Lending Stream Refund plus 8%

s1983shaun

Hi - I have had a letter from an Adjudicator at the FOB stating they believe loans 2-25 should not have been issued to me. These are parts of what was sent to the company LS.

Having thought about everything, I’ve not seen enough to say it was unfair for you to
provide loan 1 Mr xxxx. However I don’t think loans 2 to 25 should've been lent to
Mr xxxx. I’ll now explain why I think this is the case and what I think you should do to put
things right.

what we think about when looking at short-term lending complaints
You provided Mr xxxxwith high-interest loans, intended for short-term use. And you
needed to make sure that you didn’t provide them irresponsibly. In practice, what this
means is that you needed to carry out proportionate checks to be able to understand
whether any lending was sustainable for Mr xxxx before providing it.
Our website sets out what we typically think about when deciding whether a lender’s
checks were proportionate. Generally, we think it’s reasonable for a lender’s checks to be
less thorough – in terms of how much information it gathers and what it does to verify that
information – in the early stages of a lending relationship.
But we might think it needed to do more if, for example, the consumer’s income was low or
the amount lent was high. And the longer the lending relationship goes on, the greater the
risk of it becoming unsustainable and the borrower experiencing financial difficulty. So we’d
expect a lender to be able to show that it hasn’t continued to provide these loans to a
customer irresponsibly.

2
what this means for Mr xxxxcase
I’ve thought about all of these issues in the individual circumstances of this case, and I
think loans 2 to 25 shouldn’t have been lent to Mr xxxx. I’d like to explain why.
I think by loan 2, proportionate checks would most likely have shown Mr xxxx was having
problems managing his money. I think you’d have become aware that Mr xxxx had three
very recent defaults applied to his credit file which should've raised concerns as to whether
he was suffering from wider financial difficulties at the time. As well as this Mr xxxx also
had other significant short term lending at the same time. As loan 2 was taken out whilst
loan 1 was still open I think it shows the loans from here weren’t suitable for him. In these
circumstances, I think you ought to have realised it was unlikely Mr xxxx would’ve been
able to sustainably repay this loan – and any subsequent loans.
By loan 6, Mr xxxx overall pattern of borrowing suggested he’d now become persistently
reliant on short-term lending to supplement his income and help him meet his financial
commitments. By this time Mr xxxx had an open loan with you for 6 consecutive months.
As well as this the amounts he was borrowing didn’t significantly decrease over this period
and for the rest of the borrowing relationship with you. In my view, the pattern of lending
itself shows that the loans from here were unsustainable – so I don’t think you should have
given Mr xxxx any of loans from loan 6 onwards.

how to put things right
• refund all interest and charges that xxxx paid on 2 to 25;
• pay interest of 8% simple a year on all refunds from the date of payment to the date
of settlement*;
• remove any negative information about loans 2 to 5 from xxxx credit file;
• the number of loans taken from loan 6 means any information recorded about them
is adverse. So all entries about loans 6 to 25 should be removed from xxxx
credit file

Please confirm whether you accept my view and are prepared to make an offer in line with
my recommendation by 3 June 2019. Or, if you disagree with my view, please let me know
why with detailed reasons and evidence.

I will look at what both parties have to say in response and decide what to do next. If my
opinion changes, I will write back to both parties explaining why. If my opinion doesn’t
change, I may decide that the case should be passed to an ombudsman for a final
decision, which would be published.

If we don’t hear back from you by 3 June 2019 an ombudsman may make a final decision –
based on the information we have so far.

I am worked out the total interest paid on each loan and calculated the days from when the last payment was made (loan closed) up to the 3rd June 19 - the date the adjudicator gave LS (Gain Credit) to reply by. Total interest x number of days x 8% / 36500 to give me the final figure correct?

e.g. 47.04 x 636 x 8 / 36500 = £6.55 as an example?

How are Lending Stream likely to reply to the FOB in this case? Is it possible i could succeed? i guess the FOB have had everything from LS already to reach this decision.

Thanks in advance - this site has been a life saver over the last few years!

Bermonia

It is unlikely lending stream will appeal given the shear number of loans - even if they confirm they accept it may still be a few more weeks before you see any refund, also if you have any balances outstanding they will of course offset redress against these.

s1983shaun

Thanks for the reply - these date back to 2017 - since then I haven't taken anything out so no balances to clear.

I believe if they don't quibble it the FOB gives then 28 days to pay.

Thanks again

Bermonia

In theory yes... but don’t hold your breath on such a quick turnaround, assume it will take longer and hope to be pleasantly surprised:D

s1983shaun

Thanks for reply - happy to just get it back. Have heard since last year they have got a lot better so here's hoping. Just hope they don't come up with another excuse to say no.


Cheers

wookiedave

hi i had an email just like this today i was wondering if you have heard anything else yet?
thanks in advance

christopherb90

Hi,
I received this same email yesterday.

Did you guys manage to have any luck and claim your money back? Thanks.