By Dean Dunham – 5 December 2021

If you took out a loan from doomed PayPad firms QuiQuid or Pounds to Pocket, you may be in for a pay day, bit only if you have already applied. Here’s what you need to know:

Background

CashEuroNet, the parent company or payday lenders QuickQuid and Pounds to Pocket, went into administration in 2019 and therefore fell into the control of administrators (Grant Thornton).  As with many of the payday lenders, it had already been established prior to the lender going bust that some of its customers had claims for their loans being mis-sold, as the lenders should effectively sold them loans they could not afford and in some cases failed tocheck the borrowers finances correctly.

How do I claim?

Unfortunately it is now too late to claim as a dedicated portal was set up by Grant Thornton in August 2020 and this was closed on 14 February 2021.

Grant Thornton have said that payments for successful claims, will be made by March 2022. In this respect my understanding is that there are roughly 78,500 successful applicants.

How much will I receive?

Given that the doomed lender is in administration claimants will not receive 100% of the compensation they are entitled to. Grant Thornton has said that claimants will receive between 30p and 50p per £1 of interest, fees and charges paid on their mis-sold loans. In addition, 8% interest will be paid to claimants.

Other lenders

We now know that payday loans have been mis sold by most of the lenders so its worth checking the position if you have aver taken out one of these loans.