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Over 30,000 247MoneyBox borrowers to receive redress for mis-sold loans this week – but they’ll get back less than 10% of what they’re owed

Over 30,000 247MoneyBox borrowers to receive redress for mis-sold loans this week – but they’ll get back less than 10% of what they’re owed

Over 30,000 247MoneyBox borrowers, who were mis-sold payday loans they couldn't afford, are to receive refunds of some of the interest and fees they were charged by this Friday (15 April). But they'll get back less than 10% of what they are owed.

In its latest update, payday lender 247MoneyBox confirmed that affected borrowers would receive a pay out of 9.35p per £1 of interest, fees, and charges paid on their mis-sold loans (plus 8% statutory interest).

Payouts began on 1 April 2022, with a second round taking place this week. Just over 34,000 people will get a refund. Most people should receive their redress by Friday 15 April. 

247 MoneyBox offered high-interest short term loans and payday loans to borrowers who struggled to access standard credit. But it's been hit hard by mis-selling claims for incorrectly issued loans and went into administration in November 2019.

It follows a similar decision by lender Provident, which this week confirmed customers it mis-sold loans to would only get back between 4p to 6p per £1 owed.  

See our Payday loan mis-selling guide for more info if you think you’ve been mis-sold to.  

What happens if I was mis-sold a 247MoneyBox loan?

If you submitted a claim to 247Moneybox, you would have been asked to provide up to date contact and bank details. These are the details 247MoneyBox will use to pay any redress owed. If you're expecting a payment and haven't received it yet, you should contact 247 MoneyBox's administrator, Harrisons Recovery, by email at: 247dividend@harrisons.uk.com  

If you’ve accepted redress but not provided bank details, or your information is not up to date, 247MoneyBox told us it will pass on the unpaid amount to the Insolvency Service. You can contact the “Unclaimed Monies Team” at the Insolvency Service to claim your payment. It can be reached via their helpline: 0300 678 0015. 

247MoneyBox told us there are just under 6,000 people who fall into this category, so ensure you don’t miss out. 

It’s now too late to submit any new claims to 247MoneyBox. Its administrator, Harrisons Recovery, stopped accepting complaints on 31 January 2021.

I think I've been mis-sold a loan by a different lender

If you think you've been mis-sold a short-term loan, including payday loans, you can make a complaint for free yourself. We've included a brief summary, with links to our complaints tool below, but you can also see our full Payday loan mis-selling guide for more info:

  1. How do I know if I can make a claim? Lenders must examine your finances to ensure you can afford the loan and fees. If, as was common, that wasn't done properly and you shouldn't have been lent the cash, or the costs or the repayment timetable weren't clear, you were mis-sold. See our checklist for more help. 

  2. You needn't pay a claims firm – use our FREE TOOL. Claims firms can take 25% + VAT off your claim, so instead use this quick link to our tool (available via complaints site Resolver). Enter your details and it helps draft the complaint, sends it to the lender, keeps track and escalates to the Ombudsman if you're rejected. Or you can use our template letter to do it yourself for free by email/post. 

  3. Don't delay – you could get MUCH less if your lender goes into administration. Dozens of short-term lenders have gone bust, including big name payday lender Wonga, leaving customers with legitimate claims getting significantly reduced payouts  - or even finding it's too late to make a complaint. See what to do if your firm has gone bust.

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