Customer Redress Scheme and FAQs

Uncle Buck Finance LLP (/Uncle Buck’) – In Administration

Following extensive investigations into the historical lending practices of Uncle Buck, the Joint Administrators have reached a conclusion upon a set of criteria to be used in assessing whether a customer qualifies for Redress. Following the application of this criteria, which has been applied to the entire customer base of Uncle Buck, the Joint Administrators‘ have been able to establish those customers that qualify for Redress and the value of each customers claim.

Claims for customer redress will essentially fall into 3 categories. The creation of the various categories does not affect a customers eligibility for Redress, which has been considered across the whole customer population both in respect of both live and historic customers, Unfortunately it does however impact on the availability and priority of payment of funds (as governed by insolvency legislation) to meet any Redress that may be due and unfortunately the vast majority of customers will not receive any payment from the Administration.



Category 1 – Customers who have made payments to Uncle Buck after 27 March 2020.

  • If you still have or had a current loan with Uncle Buck after 27 March 2020 and have made repayments towards your loan since this date, you may be entitled to Redress. This may result in a reduction in the balance of your loan, a full or partial refund of the payments you have made since 27 March 2020 or a combination of both. You will shortly receive communication by email from the Joint Administrators directly concerning this.
  • All customers qualifying for a reduction in the balance of their loan will be contacted directly advising of this. This communication will detail the amount of their loan prior to any reduction, the amount it has been reduced and the revised balance outstanding.

Category 2 – Customers with outstanding loans, but who have not made any payments after 27 March 2020

  • Whilst you have not made any payments towards settlement of your loan after the appointment of the Joint Administrators’ on 27 March 2020, you may still be entitled to Redress.
  • Such Redress may take the form of a reduction in the balance of your loan the resulting effect being that your loan may be cleared in full or the outstanding amount reduced. The Joint Administrators’ have already automatically updated qualifying customers’ accounts and you need take no action in this regard. All customers qualifying for a reduction in the balance of their loan will be contacted directly advising of this. This communication will detail the amount of their loan prior to any reduction, the amount it has been reduced and the revised balance outstanding.
  • Where after Redress has been applied there remains an outstanding balance on your account, it is the Administrators duty to continue to collect this.
  • Any Redress that may be still due to customers after loan balances have been cleared will represent an unsecured claim in the Administration proceedings. Regrettably no payments will be made to Category 2 customers due to the lack of funds within the Administration. I would refer you to the Redress Scheme FAQs below for further information.

Category 3 – Former customers of Uncle Buck who had repaid their loans in full prior to the appointment of the Joint Administrators’ on 27 March 2020

  • If you have been a customer of Uncle Buck at any time and had repaid your loan prior to Administration, whilst you may still be eligible and qualify for Redress, there will unfortunately be insufficient funds available to enable any payment towards your claim from the Administration proceedings.
  • In these circumstances, to assist us in reducing the costs of the Administration, (there are in excess of 100,000 customers fall into Category 3), we would urge you to review this update in full prior to contacting us as unfortunately there will be no dividend payment to Category 3 customers from the Administration.

Are you awaiting a Response to a Complaint You Have Already Made?

In respect of those customers who have already submitted complaints prior to or after our appointment, you will be notified by the Joint Administrators’ of the outcome. However, please note the potential outcomes of your claim depending on whether you fall into Category 1, 2 or 3 above.

Credit Rating Agency Reporting

All customer credit records will be updated to reflect the outcome of the Redress exercise. Further information on this can be found in the Redress Scheme FAQs update below.

Redress Scheme FAQs

What is the customer eligibility criteria for Redress

To be eligible for Redress, the customer must meet one or more of the following criteria at time of loan application.

  1. Had less than £100 disposable income
  2. Had more than three payday loans at the time of application of the loan
  3. Had experienced previous payment difficulties with Uncle Buck
  4. Had a loan granted within 90 days of any payment plan with Uncle Buck
  5. Where it is considered that a customer’s income had not been adequately verified

The customer needs to meet only one of the above five qualification criteria’s.

