Payday Loans

Payday loan provider Sunny has collapsed into administration and will no longer be offering new loans. 

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.

Those who were mis-sold payday loans by Wonga before it collapsed will receive just 4.3% of the compensation they're owed, according to the firm's administrators.

The number of complaints against payday loan firms soared by 130% in the past year, new figures from the financial watchdog show. But the majority of claimants are using claims management firms, meaning they won't get the full compensation payout if successful. If you've been mis-sold, here's how to claim for free.

Administrators for payday loan providers Juo Loans and Wage Day Advance, which collapsed in February, have admitted that customers who are owed compensation will only receive a "partial payment" for their claims.

The financial regulator has written to payday lenders today telling them they must compensate customers who were sold unaffordable loans.

Wonga has gone into administration, marking the end of the road for the UK's largest payday loan firm. Below you can read MoneySavingExpert.com founder Martin Lewis's view.  Before we hear from Martin, from what we know the administrator Grant Thornton says all outstanding loans remain subject to the terms agreed with Wonga and customers should continue to make payments in the usual way. Grant Thornton also says customers with mis-selling claims should contact it – you'll be dealt with an 'unsecured creditor', but don't expect to get much back as there's a long list of people owed money when companies go into administration and customers are rarely anywhere near the top priority. 

Hollywood actor Michael Sheen has launched a new campaign to tackle high cost credit and provide "fairer" alternatives for those who use payday lenders and rent-to-own firms.

Forty-one per cent of those in work have not had a pay rise in the past year, according to a new poll of MoneySavingExpert.com users. Just a quarter have had a rise that matched or exceeded inflation, while those on the lowest salaries are generally least likely to have seen a rise.

Unarranged overdraft fees could be overhauled as the regulator pledged to continue to tackle high-cost credit, and announced it will keep the price cap on payday loans.