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

  1. Tracey Williams says

    Hi Sarah,

    What points should you include when making an appeal, for it to be successful?

    They have admitted to irresponsible lending and I have appealed but the adjudicator has stated that they see nothing wrong in what has been said in the letter re 4%. It’s shambolic.

    • Sara (Debt Camel) says

      So you are appealing that 4% isn’t enough? You can never win that – it us all there is.
      The only point if appealing is if they made a wrong decision on which loans are affordable.

      • Simon kirkman says

        When did you receive a letter saying 4% i have not had any letter stating that ? I regards to mo ey shop

        • Beverley Ray says

          I’ve just spoken to them and they said I will only get 4% £180.00 instead of the £4860 they said they haven’t got enough to pay the full amount and no good appealing as I won’t get more

          • Sara (Debt Camel) says

            the only reason to appeal is if you think they didn’t include enough loans in the “unaffordable” decision. An appeal cannot magically produce a higher percentage payout.

  2. Edward says

    Hi, I had an email from the money shop a few days ago.

    I have a redress amount of £5000.

    I will probably get approx £150.

    I find it extremely unfair that the taxman gets £500 of the redress. More than me !!!lll is this fair.

    • Sara (Debt Camel) says

      The tax man won’t get this money. Wait until you get the final email saying what % you will be paid.

  3. Steve says

    I was told my redress would be £7000+
    But I wouldn’t get the full amount only a percentage 4% in the pound. I thought it would of been more like 25%.
    They said they would notify me early this year the amount .

  4. Hayley says

    I’ve had an email back to say there is no update
    . They will.make payments in around 2021 and that be in touch as soon determined the amount of my payment. It is taking ages now. I bet when it comes to April they will say it take another few months soon they be nothing to pay out the way they are going on!

    • Carol Wrench says

      Hayley I find their percentage insulting to be honest I was paying near £400 a month back for a £1000 loan over 5 months I paid back 100% more than I originally loaned.. My redress was for 21 loans so if the 4% works out I won’t even get 1 months interest back it’s shameful and the wait of over a year is just mad.. Hope you will get a decent redress..

  5. David says

    Hi Sara – I have just been informed that my potential redress should be £14K, however based on comments above expect the final amount to be significantly less. However, i had logged a claim prior to the redress and was fobbed off that they could not find my account. They then offered my a £1,000 for money shop while claim against paday UK was ongoing and then the scheme came in. Is there anyway to appeal in the basis u had complained before the scheme begun and had been fobbed off in order for them not to repay me?

    • Sara (Debt Camel) says

      You can appeal against the 14k decision if you think more loans should be refunded. But you can’t appeal against the fact you will only get 4-5% of the amount paid out.

      • Cynthia says

        On my letter it states that I’ve got a pre scheme redress of £1750.and a redress of £18,500 , I also claimed before the scheme and was fobbed off.
        Will I be paid the pre scheme redress or just 4%

  6. Kris says

    I am currently still paying back one of the loans that by their admission was mis sold. However as they have sold it to bw legal I haven’t had it written off yet. Has there been any news if I can still use the redress I am owed to wipe this debt out rather than get cash back at the 4 percent quoted.

    • Anita Chandler says

      In the letter I found in my online account it says the whole amount of the redress can be used against any outstanding balance. So as an example, if the redress is £1000 you can have £1000 knocked off the total owed. If you ask for the cash then you’ll get £40 (based on the 4% being banded about). If you have an outstanding balance use it for that, in my opinion.

      • craig says

        I assume this is only when the money shop still owns the account and the outstanding balance. If they have sold it they would be unfairly enriching the debt buyers if they’re giving them 100% redress value while giving everyone else 4%. I would raise a separate complaint with BW legal about the affordability of the account and ask them to write it off, they take the role of creditor when they buy the account and have to check it was lent responsibly, as the money shop as admitted it wasn’t the case is clear cut.

