Former customers of payday lender PiggyBank could demand compensation

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Up to 387,000 former clients of a collapsed payday lender could seek redress if they believe they have been sold an unaffordable loan.

Directors of DJS (UK) Limited – which operated as PiggyBank – say they were unable to determine the number of unsecured creditors as they don’t know many claims.

The company was one of the UK’s top 10 payday lenders, offering short-term loans of up to £ 1,500 online, at an interest rate of 0.8% per day.

It had 57 employees based at Parkway House in Avenue Road, Bournemouth, in mid-2018, and had been voted one of the UK’s best companies to work for.

But it was suspended from its loans after the Financial Conduct Authority raised concerns that its affordability controls were not good enough. He took office at the end of last year.

PiggyBank owner DJS (UK) Limited goes into receivership

A progress report by co-director Shane Biddlecombe, HJS Recovery, said the company had a loan portfolio of £ 24.7million at the time of his administration, of which £ 1.59million had been collected.

Since the coronavirus lockdown, loan collections have fallen from around £ 300,000 every four weeks to an average of £ 226,000 every four weeks.

“We have continued to receive relief requests and since the appointment date 278 borrowers with active loans have obtained a relief request which has been deducted from their outstanding balance owed to the business,” Mr. Biddlecombe wrote.

The claims amounted to £ 120,208.

He added, “There are 387,000 former customers who may have the right to seek redress against the company. ”

Directors were required to invite and assess claims from former clients, who would join claims from other unsecured creditors, he said.

“We have not included a figure for the total unsecured creditors, as it is currently not possible for administrators to accurately assess the level of customer claims for redress at this stage,” he said. added.

There should be £ 600,000 left over to pay off unsecured creditors.

Directors expect to realize £ 16.5million on the company’s assets.

She had 46 bonds – loans backed by her assets – held against her by wealthy investors. It is expected that there will be £ 13.9million for investors, who owe around £ 21.8million.


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