Are Payday Loan Charges claimable

rubbishgambler

I have stupidly took out a number payday loans in the past. I appreciate that the interest charges are clear and should be paid however I was wondering regarding obscene late fees and £25 charges for automatically generated letters could be reclaimed in the same way bank charges can be?

Regards

Mark

natweststaffmember

rubbishgambler wrote: »

I have stupidly took out a number payday loans in the past. I appreciate that the interest charges are clear and should be paid however I was wondering regarding obscene late fees and £25 charges for automatically generated letters could be reclaimed in the same way bank charges can be?

Regards

Mark

Yes they can be reclaimed in that way.

dunstonh

Although they are likely to suffer the same sort of success (failure) rate.

natweststaffmember

dunstonh wrote: »

Although they are likely to suffer the same sort of success (failure) rate.

We'll see about that, eh?
What service is the company providing by adding £25 to their loan?

mikeandrach_2

i've recently put in a claim against the money shop for approx £400. fos said there offer of £100 plus ability to pay balance in instalments is fair and reasonable as a gesture of goodwill.

apparently, they expect customers to default, (this is according to an fos adjudicator), and the £25 fees are a normal part of their income. if they are lending money to people who they expect to default, is that not irresponsible lending?

dunstonh

if they are lending money to people who they expect to default, is that not irresponsible lending?

No. They are high risk lenders lending to people who are bad credit risks. That is the model.

i've recently put in a claim against the money shop for approx £400. fos said there offer of £100 plus ability to pay balance in instalments is fair and reasonable as a gesture of goodwill.

That is FOS speak for saying you didnt have a leg to stand on and the fact you were offered £100 was good.

mikeandrach_2

i am aware they have shown some help so will begrudgingly accept.

the £25 thing is an issue. regardless of the nature of the business, a company should not lend someone money when they believe they wont be able to repay it as agreed. the money shop have openly admitted to me and the fos that they do this. so basically, on top of the already extortionate interest rates, they are getting default fees aswell.

Smasher

dunstonh wrote: »

That is FOS speak for saying you didnt have a leg to stand on and the fact you were offered £100 was good.

No mate, that's just your opinion.

My opinion would be that its just the FOS wanting to make short work of what they see is a small dispute. I don't have a copy of the FOS speak book though, so I could be wrong..

R0bert_Sterling

mikeandrach wrote: »

ia company should not lend someone money when they believe they wont be able to repay it as agreed. .

So you close down ALL the high risk lenders??

The high risk lenders, lend to people who are unlikely to repay, that's why they are high risk.

The whole point of the credit system is to identify those who are unlikely to repay anything they borrow.

Do you think everyone who has ever defaulted should be prevented from ever getting a loan again??

dunstonh

My opinion would be that its just the FOS wanting to make short work of what they see is a small dispute. I don't have a copy of the FOS speak book though, so I could be wrong..

It may be your opinion but the fact that the FOS made no award and said the goodwill gesture is fair and reasonable suggests no case to answer. If wrongdoing had occurred then there would be a redress payment plus interest. Not a goodwill payment.

The FOS publications on outcomes of complaints give you an idea of what they award and when (and when not) so you can get an idea of how they look at things.

Smasher

dunstonh wrote: »

the fact that the FOS made no award and said the goodwill gesture is fair and reasonable suggests no case to answer. If wrongdoing had occurred then there would be a redress payment plus interest. Not a goodwill payment.

Slightly better. In your original answer, you appeared to be speaking on behalf of the FOS. Their response suggests nothing at all, they are not a court.
Do you think a £25 charge for late payment is perfectly lawful? If so, why?