247Moneybox Payday Lender Goes Bankrupt – Your Rights On How To Get Compensation – The Sun

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Lender PAYDAY 247Moneybox went bankrupt, leaving thousands of customers in limbo over payments and claims.

Customers who are still repaying their loans are encouraged to continue making their payments as usual.

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The short-term loan company went bankrupt

Otherwise, they risk damaging their credit score or being charged additional fees as a penalty for late or missing payments.

Borrowers seeking compensation for irresponsible lending are advised to continue filing complaints.

But unfortunately, you are unlikely to receive a payment as you will be added to a long list of people to whom the business also owes money – banks and major lenders take priority for repayments.

Harrisons Business Recovery & Insolvency has been appointed a director of the company to help “carry out an orderly liquidation of the business”.

Are you owed a payday loan repayment?

MILLIONS of payday loan customers can be repaid.

Repayment or compensation is often given when the loan has been mis-sold or when affordability checks were not strict enough. Here’s all you need to know:

  • Customers who have paid off their payday loan debts can still claim. Even if you have paid off your debts, you may still be able to get a refund if you struggled to repay the money at the time.
  • If you are still paying off your payday loan debts, you can still complain. You can complain if you had trouble paying back. If your complaint is successful, it could reduce the amount you owe.
  • You can always pretend that the business no longer exists. Big companies like Wonga and QuidQuick don’t work anymore, but that doesn’t mean you can’t get the money back. Customers can still file complaints against businesses that are no longer functioning, although they are less likely to receive a refund as they will have to go directly to the administration companies. However, if their complaint is successful and they still have debts, it could mean that they have to repay less, so it’s still worth complaining.

It is not known exactly how many clients the company had on the books when it was put under administration, but it is believed to number in the thousands.

The lender has given loans ranging from £ 80 to £ 200 for new customers who were due to be repaid within a month, and up to £ 800 for existing borrowers.

It is the latest payday lender to collapse, after one of the UK’s largest short-term lenders, Wonga, disappeared in August last year.

QuickQuid, WageDayAdvance, and Juo Loans also called it a day, throwing millions of customers into financial uncertainty.

Wonga’s clients have reported that they have since received compensation even after the bankruptcy, but it has been much lower than expected.

Many companies blamed their collapse on an increase in claims for irresponsible lending.

The directors say they haven’t ruled out a sale of the company but also that it is working to settle its debts to its creditors.

In a statement posted on the 247Moneybox website, administrators warn customers that fraudsters may take the opportunity to trick you into handing over your money to them instead.

How to claim compensation from payday lenders

IF you think a payday lender owes you compensation, here’s how to make a claim according to financial blogger DebtCamel:

You will need to prove that you could not afford the loan when you borrowed it. If having the loan meant you couldn’t pay your bills or other debts, then you were loaned irresponsibly.

You may also be entitled to compensation if you have had late repayments, or have taken out back-to-back loans as this shows that you really cannot afford a new one.

Examine your emails, bank statements, and your credit reporter for evidence.

You will need to write an official complaint letter to each lender explaining how you were irresponsibly loaned out and include the evidence.

You will have to cite “unaffordable loans” and seek reimbursement of the interest and fees you paid, as well as the 8% interest from the Ombudsman on top.

Make copies of all evidence before sending it in in case something happens to them.

Also request that the loan be removed from your credit report.

You can find a sample letter here.

Wait up to eight weeks to hear from them. If you are not satisfied with the response or they do not respond to you, contact the financial mediator.

Borrowers who receive a request to make payments to other bank accounts should contact the customer service team as soon as possible.

You can do this by email at [email protected] or by phone at 0207 183 8078.

The helpline will remain open for existing customers, but the company is no longer accepting applications for new loans.

In the statement, the companies said, “The Company remains regulated by the Financial Conduct Authority, which will continue to oversee the activities of the Joint Administrators throughout the administration process.

Payday lenders have come under pressure in recent years after tighter affordability controls were introduced by the Financial Conduct Authority in 2014.
The new rules prohibited payday lenders from charging borrowers fees and interest in excess of the amount borrowed.

The financial regulator also announced a cap on option-to-buy rental products following The Sun’s Stop The Credit Rip Off campaign.

There has been a huge jump in Britons taking out payday and short-term loans in recent years.

In July, PiggyBank was also temporarily banned from granting loans over “concerns” that it could be irresponsible lending.

Meanwhile, payday lenders are targeting skint parents with loans for school uniforms – at interest rates of up to 1,333%.

Sun’s Stop the Credit Rip-off campaign wants to end exorbitant credit deals

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