Mis-sold customers of payday loans won’t receive full compensation

Mis-sold customers of payday loans won’t receive full compensation

After the collapse of payday loan lenders Juo Loan and Wage Day Advance, as we have previously written earlier this year, it has now been revealed that customers who were mis-sold loans will now only be partly compensated. The company that owns the two businesses, CURO Transatlantic Limited (CTL) went into administration on 25th February and appointed KPMG as its administrator. How much compensation is owed? In terms of the amount that is owed to customers who were sold a payday loan which did not meet lending standards set out by the FCA, it is estimated to be around £223 […]

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Payday loan advert banned for encouraging Brexit fears

Payday loan advert banned for encouraging Brexit fears

This month, the payday loan short-term credit provider Peachy.co.uk most recent advertisement campaign has been banned by the Advertising Standards Authority (ASA). The reason behind this was that its advert was seemingly capitalising on consumers fears about the outcome of the Brexit referendum.   What was in the advert? The email advertisement by Peachy.co.uk (which is part of Cash on Go Ltd) promoted short-term loans to people with the specific aim of those hoping to purchase stockpiling goods should the outcome of Brexit be a no-deal scenario. It featured in bold text ‘IN CASE OF EMERGENCY PRESS HERE’ whereby if […]

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Wonga still damaging borrowers finances

Wonga still damaging borrowers finances

Despite Wonga going into administration in August last year, it is still gravely affecting the finances of 10,500 borrowers as a result of its collapse, according to  MPs in a recent Treasury Committee meeting. Thousands of customers who were the victim of mis-sold, eye-wateringly expensive payday loans could end up losing thousands of pounds in compensation as a consequence. But why is Wonga struggling to readdress the issues that have resulted due to its closure? We take a further look, and how this will affect its payday loan borrowers.   A surge in compensation claims One of the main factors […]

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Sharp increase in UK borrowers taking out payday loans

Sharp increase in UK borrowers taking out payday loans

In latest data provided by the Financial Conduct Authority, it has been revealed that there has been a sharp increase in the number of borrowers in the UK taking out payday and other kinds of short-term loans in the last year. It is estimated a staggering 5.4 million loans for people with bad credit were taken out in the year up to June 2018. Comparatively, this is a huge jump when taking account of the statistics for the year previously. The huge increase in payday loan borrowing In 2017, it was estimated that just 4.6 million was taken out for […]

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UK consumer borrowing at four-year low

UK consumer borrowing at four-year low

It has been revealed that the annual consumer borrowing growth rate has ground to a four-year halt, with annual consumer credit growth ending up slowing to 6.6% in December. The statistics, officially revealed by the Bank of England in late January, are in line with other forms of consumer credit growth that has been falling, as more and more households across the country reduce their levels of borrowing for things such as car finance, payday loans for bad credit, personal loans and credit cards. A reduction in Christmas spending. It also reflects a reduction in consumer spending during the festive period, […]

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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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Brits predicted to spend £1bn on Christmas Day 2018

Brits predicted to spend £1bn on Christmas Day 2018

Christmas is a time of year where most of us Brits get spending big time. Some of us even spend way beyond our means only to have to deal with the consequences later by paying off a hefty credit card bill or paying back a payday loan – this is not advisable. Doing so could leave you in high levels of debt and it is simply not worth it for that extra big turkey or those few extra presents which were out of your budget. It is common that people do not just spend a ton of money leading up […]

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Religions and Lending Money

Religions and Lending Money

It may be of interest to know that religions have differing opinions on the subject of lending money. The differing of opinions does not come into play until the subject of interest is brought up, for in no religion is lending money frowned upon, but in some, placing interest on the loan is prohibited. We are going to be looking further into this concept in this guide. Although the debate appears to be rather ancient, it is still ongoing in some capacity today in a variety of areas, which we will detail here. Religious Background Typically speaking usury, defined as […]

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What does subject to status mean?

What does subject to status mean?

Subject to status means that your loan application will be subject to credit rating and income to be approved. Therefore, you will need a certain credit score and minimum income to be eligible for a loan. If you have ever applied for credit, you will be very familiar with the three words ‘subject to status’. But what does it actually mean? Alongside the usual marketing jargon, in regard to the features and benefits of credit products, the phrase “subject to status” can often seem out of place. Nonetheless, it appears that one every application page and is actually required by […]

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