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  • FIRST POST
    financial ombudsman representative
    payday loan problems - ask the ombudsman
    • #1
    • 30th Sep 14, 2:34 PM
    payday loan problems - ask the ombudsman 30th Sep 14 at 2:34 PM




    Payday lending worries keeping you awake at night? Don’t worry, you’re not alone. The ombudsman service is here to help.

    We sort out problems between payday lenders and their customers. We can help with a range of things, for example if your lender:

    ·charges you more than once for a missed payment
    ·charges you a fee for a loan which you never receive
    ·doesn’t respond when you ask for help with the repayments
    ·calls and texts you too much
    ·and many other issues.

    There are lots of ways to get in touch…

    1.Just ask your question below and we will reply. If your question is about something other than payday lending, pop over to our Twitter feed @financialombuds to ask it now.

    2.If you would prefer to ask a question in private, feel free to send a message to paydayhelp@financial-ombudsman.org.uk

    3.We’re available for web chat which can be found on our website here

    4.Phone us, for free on 0800 023 4567 or if you’re calling from a mobile on 0300 123 9123, lines are open Monday-Friday 8am – 8pm and Saturday 9am – 1pm.

    You can follow us on twitter @financialombuds and also check out our other threads below:

    Banking Problems

    Motor Insurance Problems



    Official Company Representative
    Last edited by financial ombudsman representative; 27-03-2015 at 3:20 PM. Reason: need to change name of thread
Page 1
    • Sinhanada
    • By Sinhanada 30th Sep 14, 3:06 PM
    • 486 Posts
    • 293 Thanks
    Sinhanada
    • #2
    • 30th Sep 14, 3:06 PM
    • #2
    • 30th Sep 14, 3:06 PM
    Thank you - I must say it certainly works. I've recently come through a large debt mountain as a result of these and one PDL company in particular kept charging even though I had entered a DMP. Eventually sending out fake solicitor letters.

    I've been in contact with them this year to try to settle the amount but they basically ignored me. The Ombudsman has helpfully reviewed this and the PDL has made an offer which I've accepted...now I'm just waiting for them to contact me...which I suspect they won't.

    If you have an issue, do get in touch with them. They certainly do help!
  • financial ombudsman representative
    • #3
    • 30th Sep 14, 6:07 PM
    money worries keeping you awake? Ask the ombudsman.
    • #3
    • 30th Sep 14, 6:07 PM
    Hi Sinhanada

    Thank you for your post. I am pleased that we have been able to help you with this issue. If you still haven’t heard from the business about your offer feel free to get in touch.

    Don’t let money worries keep you awake at night, the Ombudsman is here to help.
    • dumpyboy
    • By dumpyboy 1st Oct 14, 5:53 AM
    • 333 Posts
    • 71 Thanks
    dumpyboy
    • #4
    • 1st Oct 14, 5:53 AM
    • #4
    • 1st Oct 14, 5:53 AM
    Hi Sinhanada

    Thank you for your post. I am pleased that we have been able to help you with this issue. If you still haven’t heard from the business about your offer feel free to get in touch.

    Don’t let money worries keep you awake at night, the Ombudsman is here to help.
    Originally posted by financial ombudsman representative
    The exact opposite to what I was told and found the ombudsman is there to give his veiw on the matter not to help advise.
    • Sinhanada
    • By Sinhanada 1st Oct 14, 8:45 AM
    • 486 Posts
    • 293 Thanks
    Sinhanada
    • #5
    • 1st Oct 14, 8:45 AM
    • #5
    • 1st Oct 14, 8:45 AM
    The exact opposite to what I was told and found the ombudsman is there to give his veiw on the matter not to help advise.
    Originally posted by dumpyboy
    I'm not sure what you mean by your post. I had an issue with a PDL, I complained to the PDL and followed their procedure. After 8 weeks of receiving nothing back but an automated response I contacted the Ombudsman who reviewed the case. After receiving both information from both the PDL and myself an offer was made by the PDL and I was asked if I would accept it. I did.

    They gave reviewed the information and acted upon it. They did not advise me?
    • Sinhanada
    • By Sinhanada 1st Oct 14, 10:42 AM
    • 486 Posts
    • 293 Thanks
    Sinhanada
    • #6
    • 1st Oct 14, 10:42 AM
    • #6
    • 1st Oct 14, 10:42 AM
    The exact opposite to what I was told and found the ombudsman is there to give his veiw on the matter not to help advise.
    Originally posted by dumpyboy
    I'm not sure what you mean by your post. I had an issue with a PDL, I complained to the PDL and followed their procedure. After 8 weeks of receiving nothing back but an automated response I contacted the Ombudsman who reviewed the case. After receiving both information from both the PDL and myself an offer was made by the PDL and I was asked if I would accept it. I did.

