Sunny became the last major payday lender to collapse in June following a wave of complaints about the mis-selling of short-term, high-cost loans.
Half a million people who were mis-sold by collapsed payday lender Sunny will only receive 1% compensation, administrators have warned.
KPMG said customers who were falsely sold before the company went bankrupt in June will likely lose any money owed.
The company, which is handling Sunny’s collapse, said customers who are entitled to payment should file a claim now.
However, he warned that the funds available mean many might not receive a dime, or 1% at most.
He said those whose credit records were affected by poorly sold loans would have their credit records wiped by November.
The first five missed payments will be deleted from their files, with subsequent loans deleted entirely.
In June, Sunny became the last high-profile payday lender to collapse amid an industry-wide sellout scandal.
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A survey found that many of these companies, including Wonga and QuickQuid, offered loans to people who would never be able to repay.
Sunny, the brand of Elevate Credit International Limited, came under administration in June.
Administrators have since assessed Sunny’s 700,000 customers and concluded that 500,000 had been mis-sold and may be entitled to claim.
These customers will be contacted in the coming weeks.
All complaints must be submitted by the end of January.
“While the dividend will depend on the volume of claims and claims received, we estimate that any dividend payable could be less than 1p per pound and that any payment would likely be made in the spring of 2021,” KPMG said.