Struggling payday loan company, serving a multitude of clients, faces administration - potential impacts on YOUR outstanding payments explained
Fund Ourselves Limited Enters Administration: What You Need to Know
Fund Ourselves Limited, a payday lender, has entered administration. This move could have significant implications for its customers, and it's essential to understand your rights and options.
Your Rights and Options
- Continue Making Payments: The loan may still need to be repaid unless the administrator cancels or restructures it. Customers should continue to make payments unless explicitly told otherwise.
- Validate and Dispute Debts: You have the right to dispute debts and request validation of what you owe. Debt collectors must comply with legal restrictions on how and when they contact you.
- Avoid Harassment and Unfair Collection Tactics: Debt collectors must not use abusive or deceptive methods, such as excessive calls, false threats, or misrepresenting your debt.
- Seek Clarity from the Administrator: The company in administration or its appointed administrators should communicate with customers about the status of their loan and how to continue payments or resolve the debt.
- Explore Debt Relief Options: If repayment is difficult, consumers can seek advice from nonprofit credit counselors or consider legal avenues such as bankruptcy if warranted.
- Report Misconduct: If the payday loan company or its debt collectors engage in illegal activities, customers can file complaints with regulatory bodies such as the Consumer Financial Protection Bureau (CFPB) or equivalent.
- Legal Recourse: Customers may sue payday lenders for illegal behavior or breaches of contract, particularly if contract terms were unfair or deceptive.
Protection for Customers
The Financial Services Compensation Scheme (FSCS) does not cover customers and retail investors of Fund Ourselves Limited. However, the FSCS is a scheme that protects consumers when financial firms go out of business.
Stay Alert for Fraud
The Financial Conduct Authority (FCA) has warned customers to stay alert for fraud, particularly unexpected contacts claiming to be from Fund Ourselves Limited or Azets.
Compensation Claims and Credit Score
Failure to make payments could damage a borrower's credit score or result in additional charges. Compensation claims are at risk when a company goes bust, and customers may only receive a portion of what they are owed.
Seek Professional Advice
If you're facing difficulties with payday loans from a distressed lender, seeking professional advice from credit counselors or legal experts is advisable.
Other Affected Payday Lenders
Several other payday lenders, including QuickQuid, WageDayAdvance, Piggy Bank, Juo Loans, Sunny, 247MoneyBox, and Wonga (which went bust in August 2018), have also faced financial difficulties, throwing customers into financial uncertainty.
Contact Information
For any questions or concerns regarding loans or investments, contact the joint administrators' customer support team via email at [email protected] or call 07858 969 574.
Conclusion
Customers should carefully monitor their loan status, communicate with the administrator, continue payments unless directed otherwise, and know they have protections against unfair collection practices. Seeking professional advice from credit counselors or legal experts is advisable when facing difficulties with payday loans from a distressed lender. The joint administrators for Fund Ourselves Limited will provide details about handling complaints in the coming months. The FCA has urged borrowers to continue making payments as normal.
- In light of Fund Ourselves Limited's administration, it's crucial for customers to understand their personal-finance options, such as continuing to make payments, validating and disputing debts, and exploring debt relief options if necessary.
- In the case of a payday lender entering administration, like Fund Ourselves Limited, customers should be aware that their business-related finance, in this context, may still need to be repaid unless the administrator cancels or restructures the loan.
