12/6/2023 0 Comments Piggy bank bustThe sector is still recovering from Wonga’s collapse last year. Weeks later, another payday lender, 247MoneyBox, was put into administration. The company’s failure comes weeks after the UK’s largest payday lender, CashEuroNet, collapsed in October, taking its brands QuickQuid and On Stride off the market. A PiggyBank customer would pay an interest rate equal to an annual percentage rate (APR) of between 1,255% and 1,698%. PiggyBank offered loans of up to £1,000 to new customers for up to five months. It is not clear how much money customers who lodged compensation claims over issues including affordability will receive after the company is wound down. However, the Guardian understands that PiggyBank’s financiers – most of whom were high net worth individuals – were not willing to put more funds into the company after the suspension was lifted in September. The lender, one of the UK’s 10 largest payday operators, was forced to carry out an assessment to make sure it was lending to customers who could pay back their loans.Īdministrators did not go into detail about the cause of the company’s collapse. PiggyBank was forced to stop trading in July after the Financial Conduct Authority (FCA) raised concerns about poor affordability checks.
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