Frequently asked questions

Ed Boyle and David Pike of KPMG LLP were appointed as joint administrators (“the Joint Administrators”) of Elevate Credit International Limited (“ECIL”, or the “Company") on 29 June 2020 (the “Administration”). ECIL provided consumer loans under the brand “Sunny” and had previously used the brands “1 Month Loan” and “Quid”.

Shortly prior to the appointment of the Joint Administrators, all new lending ceased.

On 3 October 2020, the Joint Administrators successfully completed the sale of part of ECIL’s book of outstanding customer loans to Perch Capital Limited (“Perch Capital”). Asset Collections and Investigations Limited is a debt collections agency who manage the collection of outstanding balances, in this instance, on behalf of Perch Capital.

The remaining customer loan book that was not sold to Perch Capital has been written off in full and no further payments are required to ECIL against these loans with effect from close of business on 2 October 2020.

ECIL’s collection bank accounts have now been closed so customers will no longer be able to make payments to ECIL and any cheques received will be destroyed.

Claims Calculator

ECIL has undertaken an extensive exercise to build a claims calculator (the “Claims Calculator”) to automate the identification and calculation of potential redress entitlements, taking into account the Financial Conduct Authority’s rules and the previous decisions of the Financial Ombudsman Service. Further detail on the Claims Calculator is provided here.

Please note that the Joint Administrators note that the determination of whether a particular customer has a valid redress claim includes a number of subjective elements, which can be highly complicated depending on the customer’s specific situation and difficult to prove one way or the other. In practice, in order to ensure fairness to creditors with valid claims and to minimise the costs of claims handling, after careful consideration the Joint Administrators decided that those factors should to some extent be assumed in favour of customers who raise complaints. The Claims Calculator identifies objective criteria that can be assessed using information available to ECIL in order to validate customer claims for redress, for example, the number of loans and their proximity, which can be used as an indication for unaffordability. The Claims Calculator is, therefore, the best available tool for the Joint Administrators to use to identify potential redress entitlements, but what it does not do is to establish that a given customer who has not intimated a claim is definitely a redress creditor.

Credit reference reporting

We understand that customers are concerned regarding the status of their credit files and it has been a key area that we have invested significant effort in to ensure they are accurate.

In summary:

1) After an initial delay whilst the Joint Administrators agreed the terms of credit reporting during the Administration with the credit reference agencies, ECIL continued normal reporting to the credit reference agencies to reflect the ongoing performance of the customer loan book from the Administration appointment on 29 June 2020 up to 3 October 2020.

2) On completion of the sale of certain loans to Perch Capital, we updated the status of these in credit files to “Sold” and transferred the control of credit reporting on the sold loans to Perch Capital.

3) For loans written off by ECIL, credit files are being updated to show these loans as being settled;

and

4) Finally, where ECIL’s Claims Calculator has identified some or all of a customer’s loans as being unaffordable, irrespective of whether customers have made a complaint or claim against ECIL:

  1. a. where possible the customer’s first five unaffordable loans are being cleansed of any adverse reporting and all unaffordable loans after the first five are being deleted (which is consistent with prior recommendations of the Financial Ombudsman Service where complaints are upheld);

  2. or

  3. b. where this approach has not been possible, all unaffordable loans are being deleted.

We understand that our amended reports are in progress with all three credit reference agencies and we are awaiting confirmation that this has been completed.

This approach is being taken across all customer records, regardless of whether a claim is submitted.

We have transferred the control of maintaining any remaining records to the credit rating agencies, as we will not be maintaining these records going forward. Any further queries regarding entries on customers’ credit files in relation to ECIL loans should be raised with the relevant agency directly.

We have updated the FCA on this approach.

Creditor claim process

The Joint Administrators anticipate that there may be sufficient funds to allow a dividend to be paid to unsecured creditors (who include customers with redress claims). Therefore, the Joint Administrators are now inviting unsecured creditors (including any customers with redress claims) to submit their claims. If you wish to submit a claim, you may do so at any time up to the claim submission deadline of 23.59 on 31 January 2021. If you submit a claim after this deadline, then it is very unlikely to be accepted.

Please note that we are required by the Insolvency Rules to write to ECIL’s creditors to invite them to submit a claim. The High Court has considered, and declined to allow, this requirement to be satisfied by writing only to those customers that have already submitted a redress complaint (plus ECIL’s trade creditors) and advertising to all potential creditors. Therefore, in the coming weeks we intend to email all of the over 500,000 customers identified by the Claims Calculator as having a potential redress entitlement (along with ECIL’s trade creditors) to invite them to submit a creditor claim. As a result, if a very high volume of claims and queries is received, it is likely that the operating costs of responding to queries and processing and adjudicating claims will become so high that no funds will be available for a dividend to be paid to creditors. If a lower volume of claims and queries is received and a dividend can be made, the dividend is likely to be a very low percentage of your claim. Whilst the dividend will depend on the volume of claims and queries received, we estimate that any dividend payable could be less that 1p in the £ and that any payment would likely be made in Spring 2021.

