Debt Camel

Answers to questions about debts and credit ratings - in plain English!

ICL / Money Shop Scheme ends

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.

a second small payment from the ICL/Money Shop scheme

 

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

refunds from overdraft charges

Can you get an overdraft refund?

Refunds from large loans and car finance

Comments

      • Carol Wrench says

        If they have a pot of money ready to pay out redress to customers why does it have to be spread over two months May/June… I don’t understand we’ve waiting far to long as it is for these non caring people to sort this out

        • Sara (Debt Camel) says

          It will have to be done in batches. And some payments always seem to fail, so saying 2 months gives a while to get things right.

        • J says

          I work in the IT Dept. of a large insurance company. The processing demands of several hundred thousand payments being made is huge and if they’re not split into small batches then it can result in an entire batch failing, not only that but it can have a wider impact on other applications and services which might use the same infrastructure.

          If a company the size of one which I work for that employs a few thousand people involved in this sort of process from inputting to successfully processing then you can imagine how the same demand being managed by a much smaller company could easily lead to ‘delays’ and risks, etc.

          Imagine a family of four running all the electrical devices in their home through a single plug socket. You’re asking for it to all fail. Same principle here (loosely).

  2. Chris Loach says

    I have recieved an email saying that what is owed to me will be paid of my outstanding balance.

    I have never been chased for an outstanding balance nor have any recollection of one.

    Is this the same for others?

    • Sara (Debt Camel) says

      Lots of people have had these, see the other comments. Many think ICL has made an error and they have repaid all the loans.

      You need to email ICL and say you don’t owe them any money and can they give your the details of the alleged loan that has a balance.

  3. Ruth says

    I have searched my inbox, spam and trash and I haven’t received this email. Are others the same or will I still receive it.

        • Susie says

          Hi Ruth i also did not get an email,i phoned them and they said all emails were sent out on thursday 22nd,-and if you have not got onethen you do not owe money.Hope that helps you.

      • Cyndy says

        I also haven’t had the email and the last loan I had with them was about 5 years ago. All was paid off in full

    • Cindy hogan says

      I’ve not had an email either, how long do we have to wait for a decision on payout, do you know please

  4. Jo says

    Hi Sara

    My total redress is £4750.
    I owe £500 to money shop
    As per recent email to set off outstanding loan amount. I have few doubts.
    Money shop refund 4 p/£ of my total redress £4750 as of now and deduct £500 from total redress. So final figure £ 4250.

    Why should I pay £500 to money shop or prac? If they giving us 4p/£, They suppose to take 4 percent of £500 from the toal redress of £4750 which is £20.
    Final total redress £4730.
    Can i complaint against them?

    I guess these guys are playing foul game to delay the payments or something else.
    Hope for the best.

    • Lisa Capper says

      If they took £20 off the outstanding debt you’d still owe £480. Everyone is in the same boat and it’s not fair but like others have said you’re kind of better off if you owe them as you have the full debt wiped if the redress covers it. As is stands if you received 4% of either of the amounts above (£4730 or £4250) the difference is only £19.20 so I’d say for that amount personally I’d rather have the debt wiped and removed from my credit file.

  6. Mark says

    Wouldn’t surprise me if they are including the amounts that had been ‘partially satisfied’ as balances still outstanding.

    • Craig says

      It’s a mess, if they were going to include these they should’ve been taken into account at the beginning of the process, they’re working back to front and no one knows their position. I’m not sure it will be as simple as taking the ‘outstanding balance’ off the redress figure to come up with the new figure either. I think the redress figure included 8% interest per year, if there’s an outstanding balance they could subtract the added interest calculated from that sum. My guess is they made a mistake 18 months ago when calculating refunds, they included interest & charges that never got paid ( because the loan was partially settled/reduction applied), now they have to resurrect these write-offs and reductions to correct the mistake.

      • Sara (Debt Camel) says

        if there’s an outstanding balance they could subtract the added interest calculated from that sum.
        This suggestion doesn’t make any sense. Set off legally applies between the balance owed on a loan and the total redress owed.

        My guess is they made a mistake 18 months ago when calculating refunds, they included interest & charges that never got paid ( because the loan was partially settled/reduction applied),
        ICLs communications should have been clearer about the amount still owed from the point people were told the redress total. That doesn’t mean they got the calculations wrong.

        • Craig says

          Hi Sara, the reason I believe they’ve made a mistake is because it’s a pretty lousy and unnecessary method of calculating redress if deliberate, telling loads of people that didn’t have outstanding balances that they do now. All they had to do was add up payments received and subtract the loan principle sums from it. I can’t find the individual breakdown of the redress figure, to see if they have taken into account loans not being paid in full, all it says is xx loans upheld and a xxx redress figure.