  7. Nats Daley says

    So I’ve had no information from my claim submitted jan 2020 ….
    At least dome of you havd a figure

    • Len says

      You wouldn’t get anything worthwhile anyway. I’ve had 4 redress refunds from PDLs now and they’ve all been less than £50

  8. Nick says

    Just rang the money shop to pass on my details for refund. Advisor I spoke to confirmed it will begin refunds around April and work through the list of customers so over 2-3 months when payments come in. I asked for the realistic % in the pound and the reply………………….. 4%
    The maximum my letter stated was : £6185.37 so ill basically get: £371.00 . Devastated doesn’t come close……

    • Chris says

      How are you getting 371 from your redress? 4% is just 247? Only asking as I have a redress too just trying to work out what I would get as lock down has been hard and tbh anything would help these days – even if it is devastatingly low! Thanks

  9. Sean says

    Hey all
    After receiving an email from the money shop about updating my bank details I logged in and seen a potential redress amount for £1300 pound I was like whoop whoop but then reading the information and googling 3 to 4 p in every pound wtf this is bull, I went from loan to loan overdraft to overdraft to back to them for a loan I made it look payable by juggling money place to place am so racked of a potential redress of almost £1300 and i be lucky to get £50 what a pi$$ take.
    I feel for you all here I really do they are taking the mick

  10. mark says

    people still banging on about there only going to receive pennies compared to what they should be getting. im just happy what ever i get. never even thought about the loan companies for years. and lets face it we all knew at the time when taking loans out how much it was what the interest was ect because where the ones who went finding the loans in the new place where the ones who knew the chance of paying back a loan that month would result in having to take another. i would just be thankfull that there loans are gone now and if you get anything back its a bonus i know i am best thing i ever did was get out of the payday koan circle . also people have to understand payment will be a while away more important things going on like a pandemic.

    • David says

      Not really they were happy to take my money at a low point my mental health was through the roof and its people like me they pray on so they should pay out and should give you top dollar after all the share holders accountant’s executives solicitors are all doing very well out of this redress its just the vunrable customers who are not

    • Sara (Debt Camel) says

      and the Money Shop are reaping the correct reward for having mis-sold so many loans to so many people over the years.

    • Victoria McAleer says

      Reap what you sow LOL. I paid all the loans back and the staggering interest on them years ago because I was lucky enough to have a partner who helped me out and found a job. I took the loans when I was temporarily unemployed. They knew this,but still allowed me to borrow money that caused me to be in a cycle of debt and depression for 4 years. Now they are evading paying back huge amounts of interest to people they ripped off. Who knows how many unfortunate souls never got out of the cycle. Who knows how many kids went without because of the sheer greed of these companies that prey on already vulnerable people. So sorry but NO I certainly don’t agree with your “reap what you sow” comments in fact I think it’s disgusting.

  12. Sean Kelly says

    If it wasn’t for the high interest in the first place I wouldn’t have had to take out loans over and over this is how they get you
    And they think they can still take the mickey

  13. Kelly says

    I kind of agree with mark and Denise. Yes Sarah we were ripped off and of course the interest was shocking but at that time it was what it was. We willingly took them out knowing that we couldn’t afford them instead of getting professional help. We are not total victims as I’m sure most of us are not stupid. It is tough but no one held a gun to our head. I’ve learned my lesson and as Mark says any payment is a bonus.

    • Victoria McAleer says

      That’s up to you to agree. I certainly don’t, these companies preyed on vulnerable people who were desperate. Not everyone was aware there was professional help available. My loans were from 2008.

      We may not have been “total victims” but being put into a cycle of debt by these companies happened to many people, some of which are not here to claim the derisory compensation!

      • Ljc says

        I agree with you Victoria my redress is around 9k + interest which would bring it up to around 15k …that’s life changing for me but to get hardly anything from it , is quite soul destroying . What made it even worse was that FO sat on it for about 18 months whilst I could see other people’s who had been at the FO for less time getting payments .

        • Victoria says

          I’m the same Ljc. The Ombudsman sat on my claim for nearly a year until the scheme of arrangement was proposed.
          It really makes me laugh, sarcastically, when people say these companies don’t prey on vulnerable people. THEY MOST CERTAINLY DO. Their whole business model is built on it. Furthermore all my loans were taken out in Branch not online!

      • mark says

        i get what you saying and my loans was from 2009 amd they didnt realy prey on people i bet over 90% of the lons was taken out online so it kinda did say how much interest would need to be payed ect. we should just be happy with what we get end of the day my claim was for thousands. but how many people would have approached to complain before they went bust?

        • Sara (Debt Camel) says

          The large majority of the Money Shops lending was in branch. Payday UK and Payday Express were exclusively online.

      • SD says

        You are right, Vicky. I was aware, speaking for myself, though I was in a difficult position, like many others were, with health issues and I felt, at the time, there was nowhere else to turn. However, as you say, so people were not fully aware, due to mental health issues, which included erratic spending behaviours etc. It was not right.

