It sounds like a dream come true: getting a loan that you never have to pay back.
But that’s exactly what’s happened to thousands of customers in the northwest of England, after a payday lender went bust and wiped all of their debts overnight.
If you’ve taken out a loan with Fernwood Financial Limited, you do not need to make any further payments.
A payday loan – also known as a short-term loan – is a type of borrowing designed to be paid back over a short period of time.
‘Normally your debt is an asset of the loan company, and this is sold to another company during liquidation – meaning you need to keep paying the money back, just to a different company.’.
It hopefully goes without saying, but you should therefore never take out a loan hoping this might happen to you.
Whether you’re a Fernwood Financial customer looking for further funds, or someone considering your first payday loan, Freddie urges caution. »