Mis-sold Wage Day Advance customers will get £5.68p for each £1 owed
Wage Day Advance’s parent company Curo Transatlantic Limited went bust in February 2019. Customers were then given until the end of August to apply for compensation, with 100,416 borrowers subsequently submitting claims.
Administrators KPMG assessed whether each customer loan complied with standards of responsible lending. Those who were mis-sold were owed compensation.
But after warning that customers wouldn’t receive all the compensation they were owed, KMPG has now confirmed that borrowers will get just £5.68 in the £1.
This dividend was calculated from total funds available to be distributed of £7,232,445.
A statement on KPMG’s website says there’s insufficient money in the business to pay claims in full and that there is nothing else it is able to do to increase the amount.
This means a customer claiming £1,000 back on a mis-sold payday loan, for example, will receive just £56.80.
The situation echoes that of Wonga’s mis-sold customers. Those owed compensation received just 4p for every £1 owed.
KPMG’s customer service helpline for Curo and Wage Day Advance customers has been suspended since 20 March due to coronavirus. The accountancy firm cannot yet say when its phone lines will re-open and advises any Wage Day Advance customers will queries to either check the Q&A section on www.kpmg.co.uk/curo or email email@example.com.