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.
Contents
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 unaffordable loans.
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 wqs facing escalating costs and it was closing shops. Now the business is being closed completely because of the cost of these complaints.
A Scheme of Arrangement is a legal device which limits a company’s liability to its creditors. See What is a Scheme? for more details. ICL is using this to limit the amount it has to pay out in refunds on unaffordable lending.
The Scheme was approved by creditors in September and by the Court on 8 October 2019.
4.3% paid in May & June 2021
A claims page was published and all Claims had to be in by April 9 2020.
The Money Shop home page said:
- We have calculated the final dividend amount and you will be receiving 4.31p per £1.
- Where you provided us your bank details we will commence making payments from 24 May 2021.
These payments were made by BACS. People will be paid in batches, once or twice each week through to the end of June:
- We are unable to let you know the exact date of your payment.
- You will receive an email before we make your payment with your calculation and cash payment amount.
- If you did not provide us with bank account details, we have sent you a cheque.
The following details come from the March 2021 Scheme report:
- 182,566 Claims were received;
- the uphold rate was about 85%;
- the total compensation people should have got was c. £340 million – now people will only get a tiny amount of that back;
- it is now too late to submit a Claim.
No tax is deducted from the amount paid so there is nothing to reclaim.
Second, smaller payment to be paid in January 2022
After the first payment ICL was still receiving some money eg from a VAT recovery claim. This is being distributed to customers who had complaints upheld in the Scheme.
This will be 0.65p in the £. That is 0.0065% of the total redress that was calculated in your case.
This second payment will be much smaller than the first. If you got £100 on May 2021, you will get about £15 extra now in January 2022.
Customers were told by email about this on 12 January. The payments will be made on the 14 and 18 of January – your email says which date you should be paid.
Only bank transfers are being made – cheques will not be sent for this.
This second payment will be the final distribution. ICL will be liquidated – the company will no longer exist.
Was your ICL debt sold to PRAC/BW Legal?
Where you still owe ICL a balance on the last loan, this has been “set off” against your refund.
An example:
- you should have had a refund of £2500 and you still owed £1000
- then your balance is cleared, leaving you now being owed a refund of £1500
- you then get 4.3% of the £1500
If your last loan was sold to a debt collector, in most cases ICL has arranged for you to still have this set off.
The exception is if your loan was sold to PRAC/BW Legal. Here you have been left owing the debt to PRAC/BW Legal and were only paid 4.3% on the redress ICL calculated.
PRAC/BW Legal is offering to reduce some customers’ balances, but see No set off in a Scheme/Administration when debt had been sold? for how you can complain and ask them to write off your whole balance.
5% in all – that is a very poor outcome for customers
When the Scheme was proposed in August 2019, it was suggested people might get back nearly 80p in the pound.
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?
And that has turned out to be spot on…
In September it admitted that:
- it has decided to include all loans over 6 years which may reduce this to c. 44p.
- it has decided to simplify the assessment in favour of the customers, which may further reduce this to 27p.
- if twice as many people apply for a refund, this may go down to 14p.
By February 2020 in the previous quarterly report, the scheme administrators were warning this could be less than 10p.
So about 5% (4.3p + 0.65p) is a dismal outcome for customers.
Why won’t the FSCS help these customers?
The Financial Services Compensation Scheme (FSCS) covered people making PPI claims if their firm had gone bust.
But the FSCS doesn’t cover payday loans. This was a very poor decision by the FCA.
Customers of the Money Shop, Payday UK and Payday Express have been let down badly by the UK regulators. The lenders were allowed to carry on giving loans that breached the affordability rules for years. And now there is no backup compensation scheme for when a lender goes under.
Updated January 2022
News about the Provident Scheme
Can you get an overdraft refund?
Refunds from large loans and car finance
Lynne says
I think people will feel a bit better when the emails start going out. It’s the not knowing and constant waiting that leaves us frustrated. As Sara says, we know from the wonga fiasco it’s never straightforward. I wonder what volume of customers they have in comparison though?
Sara (Debt Camel) says
Wonga was paying about 350,000 customers. ICL will be paying about 150,000.
ICL is already saying in its latest report:
“There are a large number of customers who have submitted valid claims in the Scheme but have not provided bank details, w hich means ICL is
unable to make a dividend payment to these customers at the appropriate time. ICL has emailed these customers to make a further request for
bank details to be provided, and is also preparing an application to the Court to seek directions on how to proceed in relation to those customers whose bank details remain outstanding.”
Lynne says
Oh right ok. Does that mean all payments will be delayed though or only those customers with incorrect bank details? It beggars belief people don’t provide their bank details. It’s pretty crucial 😳
Sara (Debt Camel) says
You have been through this yourself with Wonga – people think Wonga had their bank details, for some reason they didn’t have the right ones.
If anything this is likely to be more prolematic with ICL as at least all Wonga lending was entirely digital – the Money Shop side of ICL wasn’t.
Janey says
Is it a definite that the payout is 4%?
Just hope we all get that soon .it’s been a long time …I’ve only got about £150 to come to me but better than zilch I suppose!
Andrew P says
Copied from the original post – ‘You currently have a balance outstanding on a loan that one of our firms originally provided, which we subsequently assigned to PRAC, a debt purchaser. If we had not assigned the loan, you would have been able to set off your redress against that loan. However, since PRAC is the legal owner of that debt we are unable to apply set off and must therefore pay you the dividend amount, which we expect to be around 4p/£. You may if you wish decide to use your dividend payment to pay down your outstanding balance with PRAC, but that is a matter for you and is something which must be done outside of the Scheme.’
Any further thoughts on this scenario Sara?
Sara (Debt Camel) says
Yes but it’s long. I need to write an article on this.
Sara (Debt Camel) says
Here is the artcile https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ which covers your situation.
Lee says
Hi all
It was me who had that response a few weeks back.
