating they are now investigating my payday UK complaint and have asked them for info. I thought they were no longer doing this?
Steve says
I raised a complaint and the moneyshop declined my complaint. I then refer it to FOS, who didnt contact me to tell me that they were not looking into my complaint, after they requested further info from me.
Now this has happened, will I be able to still put a claim in?
Thanks
Doug says
Hi Sara,
I made an affordability complaint to The Moneyshop earlier this year with regard to payday loans I had taken out with Payday UK and Payday Express pre 2012. Both complaints were rejected.
Im aware of the 6 month rule that states if I am unhappy with the decision then to contact the Financial Ombudsman within 6 months of the final decision. So where do I stand now – should I make the complaint to the FO – as the 6 month date is fast approaching?
Many thanks.
Doug
GM says
Hi, please read the full article. FOS not looking at this companiy’s complaints anymore, so they’ll go to the Scheme of arrangement
Stephen says
Well why are they contacting people saying they are?
GM says
no idea. the FOS website is pretty clear:
“We are aware that Instant Cash Loans (“ICL”) is proposing a scheme of arrangement with its creditors (which includes customers and former customers of The Money Shop, Payday Express, Payday UK and Ladder Loans) before it looks to close down the company.
ICL has said it will be necessary to place the company into liquidation if the scheme isn’t approved. Because of this, ICL says it’s not in a position to make any new offers of redress.
So we’re getting in touch with people to explain that we’re not progressing their complaint further at this stage – as well as what the next steps are.”
Stephen Kendall says
Hi. I took a loan out with you 15 years ago but I have now received your second letter from the person who now lives at my previous address.
I am concerned that the person who now lives at my previous address may have taken a loan out with you on my name, or are you contacting me regarding the loan I took out with you 15 years ago?
I have tried to contact you via telephone to speak to a representative but to no avail. I am having to wait for ages to be put through to speak to someone but o simply don’t have the time to be hanging on the phone.
Please email me back regarding this.
Many thanks.
Sara (Debt Camel) says
You need to send this message to ICL, not post it on this website.
PF says
Hi Sara, I have a complaint against ICL on hold with the FOS but have been contacted by BW Legal saying ‘In the event that you fail to contact us within 14 days, collections activity will continue which may result in legal proceedings being issued against you. ‘
I have already advised them that I have an active complaint against ICL, can they still pursue me for this while I can’t progress my complaint? Thanks
Sara (Debt Camel) says
I can’t really guess what BW Legal will decide to to. You certainly have an argument that you are still disputing the loan with the lender and will be submitting a claim to the Scheme if it is approved or the administrators if it isn’t. And the FCA rules say a creditor such as BW Legal should not start legal action if a debt is in dispute for what may be valid reasons.
PF says
Thanks Sara, your advice as always is much appreciated.
Paul Marsden says
The money shop have turned away my complaint detailing that ithey have acted correctly in giving me the loan. Could you please provide or point me in a direction of next steps?
Also, who do i contact to set up a payment arrangement with them> I am finding it pretty difficult
Paul Marsden says
Apologies, i forgot to put the rest of my message
Basically, my concern is now trying to fix my credit report rather than getting any redress. I literally cant find anyone to set up a payment plan with so some guidance would be fantastic
GM says
It’s been nearly a month and I’m yet to receive an email or letter asking me to vote… I can’t understand why! I’ve called them, emailed them and still no voting email. Anyone else in the same situation?
Usma says
Hi guys I got an email from the money shop any advise on what to do. They offered me £25.
Sara (Debt Camel) says
What does the mail say?
Dean says
So the saga continues, probably like many I have received a letter from BW legal regarding my loan threatening court action if the debt is unpaid. I have raised the concern that I still have an ongoing FOS case (no decision was made before the scheme was proposed) and they have said they was not made aware by their client but will put the case on hold until they hear back. My question is who are PRAC financial limited as they are the client, do they have an association with ICL and if so surely they cannot pursue for debts whilst the scheme is being voted for. If they are what happens to the money people pay as they are intimidated into paying as the letter threatens court etc. It seems bulky boy tactics by ICL to push through as much money as they can before winding up etc. I would also think this would be against the standards of lenders as harassment as they cannot pursue a debt whilst a case is ongoing. Sara and everyone else what are you thoughts ? I’m debating pursuing for all it’s worth (not for financial gain but principals) for too long lenders have used company structures, legal loopholes etc and shouldn’t be allowed.
PF says
Hi Dean, I received the same email from BW Legal earlier in the week and following some advice from Sara, simply replied that ‘FCA rules say a creditor such as BW Legal should not start legal action if a debt is in dispute for what may be valid reasons.’ I also added that i wouldn’t hesitate to raise a complaint if they continued their harrassment. So far they haven’t replied. If anyone knows how to stop these leeches until the outcome of the ‘scheme’ or administration then please let me know.
Dean says
The annoying bit is that PRAC and BW legal are the same company and the CFO of BW legal joined in April after being CFO for nearly 10 years at, yes you guessed it THE MONEY SHOP. Clearly they are connected in some way. I’m lucky to be back on my feet again and the MD of my own company and I have some resources behind me and time, I’ve decided to make it my ambition to achieve change and stop this type of practise going on and stop the bully boy tactics, the legal loopholes and general disregard for people.
