My local The Money Shop has closed, can I collect my pledged items?
Pawn shops and travel money and payday loan provider The Money Shop have gone out of business, according to a letter seen exclusively today by This is Money.
Instant Cash Loans Limited has told its employees that it plans to close or sell all of its stores in the UK following an “unprecedented number of customer complaints” caused by claims management companies.
Nearly 430 jobs are likely to be affected.
Letter to This is Money revealed that The Money Shop is going out of business
Those who have pledged items and want them back may feel anxious after the news, but according to the company’s website, you can still do so.
It states that all pledged or pledged items are kept “securely in our central location,” meaning they are not affected even if your local The Money Shop has closed.
You can see which stores are still open at the moment on the company website.
While you probably have to pay more than what you pledged an item for, you can arrange for a recovery by calling 0121 726 1154 Monday through Friday between 9 a.m. and 5 p.m.
ICL says, “Once you have made the agreed redemption payment, we will write to you to confirm receipt and ask you to deliver your original ‘Fixed sum loan agreement and pledge receipt’ to us within 30 days, using a prepaid envelope provided.
“Subject to receipt of the agreement, we will post your pledge via a special signed delivery to your home. “
In order to make full or partial payment, you will either need to make a debit card payment over the phone or make a bank transfer to ICL’s NatWest account, during the term of your pawnshop.
Be advised that if you do not call ICL within 14 days of your contract expiration date, your items will be sold by ICL.
Do I still have to repay my loan?
The Money Shop also offered short-term, high-cost loans, which came under scrutiny after the Financial Conduct Authority made changes that capped the cost of payday loans.
In 2015, she was forced to pay £ 15million in compensation after the watchdog discovered customers may have suffered from the company’s affordability checks, debt collection practices and errors system.
When Wonga took office, borrowers still had to repay their loans
It offered between £ 100 and £ 2,000 repaid over three to 12 months, loans with an APR of 447 percent. This means that if you borrowed £ 300 for six months, you would pay back £ 450.18.
In May, The Money Shop sold 18 of its stores to Teeside Pawnbrokers Ramsdens, but none of its loans were sold in the process – Ramsdens told This is Money that this aspect of the business had “adamantly” nothing to do with us ”.
While The Money Shop stopped providing loans in August 2018, some borrowers may still have outstanding payments to make. Often, when one of these providers goes out of business, the first question borrowers ask is whether they still have to repay their loan.
The company has yet to comment on the This is Money story for guidance, but just because it has gone out of business doesn’t mean you can – or should – stop paying off your loan.
When Wonga went bankrupt in August of last year, borrowers still had to make payments on outstanding loans, and the same is almost certain to apply here.
Hopefully The Money Shop will contact those affected.
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