payday loan problems - ask the ombudsman

financial_ombudsman_representative

Zerdi6 wrote: »

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

Hi Zerdi6

The decision issued by Wonga was a voluntary agreement and this is the criteria that they set.However if you feel that there is something wrong with the amount that you are paying back or you feel that these loans were not affordable then please get in touch with us to see what we can do. You can email us at [EMAIL="paydayhelp@financial-ombudsman.org.uk"][email protected][/EMAIL]



Kind regards

Sarah

wheezy57

I wish it wasnt just payday loans that you help people with.

I need help with Blemain Finance who just will not accommodate me in any form or fashion. I simply cannot afford to repay them at the rate they have set anymore. I am really really struggling and I feel threatened everytime I ask for a payment holiday or a reduction in the monthly payment to help me stay afloat. To which the answer is always a resounding no...

Monkeyballs

financial_ombudsman_representative wrote: »

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 [email protected]

Or call us on 0300 123 9123

Kind regards,

Amy

Hi Amy,

Thanks for the reply and apologies for the slow response back... But, would this also apply to a company like Provident which front loads the interest? So for example my last loan was something like £2300 but half of this was to repay an outstanding balance. To a"accommodate" me in providing the funds I needed they actually gave me two loans (one large, one small) and combined the total including interest was something like £3700.

I entered into my DMP about 6 months into my loan but as mentioned, at that point I was advised that the full amount would be re-payable, I wouldn't even be able to save on interest by settling early?

Thanks again,

MB

James_B.

wheezy57 wrote: »

I wish it wasnt just payday loans that you help people with.

I need help with Blemain Finance who just will not accommodate me in any form or fashion. I simply cannot afford to repay them at the rate they have set anymore. I am really really struggling and I feel threatened everytime I ask for a payment holiday or a reduction in the monthly payment to help me stay afloat. To which the answer is always a resounding no...

Did your original agreement allow for payment holidays or reduced payments? If not, why would you think that they would be allowed?

Look at it this way, if the company was struggling a bit, and asked for twice what you agreed, would you happily pay it, or would you point to your deal, and pay on,y what you owe?

If it's the latter, why do you expect it to be different when the situation is reversed?

wheezy57

Extenuating circumstances. I dont 'expect' anything btw.

financial_ombudsman_representative

wheezy57 wrote: »

I wish it wasnt just payday loans that you help people with.

I need help with Blemain Finance who just will not accommodate me in any form or fashion. I simply cannot afford to repay them at the rate they have set anymore. I am really really struggling and I feel threatened everytime I ask for a payment holiday or a reduction in the monthly payment to help me stay afloat. To which the answer is always a resounding no...

Hi Wheezy57,

We do look at the majority of complaints involving banking, insurance and investment, so we can help with your complaint against Blemain Finance – it’s just because this board is specifically for payday loans that we don’t mention the other areas on this thread. We would expect any lender to be sympathetic and understanding when they’re told that you’re in financial difficulty. We would hope that they would be willing to work with you to agree a suitable and affordable repayment plan – and you certainly shouldn’t feel threatened when asking for assistance.

If you want help with managing your debts Step Change may be able to help you. Their contact number is 0800 1387 111 and you can visit their website by clicking here StepChange

If you’re still unable to sort things out with the business you can call us on 0300 123 9 123 or email us at [email protected]

Kind regards,
Sarah

financial_ombudsman_representative

Monkeyballs wrote: »

Hi Amy,

Thanks for the reply and apologies for the slow response back... But, would this also apply to a company like Provident which front loads the interest? So for example my last loan was something like £2300 but half of this was to repay an outstanding balance. To a"accommodate" me in providing the funds I needed they actually gave me two loans (one large, one small) and combined the total including interest was something like £3700.

I entered into my DMP about 6 months into my loan but as mentioned, at that point I was advised that the full amount would be re-payable, I wouldn't even be able to save on interest by settling early?

Thanks again,

MB

Hi MB,

We would always expect a lender to freeze additional interest and charges when you make them aware you won’t be able to meet the contractual payment. They might add additional interest and charges when a payment is missed. The interest added at the start of the loan is something different. This would be part of the agreement you originally agreed to however, this is also something we can look at if you believe it is incorrect or unfair.

If you’d like you can send us an email and we can set up a complaint. Our email address is [email protected]. If you mention that we’ve spoken already on MSE this will be passed straight to me.

Kind regards,
Amy

dumpyboy

financial_ombudsman_representative wrote: »

Hi Wheezy57,

We do look at the majority of complaints involving banking, insurance and investment, so we can help with your complaint against Blemain Finance – it’s just because this board is specifically for payday loans that we don’t mention the other areas on this thread. We would expect any lender to be sympathetic and understanding when they’re told that you’re in financial difficulty. We would hope that they would be willing to work with you to agree a suitable and affordable repayment plan – and you certainly shouldn’t feel threatened when asking for assistance.

If you want help with managing your debts Step Change may be able to help you. Their contact number is 0800 1387 111 and you can visit their website by clicking here StepChange

If you’re still unable to sort things out with the business you can call us on 0300 123 9 123 or email us at [email protected]

Kind regards,
Sarah

Why are you allowed on here saying these things the FOS takes a completely diffrent veiw if you take a complanet to your services ( (quote threats are just a collection tool And do not imply any thing of the sort would happen)

Monkeyballs

financial_ombudsman_representative wrote: »

Hi MB,

We would always expect a lender to freeze additional interest and charges when you make them aware you won’t be able to meet the contractual payment. They might add additional interest and charges when a payment is missed. The interest added at the start of the loan is something different. This would be part of the agreement you originally agreed to however, this is also something we can look at if you believe it is incorrect or unfair.

If you’d like you can send us an email and we can set up a complaint. Our email address is [email protected]. If you mention that we’ve spoken already on MSE this will be passed straight to me.

Kind regards,
Amy

Hi Amy,

Thanks again, I just wanted to let you know that I have now emailed and referenced you on the subject line.

MB x

financial_ombudsman_representative

dumpyboy wrote: »

Why are you allowed on here saying these things the FOS takes a completely diffrent veiw if you take a complanet to your services ( (quote threats are just a collection tool And do not imply any thing of the sort would happen)

Thanks for your message, I’m concerned that that’s what you were told but without knowing more details it’s difficult for me to comment on this or your individual circumstances. If this is about a specific complaint with the service, and you would like me to look into your concerns, feel free to email me your reference number to [email protected]. If you don’t have this to hand, a postcode will do fine.

Kind regards
Amy