PDL reclaims – dead companies

[Jess85]

Hello all, it's been a while but was hoping to get some advice.

 

In terms of reclaiming from PDL loan companies that have gone poof, where does the land lie? I put in a claim to 1st Stop and apparently my loans were issued when it was operating under Clear Recoveries....now dissolved. Same address though etc. Pfffff.

 

I'm still making payments on this loan to TM Legal as was issued a CCJ (18 months left on it)...but REALLY wanted to do a reclaim. Is there nothing that can be done once the company has gone under?

 

Thank you!

 

 

[Andyorch]

You'll need to make a claim with the firm's administrator, but the short answer is that it all depends on how much money is leftover and how many creditors this has to be shared between.

Unfortunately, customers of payday lenders are at the back of the queue of people owed, being counted as 'unsecured creditors'. This means they're unlikely to see all the money they're due and could be waiting months.Even those people who get their claims in just before a company goes bust may not get any more than those who filed theirs afterwards – it all depends on the administrator and the circumstances. 

 

Payday lenders aren't covered by the Financial Services Compensation Scheme, the consumers' safety net for when most finance firms fail. So when they go bust, the size of the payouts is down to how much money the administrators can squeeze out of the business and how many creditors are lining up.  In terms of speed, you won't necessarily be better off using a claims management company.

 

Wonga's administrator Grant Thornton says it won't be dealing with such claimants any faster than others. And as we always say, using a claims firm will cost you in fees which can run into £100s.

If your payday lender goes bust and you're paying back a loan, you're likely to have to continue paying until the administrator tells you otherwise. In some cases, what you're owed for being mis-sold could be wiped from the ongoing loan. You could be due the interest and charges and interest on all of that, and often this caboodle can work out bigger than the original loan itself.So get in fast if you've been mis-sold, in case your payday lender goes bust – or you could lose out big time.

 

https://www.moneysavingexpert.com/reclaim/free-payday-loans-refunds/

 

Andy

[Jess85]

Thanks Andy!

 

If I am now paying TM Legal services – to get my CCJ marked as satisfied as soon as possible, do they legally own the debt? It all essentially still the same company isn't it? I just can't put a reclaim in to them

[dx100uk]

tm are solicitors

who are their clients. they own the debt

probably a DCA. so they are not responsible now no.

[Andyorch]

22 hours ago, Jess85 said:

Thanks Andy!

 

If I am now paying TM Legal services – to get my CCJ marked as satisfied as soon as possible, do they legally own the debt? It all essentially still the same company isn't it? I just can't put a reclaim in to them

 

They are taking your payments....but they are not the judgment claimant.You can check your CRA (credit files ) to see if its been assigned to another DCA.

 

Andy

[Guest]

It's wrong and needs testing by bringing a complaint to the FOS. 

 

I was looking at being owed a few hundred and my outstanding debt cleared. But the lender went into administration and sold the account, so I now seemingly owe a few hundred instead. 

 

The FOS often when finding in the consumers favour, say the original lender must set off the account that has been sold. 

 

It would be hypocrital to not work the other way too. When a consumer can't make a complaint to the original lender, they should be able to bring one against the debt buyer, at least covering the debt the debt buyer is claiming. 

 

[Andyorch]

You could challenge this under section Section 82 Consumer Credit Act 1974 the European Union Directive Assignment of Rights.

 

16.5 The definition of "creditor" in section 189 of the CCA applies to this requirement on assignment of rights. This means that when an assignee purchases debts (or otherwise acquires rights under a credit agreement) it also acquires certain obligations to the borrower including the duty to comply with CCA requirements (such as the rules on statements and notices and other post-contractual information). The assignee becomes the creditor under the agreement. This ensures that essential consumer protections under the CCA cannot be circumvented by assigning the debt to a third party."

 

[Guest]

Thanks. 

 

It does look like this would apply.

 

I will ask the FOS to look at a complaint I've made for such an account, if the debt buyer doesn't resolve it. 

 

I don't mind if the debt buyers/dca's get dragged into the irresponsible lending claims, they can go into administration too