A Scheme of Arrangement

Paul1118

Can anyone clarify why complaints against charges against Pay Day Loans is not treated the same as PPI as FCA deemed that not covered under The Financial Services Compensation Scheme (FSCS). This has resulted in only receiving  4 % of the award. Can we start a campaign for 100,000 signatures or another way to help?

sourcrates

Well unafordable lending complaints are treated in a similar way to PPI.

With PDL`s, you get back interest paid, plus statutory interest @8%.

With PPI, its a premiums refund, plus statutory interest @8%.

The reason why you don`t get the full amount back under a scheme of arrangement, is because, to avoid insolvency, the company restructures its finances, making X amount of money available for creditors, complaints etc, and then gives a timescale for all claims to be made by, once thats done, the pot is shared between the claimants, thus resulting, in most cases, in a small percentage payout.

jonesMUFCforever

The alternative would be for the company to go into into receivership - absolutely nil amount available for complainers.