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Peachy enters administration – what it means for your payday loan and bad-selling claims

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Lender PAYDAY Peachy has collapsed into administration, leaving thousands of customers wondering what happens to their loans.

The company, which advertised a representative APR of 855% on its website, has appointed directors from Smith & Williamson to take over the management of the business.

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Peachy is the last payday loan to go bankrupt

The collapse means Peachy won’t accept new loan applications, while existing customers have been warned that they still need to keep paying back.

Customers who fall behind may damage their credit score or face additional charges.

On her website, Peachy says the loans must be repaid “in accordance with the schedule agreed upon when taking out your loan “and confirmed, his bank details will remain unchanged.

Customers can also always contact Peachy through her customer support line on 0800 0124 743 if they are having trouble making a refund.

Are you owed a payday loan repayment?

MILLIONS of payday loan customers can be repaid.

Repayment or compensation is often given when the loan has been mis-sold or when affordability checks were not strict enough. Here’s all you need to know:

  • Customers who have paid off their payday loan debts can still claim. Even if you have paid off your debts, you may still be able to get a refund if you struggled to repay the money at the time.
  • If you are still paying off your payday loan debts, you can still complain. You can complain if you had trouble paying back. If your complaint is successful, it could reduce the amount you owe.
  • You can always pretend that the business no longer exists. Big companies like Wonga and QuidQuick don’t work anymore, but that doesn’t mean you can’t get the money back. Customers can still file complaints against businesses that are no longer functioning, although they are less likely to receive a refund as they will have to go directly to the administration companies. However, if their complaint is successful and they still have debts, it could mean that they have to repay less, so it’s still worth complaining.

If you think you’ve been sold an unaffordable loan, you can always file a complaint directly with Peachy.

However, it is not clear how the administration process affects your chances of getting money back.

We reached out to Peachy for more information on this and will update this article when we have a response.

The Financial Ombudsman Service has told us that it will contact clients who have already filed a complaint against Peachy.

However, they will not be able to examine the new allegations of mis-selling.

A spokesperson said: “We know that Cash On Go Limited, which runs lender Peachy, has come into effect.”

Customers who have not yet filed a complaint can always contact Peachy by sending an email to [email protected] or by calling her customer support line on 0800 0124 743.

Peachy was from Cash On Go, who confirmed that their other business, Uploan, also collapsed today.

How to claim compensation from payday lenders

IF you think a payday lender owes you compensation, here’s how to make a claim according to financial blogger DebtCamel:

You will need to prove that you could not afford the loan when you borrowed it. If having the loan meant you couldn’t pay your bills or other debts, then you were loaned irresponsibly.

You may also be entitled to compensation if you have had late repayments, or have taken out back-to-back loans as this shows that you really could not afford a new one.

Examine your emails, bank statements, and your credit reporter for evidence.

You will need to write an official complaint letter to each lender explaining how you were irresponsibly loaned out and include the evidence.

You will have to cite “unaffordable loans” and seek reimbursement of the interest and fees you paid, as well as the 8% interest from the Ombudsman on top.

Make copies of all evidence before sending it in in case something happens to them.

Also request that the loan be removed from your credit report.

You can find a letter template here.

Wait up to eight weeks to hear from them. If you are not satisfied with the response or they do not respond to you, contact the financial mediator.

In a statement posted on her website, Peachy said: “Cash On Go Ltd filed its administration order request on March 5, 2020.

“The company traded as Peachy and as directors we will investigate the reasons for the failure of the company and any creditor is welcome to provide us with information.”

The Sun asked Peachy if he could share more information with us.

Craig Simmons, head of debt policy and strategy at the Money and Pensions Service, told The Sun: “Many of Peachy’s clients won’t know what this means to them.

“While you may be tempted to stop your repayments, sticking to your regular schedule is crucial because if you’ve entered into a loan agreement, you have to stick to it.

“If you miss repayments, you could be hit with additional fees and charges, and that could hurt your credit rating as well. “

Peachy is the latest in a string of payday lenders to go bankrupt, following in the footsteps of Wonga and Quid fast which collapsed after a spike in customer complaints.

Lenders 247 Piggy bank and Piggy bank have also gone bankrupt in the past six months.

it comes after Stricter affordability controls have been introduced to prevent companies from taking advantage of customers who cannot afford repayment.

In 2014, the Financial Conduct Authority also introduced rules prohibiting payday lenders from charging borrowers fees and interest in excess of the amount borrowed.

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