I submitted an appeal redress amount was incorrect, thru had doubled the ore scheme redress, they have now corrected this.
The email now reads……..
If you currently have a balance outstanding on a loan that one of our firms originally provided, you will be given the option to reduce that balance by the full amount of the Potential Redress payable to you, rather than received a reduced amount in cash. We’ll explain how this works in more detail on our website, and have provided an example below; but put simply, if you choose to use your redress to reduce your outstanding balance, you’ll benefit from more of the value of your total Potential Redress amount, but you’ll receive less, or possibly none, of it as a cash payment.
Here’s an example: ( Already posted above )
Their is no mention of the previous communication stating they cannot offset redress so hopefully they have this ironed out now and my outstanding balance will be offset?
Sara (Debt Camel) says
Hi Lee, which debt collector was this?
Lee says
It was PRAC but BW legal were collecting it? I don’t fully understand!
Sara (Debt Camel) says
Read https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ which covers your situation.
PRAC is the debt purchaser – they are using BW Legal as their agent to collect the debts.
Dean says
My thoughts with some but very limited legal knowledge is that the agency that bought the debt need to make sure that debts they purchase are enforceable which these are not (if your claim is successful) HOWEVER the debt is for the original sum burrowed (which you had put in your bank) and the interest. It is only the interest that is being refunded not the original loan. My understanding is that the core loan amount (excluding interest) needs to be repaid and should NOT be off set as you basically would have gotten free money. You MAY and I say MAY be within your right to only pay the orginal loan amount off and not pay the interest so if it was a partial debt that PRAC bought you in theory could deduct any payment paid on that particular loan paid to ICL and deduct it from the loan value and then pay PRAC the difference. After all it wasn’t PRAC that leant irresponsibly, they bought the loans in good faith so they shouldn’t lose out either (although I’m sure PRAC has shared directors of ICL but that’s a whole other story)
Faye says
Hmmm…but prac is not part of their company as far as I am aware, I received a letter stating that as the debt had been sold on to prac it’s down to me to pay prac…I’m now confused
Dean says
Don’t be confused, it’s a totally separate company, so ICL ‘sold’ the debt to PRAC which BW legal were instructed to collect on. PRAC own the debt, what I’m saying is there is no legal right to collect interest on a debt where the lender acted irresponsibly. You will need to pay the amount t you borrowed back but regarding interested that MSY be able to be contested.
PRAC bought the whole loan and interest so the amount you owe them currently includes interest that is not entitled to be charged.
Sara (Debt Camel) says
I’m saying is there is no legal right to collect interest on a debt where the lender acted irresponsibly.
That is a sweeping statement which I think it would be difficult to argue in court.
Dean says
Hi Sarah, so I have successfully argued this in court previously and also guidelines from the Ombudsman states – Our starting point is that the borrower has had the benefit of the money they borrowed and it’s fair that they should pay it back. So if a borrower has a complaint upheld and there’s still an outstanding balance on the credit we’ll usually tell the lender to remove all the interest and charges applied from the start – so that a new starting balance consisting of only the amount lent is left – and then deduct any payments already made.
It also states that -The new owner of the debt usually takes over the same rights and responsibilities as the original owner. This is reflected in the way that we will deal with complaints from consumers whose debts have been sold. For example, we’d expect the business to give the same quality of evidence to support their case – whether they were the original lender or one who had later been assigned the debt.
That was how I successfully argued and won previously.
Like I say it MAY work but there is case law to show it does work.
Sara (Debt Camel) says
Read this news article https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ which covers your situation.
Craig says
I agree, interest and charges shouldn’t be paid on loans that were not affordable and shouldn’t have been issued. If I had an outstanding balance with a third party for a loan that wasn’t affordable, I’d make a complaint to them asking for interest and charges to be removed because the loan wasn’t affordable and sufficient affordability checks weren’t performed, if they didn’t agree I would ask the FOS to look at it.
graham says
Hi Sara,
Firstly thank you so much to you for setting this blog up absolutely invaluable information. I’m completely indebted to you. Using your excellent advice, in the last 7 weeks I’ve managed to get 19 payday loans from PiggyBank and Wonga successfully suppressed from my credit report with Transunion.
I have a couple of questions if I may. Three weeks ago, Transunion advised they contacted Payday Express regarding my only loan with them, who replied advising that the record is correct and should not be suppressed. Transunion gave me contact details for Payday Express (Payday Uk now). I contacted them and i received an instant replaying advising me to go to themoneyshop.co.uk There it states the claims portal is closed. Do you think there are any other avenues I can try to get this record deleted or suppressed?
2nd Question was, was there no legal requirement for all these companies to advise past customers that a claims portal was open? Extremely frustrating to know there was an opportunity to address this but I knew nothing about it til I found your site.
Thanks in advance and thanks once again for this exceptional blog.
Sara (Debt Camel) says
Do you think there are any other avenues I can try to get this record deleted or suppressed?
Wait 6 months or so. by then ICL will have stopped replying to the CRAs.
Graham says
Great, thank you.
Ben says
At the end of the day, we took out the loans and knew the ridiculous repayment rates. I think any refund is a bonus we can be grateful for.
Jack says
I know what your saying for people that had a few loans to pay for nights out or new clothes I agree , but your statements makes it sound like people who were owed thousands of pounds who took fifty to hundred loans out that the ombudsman has said should be refunded thousands and in some cases tens of thousands then I think your comments are unfair. The reason we all used these companies was because the majority of us have poor credit scores and these companies use this to take advantage and when we need something quickly we are only able to use business like these . And when people get into a cycle of loans they struggle to get out of it and end up debt for a long time .
Sam says
I have a balance left with PRAC from an older loan that I’ve been in a payment plan with for a number of years. It’s due to be finished over the next few months. If I were to allow my redress to pay that balance off if that’s something they’re looking at, will any negative marker from PRAC be removed from my credit file? Apologies, I’m not entirely sure how that works. It’s the only negative mark on my credit file currently after sorting my finances out, but because I don’t pay the full monthly amount agreed with PayDayUK initially, I still get a late payment mark each month.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ which covers your situation.
