Commenting on the news that payday lender Sunny has gone into administration, Craig Simmons, Head of Debt Policy and Strategy at the Money and Pensions Service, said:
“This will be an uncertain time for Sunny customers. While you may be tempted to stop your repayments, it is usually best to keep to your regular schedule so you fulfil the loan agreement you have entered into. If you miss any repayments you could be hit by fees and additional charges, and it could also harm your credit rating. An exception might be if you have registered a complaint with Sunny, where personalised advice may be required. You can find free and impartial debt advice via our Debt Advice Locator Tool.
“Covid-19 has had a widespread impact on people’s finances and short-term credit can feel like the only option if you are facing cashflow problems. However, if you need a specific amount of money for a short time there may be more affordable alternatives out there such as credit unions, so it’s a good idea to shop around before you borrow.
“The Money Advice Service website has a guide to what happens when a payday lender goes into administration. For help with any questions about how to handle your debts or money worries you can also call us for free on 0800 138 7777.”
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About the Money and Pensions Service
The Money and Pensions Service (MaPS) vision is: ‘everyone making the most of their money and pensions.’
MaPS is an arm’s-length body sponsored by the Department for Work and Pensions (DWP), and it has a joint commitment to provide access to the information and guidance people across the UK need, to make effective financial decisions over their lifetime.
The organisation also engages with HM Treasury on policy matters relating to financial capability and debt advice.
MaPS brings together the free services previously delivered by the Money Advice Service, The Pensions Advisory Service and Pension Wise. MaPS offers customers guidance and appointments over the telephone, online and in person.
For further information visit the Money and Pensions Service website www.moneyandpensionsservice.org.uk