Sunny loans, one of the UK’s biggest payday lenders and a subsidiary of the US-based Elevate Credit has gone into administration impacting around 50,000 customers. The effect of fewer customers applying for loans along with the cost brought about by lockdown was the final straw for the loan giant. Sunny has been handed over to KPMG for administration. But what does this mean for Sunny’s customers? What do you do if you have a loan with Sunny? What do you do if you still need a loan but don’t know where to go? We’re here to demystify the situation.
What happened to Sunny?
Sunny saw a dramatic drop in customers from 2018 to 2020. In 2018 they had one-fifth of the subprime lending market agreeing to more than 104,000 loans that year. The following year this number dropped to 30,000. This huge drop in customers along with high levels of consumer complaints led to Sunny going into administration.
The Financial Ombudsman Service (FOS) received 2,897 complaints about Sunny in the second half of 2019 with the FOS ruling in favour of the client in 76% of cases. This is an astounding percentage and goes a long way to show how they have ended up in administration.
Sunny employed 175 employees based in London and Bury St Edmunds. Many have been made redundant as KPMG go about sorting out the company’s debts.
What do I do if I have a Sunny loan?
Firstly, if you have a loan with Sunny, you must keep up with the loan repayments. A loan agreement is set for the period of the loan. It’s vitally important that you keep up with repayments to avoid late fees, charges, or negative hits to your credit score.
If you are having difficulty paying your loan, either as a result of the pandemic or other concern, it’s worth contacting the lender directly to talk about delaying payments or restructuring them to suit your budget.
The Money Saving Expert has also put together a useful Coronavirus financial help guide for anyone struggling with money as a direct result of the lockdown and its effects.
Can I claim against Sunny?
If you were mis-sold a loan, you can still reach out to Sunny and file a complaint. Contact the lender directly and see how they can help you. If you have an outstanding claim with Sunny you may have to wait some time for any redress to be paid.
This is because as the administrators sort out the debts, claimants are part of the ‘unsecured creditor claims’. This means that you are one in a long line of claimants and may have to wait a long time to see any sums of money paid to you. You may also receive less than you claimed for as the leftover value of the business is split amongst all the unsecured creditor claims.
What is the difference between Sunny Loans and QuidMarket Loans?
We are a smaller company than Sunny and as a result, work with each customer to personally select provide a loan that suits your needs and budget. We are a direct lender who manually underwrite every single application. This personal touch means your loan request is considered and assessed to ensure you have a loan that is not beyond your means.
We also offer a quick, easy-to-understand application process. Use our easy loan calculator to see how much you can get what you apply for and the level of repayments. 100% transparency from the get-go. Once you’ve done that follow the steps and submit all the information required. One of our experienced underwriters will take all of your details and work on your application.
How does the cost of a QuidMarket loan compare to a Sunny Loan?
QuidMarket provides simple short-term loans with no hidden fees or catches. All our loans are manually underwritten by our experienced and skilled underwriting team. This personal touch allows us to manage our loans effectively and lend responsibly protecting you from the same fate as Sunny.
Why should you choose QuidMarket as a Sunny short-term loans alternative?
QuidMarket has been helping people get through ups and downs with quick, easy loans since 2011. We are committed to providing easy-to-understand, transparent loans that you can afford. As always, we advise customers that short term loans are an expensive form of credit. These loans are not designed for long-term borrowing and as such, there may be cheaper options available. Please only apply for the amount you need and take note of the repayments.
Fill in our loan calculator and follow the steps for instant loan access or contact us directly to find out more about QuidMarket. We are here to help you with short term loans that are accessible and affordable.