MILLIONS of payday borrowers who've had loans from The Money Shop and Payday UK are now able to submit mis-selling claims as the lenders have set-up a compensation scheme.
The Money Shop, Payday UK, and Payday Express are pay day loan brands operated by one parent company called Instant Cash Loans (ICL).
ICL stopped dishing out new loans to borrowers in August 2023, while between March and July this season it either closed or sold all its high street stores.
But the now company, that will officially close down once claims happen to be handled, has now set up a compensation scheme for borrowers who were lent to despite not being able to repay the loans.
Borrowers now have until April 9, 2023 to submit mis-selling claims, with all of payouts likely to be produced by the end of 2023.
ICL says it will email or write to affected customers affected by October 19, 2023 to describe how they may claim – with an online portal being set-up for this function.
People who aren't comfortable making a claim online will be given a helpline number to call but this isn't available yet.
If you think you're owed cash by the firm and you don't listen to ICL you need to contact it on [email protected]
The group said in September that it's looking to have a lb20million pot to cover complaints from the 2.6million customers.
But it's also warned that individuals could get back as little as 14p in each and every lb1 owed, although this will depend on how many people claim.
ICL says it's still more than the 1p in every lb1 it reckons you'd have if it went into liquidation.
You'll also be paid 8 per cent interest on the top.
You don't need to resubmit complaints that were submitted before July 19, 2023.
The only complaints that need resubmitting are those that either ICL or even the Ombudsman have previously rejected.
If your claim is rejected by ICL you will be able to inquire about a completely independent third-party adjudicator to consider it – we've asked ICL what this signifies used and we'll update this story when we have a response.
Sara Williams of debt blog Debt Camel said: "Hundreds of thousands of people received repeated pay day loans by the Money Shop, Payday UK and Payday Express.
"If you had loans with them for every month, these were probably "unaffordable" – paying financing left you so short you had to borrow again.
"Here's your chance to acquire some from the interest you paid back – it won't be all, but it's going to be easy to include a complaint.
"You won't have to prove the loans were unaffordable or send any proof of the loans."
Payday lenders have recently been accused of targeting students heading off to college by offering loans charging up to 1,294 per cent interest.
They've been targeting skint parents and charging 1,333 percent interest on children's school gear.
But you are able to reclaim mis-sold pay day loans yourself, don't use "rip-off" businesses that take nearly half of refunds.