Customers who have fallen victim to a bad payday loan only have a few days to ensure they get some money back before their lender goes bankrupt.
Cash settlement payments are sent to thousands of customers who have borrowed from Money Shop, Payday Express and Payday UK customers.
But watch your bank account because if you don’t receive your payout by January 20th, you’ll be late.
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After this date, Instant Cash Loans (ICL) parent company will be liquidated and you will no longer be able to receive the money, so you must notify ICL if you have not received your payout.
Borrowers have also been warned that if they didn’t file a claim last year, it’s now too late to start.
If your application was accepted last year, the amount you receive this time will be much smaller than the first payout received in May or June.
And borrowers are receiving much less cash compensation than the amount they were loaned, as the £18million made available by the three lenders’ parent Instant Cash Loans (ICL) affects nearly two million customers must be divided.
ICL has agreed to pay just 4.31p for every £1 borrowed in the first payment and 0.65p for every £1 borrowed over the second cash payment.
ICL stopped making new loans to borrowers in August 2018 and announced a compensation scheme for customers who missold loans prior to October 2019.
A number of other high-profile firms, including Wonga, QuickQuid and Peachy, have also collapsed, leaving thousands of customers without full compensation for badly sold loans.
The financial regulator, the Financial Conduct Authority, has been asked to fill this loophole to protect customers.
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