    • Michelle says

      No.I phoned them on Wednesday this week and was advised that letters will go out next month and payments around April

  15. Former Moneyshopper says

    The only people that seem to have done OK out of this scheme, are KPMG who have been paid an exorbitant amount of cash for a poorly developed claims website and their legal fees.

    • Fran says

      I agree! I think Covid is proving to be the ideal excuse for the liquidators to fill their pockets. We were told decisions would be sent out in early 2021. No sign of anything yet ! At this rate we will end up with zero payout !

      • Chris Loach says

        Hello all,

        So would that be 4.10 in the pound plus any accrued interest?

        Of a flat 4.1p in the pound for monies owed.

        • Sara (Debt Camel) says

          Flat percentage in the region on 4.1% on the total redress figure including 8% interest.

          • Sara (Debt Camel) says

            The 8% is part of the total redress calculation (interest and charges on unaffordable loans. Less any loan balance owed. Plus 8% simple interest net of basic rate tax.)

            You get c4% on that total redress amount.

            This isn’t some con. There is no separate pool of money to pay the 8% part. All the money is being divided between the people owed redress.

  17. Darren Baldwin says

    Hi, just got the email below, is it legit, I don’t want them more money

    Re: Your Complaint about Irresponsible Lending in our Scheme of Arrangement.
    We’ve upheld your claim, but you haven’t given us your details to let us make payment.
    Please visit the Portal to enter your bank details in the Payment Details section of your claim. You can do so by following this link: ….

  18. Jon says

    Is anyone else with an outstanding balance waiting patiently for ICL to contact them regarding offsetting the redress?
    I ring every couple of months and they give me the same answer, “you should receive an email in a few weeks”.

    • Grant says

      Everyone is still waiting, we have been told because of the coronavirus, we may have to wait till march before we get any letters out to see much we may be due, and then payments in April. Not a lot anyone can do, but the longer the delays the less we will get, My thoughts are that we may not hear till christmas 2021 and by that time we can expect 2.5% redress. I really see coronavirus being blamed for the delay to the point where most of us are just simply going to give up. The more that happens the more money they keep in thier pockets. These people are SCAMMERS and well trained in the art. And the law says they can get away with it.

  19. Simon kirkman says

    Did anyone receive a letter when all this first started asking to vote into a scheme where the
    Administrator could apply for extra money so the redress wouldn’t be so low

    • Sara (Debt Camel) says

      The Scheme was approved and that is the redress you are currently getting. Yes it is pathetic. The letter you received may have implied it might be higher. I thought the Money Shop were quite wrong to raise people’s hopes at the start – some people may have voted against the Scheme if they had realised how little they would end up with.

      But the Money Shop was in a very odd position where it was going into liquidation, Scheme or no Scheme. And because of some legal agreements with its previous US parent there would be a bit more money in the Scheme rather than in administration. This was why the Scheme was allowed to proceed – the Money Shop was not carrying on in business.

  20. Sean says

    Can some maybe help explain
    When I have logged into the money shop claim page it said 8percent interest in the compensation section 500 pound would I get that all back on top of my 4 pence in every pound

  21. Paul M says

    Just received an email today with the following content:

    “Dear Paul M

    Your Claim Reference: XXXX-XXXX

    Re: Your Complaint about Irresponsible Lending in our Scheme of Arrangement.

    We’ve upheld your claim, but you haven’t given us your details to let us make payment.

    Please contact us via our email address scheme@themoneyshop.co.uk or call us on 020 3901 7440 to provide you bank details.

    If you do not provide bank account details or the bank account details are incorrect, we will be unable to pay your refund”

    Bit concerned about this because a) I’m sure I’ve already supplied this info and b) when I looked up the number it’s coming up as a scam alert. Has anyone else had similar?

    • J says

      Those are actually the details on the website, but if you log into the portal and click

      1. My Area
      2. View (next to where it says claim submitted)
      3. The tick with ‘payment details’ behind it, you can check what they have there (and update it too)

  22. Ange says

    Total Potential Redress (£):
    5141.72
    Pre-scheme redress (£):
    953.05

    Which will my 4% be based on?