If you want to make this complaint against PRAC you will need to stop paying them anything – otherwise by the time the complaint is resolved at FOS there will probably be no balance left to set off.
Becky M says
Hi All, My redress is £5484, so how much will I roughly receive please.
Lynne says
About £219
Victoria says
100% disagree. These companies prey on people in difficult circumstances and on low incomes. Thankfully I was eventually able to get out of the the cycle of debt and impoverishment many years ago and paid off all the loans I had. Many other people are not able to. People’s circumstances can change, often for the worst, in the blink of an eye, so what might have been barely affordable could become crippling. These loan sharks have made millions from people over the years. My loans were taken when I was a student. They have been told their unscrupulous behaviour was unacceptable and they should pay back the millions of pounds in interest they earned from rolling loans. They declined to do this by going into administration and will now pay back the absolute minimum allowed. So no I totally don’t agree that people should just be grateful. No wonder we have a tory government ripping the tax paying public with attitudes like this!!!
Siobhan says
Well said Victoria, I totally agree. These companies are a disgrace with the pittance they are offering in redress, when they made millions!!
Ljc says
I agree with Victoria & Siobhan . The FCA don’t seem to care ….when people complained about ppi customers were still paid out if the company were no longer/in receivership/in administration or whatever you want to call it but PDL’s aren’t included in that
Richard Eastland says
Totally agree with you, why should they get away with paying out such a meager amount ,someone is laughing all the way to the bank while the people who could least afford these loans. Are left with such a poultry refund .
J says
It varies from case to case but I think that for everyone who made a bad decision there were more who were either forced into due to circumstance (think a single parent with a broken fridge and nothing in the bank to pay for one and no mainstream lender willing to lend to them) to people who made a calculated decision gone bad (think micro business owner trying to stop their business going under) etc.
At peak PDL in the media, we were being told of drunk students using the Wonga app to borrow to buy more booze, Quickquid funding a benefits mum shoe collection etc. and it became pretty normal to use these lenders and for many, The Money Shop was seen as a more respectable lender because they were on the high street along with Boots, Next and Nando’s etc.
The real win is that people are starting to see how bad these lenders and their lending habits actually are. While I stand to only get about £300 back from what would have been a life changing refund, I can take some solace that these lenders are going under and hopefully people are seeing other, better options appearing now should they genuinely need to borrow…
Evie says
My first Money Shop loan was a mistake any checking would have shown them I couldn’t afford it. I rolled that loan more than a dozen times as I couldn’t repay it and I was scared to stop as they would have added more and more interest. I only got out of their clutches when I broke down and cried and my dad paid the loan off for me. They are legal loan sharks and I am happy they are bust so they can’t ruin other people’s lives. The 4% refund is an insult how can this be legal.
J says
Hi Evie,
So why did you apply if you knew you couldn’t afford to repay it? What would have been the impact on you if you had not been able to borrow from them?
I’m not trying to throw any shade at you by asking this, but there must have been a reason behind you going to them in the first place and a consequence of them not lending?
Regardless, I hope you’ve got your finances sorted out now and never need to go to this sort of lender again. Oh and that you repaid your dad ;)
Evie says
I was just a bit short and it seemed convenient. I was young and stupid and didn’t want to ask my parents for a bit of help. I didn’t know all the trouble it started thought I would pay it on my payday but then I realised that I couldn’t manage after the cheque went out. Did you ever borrow from them yourself? Don’t you remember how horrible it was? There was a cheque guarantee number and the bank said it was illegal to write a cheque you couldn’t pay. Of course I paid my dad back, with no interest I did it in 3 months.
J says
That’s (one of the) way they gets ya!
I’m glad you got yourself sorted, that’s nice to hear.
I was a real degenerate… well, in my eyes at least… I started borrowing from them to help during the early stages of a gambling habit. I have a good job, earn a decent wage and would repay the cheque every month only to then repeat the whole process after about 2 weeks and it became a cycle of reliance and occasionally they’d offer me a ‘promotional rate’ so any attempt to reduce the amount I owed would be wiped out as I figured I could clear the rest at the end of the month.
In the end, between Money Shop, Cheque Centre, Wonga and seemingly endless other PDL’s all my monthly wage just covered them and my rent.
This was a good few years back now. I’ve since got my life in order and no longer gamble, have no debt, decent job and have even had a few refunds myself from other lenders which has been nice but the most valuable thing I took away once I made the break was to never repeat that period of my life. I value that more than any refund if I’m honest.
I really wasn’t having a go at you, but peoples reasons are so varied that it’s hard to just point at them and call the a villain when in fact, a lot of people just need to accept they were irresponsible too.
ROBERT says
Forgive me for saying this…but it is real for all of us… WHY…yes I borrowed over 100,000…done & dusted. We took and they gave…and now we are scrapping over peanuts…please do not belittle us in the situation we were there in and now. Be brave and move on with your lives!
Ceri ann says
J You really have it nailed. Well done for sorting out your finances. You are totally correct in what you say and we know you are not getting at anyone. I was the same borrowing every month and burying my head in the sand. A DMP actually saved my life. I was borrowing from the money shop to pay the cheque centre. I should have seemed help earlier as I was 30000 in credit card debt. So much wiser now and debt free. I own one credit card for emergency which is paid off each month. I urge everyone please go to pay plan or a similar company instead of borrowing.
J says
Hi Ceri ann,
Thanks :) I know that finances are a sore subject for many many people, especially when you’re still struggling. The reality is that people need to take control of their circumstances and accept that at least partly responsible for their circumstances. Accepting that is empowering, it motivates you to take steps to address your circumstances and as you do so… You feel great! Like genuinely like you’ve woken up from a horrible dream and the world is open to you.
