Borrowers who were sold loans they couldn’t pay back by two failed companies will get a little more than they bargained for.
Around 78,500 QuickQuid and Pounds to Pocket borrowers will receive refunds of some of the interest and fees charged to them at a rate of 53.5 pence for every pound due in the next two weeks, it has been confirmed.
Joint Administrators at Grant Thornton had originally said Borrowers should expect a payment of between 30 pence and 50 pence per pound of interest, fees and charges paid on their mis-sold loans, plus eight per cent interest. But this week, customers have been contacted to say that they will actually receive 53.5 pence for every pound owed, plus interest.
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The update comes after CashEuroNet, which included payday lenders QuickQuid and Onstride.co.uk (previously known as Pounds to Pocket), went into administration in 2019 and stopped lending.
The claims portal for those who believed they had been missold a loan closed last February, making it too late to start a new claim. Customers who claimed before then should have received a decision on their claim by the end of June 2021, and an additional email this week detailing how much they will receive. It is also too late to appeal any decision made by Grant Thornton, as borrowers had 21 days from receiving an initial decision on their claim in June 2021 to do so.
When you submitted a claim, you were required to include the contact details as well as the bank details you used when you applied for your loan, and these will be the details Grant Thornton will use to provide updates on your claim. Any payments due will be transferred this week or next.
It’s too late to update your details with Grant Thornton now, so a check will be sent to the address you provided when you filed your claim. If your address is no longer correct, please contact CashEuroNet customer service on 0800 0163 250.
Payday loans and other short-term credit loans have been widely undersold and dozens of short-term lenders have gone bankrupt, including former Newcastle United sponsor Wonga, leaving customers with legitimate claims receiving significantly reduced payments, or even finding out it’s too late to make a complaint if their lender has broken
If you were unable to repay the loan, or the lender did not review your finances properly, you may be able to get the money back, as lenders must review your finances to make sure you can afford the loan and the fees. If, as was common, that wasn’t done properly and shouldn’t have lent you the cash, or the costs or repayment schedule wasn’t clear, they missold it.
Citizens Advice has a guide to making a claim, including a sample letter to send to your lender here.