Reclaiming from Payday Loans

budrick

Hello all,

I was wondering if anyone could help or guide me and the mrs on what to do.

So basically my other half received an email yesterday directly from one of the payday loan companies. They had dealt with the complaint and they had made the decision to offer her £580.

She responded to the email a bit hastily by saying that she accepted the decision. They replied with an 'I am pleased we have been able to reach a mutually acceptable outcome'.

They requested bank details so that they could transfer the money over, but she responded by asking for a cheque which they agreed to do and that it would take 21 days.

After she accepted their decision via email she then received an email from one of the reclaim companies saying that they had managed to get an offer of £2,700 less payment of their fees of course.

Now my question is - because she has accepted that initial decision can she retract it? Can they hold her to that?

Is it possible to just not cash in the cheque and wait for paperwork from the reclaim company? Would there be any legal consequences of not going through with the pay day loan company after acceptance?

Would be great to hear some feedback, I am sure the above is a little brief but hopefully enough. Any guidance would be hugely appreciated.

Thanks in advance!

[Deleted User]

budrick wrote: »

Is it possible to just not cash in the cheque and wait for paperwork from the reclaim company? Would there be any legal consequences of not going through with the pay day loan company after acceptance?

https://forums.moneysavingexpert.com/discussion/comment/76000973#Comment_76000973

Do you have two separate complaints on-the-go?

You need to be aware that the Claim Company will want 20% (plus VAT) of any and all redress whether you eventually receive £580 or £2700. You signed a legally binding contract with the Claims firm and have ignored this in favour of negotiating a settlement yourself.

If you've already signed your agreement to receive £580, I can't see the Loan Company paying out more but I would imagine the Claim Firm will want 20% of £2700.

You've put yourself in a bit of a pickle, but luckily claim firms are now regulated and you will be able to enlist the aid of the Financial Ombudsman if the Claim Firm demand fees which are additional to what you've actually agreed.

Please stick to one thread please...

budrick

No, not as far as we are aware - we dont recall ever contacting the payday company. We wouldnt know where to start to negotiate settlements.

(apologies on duplication)

I would have assumed the complaint came from the reclaim company with the payday company trying to get us to settle/accept before the reclaimers
.

[Deleted User]

budrick wrote: »

We wouldnt know where to start to negotiate settlements.

Understand that you effectively "negotiated" alone by accepting the E-Mail offer of £580 rather than contacting your representatives first.

budrick wrote: »

I would have assumed the complaint came from the reclaim company with the payday company trying to get us to settle/accept before the reclaimers

Never assume.

budrick

Hmmm - yes understood. So there is no way she can retract that then?

[Deleted User]

budrick wrote: »

So there is no way she can retract that then?

I think you should urgently contact both your representative(s) and the Loan Company and inform them what has transpired.

The_squirrell

Hang on!
That figure sounds familiar. It is the magical figure quoted on various Facebook posts. Meaningless of course as it comes from claims management companies.
Are you sure that that this is not just a coincidental email that has happened to arrive at the same time as your claim?

[Deleted User]

The_squirrell wrote: »

Are you sure that that this is not just a coincidental email that has happened to arrive at the same time as your claim?

Certainly could be what a Claim Company might "offer" as an enticement to sign up with them. However, the OP seems to have already employed them going by his responses...