Martin Lewis issues URGENT warning to anyone who has ever had a payday loan

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Payday loan companies have gone from barely existing existence to growing popularity, regulation and possible extinction in less than a decade.

Wonga – the industry standard bearer – collapsed into administration last summer, while Wage Day Advance and Juno Loans also disappeared.

“These irresponsible companies have fallen under the weight of allegations of unaffordable scavenging and price caps from the regulator,” Martin Lewis of MoneySavingExpert.com explained in his weekly bulletin .

But that does mean that if you or someone you know has taken out a loan, you have very little time left to see if you owe cash back because of questionable practices.

“If you’ve been sold poorly and a business is solvent, you get the full amount back, but if it goes bankrupt, you’re just one of the creditors and you’re lucky to get pennies per pound. hurry up, ”Martin explained.

What you need to do, quickly



The first thing payday loan customers need to do is determine if they can claim it. The good news is that a lot of people can.

“Lenders need to look at your finances to make sure you can pay the loan and the fees. If, as was often the case, it wasn’t done properly and you shouldn’t have received the money. , or if the costs or the repayment schedule weren’t clear, you were sold badly, ”Martin explained.

And the payments can run into the thousands – because people can get all of their interest, fees, and charges as well as 8% per annum interest on all money owed to you.

MoneysavingExpert a a checklist here where you can see if you qualify .

It’s also important to point out that you don’t need a claims management company to get your money back – with free tools like those offered by Resolver.co.uk available to guide you through the process.

The best news is, if you fend for yourself, you don’t have to pay a claims handling company fee that can eat up more than a quarter of your payment.




And what about people who had a loan from a business, like Wonga, which has since gone out of business?

Well, all is not entirely lost.

“If a credit company goes bankrupt, you join a long line of other creditors,” explained James Walker of the free customer complaints service Resolver.co.uk.

In Wonga’s case, it was Grant Thornton – who has now opened a Wonga claims portal .

But you don’t have quite the same rights as if the business is still in operation.

“If you don’t like the response, there’s not much you can do,” Walker said.

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