Payday loan customers will only get 1% compensation from defaulting lender Sunny



Sunny became the latest high-profile payday lender to collapse in June following a wave of complaints over the mis-selling of short-term, high-cost loans

Most victims will be left behind

Half a million people whose loans were mis-sold by collapsed payday lender Sunny will only receive 1% compensation, administrators have warned.

KPMG said customers who were wrongfully sold policies before the company went bankrupt in June will likely lose any money owed.

The company, which is handling the Sunny collapse, said customers who are entitled to payment should file a claim now.

However, he warned that available funds mean many may not receive a penny, or 1% at most.

He said those whose credit records were affected by the mis-sold loans would have their credit records wiped out by November.

The first five missed payments will be removed from their records, with subsequent loans being removed entirely.

In June, Sunny became the latest high-profile payday lender to collapse following an industry-wide mis-selling scandal.







KPMG, which is handling the Sunny collapse, said customers who are entitled to payment should make a claim now
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Getty Images/iStockphoto)


An investigation found that many of these companies – including Wonga and QuickQuid – offered loans to people who could never repay the money.

Sunny, the brand name of Elevate Credit International Limited, fell into administration in June.

Administrators have since assessed Sunny’s 700,000 customers and concluded that 500,000 were mis-sold and may be entitled to claim.

These customers will be contacted in the coming weeks.

All claims must be submitted by the end of January.

“While the dividend will depend on the volume of claims and queries received, we estimate that any dividend payable could be less than 1 pence in the pound and any payment would likely be made in the spring of 2021,” KPMG said.



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