Payday lender 247Moneybox goes bankrupt – your rights on how to get compensation – The Sun

Payday lender 247Moneybox has gone bankrupt, leaving thousands of customers in limbo over payments and compensation claims.

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


The short-term loan company went bankrupt

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

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

But unfortunately, you’re unlikely to receive a payment as you’ll be added to a long list of people the company also owes money to – banks and big lenders take priority for repayments.

Harrisons Business Recovery & Insolvency has been appointed as a company administrator to help “achieve an orderly liquidation of the business”.

Are you eligible for payday loan repayment?

MILLIONS of payday loan customers may be eligible for repayments.

Reimbursement or compensation is often granted when the loan has been badly sold or when the financial capacity checks have not been rigorous enough. Here’s everything 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 had trouble repaying the money at the time.
  • If you are still paying payday loan debt, you can still complain. You can complain if you’ve had trouble making refunds. If your complaint is successful, this could reduce the amount you owe.
  • You can always pretend that the business no longer exists. Big companies like Wonga and QuidQuick no longer work, but that doesn’t mean you can’t get some money back. Customers can still file complaints against companies that are no longer operating, although they are less likely to receive a refund as they will have to go directly to the administration companies. Although, if their complaint is successful and they still owe debt, it could mean they have to repay less, so it’s still worth complaining about.

It’s unclear exactly how many customers the company had on its books when it entered administration, but it’s thought to be in the thousands.

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

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

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

Wonga customers have reported that they have since received compensation payments even after the bankruptcy, but they have been much lower than expected.

Many companies have blamed the rise in compensation claims on irresponsible lending for their collapse.

The administrators say they have not ruled out a sale of the business but also that it is trying to settle its debts to creditors.

In a statement posted on the 247Moneybox website, the administrators warn customers that scammers might use the opportunity to trick you into giving them your money instead.

How to claim compensation from payday lenders

If you think you owe compensation from a payday lender, here’s how to claim according to financial blogger DebtCamel:

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

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

Check your emails, bank statements, and credit scorer for evidence.

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

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

Make copies of all evidence before sending it 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 answer, or they do not answer you, contact the financial ombudsman.

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 emailing [email protected] or calling 0207 183 8078.

The helpline will remain open to 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 tougher accessibility controls were introduced by the Financial Conduct Authority in 2014.
The new rules prohibited payday lenders from charging borrowers more fees and interest than the amount borrowed.

The financial regulator also announced a cap on lease-to-own products following the Sun’s Stop The Credit Rip Off campaign.

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

In July, PiggyBank was also temporarily banned from making loans over “concerns” it might lend irresponsibly.

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

The Sun’s Stop the Credit Rip-off campaign wants to end sky-high credit deals

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