Major payday loan firm goes bust and customers have all debts wiped

12 comments

1. Didn’t the same happen with Wonga? They went under and everyone got their debt forgiven?

2. Not that it’s a bad thing but I’m surprised the debts have been written off- would have thought that the debt would have been a company asset and therefore auctioned/sold off to reclaim monies for the company’s creditors?

3. I think this was discussed in Bank of Dave – anyway – this is great news. No major loss then ! 

4. I’m 1,500% – 1,800% not bothered that they have folded.

5. >Fernwood Financial Limited, a high-cost lender based in the northwest

   So you don’t have to open that crappy site.

6. Good news for borrowers but I’d imagine anyone who’d use a firm like this for credit will have tonnes of other debt anyway.

   You don’t go to a loan shark before your bank.

7. Unusual that the debt wasn’t sold off but good news for those so trapped by the debt spiral that they needed payday loans on the first place! Hopefully this is a golden opportunity to escape.

8. I would have bought all that aged debt for £100. It’s not much but it’s £100 more than what they’ve got.

   It doesn’t make sense that they’re just writing it off

9. It’s probably that they have thousands of customers that probably owe a few hundred pounds each on average – debt sale are worthwhile when the value is over the, say £1k+ mark

   Edit: likely to be low amounts as total owed is around £250k.. so probably 1000 customers owing around £250 each.

10. What? Is is good because a debt company went bust? Or is it inflationary because you can get debt with zero risk?

11. Thought these weren’t a thing after the whole Wonga thing. Glad to see it go bust tbh

12. You know I’m just happy that a few thousand people probably in pretty poor financial shape are having a fluffing marvelous month.

    Grew up poor, am not any more but still remember money worries. While there will be irresponsible borrowers in here there will be plenty of families with 3+ jobs barely making ends meet that have just had a heel taken off their necks. I can imagine this is tremendous for their mental health.

    Predatory business 0, hard working. Families 1

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