    Thanks

  23. racheal says

    whats more annoying is that my redress is 2800, but the debt was sold to BW legal and i havee fully paid them off so i cant even knock it off my debt so instead of the full amount off the debt i will probs get about 100 😭

    • craig says

      That sucks. The debt buyers don’t ever seem to lose. If you win a claim at the FOS against a lender they will tell the lender to pay the redress to the debt buyer and not to you. But when the lender is bust you seemingly have no choice but to continue paying the debt buyer and no route to making a claim for refunds. It’s all one sided in the debt buyers favour.

  24. Dean says

    For example this is from a letter I had years ago from them

    The business has made the decision that when accounts reach a certain stage within the Collections journey; they may be sold to a third party company for collection. Going forward, your account in relation to reference: 22288917 will be owned by PRAC Financial Limited and will be managed by BW Legal.

    That means the owner of the debt is now PRAC does that not mean if someone has paid PRAC money that they was not emit it led to as the debt was misold then we could complain PRAC and look for compensation.

    I’m not sure if I’m articulating my question correctly but hope that makes sense

  25. Dean says

    What if you had paid the debt in full to BW legal, so your redress isn’t offset against a debt, like I say it’s a random thought and probably clutching at straws

      • racheal says

        i have paif my debt in full, so therefore lose out now. if i hadnt of paid the 918 pound i could of had it reduced by my 2000 odd but now will only get 100 x
        i understand what dean means. x

  26. Dean says

    No, I’m just wondering as my loan was sold ICL actually got paid for it by PRAC so I’ve actually paid PRAC not ICL could I not pursue a claim from them like I say probably clutching at straws just seems bad that PRAC have gotten money for a debt that should never exist especially [edited out as factually incorrct].

    • craig says

      There’s an argument for it.
      Section 82 Consumer Credit Act 1974 the European Union Directive Assignment of Rights.
      16.5 The definition of “creditor” in section 189 of the CCA applies to this requirement on assignment of rights. This means that when an assignee purchases debts (or otherwise acquires rights under a credit agreement) it also acquires certain obligations to the borrower including the duty to comply with CCA requirements (such as the rules on statements and notices and other post-contractual information). The assignee becomes the creditor under the agreement. This ensures that essential consumer protections under the CCA cannot be circumvented by assigning the debt to a third party.”

      PRAC have profited by buying the account and they shouldn’t be beyond reproach in claiming back the excess payments you’ve made, especially as the original creditor is finished. When lenders sell the accounts it doesn’t wash away the history and allow the companies to circumvent regulations and redress.

  27. Liz says

    I still haven’t heard back from them with regards to if my claim has been accepted or not. Or any kind of response sinse I submitted.

    Anybody else in this position

  28. Taking The Piss says

    This has all been a big joke, the initial figures being given and then the 4 pence for every pound owed is ludicrous…… In this industry with the main players dealing with this account working from home or very small offices I feel the covid excuse is absolute bs, and has been used so that the longer they hold on to these accounts the more money they are making…… How do these soulless thieves sleep at night……. I’m not sure what’s worst now, the payday lender or the company thats claiming on our behalf. Also if I had know I’d be getting ba k 4p to the pound I’d have not even bothered even applying for the claim.

  29. Mandy says

    I’ve heard from the money shop today saying 4 per cent likely with payments saying may , somebody somewhere must be responsible for the fraud that’s going on here surely

    • Fran says

      I received an email yesterday after I complained about no outcome letter. Was told payout would be April ?

      • Simon says

        Same here said starts 1st April but didn’t confirm it was 4% redress said they would contact me with the amount I’m owed

  30. grant says

    I was on the phone to them for 25 mins asking about the delays

    according to the lady i spoke too they have 50,000 claims still in dispute that they have to sort out before they can go back to court to get a final figure for payout.

    I asked about the further delay with the disputed claims and they were unable to give a date as there was only 30 people dealing with the disputes and they were working from home and were to expect a further delay letter at the beginning of April for a further 12 weeks.

    That would put us to a delay of August. I was LIVID to be told that.

    I asked about the 4% and was told so far that is holding for now BUT with the further delay there COULD be a 1% drop in the pot!

    I have shouted till im blue in the face to her but she said thats all they have been told and she said to much already.

    I asked for her name but she refused to give it to me and hung up.

    I really want to know, can we take this to a small claims court now? we have letters of admission that they were in the wrong, surely we can do more than just replying on a forum and taking thier BS ?

