Wageday Advance borrowers ‘disgusted’ with only 5% of what they are owed on badly sold payday loans
WageDay Advance “TASTED” customers will only get back about 5% of what they are owed in compensation for poorly sold payday loans.
The lender’s parent company, Curo Transatlantic Limited, went bankrupt in February this year, leaving 650,000 struggling Britons in limbo.
Borrowers then had until the end of August to claim compensation, but only 100,416 claims were submitted out of an expected total of 256,000 eligible clients.
Unfortunately, if you are past the deadline, you will no longer be able to apply and you will not receive any compensation for mis-selling.
But even if you did, you would only get between 4.5 and 5.2 pence for £ 1, the KPMG administrator announced.
This means that a person with a compensation claim of £ 1,000 would only receive between £ 45 and £ 52.
The rate varies because it is only an estimated number so far, but all customers will receive the same rate, KPMG said.
The problem is, borrowers are just one of a long line of creditors who owe money through WageDay Advance.
Unlike Payment Protection Insurance (PPI), payday loans are not covered by the Financial Services Compensation Scheme (FSCS).
How To Check If You Have Been Mis-Sold For A Payday Loan
YOU can claim compensation from a payday lender if the loan was unaffordable, even if you have finished paying it off.
Before a lender gives you a loan, they must check whether you are able to repay it.
For a payday loan to be affordable, you need to be able to pay it off the next month as well as pay off your other bills and debts.
The loan was unaffordable if:
- you often renewed loans or borrowed again soon after repaying a loan;
- your loans from a lender increased in volume;
- some reimbursements were late; Where
- the loan was a big part of your income.
Ask the lender for a copy of your loan details, such as when you took out it and how much interest you paid.
Compare it to your bank statements from the time you took it out and see if you could have paid off the loan after paying your bills.
If you are not successful, you may be able to submit a claim.
For customers who are owed compensation, you will receive it directly to your bank account within nine months and no later than the end of May 2020.
You will receive an email once payment is complete to confirm the amount you will receive.
Since the lender went into receivership, around 5,000 clients have also overpaid on their loans.
These people will be notified by email and then refunded directly to their bank account shortly, although KPMG could not provide a date.
Debt activist Sara Williams, who runs the Debt Camel website, told The Sun: “A reader of my website yesterday said it was ‘disgusting’ how lenders could get away with it.
“There will be hundreds of thousands of Wageday Advance and Wonga customers who agree with this.”
She added: “Wageday Advance customers have been disappointed with UK regulators.
“When a PPI company went bankrupt, anyone who had been mis-sold could get a full refund from the Financial Services Compensation Scheme.
“But clients who have been mis-sold by payday lenders are not covered by FSCS and will only get back pennies per pound. How can that be fair?”
WageDay Advance customers who have questions can contact KMPG by sending an email to [email protected]
Wonga borrowers have less than a week to claim compensation for exorbitant loans, so we’ve put together everything you need to know to file a complaint.
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