Payday lender's collapse to hit borrowers

Willing2Learn

Hundreds of thousands of people who were mis-sold payday loans will receive a fraction of the compensation they are entitled to after a lender collapsed.

WageDay Advance had given loans to about 800,000 people but went into administration earlier this year.

In a case that mirrors the demise of Wonga, the company folded after being hit by a wave of compensation claims for mis-sold loans.

Customers are now receiving emails to explain how much they owe or are owed.

However, now the company is in administration, those who have paid off loans but are entitled to compensation have become unsecured creditors. They can only expect a fraction of the full compensation payout.


Full article @ BBC Business

D_M_E

Reading the article, it would appear that those who still have an outstanding loan with Wageday will have any and all compensation due applied to their loan, thus reducing - or even clearing - the amount left to pay, yet those who have paid off their loan will only get pennies, if anything, of what they are due.

If this is the case it seems grossly unfair.

foxy-stoat

Never thought you were able to get "sold" a loan, you take out a loan normally....after reading the terms and conditions and accepting them....then coming on here to complain about it.

Well done to folk who get money back though !

School day today.