    • J says

      Hiya,

      We’re all in the same boat, I just wanted to chime in because as annoying as it is… there’s no point shouting at the person at the end of the phone as it can lead to conversations being cut short.

      The person you’re speaking to is highly unlikely to be in a position to do anything extra to change the course of action underway so it’s unfair to scream and shout at them because they’re almost certainly not enjoying the job they’re having to do and will be having the same discussions multiple times per day, every day…

      You’re better off writing to complain to your MP about it tbh but realistically… I can’t see that making the slightest bit of difference either.

  31. Julie Masterson says

    Hi guys I emailed moneyshop few months back and told them I had not heard anything about my redress claim they replied back to me by email a few days later and told me my redress claim was 6555.00…..just had an email of them now asking for my bank details….so just a waiting game now I guess….not sure how much I’ll get back but it’s better than nothing…

  32. Liz says

    My response from the 16th Feb

    Good morning,

    Thank you for your email.

    We can see that your claim was successfully submitted, and as such is in the process of being assessed. We will be sending out all decisions at the beginning of this year.

    We’ll keep you updated on what’s happening with your claim through the Claims Portal – whenever we make changes or upload a new message. If you are not a portal user we’ll email you to let you know or send you a letter.

    We are unable to tell you when your decision will be sent out in advance.

    Many thanks,

  33. Sean says

    Well they just replied to me and said April they making payments and wouldn’t give me a refund figure

  34. Chris says

    I wish they’d slow down a bit. They’re going way too quick for me (that was sarcasm of course lol)

    • J says

      Agreed, I’ve been inundated with information about my claim and their progress! I had a message from them in September and erm… November I think? Too much infooooooooo!! ;)

  35. Hmcat says

    I too wish they would slow down lol They say earlier claims have no precidant over later claims hence those claiming later have decisions earlier to portal nought no clarification on anything bar ongoing dates for decisions missed portal says possible pay outs spring but no response to an actual Decision … Seriously ??? Those awaiting decisions not pay out dates have been forgotten .. are they too complex or no rationAl way to cases dealt with .. some just need a decision to progress

  36. Kirstie says

    I’ve tried to log onto the claims portal, but when I click in that nothing happens, I just get a blank screen. There is also a button for decision portal. When I click on that it tells me it might be a fake site trying to steal data. Anyone else had that, or is it just me.

  37. Hmcat says

    Kirstie it could be your OS make sure using windows ten or iOS 8or later.. not using same browser not reissuing same IP eg Chrome Safari try a different one or if using mobile try laptop .. also ensure controls or admin not blocking but usually blank page is out of date OS or and browser IP or dns Hope this helps x

  38. Lee says

    Recieved an email today stating that my claim has been addressed and finalised for the sum of £132.00, just awaiting payment date next. Redress should have been approximately £3900. Its a scandal how these companies exit the market,

  39. grant says

    so with that offer, you have a payout of 3.4 % !

    That does not bode well for the rest of us, means i will get around 350 from 11,000+

    well least things seem to be moving

  40. Fed up Bloke ( Grant ) says

    so, if the above is the start of the emails out, i have worked mine out as

    £11759.77 potential redress with a 3.4% payout, i will get 398.83 !

    WOW ! that’s a deposit for a caravan holiday once we get out of lock down, providing we can find somewhere with all the rush to book holidays.

    Really think all this has been a huge giant error and we were given a crap load of misinformation just so that they can all laugh at us.

    • Lee Sharratt says

      Completely agree. All been sold down the path. But. What ever is better than nowt. Few hundred pound something to enjoy. Thankfully I claimed before some others went bust. So I’m grateful

  41. Mr E says

    They should be made to sell their assets to cover the redress. I bet theyve opened up another business somewhere doing something similar.

  42. Mr E says

    I was referring to their personal assets, its not fair if this not included. The rest of us get a fraction of the redress amount whilst they sit on a personal fortune which they must have earned.

    • Sara (Debt Camel) says

      Ah I see.
      The real culprit here though is the FCA, the regulator. Who never enforced their rules on affordable lending. Who allowed lenders to continue to trade when they did not have enough capital to. Pay refunds. And who have failed to set up any back up compensation arrangements.

      When a PPI firm went under all people owed refunds were paid in full by the Financial Services Compensation Scheme – so why did the FCA decide that people owed money by payday lenders should not get this compensation?

