Payday Loans Post Jan 2015

Aston83

Hi all,

Firstly apologies if this has another thread elsewhere but I have a question which i feel is quite important when it comes to my debt free wannabe journey, but as yet i have been unable to find an answer for it. So here i am hoping someone could shed some light.

When the cost cap for Payday loans come into force in 2015, will any of the regulations apply to any debts taken out before this time and if so, will they also apply to debt held by DCA's?

Now I'm not going to say I don't deserve to be in the position i am in now as it was completely my fault, but at this moment, anything which can reduce the time taken to clear these debts would be a massive bonus.

Thanks for reading guys and Merry Xmas and new year!!

sourcrates

Unsure, but I doubt it will be applied retrospectively.
However, its a good stick with which to beat a DCA, in my opinion.


If the FCA deems a certain level of interest and charges are fair, then if you have been charged more than this amount, you could always argue your case, cant hurt can it.

Aston83

Yeah that is my point. Problem is there was nothing in the article about the cost cap which could aid pre 2015 debts with DCA's.

I did find something in the regulations and I'll post the link when I find it again but I didn't understand it.

Aston83

Here you go found it. Point of interest is under th E-Commerce Directive section

http://www.fca.org.uk/news/fca-confirms-price-cap-rules-for-payday-lenders

sourcrates

Aston83 wrote: »

Here you go found it. Point of interest is under th E-Commerce Directive section

http://www.fca.org.uk/news/fca-confirms-price-cap-rules-for-payday-lenders

This effectively means if a lender charges you more than the FCA says it can charge, and you default for whatever reason, uk based DCA`s will not be able to chase the debt, a lot of PDL companies are based abroad for various reasons, most in the Isle of man, Gibraltar, and Malta, were the FOS has no power.


It makes no mention of debts already in existence, but as I said before, if you play hardball with them, I cant see how they can justify requiring full settlement of a debt, if the majority is made up of default interest and charges.


Certainly I would challenge this, with the DCA concerned, if it were me.