What makes a customer ineligible for Redress

If any of the following scenarios are met, the individual will be ineligible for any redress;

  1. Not meeting one or more the five Redress criteria.
  2. If the FOS has already provided a final decision regarding redress on a loan with Uncle Buck and settlement had been paid.
  3. Redress has already been paid on a loan to the individual by Uncle Buck through a previous complaint.

Please note that this does not preclude customers being eligible to claim for Redress for loans covered by the above.

What is the rationale behind the approach to Redress by the Joint Administrators’

Based on the current financial situation of Uncle Buck and the lack of funds within the Administration, the above approach has been deemed the fairest and most cost-effective strategy. The Joint Administrators’ consider that the Redress criteria listed above will determine whether, at the time the loan was advanced, granting short term lending was potentially unsuitable in terms of affordability and appropriateness.

How is Redress calculated

For customers eligible for redress, we have used the industry standard principles;

  1. A refund of all fees and charges, including interest paid.
  2. An 8% simple interest from the dates the payments were made

I am a Category 1 customer and have made payments in reduction of my loan after 27 March 2020. Do I qualify for Redress and how much?

Certain customers who have made payments after 27 March 2020 will shortly receive an email (to the email address on file at Uncle Buck) from the Joint Administrators’. Upon receipt of this email if you wish to submit a claim for Redress on the grounds that any loan(s) provided to you by Uncle Buck were unaffordable and consider that you have been the subject of irresponsible lending, it is important that you respond to the Joint Administrators’ email. A member of the Joint Administrators’ team will then contact you to advise whether you qualify for Redress and of any potential award due to you.

If you consider that you are a Category 1 customer and have not received an email from us, please contact us at UBredress@harrisons.uk.com and we will investigate the matter further.

I am a Category 2 customer, I have a remaining outstanding balance on my loan, but have not made any payments towards it since the appointment of Administrators on 27 March 2020. How do I find out if I qualify for Redress and how much it will be.

Please note that should you qualify for Redress you will receive an email from UBredress@harrisons.uk.com notifying you of any reduction in the outstanding balance on your account. No further action is required by you as any adjustment will be automatically be made to your account. Where any award is greater than the balance outstanding on your account, regrettably due to a lack of funds in the Administration, there is no prospect of a payment being made to you. Further information advising for the reasons for this can be found in the Redress FAQs below.

If you consider that you are a Category 2 customer and have not received an email from us, please contact us at UBredress@harrisons.uk.com and we will investigate the matter further.

I am a Category 3 customer and my loan from Uncle Buck was repaid in full prior to the appointment of the Joint Administrators. How do I find out if I have qualified for Redress.

This update regrettably informs you that Category 3 customers who had repaid their loans prior to the appointment of the Joint Administrators’ have no prospect of receiving any payment from the Administration whether they qualify for Redress or not. In these circumstances, to assist us in reducing the costs of the Administration, (there are in excess of 100,000 customers fall into category 3), we would urge you to review this update in full prior to contacting us as unfortunately there will be no dividend payment to Category 3 customers from the Administration.

I am a customer, but my email address has changed or I do not have access to email or electronic communications.

– If you are a category 1 or 2 customer and have changed your email address, we would urge you to contact the Joint Administrators’ at UBredress@harrisons.uk.com advising of your new email address so we can update our records. Upon receipt a member of our team will contact you to advise you if you qualify for Redress and provide you with details of any award that has been made.

If you do not or cannot get access to an email address, please call us on [phone number] and we will communicate with you by phone and post.

Why will there be a potential payment to Category 1 customers, but not to Category 2 or 3 customers

Category 1 customers who submit a claim and qualify for Redress and have made payments to the Joint Administrators’ since 27 March 2020 are, in accordance with insolvency legislation, entitled to a refund of monies paid post Administration to the extent of any amount of Redress payable to them and in a maximum sum equivalent to the total payments made since 27 March 2020. Such a refund of payments made by category 1 customers post Administration should not be confused with the payment of a dividend on claims from the Administration. As with category 2 and 3 customers, any category 1 customers entitled to Redress over and above the refund of any payments they have made since Administration will be treated exactly the same as category 2 and 3 customers and equally will not receive any payment from the Administration.

