Hundreds of thousands of people who were mis-sold payday loans will receive a fraction of the compensation they are entitled to after a lender collapsed.

WageDay Advance had given loans to about 800,000 people but went into administration earlier this year.

In a case that mirrors the demise of Wonga, the company folded after being hit by a wave of compensation claims for mis-sold loans.

Customers are now receiving emails to explain how much they owe or are owed.

However, now the company is in administration, those who have paid off loans but are entitled to compensation have become unsecured creditors. They can only expect a fraction of the full compensation payout.

Claims firms ‘will disappear at worst time’ Wonga: Fourfold rise in compensation claimant estimate

WageDay Advance

Read More At Article Source | Article Attribution