I’m not the sort of person who says stuff like this lightly, I’m a glass half empty kinda person generally but realising you have a problem with and then sorting your finances is life changing! More so than a refund because if you get a refund but still have bad habits… Not good news :(
I’m glad you’re all sorted too, I went with Step Change for my DMP. Regardless, people need to go to someone free and impartial!
J
Sara (Debt Camel) says
A reminder of the comment policy here – comments criticising other people will not be published. This includes saying other people are moaners. If you can’t say something nice about the people posting here, don’t bother.
Also comments are likely to be deleted if you use different names and fake email addresses.
Rhys says
If everybody agrees to tell them not to pay the 8% interest we are due surely there would be more money for them distribute? Since I got the email saying I was due compensation. I havnt heard a thing. Just the paent is delayed.
Sara (Debt Camel) says
ICL doesn’t have an option to do this, it is simply doing what is standard in insolvency.
But even if it could, it would make no practical difference.
There is a pot of money that is available to distribute. And a total of claims that are going to receive a percentage payout that adds up to the money available.
If the 8% added interest was removed, then the total of claims would be lower because of that. So you would get paid a higher percentage of a lower amount. The average payout would be the same in both cases.
No tax is being deducted from the amount you are being paid. So “removing the 8%” would not “save” that tax money.
Steven says
Will I still get the 8% interest though as this is statutory I thought?
Sara (Debt Camel) says
No. There is no separate pot of money that can be paid from – it isn’t coming from the givernment just because it is labelled statutory. It is just one component of the amount ICL owes you and you get the percentage amount on that total.
Dom says
I’ll only be getting about 100 so does anyone know if I have to tell the DWP as I’m on UC at the moment.
Grant says
as its compensation money and not over 6000 then no you dont need to tell them.
Martin says
I am owed a total of £4347.75 what should I receive? I can’t believe it’s taking so long, if payments are due to be made in May you would think we would have more communication by now.
graham keen says
About £153.
Steve says
So we can use as much of owed money that we have to pay off our loan but only receive 4% back cash. I am owed about £6000. I will get about £240. Shame the rest of mine cannot go to paying off other peoples live loans. Just a thought and a pipe dream if I can’t have I’d rather someone else who needs it has it.
Millie says
Such a lovely comment Steve.
Grant says
My redress is over 11k and yes i agree, if i could gift it and make someones life that much brighter to get them rid of thier debt to this company i would, but lets face it, they would not allow that to happen.
Sara have you any thoughts on this?
Sara (Debt Camel) says
Such a kind idea, but the problem is there is no money to pay anyone any more than the 4%.
Sean Jeffrey says
Its disgusting how they openly admit to irresponsible lending so freely and then give next to nothing back for taking advantage of people when they thought lending was an easy solution,
My potential redress is £14,000, i got excited at first but then realised how little back ill get, but still, some is better than nothing right?
Sara (Debt Camel) says
NEW ARTICLE
If your money Shop, Payday UK or Payday Express loan was sold to PRAC/BW Legal, you will not be getting any “set off” in the ICL Scheme. You can complain to PRAC and ask for set off, see https://debtcamel.co.uk/no-set-off-scheme-administration-debt-sold/ for details.
Andrew says
Why do the people with current loans get the advantage of having 100% value to claim when it’s reduced off a current balance as opposed to those who are receiving cash only getting the dividend? How is this fair?
Sara (Debt Camel) says
I can see why you don’t feel it is fair.
But legally this is like A owing B £100 and B owing A £250. If B takes A to court for £250, then A will ask for a set off against the £100 so he only has to pay £150.
This is a very long-established principle of common law. It would happen between two private individuals. It would happen in one of them is insolvent. And so it happens in this Scheme.
Andrew says
I understand the legal aspect of it all. I just think it’s wrong. It’s actually beneficial to owe this company money still in this particular circumstance rather than to be fully paid off. For example. I borrowed £100, paid back £200. Total cost to me is £100. Someone else who borrowed the same still owes £100, their loan is deemed unaffordable they get that £100 that was interest wiped. I only get 4% of my £100 back, £4. They are £96 better off than me. Immoral.
These schemes benefit the liquidator, the firm and lawyers handling this case, then current creditors, then finally at the bottom of the pile the people who are really owed the money.
Graham says
Thanks Sara.
I tried pushing BW Legal and ICL a few months ago and could not get a straight answer.
This is obviously why.
Lynne says
Just had the email confirming they are using the redress for anything owing and I’m not given the choice to receive a cash payment. GREAT!!!!
Sara (Debt Camel) says
If you owe them money then this set off is massively to your advantage.
Lynne says
No. I’m fuming I don’t have any debt with them.
Fred says
I just recieved an email from them saying they are using my redress against my debt.
I do not have any outstanding balances with them I am quite furious about this.
Sops says
Just had an email from them re dividend , says my payment will be used to pay off outstanding debt ! I don’t have any outstanding debt with them ! Also goes on to say any payments due will be spring.
I have emailed back highlighting the no debt situation and asking if dividends will be paid in may .
Dan says
Hi
I had a claim upheld and have just received an email stating that payments will begin Spring 2021. It’ states mine will be offset against my outstanding debt. I didn’t have any outstanding balances with them. The email doesn’t state the amount of debt either.
I guess I’ll contact them, unless it’s just a generic email, anyone else had this
Adam says
looking like its either generic or an error that’s gone out to everyone
Siobhan says
It looks like a generic email! It’s disgusting that they are able to take money from our redress, and we have no choice, especially when it’s statute barred as my is from 2006, and ordinarily they wouldn’t be getting a penny if it from me!!
Sara (Debt Camel) says
Does it say you do have a debt or does it look like a generic email going to everyone, in debt to them or not?
Fred says
Mine says I do, I hope it’s an error, I have emailed them straight away
Your Claim
We explained previously that the Potential Redress figure would be the maximum amount payable for your claim, and that it was likely you would only receive a proportion of that. We also told you that you may be eligible to use your redress to pay off any outstanding balance.
