Payday lender Sunny goes into administration

Elevate Credit International Limited (ECIL), a payday lender which sold loans under the Sunny brand, has gone into administration in the UK with Ed Boyle and David Pike of KPMG appointed as administrators of the firm.

The lender has blamed its financial difficulties on the coronavirus pandemic, as well as regulatory issues in the UK financial industry.

ECIL is the lastest payday lender to collapse, as QuickQuid, Wonga and the Moneyshop all abandoned the payday loans industry after the Financial Conduct Authority (FCA) tightened regulations on the sector.

The firm has previously warned that the lack of regulatory clarity in the UK would challenge the day-to-day operations of ECIL. It added that the COVID-19 crisis has further complicated the business environment, ultimately forcing the firm to appoint administrators.

The FCA has said that it is in close contact with the firm and the administrator with regard to the fair treatment of customers still in receipt of loans from ECIL.

The watchdog also confirmed that all existing loan agreements remain in place and will not be affected by the proposed administration. However, ECIL is no longer able to issue new loans.

KPMG has said that customers should continue to make repayments of existing loans in the usual way, and interest is continuing to accrue on outstanding loans as usual.

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