In order to manage the impact on our customer service centre and to assess the viability of the unsecured creditor claim process, the timing of these notifications being sent via email to customers identified by the Claims Calculator as having a potential redress entitlement will be staggered.

How to make a claim

The Joint Administrators have developed the existing Sunny website to make the claim submission process as easy as possible for customers who wish to make a claim, and as cost effective a process as possible to maximise the chance of funds being available to be distributed to creditors.

You are required to submit a claim in the administration even if you have already made a complaint to ECIL (including if that complaint has been resolved but not paid out).

If you believe that you may have a redress claim against ECIL in relation to one or more loans that you have previously taken out from ECIL, you can submit a claim at any time up to the claim submission deadline of 23.59 on 31 January 2021. If you submit a claim after this deadline, then it is very unlikely to be accepted.

If ECIL considers that you have a potential redress entitlement as determined by the Claims Calculator, then you can find the value of the potential redress entitlement calculated by ECIL by logging into your Sunny ‘My Account’. You will then be able to submit a claim for this amount via the Sunny website.

IMPORTANT: If you wish to submit a claim against ECIL, please follow the instructions in your Sunny ‘My Account’ in order to check whether ECIL has identified that you have a potential redress entitlement, and then submit your claim.

However, if you do not agree with the potential redress entitlement shown in your Sunny ‘My Account’, you may manually submit a claim for another amount for assessment by the Joint Administrators.

If you were a customer of ‘1 Month Loan’ or ‘Quid’ and you wish to submit a claim, then please use the following proof of debt form and email it to claims@sunny.co.uk in order for your claim’s eligibility to be checked.

If you no longer have log in access to your Sunny MyAccount, please contact the customer service centre on 0800 7315 444 in order to reset your details.

If you submit a valid claim, you will be entitled to receive a payment in the administration, if there are sufficient funds remaining in the administration after the costs of handling all claims have been met. It is important to note that any payment in the administration that you receive is very unlikely to be the full amount of your accepted claim amount, and is likely to represent a low percentage of your claim.

This is because the total value of all accepted claims received is likely to exceed the money available to be shared out among all unsecured creditors of the Company (including any customers with redress claims). The amount of any money available to be shared out to unsecured creditors will not be known until all of ECIL’s remaining assets have been realised and certain costs and deductions have been taken into account.

Other matters

Further information about the Administration, including the Joint Administrators’ Proposals, is available at www.kpmg.co.uk/ecil. Further updates on the progress of the Administration will continue to be posted to this website.

A list of FAQs is provided for your information below. No further information is available at this time. However, these FAQs will be updated with further information as it becomes available.

The Sunny customer services team remains available for a period of time and may be contacted at help@sunny.co.uk or by calling 0800 7315 444. However, we anticipate higher than normal level of queries and therefore there may be some delay in receiving a response. We encourage you to review the below FAQs in the first instance.

Progress of the Administration

Information about the administration process can be found here.

The Joint Administrators issued their initial proposals on 14 August 2020 (the “Proposals”) and they were deemed approved on 3 September 2020. The Proposals include details for creditors on the events leading up to the Administration, the Joint Administrators' proposed approach to the Administration, and other information that the Joint Administrators are required to provide. These Proposals, together with the Creditor notice of deemed consent of the Proposals, can be found at www.kpmg.co.uk/ecil.

Creditors and potential redress claims

+ I am a customer, should I submit a claim for potential redress owed by ECIL?
+ How has ECIL assessed how much redress is owed to each customer?
+ How can I submit a claim in the administration?
+ I made a complaint against ECIL before it entered administration – what happens to my complaint?
+ I have accepted an offer of redress but it has not been paid, will I receive a payment?
+ Am I eligible to make an affordability-related redress claim?
+ Do I need to use a claims management company (CMC) to make a claim?
+ If I have previously received an affordability-related redress payment from the Company, can I claim again?
+ What if I would like to make a claim but you have written off my outstanding loan balance?
+ What should I do if I am approached by someone saying they work for the Company, KPMG or the Joint Administrators and want to help me submit a claim?
+ When will I be contacted further?
+ What does it mean that my claim is “Submitted”?
+ When will I receive a payment against my claim?
+ How much will I receive from my claim?
+ Will the FSCS pay my claim if the Company does not?
+ Will anyone ask for my bank details?
+ I need to update my bank account details
+ If I submit a claim, how much will I receive?
+ I need to update my contact details or other personal details

Credit Reference Agencies (CRAs)

+ My loan has been sold - What happens to my credit records?
+ My loan has been written off – What happens to my credit file?
+ Will my credit records be updated?
+ I still have a problem on my credit file, what should I do?

