Payday Loan company - accept part settlement?

pmhtuk

I received a payday loan back in October 2012 which was due for payment in November to cover an unexpected car repair bill. All was fine, and I accepted the details, however due to a further unexpected car bill in early October, my wage went towards this instead of repaying the payday loan.

I went through the usual process with them by explaining situation and seeing if I could repay over 2 months instead - not possible. Instead they took a while to respond and eventually defaulted me and passed onto Debt Collection Agency (DCA).

They have added a charge of just short of £200 (on the original £400 loan) to refer it to a DCA and I'm now dealing with the DCA directly. They've accepted an even lower amount to be paid back over 8 months (£100/month) which is great and helps me to pay it back.

I totally accept that this is my fault, but a friend of mine asked if they had checked affordability beforehand - which when checking with the payday loan company, they didn't, and in fact thinking about it I would have ended up with approx £20 left in my account at the end of the month to survive on if the payday loan had been paid back.

Again, because I'm aware people will blame me for taking the loan out / accepting the conditions etc, I'm happy to take that. However I've argued in writing to the company that I don't think they took my affordability into consideration and that the near-£200 referral fee to the DCA is not justified on a loan of £400.

After a few passing letters they've brought an offer of removing the £200 charge for referral to DCA and so just the principal + interest would be due.

Would I be best to take this offer or instead continue to argue (and possibly escalate) the fact that they didn't check my affordability to repay?

Again, I accept that I should've worked it out myself, and although an arrangement is in place which I'm happy with, I don't know if escalating it (i.e. FOS) would help to highlight that the company doesn't check affordability.

Many thanks.

Pete

stephane_2

Take the deal....FOS will do nothing. You should have been the ONE to know if able to repay.....

bargainbetty

pmhtuk wrote: »

Again, I accept that I should've worked it out myself, and although an arrangement is in place which I'm happy with, I don't know if escalating it (i.e. FOS) would help to highlight that the company doesn't check affordability.

Highlight it to who? Most people are becoming or are already very aware of the methodology used by payday lenders, and it's hardly a shock to anyone that they don't carry out a full credit search based upon income and expenditure.

You've got a result. Take it and run!

DCFC79

Yes I also agree to go with the settlement offer.