Why will there be no dividend payment to Category 1,2 or 3 customers from the Administration

In all insolvencies in England and Wales there is an order of priority of payments that must be adhered to by the office holders, in this instance the Joint Administrators. In this particular Administration, there is what is known as a ‘floating charge holder’ who ranks in priority to the customers and other unsecured creditors of Uncle Buck other than to the extent of the ‘Prescribed Part’, which is described below. Essentially this means that funds available for distribution are payable to the floating chargeholder in priority to the customers and other unsecured creditors. The payment to the floating charge holder is subject to the Prescribed Part that amounts to approximately 20% of the funds available for distribution to the floating chargeholder, but subject to a maximum amount in this particular Administration of £600,000.

What Is A Floating Chargeholder

A floating chargeholder in simple terms is a person or corporate that loans money to a company or LLP and on the basis that the funds advanced are subject to a charge over the assets of the company or LLP enabling it to take priority in terms of repayment in the event of the failure and subsequent insolvency of the business. In this Administration, the floating charge holder will suffer a substantial shortfall in the monies due to it.

What is the Prescribed Part?

The prescribed part is a sum of monies ringfenced for customers and other unsecured creditors from the monies available to repay the floating chargeholder This amounts to approximately 20% of the fund available for distribution to the chargeholder. The prescribed part for insolvencies occurring prior to April 2020 was subject to a maximum amount of £600,000.

The Prescribed Part is available to cover the costs associated with dealing with the claims of customers and unsecured creditors, any resulting balance being paid by way of dividend to customers and other unsecured creditors.

In this particular Administration, the costs of dealing with customers and other unsecured creditors has resulted in there being no prospect of a dividend being available to customers or the general body of unsecured creditors.

Will the Joint Administrators’ be reporting the outcome of the Redress Scheme to Credit Rating Agencies so my credit file can be updated

The simple answer to this is yes. The credit rating agencies will be notified (usually by 6th of the month) in respect of all customers who qualified for Redress irrespective of what category they fall in to as follows.

If you are a customer who had repaid their loan prior to Administration, or a customer where following the application of any Redress, this results in your loan balance being cleared, the credit rating agencies will be notified to remove any record of the loan.

For customers where there is still an outstanding balance on your loan after Redress has been applied, the Joint Administrators’ will report the reduced balance of the loan to the credit rating agencies.

For customers who do NOT qualify for Redress there will be no change in status in respect of your loan at the credit rating agencies and records relating to your loans will NOT be removed.

It is anticipated that all matters relating to the reporting of the Redress Scheme to the Credit Rating Agencies will be completed by the February 2021 reporting date.

Where financial firms enter into administration, experience is that fraudsters may sometimes approach customers and investors claiming to be able to assist them to recover their investment in return for an advance fee. Sometimes the fraudsters claim to be from the company or the Administrators. You should be wary of any unexpected call, email or other contact which asks you for money in this manner. FCA guidelines are available at:

www.fca.org.uk/consumers/protect-yourself-scams

Q&A

Administration


An Administration is an insolvency procedure regulated by the Insolvency Act 1986.

The Joint Administrators’ role is to realise the assets and distribute them for the benefit of creditors. The Administration will last for an initial period of 12 months but may be extended.

The Joint Administrators will provide regular updates to creditors, this includes customers that are owed redress as they will be creditors of the Firm. Any persons or companies who believe they are a creditor of a Firm in Administration should send their claims to the Joint Administrators.


The Firm, Uncle Buck Finance LLP ( “Uncle Buck / the Firm”) filed its application for an Administration Order on 27 March 2020.

The Firm’s financial position has been deteriorating, and despite attempts to raise the capital needed to continue in business the Firm was unable to do so.

The FCA raised concerns that Uncle Buck was failing to meet the adequate resources Threshold Condition.

Given the severity of these concerns, the FCA required Uncle Buck to stop lending to customers.

Following this action, the members of Uncle Buck have placed the Firm into Administration.


