payday loan problems - ask the ombudsman

rizla_king

woottonite wrote: »

I am guessing they have found my number from the internet as I am sure my employee would not have given it to them (as they claim)

Very likely they have. Its a common thing for these people to do.

financial_ombudsman_representative

FCA announced new rules for payday lenders and payday loan brokerslast year. These rules came in to place on 2 January 2015.

New Payday loan rules now in place

There is now a price cap in place which means there is now a limit as to how much you have to pay back, lenders have to follow these rules:

· customers taking out a loan on or after 2 January will never need to pay back more than twice what they borrowed,

·if you take a loan over 30 days and repay it on time then you will not pay more than £24 per £100 borrowed. (interest and fees must not exceed 0.8% per day)

· If you default, fee’s must be no more than £15


New payday loan broker rules now in place

This mean that companies now have to be a lot clearer about the fees they’re charging. Companies must give you the following information before asking for your account details:

·Their legal name.

· They must state if they’re a credit broker or a lender.

· Clear indication that a fee will be taken and when.

·The amount of the fee they will be charging.

·All brokers will need to notify the FCA quarterly of the websites that they operate.

They must ask for your agreement either in writing or email. If your details are passed on to another company then they too must follow the same rules.
You’re still entitled to a refund if you haven’t accepted a loan that the company found for you.

If you feel that something has gone wrong and you’re not been treated fairly, then do get in touch at [EMAIL="paydayhelp@financial-ombudsman.org.uk"][email protected][/EMAIL].

Kind regards
Sarah

net6

I am hoping that you can offer me some guidance.

Firstly I am in full time employment, however over the past few months I have got myself into debt with the Lending Stream. I realise that on my part I should have ignored their emails advising I can have further loans, however being depressed and low I agreed.

I have 5 loans ongoing with this company, the first which was taken out on the 22.09.14. Another 4 loans were then taken out on the; 25.09.14 & 06.10.14, 12.10.14 and the last on the 25.12.14. Yes Christmas Day I received an email saying I was entitled to a further loan. I realise what a HUGE mistake I have made,

Although I have not missed any payments to date, I know I am going to really struggle to make the payments on the 30.01.15. They have a CPA in place so I am now really starting to stress, due to them having my card details.

I know I am at fault however what is really concerning me is that this company has allowed me to get into this position. I feel that Lending Stream have been extremely irresponsible in allowing me to get into this position. As I say I have not missed a payment to date, but I will be in trouble come the 30.01.15.

Please can you advise can this company consolidate all the 5 loans and freeze the interest or lower it? Hopefully I could make one payment each month.

I really would appreciate any advice and guidance you can give me. I have been a silly fool and let my emotions get me into this mess.

danidav88

Hi,

Myself and my partner both had debt outstanding with Wonga and luckily have had the debt cleared due to the change in legislation and affordiabiltiy. Is this something every payday lender will have to look at doing or just Wonga? We are currently in a DMP with Payplan but unfortunately still owe money to Quickquid and Sunny?

Hope this makes sense
Many Thanks
Danidav88

Gaz83

danidav88 wrote: »

Hi,

Myself and my partner both had debt outstanding with Wonga and luckily have had the debt cleared due to the change in legislation and affordiabiltiy. Is this something every payday lender will have to look at doing or just Wonga? We are currently in a DMP with Payplan but unfortunately still owe money to Quickquid and Sunny?

Hope this makes sense
Many Thanks
Danidav88

It was Wonga's own decision; ergo, the other lenders do not "have" to look at it, although they may decide to in the future.

financial_ombudsman_representative

We recently posted about the new payday loan rules put in place by the FCA.

Following on from this the FCA has said that payday lenders will have to advertise on at least one price comparison website. This means that customer’s will have a clearer idea of the cost of borrowing.

Also the British Broadcasting Committee of Advertising Practice (BCAP) is looking into whether there should be restrictions in place on when payday lenders advertise on TV. This was following research carried out by the Children’s Society in which they looked into the effects of payday loan advertising.

If you want to read more about this. Please click here.

Let us know what you think. Is this going to make a difference?

dette48

Hello,

I recently had My Wonga debt written off, this happened automatically due to unfair charges and the fact that they did not check properly if I could afford the repayments.
At the time my husband and I were going through a very bad time financially.
We took out other Payday Loans besides Wonga and believe they were the same circumstances.
I would like to know if the same applies and if it would be possible to do the same with these.
My husband had one with Quick Quid, the original debt was £315, the debt was sold to MMF, who we pay token payments of £1 per month, this debt now stands at around £288.
I had one with Payday Uk for £325, this was passed on to Equidebt, to whom I made token £1 payments up until June 2013, then Equidebt went into administration (the balance then was £309). I was never sent any correspondence regarding this, the site did not accept any further payments. I know that this still appears on my credit file as MEM Consumer Finance Ltd (Payday Uk) and appears as a default.
I would be pleased if you could help or advise me as to what I should do next regarding the Payday UK/Equidebt, especially as this reflects on my Credit Report.
I thank you in anticipation.

Kindest Regards

Bernadette Brogan

suicidebob

dette48 wrote: »

I would be pleased if you could help or advise me as to what I should do next regarding the Payday UK/Equidebt, especially as this reflects on my Credit Report.
I thank you in anticipation.

Kindest Regards

Bernadette Brogan

Why are you concerned about your credit report? You obviously can't afford to take credit, so it's probably for the best if you can't get any more loans.

Spend less, earn more.

dette48

You have no idea what my circumstances were at that time, so please DON'T JUDGE ME!
You are SO wrong.

financial_ombudsman_representative

dette48 wrote: »

Hello,

I recently had My Wonga debt written off, this happened automatically due to unfair charges and the fact that they did not check properly if I could afford the repayments.
At the time my husband and I were going through a very bad time financially.
We took out other Payday Loans besides Wonga and believe they were the same circumstances.
I would like to know if the same applies and if it would be possible to do the same with these.
My husband had one with Quick Quid, the original debt was £315, the debt was sold to MMF, who we pay token payments of £1 per month, this debt now stands at around £288.
I had one with Payday Uk for £325, this was passed on to Equidebt, to whom I made token £1 payments up until June 2013, then Equidebt went into administration (the balance then was £309). I was never sent any correspondence regarding this, the site did not accept any further payments. I know that this still appears on my credit file as MEM Consumer Finance Ltd (Payday Uk) and appears as a default.
I would be pleased if you could help or advise me as to what I should do next regarding the Payday UK/Equidebt, especially as this reflects on my Credit Report.
I thank you in anticipation.

Kindest Regards

Bernadette Brogan

Hi Bernadette
I’m sorry to hear that things got so bad for you but I’m pleased to see that you’re starting to get things in order. Wonga’s decision to write off certain loans was completely down to them and there is no obligation for other lenders to do the same.

It does sound that you may want to complain about how the loans were sold to you and if they were affordable or not. If you do want to make a complaint about this or anything else then we can certainly help. You can do this by sending your details to [EMAIL="paydayhelp@financial-ombudsman.org.uk"][email protected][/EMAIL]or give us a call on 0300 123 9 123 to have a chat.

Kind regards

Amy