Credit checks

dexter1982_2

I took out a loan with a payday company. That say they did a credit check on me when I took the loan out but I can't find a search on either equifax or experian. When I told them this and asked them to prove they did do one they tell me I need to pay £10 and get a subject action request form sent to them and that they have 40 days to do it. Is this right? Or are they just trying to delay me finding out if they did a check or not???

Tixy

They may have checked the 3rd credit reference agency callcredit - you can check your callcredit file for free using the noddle website.

No real reason for them to lie about having checked your credit file though, and even if they didn't it wouldn't affect you at all.

dexter1982_2

I'm asking as I am going to try and claim my charges back on the grounds that they did not do a proper credit check to see if the loan was affordable. I had several payday loans at the same time plus I had a overdraft with my bank that I was paying off. They would have also seen that my credit report was "very poor", yet still have me a loan.

MrSilk

dexter1982 wrote: »

I'm asking as I am going to try and claim my charges back on the grounds that they did not do a proper credit check to see if the loan was affordable. I had several payday loans at the same time plus I had a overdraft with my bank that I was paying off. They would have also seen that my credit report was "very poor", yet still have me a loan.

I'm sure you would have done your calculation to see if YOU could afford the repayments. A credit check does not verify your income, it just checks your lending & repayment history.

I suspect you can't afford to repay the loan and are now looking at ways to get out of paying it back.

PaulW922

dexter1982 wrote: »

I'm asking as I am going to try and claim my charges back on the grounds that they did not do a proper credit check to see if the loan was affordable. I had several payday loans at the same time plus I had a overdraft with my bank that I was paying off. They would have also seen that my credit report was "very poor", yet still have me a loan.

Good luck Dexter1982, but I don't think you will get anywhere. If you take a step back and think about it - you are saying that your current problems are caused not by you for borrowing the money but by the lender for giving you the money. It is like saying that the police are are fault for your speeding ticket for not stopping you from driving too fast in the first place.

If you want to challenge the charges I think you might be better going down the route of saying that they are disproportionate and affecting your ability to pay the loan back. I don't know how long ago you took these loans out but the FCA has published new regulations capping the charges that can be applied. If your loans pre-date those regulations you might be in with a chance on the basis that the FCA has since put rules in place to stop such levels of charges.

Don't worry about the terse nature of some other postings here - some people have long since forgotten that this is a forum to help people and prefer to use it for preaching.

dexter1982_2

Not at all, I have no problems with paying the loan back. It's the astronomical charges I have an issue with. I had no choice but to turn to payday loans. Desperate times call for desperate measures and these people take advantage of that.

nicholaswitchell

dexter1982 wrote: »

Not at all, I have no problems with paying the loan back. It's the astronomical charges I have an issue with.

What, the ones that you agreed to when you took the loan?

nicholaswitchell

dexter1982 wrote: »

Desperate times call for desperate measures and these people take advantage of that.

So they were the only people who offered their help, you knew the terms, but now you are saying you have been taken advantage of?

How exactly?

You knew the terms when you signed up, its not like they suddenly just told you of the interest rate.

If you felt you were being taken advantage of, why did you accept the loan?

Oh yes, because you had nowhere else to turn.

You should be grateful they offered you help, not turn on them.

dexter1982_2

I have been paying them off through a DMP for over 3 years now. Some were as little as £80 but the charges have taken them up to hundreds.
Paulw922: thanks for the support. I feel bad enough for getting into this mess without having people rubbing it in.

nicholaswitchell

I think people are having a pop because of your attitude.

The Payday people did you a favour, and you just want to stitch them up and blame them for something.

PaulW922

dexter1982 wrote: »

I have been paying them off through a DMP for over 3 years now. Some were as little as £80 but the charges have taken them up to hundreds.
Paulw922: thanks for the support. I feel bad enough for getting into this mess without having people rubbing it in.

Given the age of the loans you may be in with a chance by challenging them - just don't stop paying your DMP as that will cause you more problems.

Many PD loan companies did not undertake credit searches a few years back - that was one of the criticisms of them but in any event, searches for credit only stay on your file for a year (or two years at Call Credit/Noddle) so any search won't be shown now anyway.

I think you should write and ask the company just how much they have charged you and then, rationally, ask for the charges back. If not, you can complain to the FOS and will probably get somewhere. Just expect them all back - you borrowed the money and didn't stick to the agreement. The lender is entitled to recover their costs but not to rip you off.