Borrowers who got badly sold loans from two busted companies that they couldn’t afford will get back a little more than they bargained for.
Around 78,500 QuickQuid and Pounds to Pocket borrowers will receive a refund of some of the interest and charges they have been charged over the next few weeks at 53.5p for every pound owed, it has been confirmed.
Joint Administrators at Grant Thornton originally said Borrowers face a payout of between 30p and 50p for every £1 in interest, fees and charges paid on their missold loans, plus eight per cent interest. But this week they have contacted customers to say they are actually being paid 53.5p for every £1 owed plus interest.
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The update comes after CashEuroNet, which owned payday lenders QuickQuid and Onstride.co.uk (formerly 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, so it’s too late to make a new claim. Customers who previously made a claim should have received a decision on their claim by the end of June 2021 and a further email this week detailing how much they will be getting back. It is also too late to appeal Grant Thornton decisions as borrowers had 21 days from receiving an initial decision on their claim in June 2021 to do so.
If you have submitted a claim you should provide the contact and bank details you used to obtain your loan and this information will be used by Grant Thornton to provide up to date information about your claim. Any payment due will be transferred this or next week.
It is too late to update your details with Grant Thornton now, so a check will be sent to the address you provided when you applied. If your address is no longer correct, contact CashEuroNet Customer Service on 0800 0163 250.
Payday loans and other short term credit loans were made widely missold and dozens of short-term lenders have gone bust, including former Newcastle United sponsor Wonga, leaving customers with legitimate claims with significantly reduced payouts – or even finding it’s too late to lodge a complaint if their lender has gone bust.
If you couldn’t afford to pay off the loan or the lender didn’t screen your finances properly, you may be able to recover money because lenders need to screen your finances to make sure you can afford the loan and the fees. If, as was usual, that wasn’t done right and you shouldn’t have borrowed the money, or the cost or repayment schedule wasn’t clear, you were missold.
Citizens Advice has a guide to making a claim, including a sample letter to send to your lender here.