Everyday Loans and compensation letter

[whitelist]

Had a loan with this company about six years ago and all paid back, but just got this?

 

Dear  Scheme Reference Number: We are contacting you because according to our records you may have received a loan from Everyday Loans, George Banco or TrustTwo, or have guaranteed a loan made from George Banco or TrustTwo to someone else, on or before 31 March 2021, and we have some important information for you. Who are we? We are Everyday Lending Limited (“ELL”), a company within the Non-Standard Finance plc group that trades as Everyday Loans, George Banco and TrustTwo. Why are we getting in touch? ELL believes that some of the historical lending of Everyday Loans, George Banco and TrustTwo was unaffordable and as a result some customers are entitled to compensation. However, ELL does not have enough money to pay this compensation in full. We are therefore proposing to use a legal process called a ‘scheme of arrangement’ (the “Scheme”) to settle any eligible compensation claims. Are you affected? Subject to certain limited exceptions, you will be affected if, on or before 31 March 2021: (A) you were a borrower of Everyday Loans, George Banco or TrustTwo who took out a loan which you may not have been able to afford, and the right checks were not carried out at the time; or (B) you were a guarantor for a loan someone else took out and either (1) the loan you were guaranteeing should not have been made to the borrower because the borrower could not afford to repay it and the right checks were not carried out, or (2) you should not have been accepted as a guarantor because you may not have been able to afford to make payments under the guarantee and the right checks were not carried out; or (C) if you were a borrower or guarantor as above, and you have some other kind of claim in connection with an activity that took place on or prior to 31 March 2021 in relation to your loan or guarantee (for example because you believe you have been treated unfairly or unreasonably in relation to your loan or guarantee for reasons other than affordability). How does this impact you? As mentioned above, ELL does not have enough money to pay compensation in full to those people affected. Under the terms of the Scheme, ELL is looking to settle any eligible claims at a reduced amount. Customers with eligible compensation claims are estimated to receive a cash return of between 22% and 28% of their claim, after the exercise of any rights they may have to reduce their outstanding balance with ELL in satisfaction, or partial satisfaction, of their claim. In addition, for the scheme to be successful, it will need to be sanctioned by the court. It is also dependent on a wider restructuring of the Non-Standard Finance group completing which will provide the new money needed to fund the scheme. If the Scheme was not successful, ELL and the other members of the Non-Standard Finance plc group will enter into insolvency processes. In an insolvency process of ELL, which is likely to be an administration, it is expected that ELL would stop operating and the business be wound down. If that were to be the case, then customers with eligible compensation claims would receive a significantly smaller % cash return on any claim (estimated to be approximately 0.2% of their claim). Where can I find more information about the Scheme and how I may be affected? For further details about the Scheme, please refer to our document called the Practice Statement Letter (“PSL”). The PSL includes more detail on why we are proposing this Scheme; who will be affected; what happens to eligible compensation claims if the Scheme is successful and what the alternative is if it is not. The PSL can be found at www.nsfclaims.co.uk and we recommend that you read the full version of the PSL as it provides important information and more detail about the scheme. There is also further important information within the PSL for you to consider, including details of our proposals for voting on the Scheme. In addition, our Scheme website at www.nsfclaims.co.uk will be kept up to date with all the latest information about the Scheme. What Now? At this stage we want to let you know that if, based on the information provided, you want to object to our proposals for voting arrangements, then please send details to the Customer Advocate at jy@nsfcustomeradvocate.co.uk. You may also attend and speak at the Court hearing which is expected to be held on 28 April 2023 (details of how to attend will be provided on the Scheme website: www.nsfclaims.co.uk). However, you are not required to do anything at this stage and if the Court allows us to go ahead then we will contact you with further information about the process. We hope that the PSL provides you the information you need, but if you have any further questions, please read our Frequently Asked Questions (FAQs) on our dedicated Scheme website: www.nsfclaims.co.uk. You can also email us at contact@nsfclaims.co.uk or call us on 0330 045 0685 if you have any questions, any problems accessing the PSL or FAQ’s or if you would like to request a hard copy of the PSL or the FAQs posted on the Scheme website free of charge. You have received this correspondence by email. As we have an email address on file for you, we will send future Scheme correspondence to you via email, unless you email us at contact@nsfclaims.co.uk or call us on 0330 045 0685 to advise of an alternative. Please ensure you provide the scheme reference number in any correspondence so we can correctly identify you.

Yours faithfully, Everyday Lending Limited

[dx100uk]

same as what happened to vanquis/provident and amigo etc

 

you'll get pennies sadly.

 

dx

 

[whitelist]

 Thanks

 

Will ignore then as all paid off

[dx100uk]

you could join the scheme you never know

 

will = £'s to your pocket .

[Ethel Street]

You don't need to do anything. It's just for information at this stage. The law requires these hard to understand letters whenever there is a 'Scheme of Arrangement'. They have to be sent to everybody but for the great majority of people who get them nothing needs to be done.  You will automatically be in the group of customers who might be eligible for some compensation. Just wait and see what happens. You can only gain, you can't be asked to pay any money into it.

 

Don't get overexcited though! Unless the loan you had was massive the compensation won't be much.

 

It seems from the letter that the regulator has told them their affordability checks weren't done properly so they have to pay borrowers compensation.

 

But there's a complication. 

 

Everyday Lending Limited doesn't have enough  money to pay the compensation and if it paid it from its own money it would go bust. So they've come up with some complicated financial scheme (the 'Scheme of Arrangement") to put more money into Everyday Lending Limited so that in can pay the compensation. But the Scheme has to be approved by the High Court first.