  7. Adam says

    Hi,
    I have received an email saying my redress (£5500) will be used against an outstanding debt. As far as I am aware I don’t have a debt with them and I have had no contact with any pay day company for atleast 8/9 years.
    I have asked them for evidence (which they could send anything) and I don’t have anyway of proving otherwise. Any advice would be great!!!
    Adam

    • Lisa says

      I’m the same Adam, the letter said I was a customer from 2009-2012 so surely if I owed anything they would have been in contact within the past 9 years to chase me for money. I also wouldn’t be able to prove anything as I had a different bank account etc so I wouldn’t be able to dispute anything they say. It’s more annoying because they’ve had more than enough time to sort all of this and email anyone who allegedly had an outstanding balance.

    • Sara (Debt Camel) says

      This is just for calulating what redress you would have received before the Scheme. The statutory interest element of refunds is treated by HMRC as “interest on your savings” so it is taxable.

      However, no tax will be deducted from the 4% amount you are going to be paid.

  9. Sara (Debt Camel) says

    I have been told by ICL that they are writing again to everyone who received the recent email about a balance outstanding.

    The new email should
    – give you details of the debt they say is still owed. Which lender it was from, the date, the amunt owed.
    – explain that if the amount owed is less than the redress calculated, it will just reduce reduce your redress.

    So if your redress was £3000 and the old loan still owed was £400, the loan will be cleared and your redress reduced to £2600. You wil,then get 4% (or whatever % is the final one) of the £2600.

    Some of these old debts may be very old, no longer appear on your credit records and indeed be statute barred. They still legally exist and set-off against this sort of old debt is normal, eg in PPI refunds.

    • Lynne says

      Thanks for clarification Sara that’s a really helpful update.

      So my redress was £9559. My credit file shows a Ladder Loan from 2014 (should it still be on there as it’s over 6 years?). The balance was £3,106 but then it shows as £0 and it says:

      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

      I’m a bit confused if they’re suddenly saying I owe the £3,106 when it’s under the ‘settled accounts’ as £0. Also they haven’t chased for it on all those years?

      So if they do say there is that balance outstanding then that would make the redress £6453 = £258, based on 4% that is.

      Look forward to the email confirming!

    • Georgina Battson says

      Thank you for the update will be interesting to see what they come back with. I’m sure i won’t be getting anything but can hope.

  10. Mark says

    Thanks for the update. I do not owe them anything at all. I recall an amount that I partially satisfied and think they did not close it down correctly on their system!

    • Fed up says

      Oh my goodness. Just wish they would get on with our redress. Let us all NEVER touch another payday Loan. By the way Lynne your maths calculations are brilliant.

      • Lynne says

        Thanks but it’s not that good or I wouldn’t have gone to these people in the first place 😳😂

  11. Sops says

    I’m a bit confused with this , surly if they’d accepted a partial settlement they’d have had to have agreed it and marked as partial ! How greedy they are they are going for the scraps ! Wonder how they sleep at night ?

  12. PH says

    I heard today that my redress payment from Payday UK will definitely be in May of this year 2021. Apparently I’m in the first batch that will he processed and I am prioritised.
    That the least this company could do after me having ongoing and I mean ongoing issues with them. In fact it’s about time I got my redress. They having a laugh.
    So everybody knows. At least I’m prioritised. Happy Days.

    • Grant says

      Im sorry, but i find your post very disrespectful

      We ALL have waited for this to be over, some of us from october 2019 onwards, what makes you a priority over any one of us?

      I understand you may nave issues with payday loans, but there is a lot of people waiting for ICL to payout, and have done since November of last year, and none of us has been prioritised.

      This post makes all of us below you and your somehow special, it may seem petty but why should anyone be paid out and bumped up any queue?

      • ceri ann says

        I agree with you Grant and I do not believe that anyone will be prioritised. We are all equal.

      • Carol Wrench says

        I so agree I like most of us have waited for this since 2019 .. I think we have all been very patient and getting such small payouts. Would of been great if the original redress amounts had been paid

      • J says

        TBH Grant, I wouldn’t worry.

        All this fiasco should hopefully be behind us within the next 5-8 weeks so the end is in sight!

        I personally would not believe ICL, this is all process based and the order of payments will be based on several factors and could be based on age of claim, size of claim, Surname, location, Banking details (Sort code, which bank, etc) and so on.

        I don’t know the details behind PH’s claim but either a) they’re being fobbed off to get them to stop calling, b) they fit the requirements of the first batch of payments or c) they’ve been told they’ll get paid in May and they’ve read more into it (Eg. I’m being paid in May so I am a priority case).

