Payday Loan Interest claim

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 and going through the ombudsman but wanted to hear other peoples views/advice

Would you take what their offering?
Should I pursue more compensation?
Should I decline and take it to the ombudsman?

I look forward to hearing your views

Thanks

Ash

sourcrates

Hi,

Welcome to the forum.

You can take it to the ombudsman if you wish, but there decisions are sometimes hit and miss.

See what others think, but usually the original offer remains open if the FOS don't agree with your version of events.