Provident Financial Group (PFG) has proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers given unaffordable loans through its Provident Personal Credit (PPC) subsidiary. There are three stages in getting a Scheme approved. Provident is now in the second stage - Voting: On 22 April 2021, the voting arrangements for the Scheme were approved by the court. From … [Read more...]
High cost credit news and policy
Money Shop Scheme to pay 2nd small refund in December
A "Scheme of Arrangement" is in place for borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. The ICL Scheme of Arrangement has paid the large majority of ICL customers who had a claim for unaffordable lending accepted in May and June 2021, see Money Shop, Payday UK / Express – Latest news for details. What happens next? A few people have not … [Read more...]
Amigo – what is happening with “Scheme 2.0”?
It is now three weeks since Amigo's proposed Scheme of Arrangement was rejected by the court. The FCA told the court the Scheme was not fair to customers, a more fair Scheme could be proposed and it didn't think Amigo would go into administration immediately. The judge concluded by saying: The FCA expects the directors to continue to explore and promote a restructuring which fairly allocates the … [Read more...]
Court rejects Amigo Scheme of Arrangement
On 19 May 2021 the Sanction Hearing was held for Amigo's proposed Scheme of Arrangement. On 24 May, judgment was given and the Scheme was rejected. The Amigo Board says : The Board is reviewing all options including an Appeal. A further update will be given in due course. This article looks at the Scheme, the judgment and what may happen next. The proposed Scheme The Scheme was proposed by … [Read more...]
Amigo’s Scheme rejected – now looking at a new Scheme
UPDATE The Scheme of Arrangement proposed by Amigo has now been rejected by the court after it was opposed by the FCA. See Court rejects Amigo Scheme of Arrangement for details. We do not know yet what Amigo will do. In June I looked at Amigo – what is happening with “Scheme 2.0”? In July, FOS emailed customers saying it was not working on their Amigo complaints. A lot of people with current … [Read more...]
Sunny customers owed refunds paid at 3.21p in the £
On 28 May 2021, the KPMG administrators announced they will be paying 3.21p in the pound to c 40,000 people who submitted a claim for unaffordable loans. All 500,000 customers with mis-sold loans should have had their credit records repaired, see below. 40,000 people is a low number as the administrators calculated that more than half a million were mis-sold loans. Many people may not have … [Read more...]
Provident closes its doorstep loan operation after 140 years
On 10 May 2021, Provident Financial Group (PFG) announced that it was closing its home credit operation, also known as doorstep lending. Doorstep lending has been at the heart of Provident's business for most of its 140-year history. Agents would visit customers at home, giving loans and collecting weekly repayments. Now Provident says: In light of the changing industry and regulatory … [Read more...]
The ICL / Money Shop Scheme – customers paid 4.3% in June
UPDATE A few people have not been paid by the end of June. And everyone will receive a second, much smaller payment in December 2021. See Money Shop Scheme to pay 2nd small refund for details. A "Scheme of Arrangement" is in place for borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. Background to the Scheme Failure to assess affordability … [Read more...]
Provident’s Scheme to cap refunds – the background
UPDATE Customer voting is now live. See Provident Scheme to limit refunds - how to vote on it for details of the Scheme, the timetable, what you might get in the Scheme and how to vote on it. This article gives the background to the Scheme and what happened before voting started. In March 2021 Provident Financial Group (PFG) proposed a Scheme of Arrangement to reduce the refunds it has … [Read more...]
No set off in a Scheme/Administration when debt had been sold?
In the Instant Cash Loans (ICL) Scheme Arrangement, Money Shop, Payday UK and Payday Express customers whose debts were sold to PRAC Financial (PRAC) have not been given set-off between their ICL redress and the loan they still owe. The same situation could occur with other Schemes of Arrangement and other debt collectors. It could also arise in administrations, for example Sunny loans that … [Read more...]
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