This is what payday lender Wageday Advance going out of business means for you

By Conor Matchett
Wednesday, 03 April, 2019, 14:50
Payday lenders Wageday Advance have gone into administration (Photo: Shutterstock)

Payday lender Wageday Advance, who had given loans to an estimated 800,000 people, collapsed earlier this year, affecting around 330,000 people.

Following a wave of compensation claims over mis-sold loans, the company entered into administration in February 2019, with the specifics of what this means for customers released last week.

CURO Transatlantic Limited (CTL) own both Wageday Advance and the smaller lender Juo Loans, with all loans from both companies affected by the administration.

What this means if you still owe money?

What this means if you still owe money?

Around 50,000 loans owned by Wageday Advance (including all Juo Loans) were transferred to Shelby, who trade as Dot Dot.

According to DebtCamel.co.uk, the customers transferred were not in arrears and it is believed none had outstanding affordability complaints.

Those 50,000 customers will have received an email from Shelby and will be expected to continue paying their debt off.

Around 650,000 customers have not been transferred and their loans are still owned by CTL. Payments will not be taken from these accounts until after the administration process is finished.

Charges and interest on existing loans have been frozen, but customers can continue to make payments.

Some customers will see a reduction in how much they owe following the administration proceedings due to potential compensation.

As part of the process, the administrators will calculate how much to knock off any outstanding loan and how they will pay the money back.

What if I am owed money?

Part of the reason behind the administration is due to a large amount of compensation claims after customers were mis-sold loans.

All outstanding complaints will be dealt with by the administrators.

However, if customers are owed compensation due to the collapse, they will receive an email detailing what to do.

Any compensation will be based on historic affordability, creditworthiness and responsible lending practices.

No borrower will get the full amount owed due to the lack of money in the business, but providing a claim is made through the correct channels, they will get something from the administrators.

Where to find out more

The debt advice website DebtCamel.co.uk has posted a blog post explaining the processes in more detail.

The administrators, KPMG, have also published an FAQ for customers.

There is also an email address, customerservice.curo@kpmg.co.uk, and a phone number, 0330 094 5695, to call if you are owed money by the company.

This article originally appeared on our sister site, The Scotsman