On 2 November 2018, RSM wrote to creditors of Ariste Holdings, best known for its Cash Genie payday lender brand, saying that it was no longer solvent. As a result, customers expected a refund or compensation will no longer receive the full amount they are due. Background - Cash Genie was solvent when it stopped trading in 2016 In 2015 the FCA, which regulates payday lenders, ordered Cash Genie … [Read more...]
Payday loans - easy to take out - hard to escape from. This page has all Debt Camel's articles about them, the most recent first.
Also look at the Guide to Payday Loans which covers how to apply for compensation/refunds if you think you have been given a payday loan that was "unaffordable" and the better alternatives if you want a payday loan but are refused one.
The Wonga Administrators sent a letter last week to some of Wonga's creditors with their proposals to handle the administration. These include: background on the events before administration; how to decide the payday loan affordability complaints that have already been sent to Wonga; and how to encourage other customers to submit a complaint. The letter also included a Voting Form … [Read more...]
This page brings together news items about various types of high-cost lending in Britain, including payday loans, guarantor loans, doorstep lending, logbook loans, rent to own and other forms of high-cost credit. The latest FCA High Cost Credit Review reports in June 2018 covered many of the different types of lending covered on this page (with the regrettable exceptions of guarantor loans and … [Read more...]
On 30 August, Wonga ceased trading and went into administration. At that date: there were over 200,000 people with current loans from Wonga - many of them may have a good case for the interest to be removed from their balance so they only repay what they borrowed; there were 24,000 affordability complaints awaiting a decision by Wonga and 9,500 complaints against Wonga with the Financial … [Read more...]
The Wonga administrators sent a letter, with voting forms, last week to Wonga creditors. These creditors include some people who have made payday loan affordability complaints as they are owed money by Wonga. Customers who have commented on my Wonga Refunds - Latest news page have said things like It's very confusing or I can't make head or tail of it. And above all Do we need to do … [Read more...]
Mr X has received a reply from QuickQuid saying why it will not consider an affordability refund on payday loans that are more than six years old. This part of QuickQuid's reply isn't related to the details of Mr X's case. It looks like a standard response QuickQuid is sending everyone whose complaints include these older loans. I often see pretty poor replies from payday lenders to people … [Read more...]
On October 15, the FCA sent a Dear CEO letter entitled Affordability of High Cost Short Term (HCST) loans to payday lenders. This letter tells the lenders to review their affordability assessments. There are some very clear points about what the FCA expects a payday lender to do if it is not making good affordability assessments now or hasn't done in the past. "Chains of loans" over an … [Read more...]
The Financial Ombudsman (FOS) has published two Decisions involving payday loans over six years old: Mr H has complained about fifty-four payday loans Lender C lent to him between March 2010 and September 2014. Mrs W’s complaint is about nine short-term (often referred to as ‘payday’) from Lender D between November 2009 and July 2012. In each case, FOS has decided that its rules allow … [Read more...]
It's now a few weeks since Wonga went into administration. This seems like a good point to ask some difficult questions about the lessons from Wonga and what should be done to reduce consumer harm in future. Much of the media coverage has gone as follows: Wonga was the worst - then the FCA fined them and made them write off debts in 2014 and introduced good payday loan regulation in 2015. … [Read more...]
On 8 September, the latest Claims Management Regulation Bulletin, CMR35, from the Ministry of Justice warned about many problems with payday loan refund claims. But according to many reports, Wonga went bust in August 2018 because of the number of affordability complaints they were getting from Claims Management Companies (CMCs). So does using a claims company make it easier to get a payday … [Read more...]