Sale & write-off of loans

+ Has my loan been sold?
+ Have Perch Capital bought the ‘Sunny’ brand name?
+ Can you transfer my loan without my permission?
+ Why have you made a balance adjustment on my account?
+ Why have I been notified that my loan is being written off or a balance adjustment has been made now and not before I made a payment?
+ Why have you not made a balance adjustment on my account?
+ My loan is being written-off, am I entitled to a refund on previous payments?
+ What if I believe I am entitled to a greater amount of redress than the balance adjustment applied before my account was transferred to Perch Capital?
+ What should I do next about my outstanding loan?
+ Should I continue to repay my loan?
+ What happens if I don’t repay my loan on time?
+ Will I incur further interest on my outstanding loan(s)?
+ I can’t afford to repay my loan – what should I do?
+ What if I haven’t received an email from ECIL about my outstanding loan balance?

Other

+ Am I able to apply for a new loan from Sunny?
+ Can I still access my account online during the Administration?
+ Where can I access further information?
+ Where can I get additional advice?

The affairs, business and property of Elevate Credit International Limited (in administration) are being managed by the Joint Administrators (who act as agents and without personal liability).

Ed Boyle and David Pike are authorised to act as insolvency practitioners by the Institute of Chartered Accountants in England & Wales.

The Joint Administrators are bound by the Insolvency Code of Ethics.

The Joint Administrators are Data Controllers of personal data as defined by the Data Protection Act 2018. Personal data will be kept secure and processed only for matters relating to the appointment. For further information, please see our Privacy policy at - home.kpmg/uk/en/home/misc/privacy-policy-insolvency-court-appointments.html.

UK based customer support

If you are unable to find what you are looking for contact our
UK based customer support team.
0800 7315 444 We're currently closed
Mon - Fri: 08:30 - 17:00
Sat & Sun: Closed
Email address help@sunny.co.uk

If you are unhappy with any aspect of our service, we would like you to get in touch:

By email: help@sunny.co.uk


In writing:


Customer Relations
Elevate Credit International Limited,
c/o KPMG LLP,
15 Canada Square,
Canary Wharf,
London,
E14 5GL

By telephone: 0800 7315 444

Mon - Fri: 08:30 - 17:00
Sat & Sun: Closed

We will do our best to resolve your concerns by the end of the 3rd working day after receiving your complaint. If we are unable to resolve your concerns, we will issue a written acknowledgement within five working days

In view of the administration, if your complaint relates to an affordability complaint, we will be unable to provide a response to your complaint until the Joint Administrators have determined if there are sufficient funds available to make a distribution to customers and other unsecured creditors. In the event your complaint relates to anything other than an affordability complaint we will endeavour to complete our investigation and provide a final response as soon as possible. We will always try to issue a final response letter within eight weeks of receiving your complaint. If it looks as though our investigation may take longer than eight weeks, we will provide you with an update on our progress.

Information on your rights of referral

As required by rules made by the Financial Conduct Authority, you have the right to refer your complaint to the Financial Ombudsman Service. However, following the appointment of the Joint Administrators, we understand that any new complaints referred to the Financial Ombudsman Service during the Administration will not be considered by the Financial Ombudsman Service but will instead be referred back to the Joint Administrators for them to consider.

This means that the Joint Administrators will determine whether a complaint should be upheld and whether a customer with an upheld complaint should be treated as a creditor with a claim in the Administration.

The Joint Administrators will deal with complaints and keep customers updated on the progress being made to determine those complaints.

Monday to Friday – 8am to 8pm

Saturday – 9am to 1pm

0800 023 4 567 calls to this number are free on mobile phones and landlines.

0300 123 9 123 calls to this number cost no more than calls to 01 and 02 numbers.


If you wish to do so, you can raise a complaint online via the European Online Dispute Resolution platform. Complaints raised via this platform will be transmitted to the Financial Ombudsman Service, who will handle the complaint.

Postal address
The Financial Ombudsman Service
Exchange Tower
London E14 9SR

Email complaint.info@financial-ombudsman.org.uk

Website www.financial-ombudsman.org.uk

Firm name: Elevate Credit International Limited
Period covered in this report: 1 January 2020 – 30 June 2020
Brands/trading names covered: Sunny

Number of complaints
Number of complaints opened 8221
Number of complaints closed 8358
Percentage closed within 3 days 0.42%
Percentage closed after 3 days but within 8 weeks 99%
Percentage upheld 13.83%