On 27 March 2020, the short-term loans company Uncle Buck went into administration.
If you’re an existing customer, you may be wondering what that means for you if you’re still paying off a loan, if you have a complaint pending resolution, or you simply need to get in touch with them. This quick guide offers the latest resources and information.
Who is Uncle Buck Loans?
Uncle Buck (officially known as Uncle Buck Finance LLP) was an online finance company that offered short-term, high-interest cash loans of up to £1,000 to the public.
A company like Uncle Buck Loans is often referred to as a direct lender – their loans were designed to be repayable over a four to six-month period and were aimed at those customers experiencing a short-term cash-flow crisis, or those looking for a payday loan.
Why did Uncle Buck go into administration?
The business went into administration on 27 March 2020 after concerns were raised about irresponsible lending by the Financial Conduct Authority (FCA). According to the FCA:
“Uncle Buck’s 2018 accounts were published in January 2019 and revealed significant growth in its loan book but a deteriorating financial position. In light of this, we reviewed the viability of Uncle Buck’s business model.
Our findings from this, and the need to protect consumers, led us to ask Uncle Buck to consider all options to address the situation and to raise more capital. Despite attempting to do so, Uncle Buck was unable to raise the capital needed to continue in business.”
What did Uncle Buck Loans cite as the reason for its administration?
The company cites a “deteriorating financial situation” on its website as one of the reasons for its collapse. Uncle Buck has now ceased trading entirely and is being managed by administrators Harrisons Business Recovery and Insolvency.
That means that you won’t be able to take out a new loan with them or borrow any more money. The firm is still regulated by the FCA during the administration period.
Do I need to pay back my Uncle Buck loans?
Yes, any outstanding debt or payday loan must still be repaid. Even though the lender has gone into administration, you’re still liable to pay back any money you are due to the administrators of Uncle Buck, and you still have to comply with the terms and conditions of your loan agreement.
The Uncle Buck website remains online. For existing customers, you should still be able to log in to access your account information if you already have an account created.
If your loan is attached to a UK bank account, there’s no need for you to update their bank details – payments towards your payday loans will be taken automatically.
How do I contact Uncle Buck now?
You can get in touch with the administrators of Uncle Buck with any queries by emailing [email protected].
If you need to discuss your loan or repayments, you can still email customer services at [email protected] or call 01959 543400. There will be a team on hand to help with any questions or queries.
You can also check the detailed FAQs section of the Uncle Buck website if you have any specific questions about the administration proceedings and how they affect you.
I’m struggling to pay an Uncle Buck loan due to COVID-19
Lending activity across the UK has been hugely impacted by the pandemic. If you’re a UK resident and think you may struggle to make repayments on your Uncle Buck loan, you should get in touch with the Uncle Buck Customer Support team on 01959 543400.
The FCA has advised that, “We expect lenders to provide appropriate forbearance in response to temporary payment short-falls due to the coronavirus.”
Even though Uncle Buck has fallen into administration, the administrators will still be regulated by the FCA, and will be expected to do what they can to help if you’re struggling to make payments because of difficulties relating to the coronavirus pandemic.
I need to make a complaint
If you believe you’ve been unfairly treated by Uncle Buck, and need to make a complaint, you can follow the company’s complaints procedure.
Uncle Buck call centres remain open at the time of publication, and you can get in touch on 01959 543400, or outline your complaint by email to [email protected].
I’m waiting to hear back about a claim against Uncle Buck
If it’s been decided that you have a valid claim against the company, you will be due a payout when Uncle Buck has been liquidated – i.e. it’s been sold off and has realised all its assets.
However, your share may be less than the amount you initially claimed for, because the company may owe more money than it has available to pay out to all its creditors.
Can owing money to Uncle Buck affect my credit rating?
If you keep up with your Uncle Buck loan repayments and pay off your debt in full and on schedule, this shouldn’t have any negative impact on your credit rating – in fact, it could even give it a boost.
However, as with most financial agreements, if you miss or fall behind on your loan repayments, this could damage your credit rating.
On their website, Uncle Buck advise customers, “Failing to repay on the agreed dates may have a negative impact on your credit score as we provide payment performance information to credit reference agencies.”
I’ve been asked to change my payment information. Why?
If you’ve been called recently by anyone claiming to be a representative of Uncle Buck and asked to provide updated payment details, you should contact the Uncle Buck Customer Services team as soon as possible.
The Uncle Buck administrator site warns that fraudsters can take advantage of a company going into administration – and that true representatives of the site will never ask you for your bank details over the phone.
As such, borrowers should treat any unexpected cold calls or conversations of this nature with suspicion.