        I highly doubt they’re being bumped up a queue, my money is on this person being fobbed off tbh lol (no disrespect intended).

        J

    • Sara (Debt Camel) says

      Let’s not argue about this everyone. Be happy that payments are expected to start as planned in May. I won’t be publishing any more replies to this thread.
      Payments will go out in batches.
      But the only ones that should seriously be delayed are where ICL does not have a bank account number or it has an incorrect bank account number.

  13. Helen says

    Hi. Iv not heard anything yet about the amount I am.due ? Has everyone else ? I had my claim.accepted just waiting on amount.

    • Lynne says

      Hi Helen no we’re all still waiting to hear what crumbs from the table we’re going to get. You’d think Emails shouldn’t be too much longer though, based on the fact they said payments start in May and end in June.

      As for the comment above about being ‘prioritised’. I highly doubt it. Remember who we’re dealing with here. They don’t give a damn about any of us!

    • Robert says

      No I haven’t since January to ask for my bank details and an email from last September for how much my redress was

  15. Lynne says

    I presume Sean had no luck then. I guess the more time these people have to answer calls the longer we have to wait for our emails and payments!

    • Sean says

      Lynne that’s so funny, yes everyone I’m holding up the payments I’m the reason everyone is waiting !!!!
      next you be saying it’s me who has made it 4p to the pound paying it, you had made my day I’m not stopped laughing

      • Faye says

        Sean it’s you…I knew it was you I was due 80p to the pound and you went and spoiled it…:-). So naughty

      • Keep calm says

        I think we all are just anxious but soon this will be over and we can move on. Sean you have every right to query something and definitely now is the time to do it before payments start. This has been the advice all along. Hope that you managed to speak to someone

  16. Lisa Tickle says

    I’ve had an email saying total redress 1189.29 will I receive 4% of that that’s so bad 🥺

    • M says

      You will possibly only receive £40+ on this redress amount of £1189.29. Makes me wonder why they bothered in the first place? Even if the redress was £3000 that individual will only get £120 which is ridiculously small. It really sucks.

  17. Lynne says

    Can people still log into the portal and if so what can you see? I’ve never been able to. I figured its maybe because when I made the claim I had a different email address and they just haven’t put my new one on there. I got the message about the redress though so that’s all that matters I guess!

    • Richard says

      So here’s their latest email this afternoon: >>>

      We wrote to you last week to:
      1. Tell you that we were going to set off some of your redress against an open balance; and
      2. Ask you if you have been in an IVA / DRO / bankruptcy before 2019.

      We received a lot of questions. Some people thought we were going to use ALL your redress against an open balance.

      We will not.

      We will set out the exact calculation when we write to you in May to tell you how much cash you will receive, and how much your open balance is.

      The loan with the open balance that we will be reducing is detailed below:

      Start date of Loan Loan Amount Brand Loan balance as at 9th October 2019
      29/01/2016 £ 720.00 Payday UK £ 498.84

      Our redress calculation follows the methodology for putting things right used by the Financial Ombudsman Service. The basic principle is that we refund the interest that people have paid where the loan was lent irresponsibly. However, the principal amount remains outstanding.

      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 are not flexible in this regard and so we are unable to make any exceptions.

  18. Lynne says

    Guys I’ve got my email now confirming how much balance I owe. There’s still £565 owed to payday express apparently so they’re going to reduce that from my amount of £9559.

    • Lynne says

      We wrote to you last week to:
      1. Tell you that we were going to set off some of your redress against an open balance; and
      2. Ask you if you have been in an IVA / DRO / bankruptcy before 2019.

      We received a lot of questions. Some people thought we were going to use ALL your redress against an open balance.

      We will not.

      We will set out the exact calculation when we write to you in May to tell you how much cash you will receive, and how much your open balance is.

      The loan with the open balance that we will be reducing is detailed below:

      Start date of Loan Loan Amount Brand Loan balance as at 9th October 2019
      28/07/2017 £ 350.00 Payday Express £ 565.75

      Our redress calculation follows the methodology for putting things right used by the Financial Ombudsman Service. The basic principle is that we refund the interest that people have paid where the loan was lent irresponsibly. However, the principal amount remains outstanding.

      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 are not flexible in this regard and so we are unable to make any exceptions.

      If you have any further queries around your debt, please email them to scheme@themoneyshop.co.uk. Please don’t call us as the staff will not have any information to be able to deal with your query.

      • Lynne says

        Sara – not that it makes much difference but are they reducing my balance by £565 or £350? If they’re refunding interest I mean.

