payday loan problems - ask the ombudsman

ADH1987

Hi

I have recently decided to complain to a payday loan company about a loan I had in 2011/12, I borrowed £200 and over the course of a year paid £60 interest only every month as a rollover payment, resulting in paying over three times the amount in interest alone.

The initial debt was passed on to a debt collector, In my letter of complaint I have asked for the interest to refunded on the basis they acted irresponsibly and the the total interest paid was unfair

At this time I was in a mess with my finances with payday loans, credit cards, and overdrafts coming out of my ears, I was behind with council tax, my car insurance was ridiculously high as was my rent and I was spending more than I earned each month, If I remember correctly I borrowed this money just so that I could eat! I buried my head in the sand and just paid the interest before I finally pulled my self out.

I have complained that they should have never given me the loan as it contributed to my debt spiral, as I was not credit worthy and the interest payments I ended paying were unfair.

In there response to my complaint they maintain they did not act irresponsibly and claim that thay made affordability checks etc and when the loan was taken out I had no defaulted or delinquent accounts that their credit referencing agency (GoCredit) informed them of (which I did) and that I was credit worthy with a score of 559 which was ''above average'' at the time. I clearly wasn't

I have however had an offer of 3 months worth of interest (£180) to be refunded as goodwill, but they have however insisted they acted responsibly

My gut tells me i'm due more as I believe their investigation to be biased, their information looks wrong and on reflection I believe they took advantage of my desperation at the time.

I'm considering declining their offer, do you think I should persue further?

DCFC79

ADH1987 wrote: »

Hi

I have recently decided to complain to a payday loan company about a loan I had in 2011/12, I borrowed £200 and over the course of a year paid £60 interest only every month as a rollover payment, resulting in paying over three times the amount in interest alone.

The initial debt was passed on to a debt collector, In my letter of complaint I have asked for the interest to refunded on the basis they acted irresponsibly and the the total interest paid was unfair

At this time I was in a mess with my finances with payday loans, credit cards, and overdrafts coming out of my ears, I was behind with council tax, my car insurance was ridiculously high as was my rent and I was spending more than I earned each month, If I remember correctly I borrowed this money just so that I could eat! I buried my head in the sand and just paid the interest before I finally pulled my self out.

I have complained that they should have never given me the loan as it contributed to my debt spiral, as I was not credit worthy and the interest payments I ended paying were unfair.

In there response to my complaint they maintain they did not act irresponsibly and claim that thay made affordability checks etc and when the loan was taken out I had no defaulted or delinquent accounts that their credit referencing agency (GoCredit) informed them of (which I did) and that I was credit worthy with a score of 559 which was ''above average'' at the time. I clearly wasn't

I have however had an offer of 3 months worth of interest (£180) to be refunded as goodwill, but they have however insisted they acted responsibly

My gut tells me i'm due more as I believe their investigation to be biased, their information looks wrong and on reflection I believe they took advantage of my desperation at the time.

I'm considering declining their offer, do you think I should persue further?

As far as I know theres only 3 credit reference agencies, Experian, Equifax and Call Credit.

The credit score you were told might not have been your correct score from 1 of the 3 official agencies. Credit scores are only seen by you.

twhitehousescat

ADH1987 wrote: »

Hi

I have recently decided to complain to a payday loan company about a loan I had in 2011/12, I borrowed £200 and over the course of a year paid £60 interest only every month as a rollover payment, resulting in paying over three times the amount in interest alone.

The initial debt was passed on to a debt collector, In my letter of complaint I have asked for the interest to refunded on the basis they acted irresponsibly and the the total interest paid was unfair

At this time I was in a mess with my finances with payday loans, credit cards, and overdrafts coming out of my ears, I was behind with council tax, my car insurance was ridiculously high as was my rent and I was spending more than I earned each month, If I remember correctly I borrowed this money just so that I could eat! I buried my head in the sand and just paid the interest before I finally pulled my self out.

I have complained that they should have never given me the loan as it contributed to my debt spiral, as I was not credit worthy and the interest payments I ended paying were unfair.

In there response to my complaint they maintain they did not act irresponsibly and claim that thay made affordability checks etc and when the loan was taken out I had no defaulted or delinquent accounts that their credit referencing agency (GoCredit) informed them of (which I did) and that I was credit worthy with a score of 559 which was ''above average'' at the time. I clearly wasn't

I have however had an offer of 3 months worth of interest (£180) to be refunded as goodwill, but they have however insisted they acted responsibly

My gut tells me i'm due more as I believe their investigation to be biased, their information looks wrong and on reflection I believe they took advantage of my desperation at the time.

I'm considering declining their offer, do you think I should persue further?

one hell of a meal , or where you filling your freezer for 12 mths

Tshaney

I got a loan out with a company I was in a Debt management plan with and the lent to me irresponsible as my credit score is very poor with CCJ and defaults.i sent a irresponsible lending complaint letter and they rejected it saying there was no indication of my financial situation being bad,I was desperate as I have 12 other payday loans to pay off ,do I have a case to win?

jonesMUFCforever

Tshaney wrote: »

I got a loan out with a company I was in a Debt management plan with and the lent to me irresponsible as my credit score is very poor with CCJ and defaults.i sent a irresponsible lending complaint letter and they rejected it saying there was no indication of my financial situation being bad,I was desperate as I have 12 other payday loans to pay off ,do I have a case to win?

No none nil chance no.

Tshaney

Why do I not have a chance?

IAmWales

Tshaney wrote: »

Why do I not have a chance?

You chose to take out a loan knowing you could not afford to do so. This is strongly evidenced by you already being in a debt management plan, it's also likely to be against the terms of the DMP.

We all make mistakes, but we need to take responsibility for them ourselves, not blame others for our own actions.

jonesMUFCforever

Tshaney wrote: »

Why do I not have a chance?

You asked for a payday loan - you got a payday loan.
If they don't want to do a credit search on you then that is their business.
Did you tell them that you were on a debt management plan?
Is that public knowledge?
No is the answer - sorry but I would be more worried about the fact that you applied for credit when in a DMP.

Tshaney

I wasn't in a debt management plan when I applied for a loan,I used them 2 years ago a company called Valour Finance and came out of the debt management plan as they ripped me off,I then got a loan a year or so later with savvy.co.uk who are part of Valour Finance

Tshaney

I wasn't in a debt management plan when I applied for a loan,I used them 2 years ago a company called Valour Finance and came out of the debt management plan as they ripped me off,I then got a loan a year or so later with savvy.co.uk who are part of Valour Finance