      • Mr E says

        Agreed, how the FCA are letting this go on and the length of time it’s taken them to step up and stop these companies operating is incredible! It makes you think if a palm or two has been greased haha

  43. Mark says

    This absolutely stinks. The FCA are stepping in on buy now pay later companies such as Klarna where customers could run up a few hundred quid. Yet they do nothing for customers that have run up tens of thousands (in some cases).
    Shocker!!!!!

  44. Matt H says

    Firstly Sara may I thank you for a wonderful job that you do in running this site.

    My question is regarding the 20% tax deduction being made from 8% compensation interest, are we entitled to claim the full amount back applied to the redress calculations through HMRC or would it be at the % pro-rata that we eventually receive?

    • Sara (Debt Camel) says

      There is no separate pot of money to pay the 8% calculations.
      It is likely that the Scheme will be organised so there is no tax deduction from the amount you are paid, so there will be nothing for you to reclaim from HMRC.

      • Matt H says

        Thanks for the reply.

        It will be interesting to see when payments are finally made with a breakdown, as the redress letters issued have the 20% tax deducted from the provisional amount.

        • Sara (Debt Camel) says

          In every administration I have seen this is resolved with HMRC so no tax is deducted – HMRC do not want people trying to reclaim tiny amounts of money as the HMRC costs would be larger than the tax deducted.

          The reason why it was in the redress letters is that they are used to come up with an accurate amount of money for the pro-rating calaulations.

  45. Shell says

    Hello,
    As anyone received their refund letter advising them of the amount that they would be receiving?

    • Mr E says

      No, have you? I believe payments are upcoming soon-ish

      The decision in principle was sent out last year but I have not received anything final from them.

    • Ann W says

      I received my offer today which gave me 2 options to choose from. I’ve pasted it here. My initial potential redress was £2230 so not sure why that dropped to £1400 but it barely makes a difference now!

      “We are now able to confirm that you will be able to use your redress to reduce your outstanding balance, even though that outstanding balance is no longer with us. The people who bought your debt from us – in your case PRA Group (Mackenzie Hall) – have agreed to reduce your balance by the amount of your redress.

      This is important to you because any reduction in your outstanding balance would be made in full, whereas a cash payment will be reduced. It is likely we will pay you 4p for every £1 of cash redress.

      Based on the information above we have completed the following calculation, if you were to use the redress to pay off this debt:

      Redress amount £ 1449.49
      Current outstanding balance £ 188.13
      Redress left after balance cleared £ 1261.36
      Expected cash payment to you: £ 50.45

      If you do not pay off your debt, we expect you will receive £ 57.98 but still owe £ 188.13

      Next Steps:

      We need you to follow the steps below to tell us your decision in the next 7 days“

      • Sara (Debt Camel) says

        good. Not a hard choice to make!

        Also PRA should remove the default on your credit record.

        • Ann W says

          Hello do you mean the loans or into the scheme??

          Sara interestingly nothing from pra shows across all 3 credit files!!!

  46. Mandy says

    Just spoke to the scheme been advised I am getting around 4 p in the pound from the 9500 award joke and it’s going to be may now due to high demand I asked why another month been told busy !!!! No fraud here then

  47. Richard c says

    I had a scheme letter back on 12th Jan stating that by their calculation I was owed £6180.97 plus £3665.48 (less 20% income tax) compensation interest, total £9113.36.

    For me that would have been a life changing amount of money and have given me the war chest I need in case of life’s misfortunes. I have very little savings, although most of my debts have now gone.

    I’m afraid although I agree with people and their comments here, it’s spilt milk now. Wonga set the precedent of 4p in the £, against which all others have done wind down schemes.

    FWIW, I wrote a several page letter to Mel Stride MP who is currently head of the treasurary select committee in Westminster. The have several open inquiries and cases on the FCA and FOS but nothing w.r.t payday/HCST lenders.

    I also wrote to Nikhil Rathi incoming head of the FCA who replaced Andrew Bailey who fled to the Bank of England following a very large scandal around London capital + Finance. It’s just a revoking door of corruption among regulators and “the city” I’m afraid.
    The response I had from Rathi’s Minnions was very dismissive. They believe the 2016 tightening of the rules was sufficient.

    • Jack says

      I agree , the problem with the people at the top FCA is that they will never understand what everyone who has taken out payday loans has suffered. To say they are a joke is unfair to jokes . Unfortunately we need to get a petition together and have a parliamentary debate . And try and hold the FCA to account but that’s going to be hard.

