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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Footballers, Dead People and Transexuals – What it was REALLY like to work for a payday loans company

Payday lenders get a very hard rap and are often criticised for preying on the vulnerable and charging high rates of interest. But what about the customers they work with? The public opinion is that anyone using a payday loan is frowned upon or vulnerable, but this is certainly not the case. I left University and was offered a job by one of the UK’s largest payday lenders and spent hours a day dealing with customers during the application process and the tough job of doing collections. Most customers were nurses, supermarket workers, hospitality and kitchen staff, but what about […]

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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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Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges have recently launched the Affordable Credit Challenge, in the hopes of creating incentive for community lenders and fintech companies to partner up and develop solutions to help improve affordability within the lending industry. The funding organisation has claimed that high-cost credit loans do have “a role to play in the market” however, “too many people have been turning to these lenders […] when it has not been appropriate for their own personal situation.” Whilst community lending and other not-for-profit lenders can provide a better means of borrowing for people in particular financial situations, studies have shown that many […]

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Hundreds of jobs at risk after payday lender The Money Shop faces collapse

Over 400 members of staff at the Money Shop are being faced with the prospect of losing their jobs. The Nottingham based company has started a mass redundancy of 427 staff around the UK. Instant Cash Loans limited (ICL), who are the major pawn broking and cash loans company have released plans to sell of all of the UK stores. They have sent a letter to all its employees. In the letter ICL stated: “The proposal to make collective redundancies is considered appropriate due to the poor financial performance of Instant Cash Loans Ltd (ICL).” They further went on to […]

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