Wonga customers receive just 4.3% of compensation owed

Wonga customers receive just 4.3% of compensation owed

It has been revealed that customers of Wonga, which went into administration in 2018 due to the huge influx of complaints, will receive only 4.3% of the compensation they are entitled to. 400, 000 claimants to receive a minimal payout The administrators of the collapsed payday lender, have started informing approximately 400,000 people who made a complaint about mis-sold loans that they will not receive full compensation. Why did Wonga go bust? Previously the biggest payday lender in the UK, Wonga collapsed under the weight of complaints it received. These complaints were mostly related to customers having been sold a […]

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Does my guarantor get charged automatically?

No, this will not happen as soon as you take out a guarantor loan. When a contract is co-signed between the main borrower and the nominated guarantor as an individual, the expectation is the former will be making repayments for the loan. The responsibility of the guarantor is to co-sign the contract and ensure the loan is paid back if it is required of them. The guarantor is only required to pay the guarantor loan back if the main applicant is unable to do so due to a change of circumstances, or if they simply do not pay. Why is […]

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What are the responsibilities of the guarantor?

You are legally obliged to pay the loan back on behalf of the main borrower if they default on the guarantor loan. This is why you should always make sure you have fully understood the potential implications of becoming one when signing a loan agreement. However, you will not need to do anything if the main borrower pays back the loan. You will only need to pay money in the event that the main applicant falls into financial difficulty and can’t pay the loan back, or simply chooses not to. What does being a guarantor involve? The biggest potential responsibility […]

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Can I stop being a guarantor?

No, unless the loan is fully repaid by you or the main borrower this is not possible once the two week initial grace period has finished. After you have signed up to be a guarantor in a formal loan agreement, you have to keep to the terms of the contract. This is why you should make sure you have fully understood the potential financial complications and legal obligations you have when you sign up to become one. Why can I not stop being a guarantor? The guarantor lender has agreed to lend money largely on the basis of your financial […]

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What happens if you cannot repay your guarantor loan?

Tell your lender as soon as possible A new repayment plan may be offered Your guarantor will be contacted to pay the loan if it is not possible for you to do so. If you are the main borrower of a guarantor loan, you should inform your lender immediately if you cannot pay back the loan. If you cannot pay the loan back due to a change in financial circumstances, letting your guarantor lender know can relieve some pressure. This is because most lenders will call, email and send letters to you if you default on payments without letting them […]

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Who could be my guarantor?

Almost anyone can be your guarantor. In most cases people tend to choose one of the following to obtain their loan: Parents Spouse Sibling Grandparent Friend Colleague However, there are certain requirements that an individual needs to meet to become a guarantor. For example, most lenders will require the guarantor to be: Over 21 years old A good credit score Financial stability Homeowner (though not always a necessary requirement) Whether you are asking someone to be a guarantor or someone has approached you to be one, you should make sure it is someone you trust and you are aware of […]

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Payday loans worth £45m borrowed by NHS staff

It has been revealed that employees of the National Health Service collectively borrow on average a staggering £45 million in payday loans each year, according to recent statistics published in the past week. What does the data reveal? The analysis on the payday loan industry was carried out by fintech company FairQuid and based on data by CashLady, and it revealed that NHS employees made up the highest proportion of payday loan applications across the country. This equates to about 3.5% overall. The main reason that was given as to why the applicant had decided to take out a payday […]

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Payday loan complaints soar to 5 year high

The Financial Ombudsman Service has recently revealed in new statistics that complaints against payday lending providers across the country have risen to a staggering five-year high. How many complaints have been filed? The industry watchdog has said that a whopping 40,000 new complaints against payday lenders were brought against them last year. This is a dramatic rise, representing an increase of 130% (17,000 complaints were made in the year previously). The industry body, the Consumer Finance Association (CFA) has said that the majority of these filed complaints had dated back to a number of years. What were the complaints about? […]

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Why January is the worst month for people in debt

It is fair to say that most of us are aware that the last month of the year, December, ends up costing many of us a considerable amount of money. With so many costs to consider in the run-up to Christmas (as well as preparing for New Year’s too…): buying presents for loved ones, food for the multiple dinners and parties during the festive season, transport costs to see friends and family near and far, many of us end up struggling finance wise.  Taking this into account, why do experts still consider January to be the month that people struggle […]

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No-deal Brexit: what would happen to your savings?

No-deal Brexit: what would happen to your savings?

It has only been a few days since Theresa May received the biggest veto in democratic history regarding her withdrawal agreement for the UK to exit the European Union, meaning the UK government and opposition are going back to the drawing table for further discussions regarding Britain’s future, and whether or not Article 50 should be extended or not. At this moment in time, there are a number of potential outcomes, and this includes a no-deal Brexit, especially after the Brexit package was voted down. If this ends up taking place, what could that potentially mean for your savings? We […]

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