      • Richard c says

        I agree Jack.
        all the top people at the FCA earn many hundreds of thousands in pay. The new CEO is on 450k.
        thw average salary (all workers pay divided by total number) is also quite high about 60k.

        They’re just clueless.

        Christopher Woolard has just left to go to “big 4” accountancy firm Ernst + Young. Awful conflict of interest, gamekeeper turned poacher if you will.

  48. Colin says

    A quick question. I have been contacted by PRA group for a debt owed to Dollar financial. Can you please tell me if this is the money shop. It is a debt of £160 dating back to 2010. I have already received a email from money shop stating they have upheld my claim. Any help would be really appreciated.

    • Sara (Debt Camel) says

      Money Shop or one of Dollar’s other brands eg Payday UK.

      If you haven’t made a payment or acknowledged the debt since 2010, it is probably statute barred. I suggest you talk to National Debtline on 0808 808 4000 about this.

      • Colin says

        I am suprised they are still chasing me after this long. I maybe thought that debt would of got written off with the upheld claims.

        • Sara (Debt Camel) says

          but the Money Shop no longer owns this debt to write it off.

          Seriously, talk to National Debtline. It may be that you replying to PRA saying the debt is statute barred is the right thing to do but I cannot give an opinion on this.

  49. Katie says

    Hi, so my redress is £918 I’m not sure how to work out how much I will end up getting probably nothing, but the final document is up but not had my final total yet has anybody else got there final payment idea yet?

    • Kyle says

      I got a response today to say they have worked out my potential redress was 1272 but I would get 4p for every pound and asked for my bank details and said it will be paid out in may 2021

      • Dawn says

        Why are you happily going to accept 4p to a pound when your redress was workout 1272 on the overall amount in the pot for all their clients. They want to make sure people are willing to accept this. And bingo they’ve got us…
        Think again

        • Ron says

          That’s not how this works, Dawn. They are in administration so your choice is accept 4p or get nothing.

    • Anne Goodfellow says

      this is what letter says ‘must therefore pay you the dividend amount, which we expect to be around 4p/£.’ so on 10800 which is redress amount after tax is this not 4320 pounds as 4p x 10800 is 4320 orvam i being thick. .its a huge diff 432 pounds or 4320 .as it states 4p in pound not 0.04p im.so
      confused

  50. Colin says

    I have heard people say payout is delayed until May but i am not too sure whats going on

    • Katherine says

      On the money shop website it states payments will now be made in May. It’s taking so long!

    • Sean says

      I’ve sent them an email asking for an update and they said payments will be made in may 2021

      • grant says

        well so far thats the 3rd date we have been told

        I would expect at least 3 further delays so they can get the payout down to 1%

  51. hugo says

    I have not had my claim confirmed although iu have been upheld in £2280 so prob get around £100 is this actually legal?

  52. Nathan Smith says

    Anyone had any contact recently in relation to them completing the claim review process? Seen a couple of people say April/May for payment but the last contact I had around 4 weeks ago, I was advised approximately 50,000 claims still to review.

    I’m lucky to be in 1 of those 50,000 😅

  53. Siobhan Crossan says

    Hi Sarah,
    The money shop say they will deduct 613.00 from my redress, due to a loan I had with payday express in 2009. They admit that they have no CCA for this loan. Can they still deduct this money?

    Thanks in advance

    • Sara (Debt Camel) says

      yes, the loan still legally exists even if it is unenforceable in court because the CCA cannot be produced or it is statute barred.

    • Siobhan Crossan says

      Do they not need to provide a CCA as proof that the loan actually existed in the first place especially that it is statute barred, if they have no paperwork to prove the loan was taken out, then how are they able to take money?

      • Sara (Debt Camel) says

        are you disputing you took the loan? That would be different…
        But they may have a record of a transfer to your bank account which was the same bank account you used for other loans from them?

      • Andy says

        Wow, I paid over 8500 in interest over 15 months in a minimum wage job. Started with a payday loan for a washing machine. I explained my situation and asked to extend a repayments over 6-12 month and was declined, continued though to take full payment then give another loan for me to live on for month.
        How can they be alowed to reject my ple for reduced payments or spread the cost, issue a ccj, sell the debt but then when they ow me money be alowed to only pay 4% of what they owe?

