Avoid Loans Direct

LindaMichael_2

On the 29th and 30th May 2013 my son suffered a psychotic mania attack which resulted in him doing things he had no recollection or in need of. He was then admitted to hospital. Afterwards I found that he had entered his bank details onto various sites, Loans Direct being one of them. On the 31st May Loans Direct deducted £69.75 from his bank account. However, due to their terms and conditions he had a legal right to cancel the membership in writing within 14 days. A recorded and signed for letter was sent to them on 6th June 2013 which they received on 7th June 2013 requesting that his membership to be cancelled and also the refund of £69.75. Their response was a letter dated 19th June extending the membership, which is NOT what was requested. I then contacted action fraud who gave me a crime reference number as this and other companies like them tend to ignore letters and make it impossible to get your money back. I’ve also rung and rung Loans Direct to no avail, all numbers are never answered, you just get a heavy phone bill. Action fraud said to contact the bank and file a dispute as contact can only be made via their account. Loans Direct are NOT a reputable company.
I have all letters and receipts for the above. The money they deducted from the account was on 31st May 2013, they received my letter on 7th June 2013 which was 7 days later, well within their 14 day cancellation time. Therefore the money they have should be returned to my son but they are choosing not to repay. Well i wont be giving up yet!!!

Apples2

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

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JuicyJesus

Apples2 wrote: »

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

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These online loan brokers are not covered by the FOS.

LindaMichael_2

I am having to take the correct channels and proceed through the bank first and its in its second stage. If no joy there I will be contacting the FCA as advised by the fraud team. This company and others like them have to trade under their terms and conditions. Its about time all these and others like them are closed down..... and personally i think NO loans should be available on line.

Caladan

How have you approached it with the bank? I'd suggest giving them copies of the letters you sent and such, the bank may be able to raise a charge-back as long as you have good supporting documents.

LindaMichael_2

Caladan wrote: »

How have you approached it with the bank? I'd suggest giving them copies of the letters you sent and such, the bank may be able to raise a charge-back as long as you have good supporting documents.

Yes, i am hoping to sort with the bank firstly, I opened up a dispute and yes i do have all copies of proof of signatures, docucuments etc. which they have received :j

TheMoney

Caladan wrote: »

How have you approached it with the bank? I'd suggest giving them copies of the letters you sent and such, the bank may be able to raise a charge-back as long as you have good supporting documents.

Banks may not necessary be able to help with this situation. I'm pretty confident these companies are fully aware of the various regulations and laws related to the industry they are trading in, and I believe many of the brokers T's&C's contain a clause that being offered a loan as a result of their service classes as you using their service, which then voids your 14 day period to claim a refund. Many of the brokers also provide PDL's, or are closely affiliated with loan providers, therefore once you have entered your details, they then pass on your information and you will be bombarded with offers. Many of the offers you have received may include terms such as requiring a guarantor, but nevertheless this still is a valid offer of a loan, hence the broker service doing exactly as it says. The Visa chargeback scheme is in place to allow financial institutions to act on a customers behalf to assist in the resolution of a dispute, but it is never a guarantee of you getting a refund. Generally in this situation, you will require some form of written confirmation that the broker have agreed your cancellation and won't be taking a payment for a chargeback to even be undertaken. Don't mean to be harsh, and apologies for the long post, but it seems there is a huge number of people under the wrong impression of the chargeback scheme and the limits of what the bank can do. When a chargeback is submitted, the merchant obviously has the opportunity to challenge this, by providing their justification of the payment they have taken. In this case, if the merchant provides evidence that the customer entered details on their site, a loan has been offered, and their terms clearly state the fee, then your bank doesn't have a leg to stand on.