        • Sara (Debt Camel) says

          I think 565 but they will also have incuded the interest added in the redress calculation

  19. Richard says

    I’ve just received this which I don’t understand tbh. My overall redress amount was listed on the portal as: Overall Decision:
    Partial Uphold
    Total Potential Redress (£):
    6299.91
    Number of loans in lending period:
    17
    Number of loans upheld:
    13
    Number of loans with no issues:
    4

  20. Paul says

    I got the email about the o/s balance, they have completely messed this up: i have forwarded the email from Payday Express stating that my account was now fully paid, yet the record they have is still 700 owed (2019) on a 2012 500 quid loan.

    What a shambles

    • Lynne says

      Actually that’s a good point. On my original email with the letter attached it said I’d had 34 loans and they were ALL upheld! So I take it we’re all now going back to them to say their records are incorrect?

  21. Fred says

    Hi all, to any of you that did receive the email saying they where using your redress to settle outstanding balances.

    I just a reply saying that will not be using the full amount,
    So if say they owe you £1000 and your outstanding balances are £500 you will get the redress based on the £500. (at 4p in the pound or whatever it will be)

    they said they will be in touch in May to give you the amount it will receive.

  22. Katy says

    Just got this e-mail – thought I’d share in case it answers any ones questions:

    We wrote to you last week to:
    1. Tell you that we were going to set off some of your redress against an open balance; and
    2. Ask you if you have been in an IVA / DRO / bankruptcy before 2019.

    We received a lot of questions. Some people thought we were going to use ALL your redress against an open balance.

    We will not.

    We will set out the exact calculation when we write to you in May to tell you how much cash you will receive, and how much your open balance is.
    The loan with the open balance that we will be reducing is detailed below:
    Start date of Loan Loan Amount Brand Loan balance as at 9th October 2019
    14/04/2014 £ 700.00 Payday UK £ 85.17

  23. Nicola says

    Just received the following after responding to the email last week. Hopefully others are starting to get the same to help understand where the outstanding balances have come from

    We wrote to you last week to:
    1. Tell you that we were going to set off some of your redress against an open balance; and
    2. Ask you if you have been in an IVA / DRO / bankruptcy before 2019.
    We received a lot of questions. Some people thought we were going to use ALL your redress against an open balance.
    We will not.
    We will set out the exact calculation when we write to you in May to tell you how much cash you will receive, and how much your open balance is.
    The loan with the open balance that we will be reducing is detailed below:
    Start date of Loan Loan Amount Brand Loan balance as at 9th October 2019
    30/11/2011 £ 400.00 Payday Express £ 2.16

  24. paul says

    Got the email re amounts owing. Says i owe 750 odd quid on a 2012 loan; forwarded email from payday express showing it was cleared in 2018 (last payment email)

    What a shambolic way of record keeping

    • Lynne says

      I honestly don’t recall taking a loan with payday express in 2017 but as I have no records to prove it or otherwise i guess I’ll have to accept what they’re saying.

  26. Dave says

    Recieved an updated – it includes details of a Payday Express loan that I have no way of checking the details of – I have had a loan from them in the past but was unaware of an outstanding balance:

    “We wrote to you last week to:
        1. Tell you that we were going to set off some of your redress against an open balance; and
        2. Ask you if you have been in an IVA / DRO / bankruptcy before 2019.

    We received a lot of questions. Some people thought we were going to use ALL your redress against an open balance.

    We will not.

    We will set out the exact calculation when we write to you in May to tell you how much cash you will receive, and how much your open balance is.

    The loan with the open balance that we will be reducing is detailed below:”

    Loan details from 2012 were included at this point along with various follow up points.

  27. AM says

    Hi
    I had the email saying that they will pay outstanding balance off any outstanding loans.
    I requested the information and my outstanding balance is £900 but my redress is £4400.
    Does this mean I will receive a percentage in cash from the £3500 left after they pay the balance
    Thank you

  28. Charlie H says

    I had a second email today from The Money Shop telling me where the “outstanding” balance that the earlier email referred to is. It appears to be from Payday UK. Luckily, I still have all of the paperwork from PDUK and the final offer letter that highlights that the amount they are now saying is outstanding, was cleared on the initial redress amount. I have obviously emailed them back telling them their accounts are in error and presenting the final offer letter as evidence particularly as the amount they say is outstanding, is exactly the figure quoted on the final offer letter. I have reminded them that i do not expect to repay the same loan twice. So to all of you lovely folks out there, you might want to dig out old paperwork because if they are trying this on with me, you can be sure its the same for all of you who have received the same letter. Having said that, it could be a genuine error i guess……. I supposed you could almost say it was “fraud” but that is a strong word. Lets see what they come back with now.

