The Financial Ombudsman (FOS) complaint statistics for April-Jun 2019 have just been published, see Product Complaints Data. For guarantor loans, FOS decided in favour of the consumer in 83% of cases. That is a dramatic increase from the uphold rate of only 32% for the previous financial year I have been saying for several months that almost all affordability complaints by both … [Read more...]
High cost credit news and policy
Will the Money Shop really pay 80% of your payday loan refund?
On August 14, people who had borrowed from the Money Shop, Payday UK or Payday Express started to receive emails from Instant Cash Loans (ICL), the company that owns these payday lender brands. The email asks customers to vote to approve a Scheme of Arrangement. I have updated my Money Shop LATEST NEWS page with details of the Scheme and the voting arrangements. The Scheme limits the money … [Read more...]
Money Shop, Payday UK & Payday Express LATEST NEWS
On 14 August, Instant Cash Loans (ICL) started sending out emails to 2.6million customers of the Money Shop, Payday UK, Payday Express and Ladder Loans with details about how to vote on its proposed Scheme of Arrangement. It says customers with an affordability complaint may get 80% of the value of their complaint paid out, but this may be significantly less if a lot of people claim. 80% … [Read more...]
Wonga – Latest News about refunds (updated August 2019)
Wonga stopped lending and went into administration on 30 August 2018, unable to pay refunds on all the payday loan affordability complaints it was getting. An unaffordable payday loan is one you could only manage to repay if you borrowed more elsewhere or didn't pay some bills. So you may have repaid a loan but still be able to claim a refund of the interest you paid if the loan was … [Read more...]
SpeedyCash in administration – send affordability claims by end July 2019
SpeedyCash had several high-street stores which stopped lending in 2017. It was the trading name of SRC Transatlantic Limited which went into administration at the end of February 2019. SpeedyCash had c 183,000 former customers. If you borrowed from SpeedyCash, you may have a claim for unaffordable lending. An unaffordable loan is one you could not repay, or which you only repaid with … [Read more...]
Loans2Go’s interest rate – “outrageous” – how to complain
In January, a reader told me about a loan he had for £650, with 18 monthly repayments of £147. This adds up to a total repayment of £2,650 - an eye-watering amount and more than four times what he borrowed. At first I thought this was probably taken out years ago. But in fact, it was borrowed in late 2018 from Loans2Go. Loans2Go also offer logbook loans, but this article is just about their … [Read more...]
Money Shop – redundancy plans and stores closing
UPDATE - June 15th Money Shop to close – two million customers will be informed On June 21 the Daily Mail reported that : In a letter sent to employees and seen by This is Money, ICL said it plans to close or sell off all of its UK stores following 'poor financial performance' and an 'unprecedented number of customer complaints'. The Money Shop has already shut down or sold … [Read more...]
Payday lenders tired of having to pay so many refunds – unsurprising!
The Financial Ombudsman Service (FOS) published its Annual Review this week which highlighted the massive jump in payday loan complaints - up 130% to c.40,000 in 2018-19. The Consumer Finance Association (CFA) has responded with a blog Reflecting on the FOS Annual Review. The CFA is the trade association for payday lenders, so you won't be surprised they are not happy... Mandy Rice-Davies's … [Read more...]
Wageday Advance (WDA) – latest news on the administration
Curo Transatlantic Limited (CTL) had two brands: Wageday Advance (WDA), a mid-sized payday lender; and Juo Loans, a small guarantor lender. CTL entered administration on 26 February 2019 because of the number of payday loan affordability complaints they were receiving. They appointed KPMG as Administrators. SpeedyCash was also part of the same group as Wageday Advance. It was a … [Read more...]
Guarantor loans – why guarantors & borrowers need extra protection
Guarantor loans are coming into the regulatory spotlight. The FCA wrote to CEOs in March 2019 saying it will be looking at affordability and whether potential guarantors have enough information to understand how likely it is that they may have to make the loan payments. In a speech, Jonathan Davis said: Recent work we have done in this area showed that many guarantors are making at least 1 … [Read more...]
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