Mis-sold Wage Day Advance payday loan customers will get back less than 6% of compensation claims
Mis-sold customers of collapsed loan provider Wage Day Advance will get only 5.68p of every £1 they're owed in compensation. The news was announced by administrator KPMG, which is overseeing the compensation process.
In February 2019, CURO Transatlantic Limited (CTL), which owned Wage Day Advance and Juo Loans, went into administration. It was left to the appointed administrator KPMG to assess whether each customer loan complied with standards of responsible lending. Those deemed inappropriate are due a payout, but as we reported in April 2019, KPMG warned that mis-sold customers wouldn't be given full compensation.
This week, KPMG announced that 5.68p per £1 will be paid out towards these compensation claims. That means a customer claiming £1,000 back on a mis-sold payday loan, for example, will receive no more than £56.80. A statement on KPMG's website says there's insufficient money in the business to pay claims in full and that there is nothing else they're able to do to increase the amount.
The news echoes that of customers of payday loan giant Wonga getting only 4.3% of their compensation claims earlier this year.
If you've been mis-sold a payday loan from another firm, you could be owed £100s or £1,000s back. See our Reclaim payday loans for free guide for full help.
I'm due a payment – how will I receive it?
Payment will be sent by direct bank transfer using the details that KPMG has on file. You should have received an email to let you know the payment has been processed – these were sent out on Tuesday 20 May or shortly after. If you don't see the amount stated in the email come in to your bank account within seven days of receiving it, contact KPMG's customer service team.
However, some Wage Day Advance customers won't see a payment at all. If you had a loan balance you were still paying off, the compensation you were due will be used to reduce that balance. Any amount remaining will be sent by direct bank transfer.
If the compensation you were due is smaller than the amount you still owe, you'll still have to make payments to pay off the loan. KPMG is contacting all customers in this situation by email, letting them know the bank account details to make payment to (though some may already have these details if they've previously agreed a payment arrangement).
How can I contact KPMG if I don't receive the money?
Its customer service team is working remotely due to coronavirus, so telephone lines have been suspended, but if you need to get in touch, you can email email@example.com. KPMG says its average email turnaround time is seven days, but it warns a reply could take longer depending on the type of enquiry.
I think I'm owed compensation – can I still claim?
The deadline to submit a claim for compensation from Wage Day Advance has passed and administrator KPMG says any claims submitted from now on are unlikely to be considered.
It emailed 256,000 customers believed to be owed compensation last year, inviting them to submit a claim. Those not emailed were able to contact KPMG themselves to ask for a claim to be considered.
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