Paul Boyle, David Clements and Tony Murphy of Harrisons Business Recovery & Insolvency (London) Limited, were appointed as Joint Administrators by the Court following an application to Court by the Firm.

Whilst the Designated Members of the Firm made the application for the appointment of Administrators, the FCA consented to the appointment of the named Administrators.

The Joint Administrators are qualified insolvency practitioners, regulated by the Institute of Chartered Accountants in England & Wales. The Joint Administrators act independently of the Firm for the benefit of all creditors and stakeholders. Their primary concern and mandate is to ensure that they maximise the returns to investors and trade creditors alike.


After your claim has been assessed, if your claim is agreed by the Administrators you will be an unsecured creditor of the Firm and will be owed a distribution once all assets have been sold or realised.

Distributions to creditors are made in the following order:

The costs of realising assets will be paid first. Any amounts owing to secured creditors are then settled, followed by employee claims and unsecured claims (such as providers of goods and services and redress claims). If, after paying the costs and amounts due to the secured creditors, there are insufficient funds to pay all remaining claims in full then creditors will receive a proportion of their claim.

Please be aware, if successful, the payment you receive is highly likely be smaller than your accepted claim amount.

This is because the total value of all accepted claims received may exceed the money available to be shared out. The money available to be shared out will not be known until all of Uncle Buck’s assets have been sold or realised and certain costs and deductions have been taken into account.


Yes. The Joint Administrators are in regular contact with the FCA and the Firm remains authorised and regulated by the FCA during the period of the Administration.


As part of our role as Administrators, we may need to access and use data relating to borrowers. In doing so, we must abide by data protection requirements.

Information about the way we will use, and store personal data can be found at: http://harrisons.uk.com/privacy-policy

It is important that you read the terms and conditions so that you are aware of how and why we are using your data.


We would be pleased to receive from any stakeholder any useful information concerning the Firm, its dealing or conduct which may assist us.


If your question has not been answered in this FAQ section or in the FAQs section of the websites, please email your query to Unclebuck@harrisons.uk.com. The Administrators’ team will look at all individual queries. Please be aware that we are expecting a large volume of queries. You may therefore not receive an immediate response.


Customers


The terms and conditions of all loans remain as agreed when the loan was taken out and payment is due in line with the agreement with Uncle Buck Finance LLP (in Administration). This applies to all loan products.


The terms and conditions remain as agreed when the loan was taken out. For further information please go to https://www.unclebuck.co.uk/help-and-support


The Firm is unable to provide further lending from the date of the Administration appointment.


For further information please go to https://www.unclebuck.co.uk/help-and-support We’re committed to helping customers in financial difficulty. The organisations below offer free debt advice and may be able to help you too:

Sources of Free Money Advice

OrganisationWhenContact DetailsHours of HelpAdvice/servicesWhere
STEP CHANGE DEBT CHARITYYou’ve got surplus income once your priority debts are paid and prefer an
adviser to negotiate with creditors on your behalf.
www.stepchange.org

T: 0800 138 1111

Mon to Fri 8am to 8pm;
Sat 8am – 4pm
Debt Management Plan and insolvency advice

Online Debt Remedy self help tool
UK
NATIONAL DEBTLINEYou’d like advice on how to deal with debt problems and you’re happy to
speak to creditors yourself.

www.nationaldebtline.co.uk

T: 0808 808 4000
Mon to Fri 9am to 9pm;
Sat 9.30am – 1pm
Budgeting, debt solutions and free self-help information pack

My Money Steps – online self-help tool
England, Scotland & Wales
CITIZENS ADVICE BUREAUYou’re in serious financial difficulties and you’d prefer face-to-face
help from an adviser.
Face to face – search online for local Citizens Advice Bureau

www.adviceguide.org.uk
Times vary depending on branchAdvice on managing your money
Budget planner


Your loan should be repaid as arranged when it was taken out. For more information on repayment arrangements, and alternative payment methods, please go to https://www.unclebuck.co.uk/help-and-support There will be no change to the bank details to which you should make payment. If you receive any requests to make payment to an alternative account, please inform our Customer Support team straight away on 01959 543400.

