Half a million Sunny payday loan customers to get credit records wiped out on badly sold loans
Half a million Sunny payday loan customers are on the verge of wiping their credit records for poorly sold loans.
The boost means thousands of customers will get defaults or missed payments markers removed from their records, giving their credit profiles a healthy record.
But separately, more than 500,000 Sunny customers owed thousands of pounds in repayments on poorly sold loans are expected to receive as little as 1% of money owed – or about a penny a pound.
KPMG, directors of the late high interest lender have confirmed that they will automatically clear customer credit records for the following reasons:
- for the top five of the loans that have been deemed unaffordable, they will remove defaults or missed payment markers;
- any unaffordable loans after the first five will be deleted from your credit report.
The news offers some comfort to borrowers who have been badly sold “unaffordable” loans by Sunny.
Are you owed a payday loan repayment?
MILLIONS of payday loan customers can be repaid.
Repayments or compensation are often given when the loan has been mis-sold or when affordability checks were not strict enough. Here’s all you need to know:
- Customers who have paid off their payday loan debts can still claim. Even if you have paid off your debts, you may still be able to get a refund if you struggled to repay the money at the time.
- If you are still paying off your payday loan debts, you can still complain. You can complain if you had trouble paying back. If your complaint is successful, it could reduce the amount you owe.
- You can always pretend that the business no longer exists. When payday lenders go bankrupt, you can still submit claims to the business administrator, although you are less likely to receive a refund because you will only be one of a long line of people who owe money. Also check the claim deadlines as some administrators have imposed deadlines.
The company has specialized in loans at rates as high as 1,267 percent APR.
The payday giant had around 700,000 customers of which around 500,000 were allegedly mis-sold loans.
A “shockingly high number,” according to debt activists.
Sara Williams, Founder of Debt Camel, said: “The scale of Sunny’s mis-sales is breathtaking.
“Five in seven Sunny customers got too many loans, more than they were affordable. Even the Wonga administrators only had to reimburse 400,000 people. “
Customers will be notified via email if they need to be refunded and will then need to submit a claim by logging into their sunny “My Account” or by calling customer service on 0800 7315 444 to reset your details.
In another coup, Sunny’s administrators warned that the more people there were who made a claim – the less money or “dividend” there would be to share among the claimants.
In addition, if there are not enough funds to pay a “dividend,” the directors may ask the court for permission to donate the remaining money to charity.
Customers who commented on the Debt Camel website said they felt ripped off by Sunny and abandoned by regulators.
How to claim compensation from payday lenders
IF you think a payday lender owes you compensation, here’s how to make a claim according to financial blogger DebtCamel:
You will need to prove that you could not afford the loan when you borrowed it. If having the loan meant you couldn’t pay your bills or other debts, then you were loaned irresponsibly.
You may also be entitled to compensation if you have had late repayments, or have taken out back-to-back loans as this shows that you really could not afford a new one.
Check your emails, bank statements and credit reporter for proof.
You will need to write an official complaint letter to each lender explaining how you were irresponsibly loaned out and include the evidence.
You will have to cite “unaffordable loans” and ask for reimbursement of the interest and fees you paid, as well as the 8% interest from the Ombudsman on top.
Make copies of all evidence before sending it in in case something happens to them.
Also request that the loan be removed from your credit report.
You can find a letter template here.
Wait up to eight weeks to hear from them. If you are not satisfied with the response or they do not respond to you, contact the financial mediator.
One wrote: “I got an email from Sunny today saying they are contacting credit reference agencies to sort things out like this. 66.48.
“It stings a bit but it’s better than nothing. “
Another added: “It’s pretty hilarious how a few years ago the finance company was able to pay for TV commercials and commercials when they had almost no money left.
“Apart from adding eight percent to the debt, we were only asking for the repayment of interest (on the principal already repaid).
“Is there a way to view Elevate payroll records for the 12 months prior to their bankruptcy?”
“So one question remains: where did all the marmalade go? “
Many have expressed frustration at being left behind.
A third wrote: “I accepted 45 pounds. Why I do not know. But there. Hope to be more with icl.
While another said: ‘Weird £ 6,000 this says my potential claim is and I will get a maximum of £ 60 back. It’s mental that this company got away with it. “
And a fifth said: ‘Ahh bad email they now say the amount is £ 297 so maybe i should get £ 2.97 i will try not to spend it all at once if i get it lol. “
Britain’s largest payday lender QuickQuid came under administration in October of last year.
Customers have until February 14 to claim badly sold loans.
They must file a complaint on the claims.casheuronetuk.co.uk website.
Unlike Sunny, credit score corrections will not be automatic, so they are encouraged to do so before the deadline.
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