    They gave reviewed the information and acted upon it. They did not advise me?
  • financial ombudsman representative
    • #7
    • 1st Oct 14, 12:01 PM
    • #7
    • 1st Oct 14, 12:01 PM
    I'm not sure what you mean by your post. I had an issue with a PDL, I complained to the PDL and followed their procedure. After 8 weeks of receiving nothing back but an automated response I contacted the Ombudsman who reviewed the case. After receiving both information from both the PDL and myself an offer was made by the PDL and I was asked if I would accept it. I did.

    They gave reviewed the information and acted upon it. They did not advise me?
    Originally posted by Sinhanada
    The exact opposite to what I was told and found the ombudsman is there to give his veiw on the matter not to help advise.
    Originally posted by dumpyboy

    Hi

    Thank you both for your posts. At the ombudsman our aim is to resolve complaints between individuals and financial businesses. Although we don’t offer advice, we help people by looking at what we think is fair. We tell the business to do the right thing.

    With payday loans we are working with consumers and businesses in a completely new way. With short-term lending we know that speed is of the essence – so we take the complaint directly to the business and we’re often able to get problems sorted out before they escalate or become a “case”.

    Have a look at this article, it’ll tell you a bit more about the work we have been doing. http://www.theguardian.com/money/2014/sep/02/financial-ombudsman-payday-loans-disputes-lenders-14-days

    You can see how this works in practice by looking at how we have helped Lewis, Leanne and Jon: http://financial-ombudsman.org.uk/keeps-you-awake/people-weve-helped.html

    We have been able to resolve these types of complaints by working closely with the businesses to remove excessive charges and interest, set up repayment plans and highlight issues where consumers are unable to repay. Even if we don’t agree with your complaint, we can help you speak to the business to make things more manageable.

    If you have an issue like anything I’ve mentioned above with a payday loan company please speak to us. We can help.
    Last edited by financial ombudsman representative; 01-10-2014 at 1:19 PM.
    • fermi
    • By fermi 1st Oct 14, 2:42 PM
    • 39,033 Posts
    • 46,819 Thanks
    fermi
    • #8
    • 1st Oct 14, 2:42 PM
    • #8
    • 1st Oct 14, 2:42 PM
    We want to use this thread to encourage people with a payday loan related problem to get in touch with us and seek help.

    But we’re more than happy to discuss your points over on Twitter where we answer questions about anything ombudsman related.

    Alternatively, if you start another thread, we can comment there. Or here our other contact details too, if you’d prefer that.

    Thanks
    Originally posted by financial ombudsman representative
    Off topic posts moved to a new thread here.

    ---> FOS & case fees
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • dumpyboy
    • By dumpyboy 1st Oct 14, 9:42 PM
    • 333 Posts
    • 71 Thanks
    dumpyboy
    • #9
    • 1st Oct 14, 9:42 PM
    • #9
    • 1st Oct 14, 9:42 PM
    Payday lending worries keeping you awake at night? Don’t worry, you’re not alone. The ombudsman service is here to help.

    We sort out problems between payday lenders and their customers. We can help with a range of things, for example if your lender:

    ·charges you more than once for a missed payment
    ·charges you a fee for a loan which you never receive
    ·doesn’t respond when you ask for help with the repayments
    ·calls and texts you too much
    ·and many other issues.

    There are lots of ways to get in touch…

    1.Just ask your question below and we will reply. If your question is about something other than payday lending, pop over to our Twitter feed @financialombuds to ask it now.

    2.If you would prefer to ask a question in private, feel free to send a message to paydaylendinginbox@financial-ombudsman.org.uk

    3.We’re available for web chat which can be found on our website here

    4.Phone us, for free on 0800 023 4567 or if you’re calling from a mobile on 0300 123 9123, lines are open Monday-Friday 8am – 8pm and Saturday 9am – 1pm.
    Originally posted by financial ombudsman representative

    Many company's treat you like this what makes it right for you to decide what cases to look at and who is worthy of help and who is not
    • Moneyineptitude
    • By Moneyineptitude 1st Oct 14, 11:50 PM
    • 16,797 Posts
    • 7,447 Thanks
    Moneyineptitude
    what makes it right for you to decide what cases to look at and who is worthy of help and who is not
    Originally posted by dumpyboy
    What are you on about? FOS look at all cases referred to them by customers, they don't "cherry pick" those they want to help...
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 2nd Oct 14, 12:38 AM
    • 2,365 Posts
    • 1,215 Thanks
    keepcalmandstayoutofdebt
    All I can say is back in 2011/2012 people were treated a lot differently. Or is it the change in CEO... back to the rosy specs


