Consumer finance

Payday loan victims only have days to get the last payment

Customers who have fallen victim to unaffordable payday loans only have days to ensure they get cash back before their lender goes into administration.

Cash compensation is sent to thousands of customers who have taken out loans from Money Shop, Payday Express and Payday UK clients.

But watch your bank account, because if you don’t receive your payment by January 20, you’ll be too late.

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After this date, the Instant Cash Loans (ICL) parent company will go into liquidation and you will not be able to get any more money, so you must notify ICL if you have not received your payment.

Borrowers have also been warned that if they didn’t submit a claim last year, they left it too late now to start.

If your application was accepted last year, the amount you will receive this time will be much less than the first installment, which arrived in May or June.

And borrowers will receive far less cash compensation than the amount loaned to them, as the £18million made available by the parent company of the three Instant Cash Loans (ICL) lenders is to be shared by almost two million of affected customers.

ICL agreed to pay only 4.31 pence for each pound borrowed in the first payment and 0.65 pence for each pound borrowed via the second cash sum.

ICL stopped offering new loans to borrowers in August 2018 and announced a compensation scheme for customers who were mis-sold before October 2019.

A number of other top companies, including Wonga, QuickQuid and Peachy, also collapsed, leaving thousands of customers without full compensation for badly sold loans.

The city’s watchdog, the Financial Conduct Authority, has been urged to close the loophole to protect customers.

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