We are now able to confirm that we will be using your redress to reduce your outstanding debt to Instant Cash Loans. This is important to you because your outstanding debt will be reduced by the full amount of your redress, whereas a cash payment would only be for a proportion of that amount (this is likely to be 4p cash for every £1 of redress).
We are sorry that you are not able to choose if you want the cash dividend or set off against your outstanding debt. The terms of the Scheme of Arrangement mean that we try to replicate what would have happened if Instant Cash Loans had gone into a liquidation or administration. In such a scenario, your outstanding debt to Instant Cash Loans would automatically be set off against the redress awarded. The terms of the Scheme of Arrangement are not flexible in this regard and so we are unable to make any exceptions.
david d says
I just had an email from The Money Shop saying they were using my refund to repay the outstanding debt:
“We are now able to confirm that we will be using your redress to reduce your outstanding debt to Instant Cash Loans. This is important to you because your outstanding debt will be reduced by the full amount of your redress, whereas a cash payment would only be for a proportion of that amount (this is likely to be 4p cash for every £1 of redress).”
First of all, I don’t ever recall lending from the money shop nor do I currently pay anything to them , are there other companies under their umbrella perhaps? I only owe small amounts to Drafty, Peachy and Mr Lender so if it relates to one of those then that will be why, but otherwise it was a little bizarre to receive this email!
I’ve asked them to provide the original account details, see what they come back with.
Sara (Debt Camel) says
The ICL Scheme also covers Payday UK and Payday Express as well as the Money Shop.
Drafty, Peachy and Mr Lender are unrelated companies and the email does not refer to any of those.
david d says
Ok even more bizarrely then, I already received full refunds for complaints against PayDay UK and PayDay Express historically (having used this site!).
Perhaps it is a generic email-to-all response, then.
Thank you.
Sean says
So does that mean we can get the full amount if we complain
Sara (Debt Camel) says
No, full amounts were only paid before the Scheme started.
Katy says
Sorry if this has been covered before. I had an ICL loan that I was paying off under a debt management scheme. In 2018 I agreed a partial payment settlement and my account was closed. I have just received an e-mail today saying that the amount I am owed is being offset against my outstanding debt. I am owed approx £150. Am I actually classed as having outstanding debt with them if my account was settled. I have replied to the e-mail with this info and a copy of my credit file. Are they right doing this? Thank you
Sara (Debt Camel) says
Am I actually classed as having outstanding debt with them if my account was settled.
probably.
My guess is what is happening is that essentially you had some of your refund earlier through that write off. So the refund calculated on all your lending needs to be reduced by that write off.
Adam says
received an email from money shop this morning stating they will be paying 4p to the pound it also contained the following
“We are now able to confirm that we will be using your redress to reduce your outstanding debt to Instant Cash Loans. This is important to you because your outstanding debt will be reduced by the full amount of your redress, whereas a cash payment would only be for a proportion of that amount (this is likely to be 4p cash for every £1 of redress).
We are sorry that you are not able to choose if you want the cash dividend or set off against your outstanding debt. The terms of the Scheme of Arrangement mean that we try to replicate what would have happened if Instant Cash Loans had gone into a liquidation or administration. In such a scenario, your outstanding debt to Instant Cash Loans would automatically be set off against the redress awarded. The terms of the Scheme of Arrangement are not flexible in this regard and so we are unable to make any exceptions.”
i didn’t have an outstanding balance with them that i was aware of, is it safe to assume this was another email sent in error
Linda says
I have also recieved this email. I do not owe them anything. Nite date on when it’s being paid only said early spring.
Owen says
Morning all. I got an email this morning advising that I have an outstanding debt which the redress is being used to offset against it. As far as I am aware i do not have a debt with them so I am unsure if this is a generic email or specific to me? I have tried to call but have been left on hold for half an hour. Anyone else get this?
Dani says
I also received this same email this morning, was on hold for an hour to speak with an advisor only to be told email in. That i did do , but u just get the generic reply.
I myself owe nothing
Denise O'Brien says
The same here I paid off my debt through B W Legal last year
Paul says
A very poorly worded letter in line with the above; i owe nothing but it gives the impression i have a balance.
I paid my balance off in full about 5 years ago and had no previous claims etc when they were a going concern.
Fred says
Hi Sara, Just a quick question.
If say I had a small balance written off by paydayuk in the past. Could they be using my redress against this?
But for instance it was only a few hundred pounds they wrote off when I complained years ago, My redress is nearer the 7k mark so it seems a bit unfair, My accounts where never sold to a dca etc.
Sara (Debt Camel) says
yes, that may be happening. But if only a few hundred were written off, then it will only reduce the calculated redress by a few hundred.
Sops says
Hi
Same happened here and I complained years ago and got a small redress then plus outstanding balance written off, from what I worked out on the most recent redress emails they have not included the loans that I received redress on in the overall balance . Assuming this correct the amount I will receive will be the 4% of the overall originally calculated, this was the same for quick quid as well , they also did not include several loans in redress email as had previously paid me compensation for a complaint raised 4 or 5 years ago , I was actually surprised that they offered anything !
Annie Goodfellow says
Please help just had this email out blue does this mean that I won’t get a penny my redress is 10086 I do not owe that on the outstanding loan so will I get the difference!!!!!!!!! Thy have moved goal post again its really wicked
Email says they will now use the total redress amount to off set outstanding loan this is about 2500bwhat happens to the spare 8000 then?? Oh Sara it just gets worse enail came out blue this morning
Danielle says
Just received an email saying following my claim they will be using any potential redress to settle an outstanding debt. I do not have an outstanding debt or balance with them. Have emailed them and on hold to discuss for an hour so far but no joy 🙄
Vicki Lush says
I got the same email too. I really hope it is incorrect and sent in error as I am pretty sure I didn’t have any outstanding balance. Let us know the update if they respond to your email.
