Archive for November, 2015

One Advice Group Statement Regarding CashEuroNet

CashEuroNet, trading as QuickQuid and Pounds to Pocket has become the latest payday lender to be told by the FCA to pay out £1.7 million in compensation to customers.

CashEuroNet UK LLC, trading as Quick Quid and Pounds to Pocket has agreed with the Financial Conduct Authority (FCA) to provide redress to almost 4,000 customers to the value of £1.7m. This follows concerns raised by the FCA about the firm’s lending criteria.

An independent Skilled Person was appointed by the FCA in September 2014 to review CashEuroNet’s lending decisions which revealed that some customers were able to borrow amounts greater than they could afford to repay.

CashEuroNet has made changes to its lending criteria and has reassessed all loans that have been granted since 1 April 2014 and which were in arrears for 30 days or more against the new criteria.

The 3,940 affected customers will receive redress totalling £1.7 million as follows:

  • 2523 customers will have their current loan balance written off.
  • 961 customers will be paid a cash refund of interest paid on the unaffordable element of the loan, and;
  • 456 customers will receive both a cash refund and have their current loan balance written off.

 

There is further information on the websites of Quick Quid and Pounds to Pocket. 

Customers do not need to take any action. Any customers that have taken loans out with QuickQuid or Pounds to Pocket do not need to take action, as CashEuroNet will be contacting their borrowers directly, intending to fully complete the redress exercise within the next 60-90 days.

Once contacted by CashEuroNet, if the redress you are entitled to affects your debt management plan with Harrington Brooks we will contact you to ensure that your plan and payments are appropriately reviewed.

One Advice Group Statement Regarding Dollar Financial UK

The Money Shop, Payday UK, Payday Express and Ladder Loans (Dollar Financial UK) is to refund over £15.4 million to 147,000 customers

In July 2014, Dollar Financial UK better known as The Money Shop, Payday UK, Payday Express and Ladder Loans was investigated by the FCA to ensure that customers were being treated fairly and that their practices were in keeping with the appropriate specifications.

The report revealed that the company has been lending sums that their customers cannot afford to repay and have therefore been ordered by the FCA to rectify this issue. This problem has been attributed to Dollar’s debt collection practices, affordability checks and systems errors.

The FCA’s Director of Supervision – Retail and Authorisations, Jonathan Davidson, has stressed the importance of these checks, stating that the FCA believe that “Dollar is committed to putting things right for its customers.”

Dollar Financial UK’s redress relates to affordability loans taken out between 1 April 2014 and 30 April 2015, and collection loans between 1 January 2013 and 30 April 2015.

  • 65,000 customers will receive cash refunds
  • 67,000 customers will have their current loan balance reduced
  • 15,000 customers will receive a combination of these two techniques.

Further information has been made available for customers here

Any customers that have taken loans out with any of the Dollar brands (The Money Shop, Payday UK, Payday Express and Ladder Loans) during the above dates do not need to take action, as the company will be contacting their borrowers directly during November and December 2015, intending to fully complete the redress by early 2016.

Dollar have confirmed to Harrington Brooks that the following process will be applied:

  1. Each account will be assessed and client will receive a personal loan refund breakdown if they qualify for a refund. This will show what they have borrowed, what they have been charged, and what they should have been charged.
  2. The redress will be applied to the balance outstanding of the loan in first instance.
  3. If there is any credit this will be send directly to customer’s bank accounts.
  4. If there is any balance still to pay the customer will be notified on the refund breakdown that they need to still pay a given amount.

Once contacted by Dollar, if the redress you are entitled to affects your debt management plan with Harrington Brooks we will contact you to ensure that your plan and payments are appropriately reviewed.

Further information is available on The Money Shop, Payday UK, Payday Express and Ladder Loans websites.

The One Advice Group provides a range of professional financial services, debt resolution, personal insolvency solutions and legal claims and advice. Our brands are regulated and monitored in their respective fields by The Financial Conduct Authority (FCA), The Insolvency Practitioners Association (IPA) and the Solicitors Regulatory Authority (SRA).