    I know someone who giggles how bad the payday loan industry was 3 years ago when it got to the point people took their own lives, lost job after being rung at work and getting the 'don't look over your shoulder' talk amongst other things... had to get their own justice even, compared to today, and they have a point, whilst I can beat them at payday loan mastermind! I doubt the above rarely happens now for the greater good


    Strange how we get such protection organisations caring after the storm? For some "to little, to late"


    I've never forgotten when I was draw into the FOS wanting to charge when I sorted matters myself - the lender kindly copied me in... if that isn't enriching one's organisation what was, while they say you should never trust anyone else
    "Nowadays if you do what you've always done, you'll get less"
    • MSE Andrea
    • By MSE Andrea 2nd Oct 14, 10:17 AM
    • 7,842 Posts
    • 19,654 Thanks
    MSE Andrea
    Thanks for the thread

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    • rizla king
    • By rizla king 2nd Oct 14, 12:33 PM
    • 2,825 Posts
    • 1,881 Thanks
    rizla king
    What are you on about? FOS look at all cases referred to them by customers, they don't "cherry pick" those they want to help...
    Originally posted by Moneyineptitude
    http://forums.moneysavingexpert.com/showthread.php?t=5058867

    Seems they were brushed off by a spotty ill informed adjudicator, and told that they could not appeal to the actual ombudsman without any new info. Which is complete and utter bull.
    Still rolling rolling rolling...... <----- SIGNATURE - Not part of post
  • financial ombudsman representative
    Payday loans in the news again!
    Check out the article below from The Guardian talking about the new proposals for payday loans:

    http://www.theguardian.com/business/2014/oct/09/payday-lenders-price-comparison-sites

    In a nutshell, the new proposals set out for payday lenders mean they have to be more upfront and…

    • give details of their products on price comparison websites
    • provide information upfront about their costs. Meaning you can now shop around for the best deals out there without affecting your credit file.

    Companies that charge you a fee to search for a loan will now have to:
    • tell you that they are not a lender
    • tell you how they are going to use your information
    • make it clear that they will charge you a fee

    If you have any problems with a payday lender or a site that has taken money from you, and not provided you a loan then let us know below. You can also get in touch by sending us an email to paydayhelp@financial-ombudsman.org.uk or calling us for free on 0800 023 4567 or if you’re calling from a mobile on 0300 123 9 123, lines are open Monday-Friday 8am – 8pm and Saturday 9am – 1pm.

    Sarah
    • fermi
    • By fermi 10th Oct 14, 12:16 PM
    • 39,033 Posts
    • 46,819 Thanks
    fermi
    Click for slightly larger version: https://pbs.twimg.com/media/BzgBFIoCcAASLeP.jpg:large

    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • financial ombudsman representative
    New rules for Payday Lenders have been announced today.

    The FCA has announced that from January 2015,Payday Lenders have to follow new rules:

    · they cannot charge more than 0.8% a day in interest and fees.
    · if you fail to pay back on time, they can only charge you a maximum of £15
    · you will not have to pay back more than twice what you have borrowed.

    The new rules are there to protect you and make sure that everyone is treated fairly.

    Check out the article below for more information:

    http://www.bbc.co.uk/news/business-30000472

    But, we know at the ombudsman that problems with payday loans can be about much more than just the costs of them, as we found out in our payday loan report.

    If you have any problems with a payday lender then let us know below. You can also get in touch by sending us an email to paydayhelp@financial-ombudsman.org.uk or calling us for free on 0800 023 4567 or if you’re calling from a mobile on 0300123 9 123, lines are open Monday-Friday 8am – 8pm and Saturday 9am – 1pm.

    Sarah


    Last edited by financial ombudsman representative; 11-11-2014 at 4:13 PM.
    • ericctheking
    • By ericctheking 11th Nov 14, 3:42 PM
    • 324 Posts
    • 264 Thanks
    ericctheking
    Why is a senior Ombudsman speaking at a debt purchasers conference and giving advice to debt collecting agencies on how to game the system.
    Please see the Erudio student loans thread!
  • Monkeyballs
    Hi Rep,

    Quick question for you... It's not "strictly" a PDL issue, it's Provident but prior to entering into a DMP I had been repaying them on payday each month...

    So, originally I asked them to remove the front stacked interest which they refused (although I understand that a DMP is not a formal process and is in fact voluntary).

    I then asked if they could provide a settlement figure as my loan was only around 6 months old and a relative offered to repay the loan to save on the interest and they replied with a letter from their "Solicitor" CK Edrupt advising that I should direct all contact to them in future and refusing to provide a settlement figure since entering into a DMP meant I had broken my contract and the whole amount was payable with no possibility of negotiation.