Lynne says
The automatic bounce back email says they aim to get back to you in 5 working days Vicki so not holding breath.
Lisa says
I’ve had the same email but knowing I’ve not owed them anything for years I came on here straight away and looks as though it’s a general email which for most is wrong. Hopefully they will send out correction emails and we get paid our small amounts sooner rather than later.
JT says
I got this too:
“We are now able to confirm that we will be using your redress to reduce your outstanding debt to Instant Cash Loans. This is important to you because your outstanding debt will be reduced by the full amount of your redress, whereas a cash payment would only be for a proportion of that amount (this is likely to be 4p cash for every £1 of redress).
We are sorry that you are not able to choose if you want the cash dividend or set off against your outstanding debt. The terms of the Scheme of Arrangement mean that we try to replicate what would have happened if Instant Cash Loans had gone into a liquidation or administration. In such a scenario, your outstanding debt to Instant Cash Loans would automatically be set off against the redress awarded. The terms of the Scheme of Arrangement are not flexible in this regard and so we are unable to make any exceptions.”
I don’t have any outstanding debts or loans with them!
The wording is quite worrying if this is some form of generic email they are sending to everyone. I hope this doesn’t mean I’ll be receiving my redress..
DM says
Funny they have sent this out and still not confirmed amount of redress from the amount calculated, payment date has gone from April to May and now Spring!
Lynne says
Yes I too noticed the vague use of the word ‘Spring’ however I think most would consider June as ‘Summer’ so as they said Spring let’s stick with the fact that we’re still getting it in May 😛
Lisa Capper says
I’ve googled when Spring is and it’s from 20th March till 20th June so hopefully they do stick to starting in May and completing by June as they stated
Lynne says
Notice how they marked the email urgent as well. Just to get us excited! Hopefully everything is rectified soon. It also says they’re giving people 14 days to let them know if they are now bankrupt or have an IVA. That just means we won’t hear anything for at least 2 more weeks.
Sara (Debt Camel) says
I think ICL is asking people who have gone bankrupt/insolvent to get in touch as the set off may not be correct for them.
Kerry Lebbon says
I’ve also had the same email as the rest of you and also have no debt, my redress was on ly 1696 so not sure how much I will receive, as long as it comes of my credit report
Lynne says
Should bring about £67 Kerry
Kerry Lebbon says
Thank you 🙂 shame it’s not even half of the original amount but 🤷🏼♀️
Lynne says
Oh i know don’t get me started. Mine is meant to be £9959 = about £390!
Lisa Smith says
Same email received today but my amount owed was much smaller then the original redress and my original breakdown showed I was still due redress after the amount owed was repaid.
Are they allowed to change the original redress plan that they had laid out
Mark says
I received the same email which I’m sure most have noticed the wording ; your redress will be used to REDUCE your debt !! I have emailed them requesting details of the debt
Sara (Debt Camel) says
yes, see all the comments left here today!
Claire says
I also paid all my loans off in full and and on time and I have received the email. I know I don’t owe them a penny. I suspect many don’t.
Did you check your junk folder for an email? I only ask as my email was in my inbox but my partners was in his junk folder.
grant says
I have not received any email today and after checking the portal there is no mails in their either
I have no out standing money owed to the money shop so i find this very alarming that people are getting this email in the same situation.
I am owed over 11k in my redress and looking at about 480 in return
My worry is, with this mail going out and this causing so much confusion and upset, could this be yet another delay tactic from ICL to delay paying out, pushing the time from may to July or even August and earning the lawyers even more?
i would not put it past them, after all, we have faced so many delays already, what is 1 more ?
Sigh.
Victoria says
I agree. They would stoop (and already have) to any lengths not to have to repay the extortionate interest money we all paid.
I too paid off all my loans many years ago and don’t owe them anything. I haven’t received an email. Yet. I’ve also checked the online portal.
Mark says
Not had anything from them since October 2020. Another delaying tactic using the term “spring”. We are in spring now but more than likely this is covering them until the end of June.
How can communications like this be going out (incorrectly by the look of it)? They’ve had almost 2 years to wind this up, we get on the home straight and now this spanner in the works. They’ll now be dealing with potentially thousands of emails on the back of this.
Victoria McAleer says
Perhaps we could write to the director a Mr Sheraz Afzal and ask him. His new company is listed publicly on Beta Companies House as:
KM2 ETHICAL FINANCE
Unit 11 Foundry Business Park,
Station Approach,
Hockley,
ESSEX
SS5 4HS.
I’m sure he’d be delighted to hear from you all.
He was appointed a director of this company in March 2021. Seems like he has a sense of humour as well “ETHICAL FINANCE” LOL.
Sara (Debt Camel) says
I think it would be better to save the stamp and wait and see what replies people get who have queried this.
Victoria McAleer says
Perhaps, but they’re on Twitter and LinkedIn as well. Just saying :-)
J says
I Googled KM2 Ethical Finance, it’s a company specialising in investigating first party fraud and there’s a tag line of: Specialists in recovering misappropriated funds
It’s not just the ‘ethical’ which is funny ;)
Rhys platt says
I got the generic email.
Seems to be delaying tactics.
Got through to somebody on phone and said we have to email, they can’t answer any question over the phone.
Lynne says
The question is will the emails be answered. Based on the activity on here today they’re now going to be swamped with ‘you’ve got this wrong – I owe you nothing’!’ emails. Rightly so. Either someone’s made a huge blunder or they are indeed just trying to delay further. Fingers crossed for everyone we get correct info soon.
JR1981 says
If we haven’t got either ie debt with them or in debt relief order etc, surely we just ignore it?
Sara (Debt Camel) says
NO.
If you don’t think you owe them any money, get back to them and tell them this.
Claire says
I’ve emailed asking for details of my alleged outstanding debt. Like many, I had several loans and 15 were upheld. I know from My own records they were all paid back.