  29. Kaell says

    So just received a follow up email in response to a previous email claiming that I still owed a balance. They still claim I owe them the initial capital. They sold all my loans to Prac. So I went back onto the Prac website to check the records and lo behold they still have a record of the loans the acquired from payday express and i paid all my loans off in 2018. They even have the date on which the loans were legally assigned to them which was 2016. However Instant cash are claiming I was a customer until 2019!!! Not sure how they work that one out!
    I have sent another email asking for proof I owe them money and I’m disputing their records as none of it is correct.

    If your loans were sold to Prac/ bw legal I suggest logging into your old account onto the website to see your loan details and save/screenshot them

    This is a colossal mess up of everyone’s data. Unless this is another delay tactic. This people seriously need to be investigated for the shocking way this redress is being handled

    • Carol Wrench says

      I agree with you I think the way they are treating us customers is totally wrong but on the other hand who is there to stop this and defend us.. I’ve written 3 emails now and not had one reply they say I had outstanding loan which I know I paid off and sent them bank statements to prove this.. I also called them just now and the woman said unfortunately I can’t help you as I don’t have access to your account she just had me running around In circles. I asked if there was a date in May for redress to be paid and she said they didn’t have a date. I am discussed with this whole scheme..

      • Craig says

        If they don’t respond or resolve it before they pay-out and wind-up the company, perhaps a complaint against the administrators is in order. They’re supposed to follow a code of ethics which will include communicating and resolving issues and following laws etc. If you can prove you paid of your balance but they just steamroll this through you have good grounds to complain, but unfortunately they wont be liable to pay the shortfall or compensation.

  30. Mark says

    Update for you: so I just got my 2nd email from them to advise I owed them £28.95 / which was the shortfall on a partial settlement payment. It states they will offset this balance by the same methodology as per their previous calculation. Therefore a reduction of approx. £1.25 against my total redress. These auditors really are getting every penny out of us. It would be fantastic if the FCA fully investigated the painful processes we have all had to endure to stop this type of thing ever being repeated!

  31. Michelle says

    Hello
    In my circumstances
    If any outstanding balance was included in a bankruptcy order which has been discharged 10 years ago what happens to any possible redress?

    Possible redress just over £10,000
    Outstanding balance £725
    Cant they deduct one from the other

    Asking as I am now receiving emails requesting “Trustee” information which Im no longer able to provide.
    How relevant would it be as stated discharged 10 years ago?

    I have informed them of this.

    Waiting on further reply
    Thank you.

    • Sara (Debt Camel) says

      If the loan with a balance was before your bankruptcy then ICL cannot set off the balance owed on that loan against the redress payable to you.

      If the loan was after your bankruptcy then they can set off.

      • Michelke says

        Thank you.

        The lian was before bankruptcy.

        In that case could you please let me know why they are requesting trustee information?
        Thank you

        • Sara (Debt Camel) says

          At a guess they may want to pay the redress for all loans before your bankruptcy to the Official Receiver – but you need to ask ICL to confirm this.

  32. Teddylegs says

    So I logged in to the portal after receiving their further money grabbing email , there is nothing outstanding on there and nor had there been since it was launched!
    It states they’ve upheld 16 loans and there are 0 with issues , my guess is done penny pinching twerp went back over all the 6 year and over loans and had a light bulb moment ! I maybe wrong but assume this greedy company will not actually benefit from any outstanding balances being reduced or at least I hope they don’t , it makes my blood boil when I think back to going in the shop and then being all slimy with their encouragement to sign up for more loans , obviously I could have declined but they did pile pressure on to take out extra , il be so so glad when this sorry saga is over.

  33. Claire says

    I’ve also had the follow up email. It claims I have a balance of £250 owed from a £200 loan in 2010.

    I can’t locate a loan with this date in my records and I’m sure I have them all. However I have located 2 further loans from them in 2011 which doesn’t make sense. They wouldn’t have lent to me again if I still had a whole loan repayment outstanding?

    All of my loans were with the same company, I never used any others so I know that’s not the issue. I also have my credit reports going back 15 years and this debt isn’t on any of them.

    I too will be asking for further clarification.

    Out of interest, say I did have this balance……£50 of it would be interest on the amount borrowed, are they allowed to offset interest as well as the original loan amount? It doesn’t seem right.

    • Sara (Debt Camel) says

      say I did have this balance……£50 of it would be interest on the amount borrowed, are they allowed to offset interest as well as the original loan amount?
      yes but they will also have included that loan as unaffordable to the interest on it will be included in the redress.

  34. Lynne says

    Ive also checked Equifax and there’s no loan on there from payday express. I’ve also asked my bank if they can let me have a statement from 2017 but I suspect that will take a while 😣

    • Craig says

      Nothing in your emails? I rarely ever delete emails so I just search ‘payday express’ and every detail is there.