Never give personal or account details to anyone who contacts you unexpectedly. We will never ask for your bank details.


Please check the FAQs section of the websites at unclebuck.co.uk

If your question is not covered, please contact Customer Support on  info@unclebuck.tv

The call centre will remain open as normal, but please be aware that we will be handling a high number of calls and your wait may be longer than usual. Please note that the call centre will not be able to answer any questions related to anything outside of standard service enquiries.

If your question is still not answered, please email your query to unclebuck@harrisons.uk.com. The Administrators’ team will look at all individual queries.

Please note that the Administrators’ team does not have online access to customer accounts and is therefore unable to deal with queries relating to the servicing of individual accounts, including current account balance, making repayments and change of bank or address details. These queries should be directed to the customer support centre. The contact details are  email at info@unclebuck.tv

Please be aware that we are expecting a large volume of queries. You may therefore not receive an immediate response.


The Administrators will continue to provide access to the website.


We would be pleased to receive from any stakeholder any useful information concerning the Firm, its dealing or conduct which may assist us.


Complaints


If you are a customer and you have a complaint regarding the service provided by Uncle Buck, please refer to the complaints procedure on how to submit your complaint, which you can find here.

The call centre will remain open as normal but please be aware that we will be handling a high number of calls and your wait may be longer than usual.


Redress Complaints


If you believe that you were provided with an unaffordable loan(s) through Uncle Buck you may have an eligible claim. The Joint Administrators are currently reviewing the position with regard to potential redress complaints and will advise potential claimants in due course of the claim process.


The unaffordability of a loan will be assessed by the Joint Administrators, looking at criteria of the loan at the time it was taken out by the customer and referring to FCA rules and the Financial Ombudsman’s approach.

For more information, we suggest you visit guidance notes from the Financial Ombudsman: https://www.financial-ombudsman.org.uk/publications/technical_notes/payday-lending.html


As advised above, The Joint Administrators are currently reviewing the position with regard to potential redress complaints and will advise potential claimants in due course of the claim process. If you believe you are eligible however, you can make a claim through the Customer Relations team by following the Complaints Procedure which you can access here.


If you are a customer and believe you were sold an unaffordable loan or lent to unaffordably, but have not received any communications from Uncle Buck, please contact Customer Support on 01959 543400

The call centre will remain open as normal but please be aware that we will be handling a high number of calls and your wait may be longer than usual


A CMA/CMC can also help you submit a claim. It is up to you if you want to use one. If you decide to use a CMA/ CMC, please make sure you understand the scope of their services and how much the service will cost you before agreeing to its service.


Any unaffordability claims which were being handled by Uncle Buck will now be assessed by the Joint Administrators. You will not need to re-submit a claim, however, it is important to note that the claim may not be wholly resolved within the usual eight-week timeframe.

Due to the volume of claims that have been and will be received, the Joint Administrators are working with Uncle Buck to finalise the assessment methodology. Further updates on unaffordability claims will be posted here when available: http://harrisons.uk.com/unclebuck.

Should your unaffordability claim be upheld, you would be considered an unsecured creditor for the value of the assessment claim. However, the timing and quantum of the final creditor claim is currently unknown and will not be known for some time. Please do note, however, that any payment is highly likely to be smaller than the accepted claim amount. This is because the total value of all accepted claims may exceed the money available to be shared out. The money available to be shared out will not be known until all of Uncle Buck’s assets have been sold or realised and certain costs and deductions have been taken into account.


Any unaffordability claims which were being handled by the FOS are now in the process of being handed back to the Joint Administrators. You will not need to re-submit a claim. Your FOS claim will now be assessed by the Joint Administrators in due course. It is important to note that the claim may no longer be resolved within the usual eight-week timeframe. We understand that the FOS has been in contact with you in relation to these.

Due to the volume of claims that have been and will be received, the Joint Administrators are working with Uncle Buck to finalise the assessment methodology. Further updates on unaffordability claims will be posted here when available: http://harrisons.uk.com/unclebuck.

