Irresponsible lending from companies?

[Deleted User]

Hey people's!

I've just come across a pretty good topic on a financial website I look at quite often , and the topic is "Irresponsible lending" from loan companies/credit card's so on so forth...

I read something in this topic which shone a large bright light at me and I felt like I was centre stage... and that something was posted by someone which made me realise, that I was possibly victim to a very similar circumstance during my "Payday loan hell" days, and my days where I wasn't great with my finances.

The person wrote that they had been subject to "Irresponsible lending" , Where they applied for a loan of around £1200 as far as i'm aware for a period of 12 months, with an income of £900 a month, and outgoings of £800, meaning the person only had £100 a month spare to live off for them selves, and the repayment amount was something along the lines of £75/80 PCM.

They took it upon them selves to do some research, and found out about irresponsible lending, where the credit company, lends money , knowing that the person applying has a small disposable income ETC ETC.

I was in a very similar place back in 2013, I applied for a Payday loan from Satsuma, for £400, The repayment amount after 6 months was going to be £796.00 , £4 short of that almighty "Double loan amount", My income was around £1000 a month, Out goings were over £800, my credit history was awful, and my repayment history was even worse, I think back in 2013 I had over 4 defaulted accounts and over £4000 worth of debt from mobile phone contracts, payday loans,credit cards ETC.

Now, Satsuma was the very last thing I stupidly applied for, yes I was young and uneducated, but , I had to go through a credit check with them, They obviously assessed my situation as any "Responsible lender" should, And in doing so, they would of seen I was over £4000 in defaulted debt, amongst other things being paid late or in arrears, now my understanding from the post I read is, the creditor "Satsuma" should of declined me based on the information on my credit file, showing I was in arrears, Late payments, I think I even had ONE CCJ, but they didn't decline, They accepted, Based off the fact my repayment history was atrocious, in debt, and in arrears largely.

The person that wrote the post actually made a complaint, that they should never of had the loan approved due to their circumstances, and had everything written off, and settled in full.

Now I've cleared all my debt back in september and october of 2018, so I now have no outstanding arrears etc.
Would I of have a leg to stand on regarding my circumstances back then had I known this information? Or is this just a one off thing that the person got lucky with?


Long winded, and probably a tough read, but if anyone has any experience/information regarding this, it would be much appreciated.

[Deleted User]

Sounds more like irresponsible borrowing, as you'd have been aware you couldn't repay better than them.

But you can always send in a complaint if you want. Strange things happen these days.

[Deleted User]

Deleted_User wrote: »

Sounds more like irresponsible borrowing.

But you can always send in a complaint if you want. Strange things happen these days.

Wouldn't agree any less, i was silly

Willing2Learn

Wow!! Just briefly checked the Satsuma website and the maximum APR for a loan is 1575%. :eek:

Have you looked at the DebtCamel article on getting refunds for PayDayLoans? It includes letter templates.

https://debtcamel.co.uk/payday-loan-refunds/

Thrugelmir

Unlikely Satsuma infringed any regulatory requirements to "lend responsibly" at the time. The mortgage market review, as an example, only came into effect in 2014 and has evolved subsequently.

Interest rates charged have to be into context of the overall business model. Starbucks charge £2.50p for a cup of coffee. Cost of ingredients and cup only a matter of pence. Likewise Domino's £'s for a pizza which costs next to nothing.

[Deleted User]

Willing2Learn wrote: »

Wow!! Just briefly checked the Satsuma website and the maximum APR for a loan is 1575%. :eek:

Have you looked at the DebtCamel article on getting refunds for PayDayLoans? It includes letter templates.

https://debtcamel.co.uk/payday-loan-refunds/

Wow, That's a very interesting read also!

Multiple of my payday loans were sold to debt collectors with a huge APR% and interest/fees added... I could possible reclaim hundreds from that, Thanks for the link!

System

[Deleted User] wrote:

Wouldn't agree any less, i was silly

I could possible reclaim hundreds from that, Thanks for the link!

So why do you think you deserve compensation for your financial stupidity? Why do you think it is other people's duty to exercise your personal responsibility for you? I'm genuinely interest to know the answer because there appears to be an awful lot of people coming on here about payday loans who seem to think that it was everyone else's fault and they should be compensated because they willingly took out a loan knowing they could barely afford it.

AndyPix

Tarambor wrote: »

So why do you think you deserve compensation for your financial stupidity? Why do you think it is other people's duty to exercise your personal responsibility for you? I'm genuinely interest to know the answer because there appears to be an awful lot of people coming on here about payday loans who seem to think that it was everyone else's fault and they should be compensated because they willingly took out a loan knowing they could barely afford it.

[Deleted User]

Tarambor wrote: »

So why do you think you deserve compensation for your financial stupidity? Why do you think it is other people's duty to exercise your personal responsibility for you? I'm genuinely interest to know the answer because there appears to be an awful lot of people coming on here about payday loans who seem to think that it was everyone else's fault and they should be compensated because they willingly took out a loan knowing they could barely afford it.

Unfortunately as stated above in the Debt camel thread, Some people feel the only way to get out of their situation is to borrow.

As did I back when I was only 17/18, Now also, By law, a reputable responsible lender, must go through affordability checks, as well as a financial check via CRA's and the "applicant" (i understand a lot of people will lie about their finances to get the loan approved), But there should always be these checks in place, for example, if you earn £2000 a month, and use £1800 of the every month, then go to apply for a car on finance/pcp which is £201 a month, they will decline the application, based on the fact you cannot afford it, these pay day loan companies wont decline it based on those facts and information , and this is what a lot of people are bringing to light, For example, Back in 2015 I think wonga liquidated and had to refund all of its customers due to that exact reason.

[Deleted User]

AndyPix wrote: »

LOL :rotfl::rotfl::eek:

ReadingTim

AndyPix wrote: »

^^^


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