  35. Craig says

    Interesting line of words in their email.
    ‘Although your loan is more than 6 years old, the law of limitation does not extinguish or remove the debt; it still exists.’
    This implies if the debt was extinguished or removed they wouldn’t be able to set off against it, I have emails they sent in 2015 confirming they had extinguished the debt.

  36. Paul says

    Ive not had any email from them with regard to owing them money so does this mean i dont owe anything and ill get the 4.2% of the full redress amount?

    • Lynne says

      Seems that way Paul (although it looks like most of us who they are saying have outstanding balances are disputing it!).

      • Craig says

        If we are successful in disputing the outstanding balances the downside is it will probably lower the pay-out figure even further, as their figure would have been based on setting off all these balances.

  37. Michelke says

    Thank you.

    The lian was before bankruptcy.

    In that case could you please let me know why they are requesting trustee information?
    Thank you

  38. Richard C says

    I too had an email stating I owed them £27.78 against an old PDUK loan and they would deduct this from the redress amount.
    i fished my emails, and this loan was subject of an FOS complaint in 2016 and they refunded minus the £27.78. So that should set them straight.
    My redress amount is £9113 which would be a life.changing sum of money for me and give me real savings and a buffer, ideally I’d like to have 6 months salary, and this would have got me there.
    ive written several letters to Nikhil Rathi at the FCA also to Mel Stride MP who is chairman of the Tresurary select committee, to no avail. They just don’t care.
    lets not.forget the appointed liquidators are called Steven Edward Butt and James Douglas Ernie Money….. Almost a bad joke at our expense.

  39. Chris says

    This is so annoying. All these payday loans ended up leaving me no option but to enter into an IVA.

    Now they are offering 4% back!! So frustrating because if I got these refunds in full like they took from me, I would be able to pay out of the IVA but instead I’m going to be stuck in the IVA that they caused and given back a fraction of what I should be entitled to.

    • Sara (Debt Camel) says

      When did your IVA start? Are you buying or renting? How large were the debts that went into it and what are you paying per month?

      • Chris says

        My IVA started in 2017. There was about £13,000 that went into it. Around £10,000 was payday loans. The payments have varied from year on year but at the minute its £120 per month. I will probably look to buy when the time comes.

        • Sara (Debt Camel) says

          It will be ending next year so it’s unlikely you have any other sensible options at the moment than continuing with it as the payments are affordable. It is a shame you didn’t go bankrupt in 2017 as then your payments would have stopped last year.

          • Chris says

            Ye I know what you mean. I’m more annoyed because it was the payday loans ‘snowballing’ and using one to pay the other and added interest etc that resulted in my debt stacking up and me entering into the IVA in the first place. And now I’m being offered 4.2%. If they paid me in full like i did with them then it would easily be enough to clear my IVA and I probably wouldn’t have had to enter one in the first place.

          • Sara (Debt Camel) says

            Yes, it’s a pity you didn’t find out about payday loan refunds before the IVA, no surprise of course that your IVA firm didn’t suggest they were an alternative for you 😠

  41. Lynne says

    I’ve gone back to them and said there’s nothing showing on my credit file in terms of an outstanding balance, but to be honest if this is just going to hold things up further and for the sake of a few quid difference it’s probably not worth it. I know they shouldnt get away with this but after 18 months I just want an end to it now.

  42. DM says

    Hi Sara, I have had an e-mail saying I owe £72 from a loan back in 2013 (last loan that went to default). I have a complaint letter from 2017 saying that they had written this amount off. Just wondering if you think the £72 would be offset against the total claim in which case is not going to make any difference, or from the 4p in the pound settlement amount which I would challenge as is a big chunk of the £270 approx I was expecting (Calculation was around £6.75k redress)?

    • Sara (Debt Camel) says

      It should be offset against the total claim – then you get c4% of the reduced amount.

  43. Brian says

    Hi..received an email claiming I had £644 outstanding balance from payday uk. My history shows a final payment of £880 to clear balance of loan..with the remainder of £644 being written off as part of my complaint in 2017. They are now claiming I owe them this money?? I have everything still saved in emails that verify this. Can they just reinstate money that they claim was written off as part of complaint 4 years ago?

    • Sara (Debt Camel) says

      I *think* what is happening is this:

      They have looked at all your loans and what is unaffordable and calculated a “correct” refund on all of them.
      But they gave you part of this refund earlier by writing off the balance.
      So they are removing this “early refund” from what you get now. If they didn’t, you would get that refund twice.

      You will need to confirm with ICL if this is correct.