In my case all were payday loans and it’s inconceivable that a payday lender would keep lending if repayments weren’t made. So even if people do owe a balance, I find it hard to believe in the case of payday loans that every one would exceed the full redress owed.
Everyone should query this email. People at least need to know the figures involved and surely they are obliged to provide them?
Also in my original offer letter they have me down as a customer from 2008-2019. My last loan was in 2011! So something is not right.
Like everyone else, what I would receive is paltry but all the more reason in my eyes to hold them to account for attempting to keep what little we may be entitled to.
This
Lynne says
I must admit my letter said I’d had 34 loans (which I was surprised at – I only ever used payday express and payday uk (not the money shop directly) and I didn’t think it was anywhere near that number of times if I’m honest. And all 34 loans were upheld.
And it stated I’d been a customer from 02/05/2007- 13/102019. The end date is definitely not right. I don’t think I borrowed from them after about 2010!
Dave says
I too have received the same email but I know I do not owe them anything. After reading Sara’s comment above I have emailed them back stating this and asking for details of the apparent debt. Seems a big error has been made.
Georgina Battson says
I’ve had the same email, I’m pretty sure it was paid off looking at the amount they quoted I’d be aware if I hadn’t paid it back. Bit annoyed they say you actually won’t be getting anything as it’s going to the alleged debt. I’ve asked them to provide me with details of this. Hoping it’s just a generic email
Paul says
Hello,
I’ve received the email today too, stating that the redress will be used to pay off my outstanding balance….but I don’t have any outstanding balances. I always ensured I paid my debts, I’m claiming on the improper practice of lending.
Does this mean I will not see anything? I have emailed them back asking for evidence of the outstanding balances, and amounts due.
Sara (Debt Camel) says
For some reason ICL thinks you do owe a balance. Quite right to email and dispute this!
Dave says
Has anyone had an email other than the above to confirm their redress being paid directly to them please as this would be very helpful to know?
Thank you
Eddy says
Just replied to them..
“ Further to your recent email.. was this just a generic email sent to all customers?..
It says “ We are now able to confirm that we will be using your redress to reduce your outstanding debt to Instant Cash Loans.” I do not have any outstanding debt with ICL so what debt are you reducing?..
I went through debt management with these loans I paid back all monies owed and don’t see how I have “outstanding debt” with ICL or any of its affiliates?.. (a clear indication that these loans where clearly unaffordable for me at the time but I was between a rock and a hard place at the time therefore had no alternative than to take the loans..)
I want my redress amount even if it is a pittance of 4p/£.. I will also be making a complaint with the FSA and financial ombudsman.. to my view if a company got in contact with me saying you owe us £6000 and I said “I tell you what I’ll give you 4p for every £ I owe” they’d take me to court. So I see no reason why your decision is justifiable
Regards”
We can all play those games..
Sara (Debt Camel) says
Quite right to challenge this if there is no outstanding balance. But you can’t take any complaints about the Scheme to either the FCA or the Ombudsman. It is all legal…
Lynne says
Absolutely right Eddy. I can’t decide if it’s an admin cock up or if they genuinely think we all owe them some money! It can’t be possible it’s got to be a mistake, especially as we all got the emails around the same time. Now we have a further wait for them to get it sorted as they’ll have been inundated with messages since yesterday about how they’ve got it wrong. It does nothing for people’s stess levels though does it.
Sara (Debt Camel) says
They think you owe them money. It may be an error, but if you have to find out what they think you still owe and dispute it if it isn’t right.
Eddy says
Yeah I called them too and explained that I had been through debt management a number of years ago and as far as I was aware I had no outstanding balance with them.. they said they’ll investigate it and email me back..
If they find another loan that I owe them for (that was somehow missed when I went through debt management) will they have still been charging me interest over all that time?.. if so that could amount to a hell of a lot of money that I could potentially still owe them..
If not will they just take that amount from my redress amount then pay me 4% of the outstanding redress amount? (for example I owe them £500 they owe me £6000 so I’ll get 4% of £5500)
Sara (Debt Camel) says
will they have still been charging me interest over all that time?
I think that is unlikely!
I owe them £500 they owe me £6000 so I’ll get 4% of £5500
That is how it should work if you owe them less than they owe you.
Carol Wrench says
I just wonder if this is another delay tactic not to pay us I don’t owe any money on any loans and it seems others are the same. When I phoned today the person I spoke with told me she didn’t have access to the account so email them it’s all very frustrating and long winded they take at least 5 days to respond it’s diabolical.. This scheme was meant as compensation for all the stress it has caused us but honestly where the compensation it’s criminal and they get away with it.
tracy says
surely if money shop are saying that we all owe money to them . Then why and how did they keep letting us have loan after loan. If we owed them like they saying then surely we would have been down as bad payers and they would have refused us another loan …. surely?
Sara (Debt Camel) says
There are several bands in the ICL scheme. You may have owed the Money Shop money and still been able to get a loan with one of the other brands if it was before they were all brought together in one company.
I am not saying this happened to you, obviously I have no idea.
But I think these emails yesterday were only sent to people who ICL think owe money on a loan. So if you think you don’t, you need to object and find out why they are saying that.
Lynne says
Is Ladder Loans under this scheme Sara?
Sara (Debt Camel) says
yes it is
Lynne says
Ok I think I’ve identified the problem then. I took a loan out with them back in 2014 and this is what’s showing on my credit report:
Partial Settlement
The lender has reported one of the following:
· The debt was included in a voluntary arrangement which has now ended
· The debt was included in a bankruptcy order which has now been discharged
· The lender has accepted a smaller amount in full and final settlement
· The lender has repossessed the asset and is no longer chasing the debt
Date Notified:01 Jan 2017
I honestly don’t recall what happened as it’s so long ago, however my redress amount is £9559.80 and the amount on the credit file for ladder loans firstly shows the loan as £3k then £0.
