Pay day loans

BeckyJane27

Hi there!
A few years ago I got into big trouble with a wonga pay day loan and it spiralled out of control over the course of about 2 years. I heard in passing something about being able to claim - if it could be proved the company was irresponsible lending? I got to the stage that my whole wage was taken - luckily I had family to help and am out of any sort of financial agreement with any sort of lending like that - but if I am able to claim would want to make sure I do it correctly!
If anyone can help with advice on where to start I would be ever so grateful
Becky :j

robber2

whats your basis for believing the loan to have been missold?

Rob

DCFC79

Will need some more details, if you didnt accept the loan what would you have done ? How else would you pay the debts off ?

BeckyJane27

I wouldn't say it was miss sold - but the interest was so high that the once you started on this spiral, the only way to get through each month was to borrow more and this became greater and greater. The final amount they lent resulted in the repayment being more than my monthly wage - which they knew. I am in no way saying that I was forced to take out the loan or that I take no responsibility for the trouble I ended up in with this but I had heard that the huge interest and practises held by these companies is now the subject of claims made by people. I was just wondering if anyone knew.

BeckyJane27

At the time after the first one the only way to get through each month and pay everything was to automatically take another one out. It is almost like the more you borrowed then payed back, you had to keep going on and on with each month becoming greater and greater due to the interest. It started from £50 and over the course of 2 years became over £1,000.

[Deleted User]

Majority of the very worst hit people were being contacted - under an obligation from even the firms that rolled out of business.

From 100+ loans for me just under 6 years ago I'm still waiting for the postman to come a knocking. (I'm confident he never will) clean up of the market was enough compo for me. Had loans since as well but these weren't irresponsible.

Afraid there were irresponsible lenders and borrowers : (

McClane54

I sent them a letter about a year ago. stating it started with £100 and ended up being a monthly wage pay back etc and had a payment put into my account of £1300 . I did say i was suicidal and how it ruined my life

BeckyJane27

Did you provide any details or anything? Such as dates or do they have all of the information on record?
Thank you for reply
Becky

tibawo

There is a thread about this type of claiming. You might want to read it. Also try 'debt camel.' to see if you qualify.

[Deleted User]

Barbara_Lowing wrote: »

What is the deal here?

They lend you money.
You blow it on what you want.
You pay them back an eye-wateringly large amount more than you borrowed.
You rule out getting a mortgage or any decent credit for a few years.

Everyone's a winner.

Fireflyaway

I took out a wonga loan a few years back. Same thing happened that I used my whole wage to pay it back then was forced to take out another and so on.... In the end I decided the only way to break the spiral was to default on the loan and set up a repayment plan. Obviously doing this landed me with defaults and ruined my credit score but on the good side took off a lot of pressure and I got back on track.
I suggest writing to them and explaining that their lending was irresponsible because the ratio of loan to income didn't allow you to meet your essential living expenses. See what happens.
In my case, wonga emailed me to say I no longer needed to pay. I think it depends when you took the loan out.
I would advise people to never never never take out a payday loan! Even if you think its just once, you could easily become trapped in the re loan cycle. Even if you don't, lenders that you might need in future ( for a mortgage) will look on it badly. Put aside an emergency fund for the unexpected and if you want something save for it. Payday lenders are just exploiting already vulnerable people and should be banned!