      • Brian says

        but I’m not getting that refund twice..I’m getting 4% of what they deem appropriate as unaffordable loans. Not all loans they loans they upheld, so how can they hold a balance of £644 on an account that was essentially settled. Absolute scum.

      • Craig says

        When Wonga did their mass debt write-off I believe the FOS wouldn’t allow them to use debts they had written off to set off redress in subsequent complaints. They couldn’t set off a refund of interest and charges from xx loans against a loan they had already written off. It’s too late to scrap how ICL have implemented and calculated redress though, So I say lets just get on with it and accept it is what it is.

  44. Lynne says

    This is their reply to my querying the outstanding loan. I guess that’s the end of that then. …

    Thank you for your email. We have sent out a follow up email which should hopefully answer your query.

    If you have any further questions regarding your claim, please don’t hesitate to get back in touch.

    Many thanks,

    • Lynne says

      My bank say I’ll be able to see my statement from 2017 online tomorrow. At least I’ll know one way or the other if they’re being accurate. I find it hard to believe I would have taken a loan with them in July of that year though, based on the fact I received redundancy money just 2 months earlier.

    • paul says

      Yes, i got that well

      Even after showing them confirmation of the last payment of 108 pounds which closed that loan they still say is outstanding

      A boilerplate response to a targeted question? How does that answer anything.

      Poor doesn’t describe it.

  45. Sarah says

    I am in the same boat with the outstanding debt owed being offset against redress and I also can’t remember having these outstanding amounts, however the amount we are receiving in redress is so little that I can’t be bothered to argue with them as I feel that will just delay the payouts. I had long forgotten about these loans so anything received is a bonus as little as it is. My total redress is £6700 minus what I supposedly still owe and will receive 4.2% of that so around £250 and soon I hope :-) Any extra money in these times is gratefully received.

  46. Sops says

    It is literally laugh out loud bordering on farcical now , they clearly cannot be bothered to answer people’s queries re proof of outstanding debt and are fobbing off with generic tripe ! Imagine working for a buffoon of a company like this !

    • Lynne says

      Generic tripe. This message made me laugh out loud 😃
      It really is just the final insult to be telling us we owe something when we don’t.

      Anyway it’s May tomorrow folks. Let’s see what happens next week and if emails start trickling out. Once the £ hits our accounts we can breathe again at least.

      • Ruth says

        Yes I wonder who will be the first to say the pittance has reached their account. Could it be tomorrow??

        • Sara (Debt Camel) says

          on a bank holiday weekend? It’s not impossible but I would say it is very unlikely. Take the weekend off thinking about this…

        • Lynne says

          Well I think they have to email first to confirm the amount and those messages haven’t started yet.

    • Michael Atkinson says

      Let’s hope so, but I can see them dragging this out until the end of the month to be honest 🤬

      • Lizzy says

        The whole process is literally like pulling teeth 🦷 shocking way to treat people 🙄

        • Lynne says

          Well the money won’t just appear they have to issue all emails first outlining what’s being paid so I wouldn’t expect anything even next week really.

    • Sops says

      I’d agree , we will get notification may 31st and payout June 30th 😂, they’ve been so utterly shambolic nothing would surprise me.

      • Lynne says

        Even that would be better than Wonga though. They told us early January what we’d be getting – it turned up in our banks on 22nd April!

        • Valbell says

          As for Wonga I didn’t get email saying how much I’d get until three weeks after it appeared in bank ! Was £97 dreadful an just appeared
          I think we will all be glad an lessons learnt all round
          Just have quick quid provident to go now so another year to wait
          Wonder how many passed away in the last year an families never knew their loved ones they had money due
          lenders must have benefited from that sadness too so where did that go
          Good luck everyone let’s hope it’s soon sorted

  49. Kris says

    I still haven’t received an update since the decision in principle from August 2020. I have a balance left over with prac which I now assume will not be set off against my redress. Should I have heard more by now. Or are people still waiting on response’s. Thanks

  51. Jay says

    Prepare to hear from on Tuesday, 4th May and on the same day you’ll get paid. That’s how wageday Advance paid their customers.

      • Jay says

        The first message will start on Tuesday the 4th of May. First payment will start on Monday 10th of May.
        That’s my predictions.

        • Lynne says

          I just thought maybe there’d be a hold up, what with people disputing they still have loans owing. Having said that, going by their message the other day they’re just dismissing people’s objections! Not much longer now though.

          • Jay says

            Disputation will take longer and will cost more admin fees, we will end up with nothing.
            Mind you, offsetting those outstanding balance will raise up the percentage, there will be less money to pay out to everyone, from 300 million to 250 million for example

  52. Cynthia says

    Does anyone know if the cheque centre ever paid out redress for unaffordable loans. They made a fortune out of me and I never heard what happened to them. Just wondering

    • Sara (Debt Camel) says

      They were dissolved last year. Some people had got some redress, I think 7.5p in the £.