Should your unaffordability claim be upheld, you would be considered an unsecured creditor for the value of the assessment claim. However, the timing and quantum of the final creditor claim is currently unknown and will not be known for some time. Please do note, however, that any payment is highly likely to be smaller than the accepted claim amount. This is because the total value of all accepted claims may exceed the money available to be shared out. The money available to be shared out will not be known until all of Uncle Buck’s assets have been sold or realised and certain costs and deductions have been taken into account.


The Joint Administrators will assess all redress claims during the course of the administration. No payments will be made until all of the assets have been sold or realised.

The Administrators are working with Uncle Buck to identify whether, following determination of your claim, you can be notified of the status of your claim. Currently, we do not have a date for payment of any claims. Further updates on unaffordability claims will be posted at http://harrisons.uk.com/unclebuck when available.

Please be aware, if successful, the payment you receive is highly likely to be smaller than your accepted claim amount. This is because the total value of all accepted claims received may exceed the money available to be shared out. The money available to be shared out will not be known until all of Uncle Buck’s assets have been sold or realised and certain costs and deductions have been taken into account.


Claims for which a customer has not received payment but has been notified that they are entitled by a Final Response Letter (FRL) and have accepted the offer within it will now be considered as an unsecured creditor for the value of the FRL. Currently, we do not have a date for payment of any unsecured creditor claims. It is highly likely that the payment you receive will be much smaller than your claim amount. Further updates on unaffordable claims will be posted at http://harrisons.uk.com/unclebuck when available.

After establishing redress, if it is identified that a customer has made any form of repayment of their loan after the date of our appointment, the element of redress applicable will be returned to customers. To cover this situation all receipts since our appointment, will be separately identified and held in a separate bank account pending the completion of the redress process.



You cannot be redressed twice for the same loan. If you previously received a redress payment from the Firm, then the historic loans that were redressed at the time will not be considered again. If you took out further loans from the Firm after your previous redress payment, then you may now submit a claim for these new loans if you believe these were unaffordable loans.

Please be aware, if successful, the payment you receive is highly likely to be smaller than your accepted claim amount. This is because the total value of all accepted claims received may exceed the money available to be shared out. The money available to be shared out will not be known until all of Uncle Buck’s assets have been sold or realised and certain costs and deductions have been taken into account.


Customers will not be approached by any Harrisons or Firm staff directly to assist in submitting a claim. We will be in touch in the coming months to let you know how you can submit your claim.

Do not give details of your claim to anyone who approaches you, alleging that he or she work for Harrisons or the Firm, or otherwise. If you do require assistance or are unsure as to the validity of any correspondence, you have received please contact the Customer Support Team at Uncle Buck.


The Joint Administrators are under a duty to treat each claim equally. Every claim will therefore be assessed in the same way, irrespective of who submits the claim. As mentioned previously, customers do not need to use a Claims Management Firm (CMC) or third party to submit a claim. Using a CMC or third party will not accelerate the claims process, nor entitle you to a higher claim amount. It may also expose you to charges that may be deducted from any final payment you might receive.


We may ask you to confirm that your previous bank details are still valid and give you the opportunity to update your bank details (e.g. if you have closed/changed bank accounts), although further proof of ID and other supporting evidence will be required.


Suppliers


Check your contract. If your contract was with Uncle Buck and you have not been paid for goods or services provided, please provide details of your claim to the Administrators at: The Administrator of Uncle Buck Finance LLP
20 Midtown
20 Procter Street
London
WC1V 6NX

Or

unclebuck@harrisons.uk.com


Please make contact with your usual contact at Uncle Buck Finance in the first instance.


The Joint Administrators’ representatives will make contact with you if supply is required. Any goods or services which are supplied after the date of appointment will be subject to new terms, agreed with the Joint Administrators.


We would be pleased to receive from any stakeholder any useful information concerning the Firm, its dealing or conduct which may assist us.


If your question has not been answered in this FAQ section, please email your query to unclebuck@harrisons.uk.com. The Joint Administrators’ team will look at all individual queries. Please be aware that we are expecting a large volume of queries. You may therefore not receive an immediate response.


Last updated 27 March 2020