  55. Cat says

    Is anyone still waiting to hear? Mine still just shows as submitted. I don’t want to chase as when l did that with the ombudsman for a couple of companies it came back rejected, even though other claims that l hadn’t chased for different companies at the same time were upheld. So paranoid me thinks chasing they will reject my claim.

      • Jessica says

        Mine still says submitted too im owed 3500 but will probably not even get 100 quid lol

    • Alan says

      Hi, mine was showing as submitted but got two emails through yesterday providing a decision. Previously they’d been going to my spam folder so might be worth a quick look in there but looks like decisions on disputed cases are coming through.

      • Frances says

        I check my junk folder daily. Still no final outcome letter. The FAQ’s have bern updated to show payments will now be made from May ! A complete farce!

        • Darren says

          I haven’t had anything since June 2020 with the loans upheld amount, but had nothing since then, I have at this stage lost all interest as they keep moving the payment dates,

  56. JR1981 says

    I agree they do keep moving payment date, it went from late last year to April
    Now to May. Absolute joke

    • Rebecca Cockram says

      Mines the same-nothing since June last year.

      Bored of it all now, I’ll just see if anything goes into my bank.

    • Grant says

      and the longer they have to put it back, thier staff and legal team will get more money and we will get less and less till its 0.01% per pound.

      lets be honest, they dont care about us, they never did, were just profit to them and paying us a pittance and keeping thier millions is all that matters to them.

  57. Paul Andrew says

    It is very worrying that the seriously long delay keeps getting longer and longer.
    The administration/lawyer team must be doing well out of this considering payouts should have been completed since last year.
    Covid-19 will be the reason for this, many companies use that excuse to delay a service now but we can all see this is ridiculous now….. This somehow has to be reported to some governing body (if there is one)

    • Carol says

      Hi I am a little fed up with this whole scheme it seems people like you and I will literally end up with nothing my redress is £7135.00. and I know I won’t get anything like this and I just read the scheme may be extended again until April/May which is just crazy the scheme doesn’t even have the decency to at least send emails to keep us up to date I’m sure like most of us I feel really let down..

      • Ljc says

        I’m with you Carol my redress is around £9500 but I’ll get next to nothing . That would be life changing for me and I’m angry that they can get away with it , FCA no protection and was sat with F.O for over a year , if they had handled it sooner I would of got my money before they went into administration .

    • Sara (Debt Camel) says

      If you read the latest report it says the extra delay is caused by trying to reach agreement on the loans that have already been sold to a debt collector.
      I know this annoying but it’s very important to the customers that are affected.

      • Brett Hannagan says

        Hi Sara, has anybody thought of appealing as it gives this option alongside the accept option, would appealing possibly get u an increased payout? Thanks in advance

        • Sara (Debt Camel) says

          it won’t get you a larger % payout. You can only appeal if you can argue they should have upheld more loans.

  58. Jen Holt says

    I got a letter in Dec 20 from ICL upholding my claim for over £5000. I received a payout from Wonga also and theirs was over £2000 but I received only £119, I suspect this will be veryuvh the same.

  59. Pete says

    Can’t wait get my hands on my redress from Payday uk due in April. Waited long enough. But I’m fully expecting some dodgy COVID-19 related excuse to be used to make sure I get late payment.

  60. Richy says

    My redress is £6942, The Money Shop ruined my life, broke me in so many ways … not just financially … and what am I getting … £291… that’s just what I’ve worked out, but the final amount will probably be less.
    These people have given us hope of some sort of compensation, instead they’ve given me reason to go and hang myself.

    • Victoria McAleer says

      Rich I’m in the same boat along with thousands of others. I should have received over 7k I paid all my loans back years ago after being in severe financial hardship for years. I’ll be lucky to get £300.
      Please don’t despair though if you are struggling you can contact stepchange for help or your local Citizens Advice.
      Take care.

    • Annemarie Jeannette says

      It is terrible richie but please if you are seriously thinking about doing something like that find someone to talk to .your life is worth more than any amount of money .I have recently experienced this in my family and it absolutely devastated everyone’s lives .please get help .take care .

      • Ruth says

        Yes I totally agree. I used to feel the same way as Richy. I owed 30,000 and felt hopeless, but after contacting payplan everything was sorted. No one made me feel silly and I got a plan that was simple and easy. Always Always seek help. Anyone can get into debt and at the end of the day there is always a solution. It took a while but I am now debt free.. Take care x

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