How to reclaim money on your payday loans
If you want to reclaim any money back from payday loans you must act now. You may be eligible for a claim if you feel they were mis-sold to you. There’s not much time to act, with many deadlines to make a claim imminent. So if you have taken out a payday loan make a claim for FREE – as soon as you can. You do not have to go through a debt management company. Simply follow our guide below.
Urgent – Act now!
Many payday loan companies such as Wonga have fallen into administration. Unfortunately, administrators have stressed that you will not be paid the full amount owed if you make a claim. The remaining money from the company will be redistributed amongst all of its creditors during the administration process, but it is still worth pursuing. UK Money Blogger Debt Camel has written a great guide to template letters, outlining what information to include with your submission.
Following a court hearing on 25 April 2019, the Joint Administrators of WDFC UK Limited (trading as Wonga.com) issued this statement to people who had taken out a loan. Any claims must go through these administrators to be considered for a refund.
Please note all claims against Wonga must be submitted by 30 September 2019 or they may not be considered for assessment.
1. Notice of intention to declare a dividend (from Wonga)
Please note that in order for the Joint Administrators to set a final date for those who are owed money to submit a claim, they must issue the notice in the link above. As you will see from the notice, all claims must be submitted by 30 September 2019 or they may not be considered for payment. It is expected, unless you receive a notification to the contrary, that the Joint Administrators will make a payment to accepted claimants within four months of 30 September 2019, i.e. by 30 January 2020.
For those claimants who have already submitted a claim, no further action is required from you at this stage and the Joint Administrators will be in touch when they are ready to assess your claim.
If you have not yet submitted a claim and believe you have been sold an unaffordable loan by Wonga, as per our previous correspondence, all customers should make a claim through the Online Claims Portal.
Please be aware, if successful, the payment you receive will be considerably smaller than your accepted claim amount. The expected total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of Wonga’s assets have been sold or realised and certain costs and deductions have been taken into account.
Guide to eligibility for refunds
Wonga’s administrators notified me that I am eligible for a refund on some of my loans, which exceeded my affordability to pay back. Not all of the loans I took out were accepted for any refunds. The overall claim value I have been told is £2,190.44, but it is clearly stated that I will not receive this in full.
What was the assessment criteria?
Loans have been assessed against a number of affordability criteria:
- Loan value as a proportion of income
If a loan’s value was greater than 30% of your income at the time that you took out the loan, your claim for that loan has been accepted.
- Time in loan or number of loans
Subject to the type of loan borrowed from Wonga, if you were a repeat borrower of Wonga loans for a significant number of loans or period of time (without a break from Wonga of at least 6 months) your claim for all loans beyond the number or period of time threshold have been accepted.
- Additional affordability factors
In addition to the above, if there was any evidence that the loan(s) were unaffordable, e.g. payments in arrears or a record of you contacting Wonga and reporting hardship, your claim for all loans after this point (without a gap of at least 6 months) have been accepted.
Please note that any loans that have been previously compensated have not been re-assessed by the Joint Administrators.
Payday loans providers
Wonga, Wage Day Advance, Mr Lender, Lending Stream, PaydayExpress, QuickQuid, Cash Genie, 1st Stop, Quid, Capital Finance One are all examples of payday loan providers.
I took out payday loans with every single one of these companies within a 12 month period from 2011-14. Starting with loans between £100-300, they escalated within a 9 month period due to the excessive interest. One loan I took out for £1,000, I had to pay back £1,282.08 the next month. It was only a matter of time before I defaulted on my loans and ended up in a financial mess. All of which was incredibly stressful.
Wage Day Advance
Wage Day Advance Administrators contacted me a few months ago with this email. The deadline to submit a claim is 31 August 2019. Check your inbox and junk mail if you also took out loans with them.
CURO Transatlantic Limited (formerly trading as WageDayAdvance and Juo Loans) (in Administration) – “CTL” Joint Administrators – Howard Smith and Ed Boyle
You are receiving this email because the Joint Administrators believe that you may have a redress claim against CTL in relation to one or more loans that you have previously taken out from CTL.
A deadline for the submission of redress claims in the Administration has now been set of 23:59 hours on 31 August 2019.
Details of your estimated redress claim in the Administration are provided below, along with a link through which you may submit your claim.
If you wish to be entitled to receive a payment in the future, you will need to submit your claim in the Administration.
Despite being told that I have a claim amount. I am not expecting much back but at the same time, it is worth making a personal claim.
MoneySavingExpert Resolver Tool
I have made claims with Wonga, Wage Day Advance and The Money Shop (Pay Day UK & PayDay Express) direct.
MoneySavingExpert’s Resolver tool is available to make other claims for potential repayments with payday loan providers. Resolver was set up under the expert guidance of Martin Lewis. You are able to make a claim and follow up once your claim has been submitted using this free tool.
What are payday loans?
Payday loans are short-term loans, designed to bridge a gap in your finances ‘between paydays’. Despite the fact that they offered loans with such high interest. Many people like me took them out to help with short-term financial shortfalls. However, once you fell into the payday loan trap. You may have started to take out more because you could not afford to repay them.
Pay Day Loans: Representative example 2623.3% APR Variable
How do I check if I have been mis-sold?
You should only have been granted a loan if you were able to pay it back. Check this list to see if you can also make a claim.
- If the lender did not make clear to you how much it would cost you in total to repay the loan. You should have been given an example of the price for each £100 borrowed, including fees and charges.
- You weren’t given full or accurate information about how and when to pay back your loan.
- The lender did not sufficiently check your finances or personal situation to make sure you’d be in a position to pay back the loan. Here you can take such factors into account as your age, mental health, employment status, income, expenditure, proof of identity or financial history.
- The lender didn’t tell you that a payday loan should not be used for long-term borrowing or if you are in financial difficulty.
- You weren’t told by the lender what to do if you have a complaint.
- The lender didn’t make clear to you how continuous payment authority (CPA) works – where you agree to pay off the loan by making a series of deductions from your credit or debit card – and your right to cancel it.
- The CPA didn’t tell you in advance that it was going to take money from your account.
- The lender didn’t include a risk warning about late repayment in its advertising.