  53. Ceri ann says

    Well gals and guys we are in May. Let’s all hope for a speedy pay out as soon as.

  54. Siobhan says

    They will hold onto the money for as long as possible! It will be 31st May and they have the excuse of that being a Bank Holiday, so then it will be into June!!!

    • Sara (Debt Camel) says

      I understand why everyone is cynical, but there is no possible benefit to delaying the payouts longer than necessary. No one is making money from getting extra interest on these amounts.

      • J says

        Hi Sara,

        Your post got me thinking… Last comms I got was my DiP back in September…

        Will we all be entitled to additional interest between then and when they make the payments? So lets say my DiP was 1st of Sept and payment is made 1st June – will people get 9 months worth of interest more (less tax)? I know it’ll be a couple of quid if it does, but I’m more curious really :)

        Thanks,
        J

        • Sara (Debt Camel) says

          No.
          All the money is being divided between people fairly. If everyone was given an extra dollop of 8% interest, there would still be no more money to divide so you would get the same amount.

  55. Lynne says

    The emails they’ve sent me so far have all been later in the afternoon 3/4.30pm. Not saying that’s what’ll happen with the payments email though!

  56. Ceri ann says

    Don’t know about anyone eles but I was soooo disappointed that nothing happened today. Maybe I am expecting too much to soon.?

    • Lynne says

      Someone on a different page reckons they got paid today (the full redress amount!), but I suspect it’s a wind up especially as he’s not answered what Sara and me asked him.

    • Joseph says

      Ironically glad to hear that I’m not the only impatient optimist who has been refreshing my email inbox and checking my back account all throughout today! :)

  57. Barbara Skinner says

    I’ve had the amount I’m owed emailed to me but not the amount I’ll be paid. No communication for a few months now. I’d like to know the amount they are actually going to pay me back. This seems to be taking forever to get sorted.

    • Lynne says

      It’s meant to be 4.2% of that total Barbara so just work it out and it’ll give you an idea at least. We’re all waiting for the same email though!

      • Jennifer says

        They paid me full amount this morning.😉😄😄..I am over the moon…I hope everyone gets full amount… Good luck guys👍

        EDITED – This message sounds very unlikely and was left by someone using a false email address. I suggest people ignore it – I won’t be publishing any replies to it.

    • kim palmer says

      hi, it will be about 4p in the £. So if your redress amount was £100 you will recieve £4 if you are owed £1000 you will recieve £40 Its a bit of a kick in the teeth. I am owed £3200 so ill get back about £128 .
      I read on thier website it has gone down by some much because of the amount of people claiming, the FCA don’t cover payday loans so there was no other way of making a claim. the solisitors and accountants will do well though

  58. Richard Eastland says

    I phoned today to check that my details were all ok ie bank 🏦 details,and was told that payment will definitely be paid this month

  59. Lynne says

    Jo above says she rang them and has been told payments will start towards the end of the month?! So how come the 2 individuals are saying they got theirs yesterday 🤔

    • Sara (Debt Camel) says

      My guess is these are NOT the 4% of redress everyone will get paid. They are the 100% refunds of payments made during the Scheme. That is totally different – no reason these payments should be made at the same time as the 4% payments at all.
      Do you remember the outcry when a few people said they had been sent two payments by the Wonga administrators? Same sort of thing.

      • Lynne says

        Ah right now you mention it that does ring a bell with the Wonga thing.

        You’d think that would be a separate correspondence though. It’s a pity the people leaving those messages on here weren’t more clear, like the guy who says ‘I got the full amount not the 4% like everyone is saying’.

  60. Ross says

    I emailed the ICL scheme address, last Friday, and they have just responded. They have said that they will be in contact ‘very shortly’ to confirm my redress amount. The only reason I emailed them was because, on the portal, it says my claim was ‘submitted’ and nothing saying it had been ‘assessed’ or ‘completed’. I asked them if there was anything else I needed to do but, this seemed to go over the top of their heads. My full redress amount should’ve been £4600 so, based on the 4p in the pound calculation/speculation, it should amount to a decent meal/night out, when the indoor hospitality restarts. I agree it’s wrong, the way this has all turned out but, all we can do is draw a line under it and move on.

I post regularly on Instagram

Follow me!

Help with your debts

Recommended places for debt advice

Get an email after a new article:

About Debt Camel

This is the personal website of Sara Williams.

More about Debt Camel.
Privacy policy and Comments Policy
Contact (not for debt advice)