PCF liquidation😱

Cookie27

Hi all,

  I’ve received this email regarding a DCA with PCF bank. My understanding was that it was being taken over by Link Financial but now looks like it’s being liquidated. They told me I did have a DCA on my agreement in their first response but this looks like bad news. More for everyone’s information really👍

Nasqueron

Wait for the review, no guarantee the FCA will say DCA was bad or should be refunded, you might have had positive DCA, you might become a creditor and get some pennies in the pound as well. No point worrying now

[Deleted User]

Yes you are lucky as the liquidation is only just happening so you could be listed as a creditor in the liquidation and, if you were entitled to redress after the FCA review, the liquidators can give you something.  Where the company has been liquidated / dissolved a long time ago it is very likely you would get nothing.  Experience with these is variable, Wonga for example, people got pence in the pound as redress, but there were millions of claimants.  PCF is more niche and they have made the decision to go into liquidation, it hasn't been forced due to financial issues.  It is likely they will try and leave the firm with as little money as possible.  Still your claim is where it needs to be and the liquidators may contact you after the review.  If the review finds in favour of DCAs and redress in general and you don't hear from them after it, I would make proactive contact with them after the review.  Best of luck.

DullGreyGuy

Bit lax wording there, they will enter into liquidation in June but the process of liquidation for a complex organisation like a bank will take a substantial amount of time. 

PCF bank was not sold to Link Financial, the company simply sold certain assets which include the receivables of loans. Presumably you paid off your loan before the sale and so you wouldn't have moved between the companies.

[Deleted User]

Hmm, usually yes but where the liquidation is voluntary as they are choosing to exit the market it can be much quicker than if it was a messy collapse due to financial issues. Sadly experience has shown they will try to leave as little money as possible. I don’t know what you think about it @DullGreyGuy but this ability to selectively close a firm and ‘exit the market’ primarily to avoid paying redress (several pay day / high cost credit firms come to mind) especially when the firm was financially stable feels wrong for the consumer. I hope the FCA takes action as was done for unscrupulous directors who were previously able to loophole themselves out of responsibility.

DullGreyGuy

[Deleted User] said:

Hmm, usually yes but where the liquidation is voluntary as they are choosing to exit the market it can be much quicker than if it was a messy collapse due to financial issues. Sadly experience has shown they will try to leave as little money as possible. I don’t know what you think about it DullGreyGuy but this ability to selectively close a firm and ‘exit the market’ primarily to avoid paying redress (several pay day / high cost credit firms come to mind) especially when the firm was financially stable feels wrong for the consumer. I hope the FCA takes action as was done for unscrupulous directors who were previously able to loophole themselves out of responsibility.

They started the process in 2021 so barely a lightening fast process. In 2023 they announced the sale of certain in force business and return of deposits for business that wasnt to be sold. We are now 9 months later and the liquidation process has only just about to start. 

The general guidelines for a Members Voluntary Liquidation is 6-12 months depending on the complexity of the business. Given there are multiple entities involved in the UK alone it's not going to be at the shorter end of the scale. 

Maybe 4 years is a rapid exit in your book, it's certainly not what the average person thinks is quick. Similarly matters can change whilst the liquidator is doing their job if the announcements in the Gazette etc brings people out of the woodwork to show things were in more of a mess than thought. 

Would need to know which payday lender you are referring to to have a hope of passing comment on their liquidation.

[Deleted User]

Elevate Credit known as Sunny. Voluntarily exited the UK market and dissolved in 2 years. Quicker for a lender due to the voluntary nature vs financial collapse but longer than the 6-12 months. They did this deliberately to avoid paying redress to consumers which I find wrong and think future regulation should cater for where the parent company / group has sufficient funds to avoid firms (as directors used to) simply ‘getting away with it’ so to speak.