Also on their message yesterday after it tells me they’re using the redress to pay the balance it goes on to say ‘we’ll be in touch again to confirm your payment amount’. Presumably the payment amount being ZERO?!! If there is still £3k outstanding what happens to the other £6559.80?
Oh god I’m so confused now. I know I have to wait to hear from them I’m just updating people in case they check and they find something similar.
Susie says
I phoned them today,i did not get an email yesterday and asked if i too would be getting the same email about moneys owed.The lady said all letters to those who owed money were sent out yesterday,and if i had not received an email yesterday,i did not owe any money.I wont hold my breath..
Dee says
What I would like to know is once you have emailed them, and SHOULD they reply saying that the money is owed , where do you go from there? As i definitely do not owe any balance and have received the email.
Sara (Debt Camel) says
I suggest you ask for details of the loan.
Carol Wrench says
This is exactly the same as me I don’t owe anything I find it all rather strange this is happening now just before they are due to pay out the redress .. I’d like to know what is going on
Lynne says
My settlement date shows as 31 Dec 2016 from the loan taken on 1 July 2014. If they’re saying we have outstanding loans they should have at least outlined what the loans were on the email itself, instead of leaving it by saying they’re going to write to us again. As it stands it’s only telling us half a story.
Craig says
In 2015 I accepted offers to settle complaints with Payday UK and Payday express, the offer/resolution was to ‘extinguish the outstanding balance’. Is it possible they’ve revived these outstanding balances as I got the ‘you have an outstanding debt’ email? My potential redress figure was £6K and these balances were £600ish and included some interest & charges.
Sara (Debt Camel) says
It is possible – I am not clear if this is happening.
It is right that your previous partial settlement SHOULD reduce the refund you get. But I am not clear if they are just taking it off your refund (which they would do if you had received cash) or if they are saying the written off part of the loan needs to be settled. It won’t make any difference to you which way they do it.
Carol Wrench says
So yesterday I had a email from scheme of arrangement saying they have made a decision to use my redress funding to clear my loans BUT I DON’T OWE ANYTHING ON ANY OF THE LOANS I HAD TAKEN OUT I PAID THEM ALL BACK.. do you Think this is another way they are not going to pay this redress money? A few months ago I had a refund for £21 saying I had overpaid what the hell is going on.. I am really fed up with all this.
Sara (Debt Camel) says
You need to contact them and say you don’t think you owe them anything and ask for details of the alleged debt.
Lynne says
I know I’ve mentioned above that mine POSSIBLY refers to the ladder loans one, however it does seem a bit iffy that loads on here have had the same message and they all think there’s nothing owing. Time will tell. Very frustrating for all concerned though.
On a more positive note I’ve passed my vetting and been offered a job – they even looked at my credit file and are satisfied with my financial situation!
Sara (Debt Camel) says
Yay! So pleased for you.
Danny says
Well done Lynne. I am genuinely pleased about your good news. You’ve done well.
Lynne says
Thanks ever so much folks. Honestly if I’d known 10/20 years ago that getting into debt could affect my career I’d never have gone near these people. Hindsight is a wonderful thing. Onwards and upwards! Now just to sort these money shop people out!
Paul says
Thankfully i have email confirmations showing the last loans/accounts have been paid off – took a bit of digging but I’ve forwarded them on to the Scheme asking them to supply any hard evidence to the contrary
If they do have wrong information on people this is going to be a horlicks.
Louise says
I’ve just found this thread as part of a google search about the money shop scheme- I’ve had the same email as everyone else stating that my redress (£4100, although I fully realise that’s about £150 realistically) I am certain I have no outstanding loans, and my credit file verifies this- surely this must be a mistake? I’ve emailed them requesting details of loans, but they’re notoriously slow to reply. The whole thing is scandalous, in my opinion.
Lisa says
In their decision in principle letter it states I’ve not been a customer since 2012 so if I did owe them anything I’m sure in the past 9 years they would have chased me. Surely this is a delaying tactic which is annoying everyone. I can’t believe those that have phoned about the email haven’t been helped in anyway.
Sara (Debt Camel) says
You need to send an email saying that you dont think you owe anything and asking for details of the alleged balance.
Lisa says
Thanks Sara I have done, I pointed out that they seem to have sent out a general email which for a lot of people appears incorrect. I asked them to amend the email and resend it as soon as possible. I’m sure I’ll be waiting forever but it’s made me feel better for at least trying with a glimmer of hope.
Chris says
I think where the email may be causing some confusion is that they just say people have an outstanding debt with ‘Instant Cash Loans’ which probably won’t ring a bell with most people, it didn’t with me because I didn’t click that Instant Cash Loans or ICL is the same as Payday UK, which I did have an outstanding debt with. If they had said in the email the EXACT name of the lender that operates under ICL then it might have made more sense, although I suspect that in some cases, people won’t have any outstanding with any lender, so the bottom line here is that ICL’s communication standard here leaves much to be desired and that’s putting in nicely.
Lisa Capper says
Yes they have been a bit vague and getting everyone guessing. The letter in principle says I was a customer form 2009-2012 which is about right so my point was that surely if I had an outstanding balance with any company under the ICL umbrella then they would have informed me and chased me for any outstanding money in the past 9 years. Hopefully they know what they’re doing and realise a mistake has been made and notify everyone with details of any outstanding debts and for those that received the email who shouldn’t have done I’m sure a small apology email would suffice.
Carol Wrench says
Hi Lisa, I’ve had the same email and I don’t have any outstanding loans in-fact a few months ago I had a refund of £21 for overpayment. I’ve just called them and the lady I spoke with confirmed that the emails were not a mistake..She said they won’t pay out until this is sorted. I think it’s a delaying tack tic it’s all so frustrating ..
Sara (Debt Camel) says
Did you ask them to explain what the debt it is that you allegedly owe?