VICTORIA says
Hello Sara could you please advise as to what the expected parameters of voting for the scheme of arrangement. I paid off all my loans (which were rolled over for several years from 2007 to 2011. I never defaulted once and put a complaint in November 2018. Due to the extraordinary amount of time and delaying tactics used by the Money Shop I missed having an adjudicators decision. Even though I supplied all my bank statements back to 2007. If the scheme is not going to payout people with claims dating back over 6 years is it really worth my while voting for it. Further 18 million doesn’t sound a lot of money to pay hundreds of thousands of people out.
Sara (Debt Camel) says
I agree £18 million doesn’t sound a lot.
Until ICL confirm how they are treating over 6 year loans, it’s hard to say anything. I think they should be quite clear if they will accept all loans over 6 years 9as Wonga and Wageday Advance are doing), if they are going to reject them all or if they will accept some, in which case I think they have to say how they will make the decision.
I think it is unreasonable asking people to vote when such an important element as this is not clear. I hope they will be clarifying it.
Victoria says
Sarah thank you for your reply, very much appreciated. Indeed more information would be welcome in order to vote with all impunity. I’m surprised they’ve been allowed to posture a vote without such information. I don’t suppose you have any idea on how one would be able to get the full facts before voting? This wouldn’t be allowed in the English courts. Transparency is always formost. Do you think asking ICL for clarification would be worth it? Judging by the way my individual case has been treated by this company I don’t hold out much hope. Thank you for your time.
Sara (Debt Camel) says
I suggest you wait another week or so, I am hoping they will put out more information.
Saima says
Hi guys
I had a letter from someone to say I needed to vote as I took out loans from the MONEY SHOP however I have lost the letter so is anyone kind enough to let me know what I need to do please
Sara (Debt Camel) says
You need the reference number from the letter to be able to vote. I suggest you email them at account.services@themoneyshop.co.uk or call them on 020 3901 7171 and explain you have lost the letter.
Julia says
I [name] is in favour of the scheme to go ahead.
Reference : J5L3- JD8T
Sara (Debt Camel) says
This isn’t a valid way to vote. Go to https://www.themoneyshop.com/Voting and go through the Customer Online voting procedure there.
Sam says
Hi Sara,
Do you have any further updates regarding the scheme? Thanks so much for your efforts to inform us all. I have zero knowledge of this stuff and as such I find its a minefield. Im thankful at least that the money shop took it upon themselves to send me a letter otherwise I would have been none the wiser I could even claim.
Looking forward to your update.
Sara (Debt Camel) says
The article above has been updated – ICL previously said it may pay 80p in the pound. It has now admitted that it may be 14p in the pound.
It has confirmed that it will consider ALL loans over 6 years, so that’s good.
Turtle says
At a dismal 14p to the pound and any redress late 2020, I would rather see them go into liquidation If it left a stain on the ICL directors credibility.
The company behind ICL is a billion dollar hedge fund. Amazing how they can get away with this.
Ross says
I’ve just read their latest email, and clicked on the link. They’re stating it could now be 44p/£ instead of 80p/£. Not seen the 14p/£ figure anywhere on there?
Sara (Debt Camel) says
I haven’t seen this email, can you forward it to me Ross?
A says
On the website further down there is a paragraph under the heading how many customers will respond that states it may only be 14p –
“If double the people respond that we assumed in our base case, then the expected outcome for customers could fall from 27p/£ to 14p/£.
We still think that even 14p/£ would be better than what people would receive if we went into liquidation. We cannot predict what will happen, but we have explained here the likely impact of some of the things we have done in the past few weeks.”
Paul says
Hi
Due to a redundancy I was unable to repay my loan to these and it has left a huge boot of missed payments on my credit report back to 2012. I actually forgot about the loan as the years past I wanted to clean up my credit report so settled
In full in 2017. Only £200. It has massively damaged my credit report. Is there anyway instead of claiming compensation that I could have this red blot history removed or altered to be more
Favourable?
Sara (Debt Camel) says
Just claim compensation from the scheme in October – if this is upheld, the negative credit record will be corrected. If it isn’t, then when ICL goes under after the scheme has finished, you can complain to the credit reference agencies that your credit record should have had a default added to it in 2013.
Gill says
What is everyone voting- yes or no? And does it really make any difference?
Vicky says
I voted yes , I think what offering now after update is going to be better than if go into liquidation I could be wrong not good on these things hope I’m thinking right?
GM says
I voted yes too. I rather have something instead of nothing.
GM says
They are terrible at responding by emails. The case handlers are usually based in the US, so they’re 6 hours behind judging by the timestamp on their emails.
They also have offices in London with people who can see the correspondence from you to the case handler, but don’t have access to the files. The FOS case handlers do not take calls, only the people at the London office speak to them while they put you on hold.
call 02038592760 or 02038592731. sometimes the number is busy, so keep trying.
I’m having a lot of problems with my bank details as their system has some pre-setup parameters which don’t allow sort codes outside a range of numbers, so I’ve been waiting for 2 weeks until they have their IT sorted out. I’ve called so many times for an update that the guys in the London office recognize my voice when i call…
Louise says
Only £10 million will be used to cover redress. I doubt it will even reach 14p in the pound.
david says
Bit confused, got the voting email (to an email I no longer use normally) but I’ve already had a refund from my Payday UK account, in fact after stumbling across this very website in Jan 2017.
why would I have still got the email?
Sara (Debt Camel) says
I think they are veering on the side of sending more emails about the Scheme rather than less.
David says
Yes perhaps theyve just emailed all customers and taken us as stakeholders whether our accounts / complaints are clear or not.
Thanks.
Vicky says
I’ve had an amount given to me from wonga and wageday but they said now where near what I will get, I’ve had emails from money shop but they haven’t given me an amount of what to expect is this still to be decided