Pay day loan company refusing refund

Legacy_user

The person I'm helping has had a call from 2 companies after requesting refund of interest. They had multiple loans out at same time. The company said that they checked their credit score at the time of taking loan and it was OK so they don't owe anything. They wanted the matter resolved with a phone call but the person has said they will think it over. Should we escalate to ombudsmen?

[Deleted User]

If you want to.

System

I was just interested to see if anyone else had met this type of reply and what the outcome was.

System

You'll have to go to the ombudsman. If the loan companies have done due diligence then your "friend" isn't entitled to anything. Merely having multiple loans isn't a qualifier.

System

There are some companies that lent him again when it should have been obvious from a credit check that they had existing loans so he might have better luck with them. Lending stream seemed to allow multiple loan agreements at same time

Bermonia

Considering the type of lending it is it would not be considered unreasonable to lend to someone who has had other loans... however the issue is when said person is in a spiral of debt which should have been evident at the time of lending... keep in mind your friend would’ve been required to provide details of income and commitment to obtain the loan this would’ve shown the ability to repay... unless they were less than truthful with their applications??

D_M_E

Maybe this thread would help

https://forums.moneysavingexpert.com/discussion/5289150/reclaiming-money-back-from-various-payday-loan-companies

dealer_wins

Apply for loan, receive loan, mis-sold??? confused . com

PixelPound

They are not refusing a refund, they are rejecting your, ... or your friend's, complaint that refund is due. Just because payday loans refunds have been in the news, it is about individual circumstances. What happened with the multiple loans, were they paid off, were they defaulted, or what?

sourcrates

nailgirl wrote: »

The person I'm helping has had a call from 2 companies after requesting refund of interest. They had multiple loans out at same time. The company said that they checked their credit score at the time of taking loan and it was OK so they don't owe anything. They wanted the matter resolved with a phone call but the person has said they will think it over. Should we escalate to ombudsmen?

As others have said, this is all about individual circumstances, mis-selling of this type of product was rife, usually a lenders default response will be to deny your complaint, it will cost you nothing to escalate to the FOS.


If your freind is unhappy with this response, then by all means get the FOS involved, the sooner the better, as it can take a while to complete the process.

sourcrates

dealer_wins wrote: »

Apply for loan, receive loan, mis-sold??? confused . com

The complaints originate from the fact that many lenders were cowboys charging massive amounts of interest and charges that were not made clear to the borrower at the time, multipe rolled over loans with interest adding up to thousands of pounds for some borrowers, was the norm.

Lots of these companies were litterally helping themselves to peoples bank account contents, taking direct debts multipe times a day, until the account was empty, we are not talking mainstream lenders here, so please don`t judge these complaints by mainstream lending standards, it was theft, purely and simply.

The main players were based in malta, so were beyond the reach of the FOS/FCA, those borrowers had no access to recompence whatsoever, but some have been successful using the maltese equivilant of the FOS, however it has cost them money to complain, and not all complaints have been upheld, other companies did midnight flits after emptying bank accounts, even the more well known ones such as wonga, charged interest way higher than was acceptable, and they paid the price in the end.

Unless you were activly involved in the borrowing of these type of loans, or like me, have seen the fall out from them, you can`t possibly know what it was like for these people, the intent of the majority of these payday loan companies was to make as much money as was physically possible, from whatever sourse was available, using whatever methods they could, as quickly as possible, basically most were fraudsters dressed up as legitimate concerns.

It concerns me you cannot see the difference.