PAYDAY lender Peachy has collapsed into administration leaving a large number of customers wondering what goes on for their loans.
The firm, which advertised an agent APR of 855 percent on its website, has appointed administrators from Smith & Williamson to consider over the running of the business.
The collapse means Peachy will not be dealing with new loan applications, while existing customers happen to be warned they still need to keep up repayments.
Customers who get behind risk damaging their credit score or just being hit by additional charges.
On its website, Peachy says loans ought to be repaid "in accordance with the timetable agreed when your loan was taken out" and confirmed its bank details will remain the same.
Customers can also still contact Peachy via its customer support line on 0800 0124 743 if they're can not meet repayments.
If you think you had been sold an unafforable loan, you may still make a complaint directly to Peachy.
However, it's unclear the way the administration process affects your chances of getting money back.
We've contacted Peachy for more information regarding this and we'll update this article whenever we obtain a response.
The Financial Ombudsman Service told us it will likely be contacting customers that have already lodged a complaint against Peachy.
However, they won't be able to look into any new mis-selling claims.
A spokesperson said: "We're aware that Cash On Go Limited, who run the lender Peachy, has entered into administration."
Customers who've yet to file a complaint can still contact Peachy by emailing [email protected] or by calling its customer support line on 0800 0124 743.
Peachy was owned by Cash On Go, which confirmed its other business Uploan has additionally collapsed today.
In a statement on its website, Peachy said: "Cash On Go Ltd filed its application for an administration order on 5 March 2023.
"The organization traded as Peachy and as Administrators we will investigate the reasons for the Company's failure and any creditor is thanks for visiting give to us information."
The Sun has asked Peachy if it can share more information around.
Craig Simmons, head of debt policy and strategy in the Money and Pensions Service, told The Sun: "Many Peachy customers will be feeling uncertain about what what this means is for them.
"When you might be lured to stop your repayments, it is vital to keep to your regular schedule because if you have entered into a loan agreement you must fulfil it.
"Should you miss any repayments you may be hit by fees and additional charges, also it may also harm your credit history."
Peachy may be the latest in a type of payday lenders to visit under, following in the footsteps of Wonga and QuickQuid which collapsed following a spike in customer complaints.
Lenders 247Moneybox and Piggybank have also gone bust within the last six months.
It uses stricter affordability checks were brought to stop companies taking advantage of customers who can't afford repayments.
In 2023, the Financial Conduct Authority also introduced rules which banned payday loan lenders charging borrowers more in fees and interest than the amount you borrow.