Piggy bank enters administration leaving thousands of customers in limbo – The Sun

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Lender PAYDAY PiggyBank went bankrupt, leaving thousands of customers in limbo for repayments and offsets.

The company specializes in lending cash between £ 100 and £ 1,000 to borrowers with bad credit, charging very high interest rates of up to 1,698.1 percent APR.

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PiggyBank was suspended from granting new loans in July this yearCredit: PiggyBank

Short-term loans were to be repaid over periods ranging from seven days to five months.

According to its website, the company went into receivership on December 5. She would have last reported about 45,000 borrowers on the books.

The company in difficulty had been temporarily forbidden to distribute money in July of this year, fearing to lend irresponsibly.

It is the latest in a series of payday lenders brought into administration following the disappearance of one of the UK’s largest short-term lender, Wonga, in August of last year.

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 will 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.

Lender 247Moneybox closed its shop last week, and QuickQuid, WageDayAdvance and Juo loans also called a day earlier this year, plunging millions of customers into financial uncertainty.

Many of them gave in under the influx of irresponsible loan compensation claims.

Customers who still owe PiggyBank money are encouraged to continue making their payments as normal.

Otherwise, they risk damaging their credit rating or be subject to additional charges as a penalty for late or missing payments.

Borrowers who have already submitted claims, and those who have not yet, will be added to a long list of creditors who are owed money.

Both are unlikely to get a payout, as bigger lenders like banks and investors will get paid first.

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 money 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 could not 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 letter template 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.

Wonga clients in a similar situation reported that they had since received compensation even after the bankruptcy, but it was much lower than expected.

Borrowers are also encouraged to stay scammers alert who may be trying to profit from the demise of the company.

Customers are advised to ignore emails and phone calls that ask them to change the bank account they normally make refunds to.

Instead, they should immediately contact the customer support team at [email protected] or call 0800 2061560.

Directors Shane Biddlecombe and Gordon Johnston have not ruled out selling the business to pay off part of its debts.

In a statement posted on PiggyBank’s website, the directors said they would “start working” to reimburse those to whom the company owes money.

He added: “The Company remains regulated by the Financial Conduct Authority which will continue to oversee the activities of joint directors throughout the administration process.”

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