    Finally, I decided to put in a formal complaint (which I had previously tried to avoid doing as I wanted to keep things amicable as I had previously had a good relationship with my agent) highlighting that on several occasions I had highlighted to my agent that A) I had numerous PDL's which I was "balancing" but as I was paying them each month and re-loaning they could be omitted from my Income & Expenditure (my agent even checked with my account manager who said it was ok as I was a good customer) B) My last loan was actually two loans to allow me to consolidate my old loan (which in itself was only a few months old) and give me an extra £1000...

    At the time I had a gambling issue which I didn't particularly keep secret from my agent and he even told me that I could do whatever I want with the money and it was good for him as he was earning commission and I was a 'good customer'.

    The reply back from Provident was that I needed to provide I&E forms from the last few years, as well as bank statements and payslips from a similar period and any evidence which I had of discussions at that time but also went on to describe how it was all my own fault and since my agent of the time no longer worked for Provident they had no way of verifying my account of proceedings anyway?

    At this point I felt that they had stacked the cards in their favour as I didn't have much of the information they asked for (I was in a bad way at the time) and how do I prove the conversations I had with my agent?

    Due to this I thought I had no option to forget the whole thing... Perhaps a couple of weeks after their letter I got another letter from Cabot stating that they had bought the debt from Provident so my feeling is that even if I had all of the information they asked for I wouldn't have had time to get it all together and returned anyway!

    I'm not expecting miracles but can you suggest what I may be able to do next (if anything)?

    Thanks,

    MB
    StepChange DMP - £8092.13
    Sealed Pot Challenge 7: # 257 2014 is my first year
    Roadkill Rebels 2014: # 65 £34.83 PAD 2014 - £340.17
  • financial ombudsman representative
    Hi Rep,

    Quick question for you... It's not "strictly" a PDL issue, it's Provident but prior to entering into a DMP I had been repaying them on payday each month...

    So, originally I asked them to remove the front stacked interest which they refused (although I understand that a DMP is not a formal process and is in fact voluntary).

    I then asked if they could provide a settlement figure as my loan was only around 6 months old and a relative offered to repay the loan to save on the interest and they replied with a letter from their "Solicitor" CK Edrupt advising that I should direct all contact to them in future and refusing to provide a settlement figure since entering into a DMP meant I had broken my contract and the whole amount was payable with no possibility of negotiation.

    Finally, I decided to put in a formal complaint (which I had previously tried to avoid doing as I wanted to keep things amicable as I had previously had a good relationship with my agent) highlighting that on several occasions I had highlighted to my agent that A) I had numerous PDL's which I was "balancing" but as I was paying them each month and re-loaning they could be omitted from my Income & Expenditure (my agent even checked with my account manager who said it was ok as I was a good customer) B) My last loan was actually two loans to allow me to consolidate my old loan (which in itself was only a few months old) and give me an extra £1000...

    At the time I had a gambling issue which I didn't particularly keep secret from my agent and he even told me that I could do whatever I want with the money and it was good for him as he was earning commission and I was a 'good customer'.

    The reply back from Provident was that I needed to provide I&E forms from the last few years, as well as bank statements and payslips from a similar period and any evidence which I had of discussions at that time but also went on to describe how it was all my own fault and since my agent of the time no longer worked for Provident they had no way of verifying my account of proceedings anyway?

    At this point I felt that they had stacked the cards in their favour as I didn't have much of the information they asked for (I was in a bad way at the time) and how do I prove the conversations I had with my agent?

    Due to this I thought I had no option to forget the whole thing... Perhaps a couple of weeks after their letter I got another letter from Cabot stating that they had bought the debt from Provident so my feeling is that even if I had all of the information they asked for I wouldn't have had time to get it all together and returned anyway!

    I'm not expecting miracles but can you suggest what I may be able to do next (if anything)?

    Thanks,

    MB
    Originally posted by Monkeyballs
    Hi MB,

    When you set up a payment plan with a business we would expect them to freeze the interest and charges from the point that you made them aware you were in financial difficulty.

    If you have concerns that you may have overpaid then this is something that we can look at.

    If you would like to talk to us about this you can email us at paydayhelp@financial-ombudsman.org.uk

    Or call us on 0300 123 9123

    Kind regards,

    Amy
  • Zerdi6
    Good Morning,

    Reference Wonga, I have a PDL with them which is currently included on a DMP with StepChange. I heard nothing from them regarding interest being repaid or loans written off so contacted them. I was told they only had instruction to pay interest back on loans 30-90 days overdue, and to write off loans 90-120 days overdue. My loan is over 400 days overdue and they said they have no instruction or obligation to pay anything back.

    Could you confirm this please?

    Many thanks
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