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Pay Day Loan Reclaim Query

edited 30 November -1 at 1:00AM in Loans
8 replies 898 views
BartonaldoBartonaldo Forumite
3 posts
edited 30 November -1 at 1:00AM in Loans
Hi all, having taken advice from MSE previously I now have a query which I need some added avice with.
This is my first post so please bear with me...


Without going into too much of the detail (trust me it was a very dark time...) in a previous relationship I was with the best of intentions trying to clear their debts.

This involved multiple loans and credit cards and clearing of a number of pay day loans.
The relationship broke down and whilst the agreement was for a repayment plan, the individual failed to deliver and a multitude of broken promises and lies later they have rather braisenly moved on without a second thought for the financial mess they left me with.



Addressing the actual purpose for my post, I've just read an article that states if the loan was missold then you may be entitled to compensation.
Given the person who was taking out loan after loan after loan clearly was in no fit state to be doing so, and that once the balance was cleared (by me), they would literally turn back round and re-start the debt by requesting money into their account.
I feel I can demonstrate they were being missold or that they were in a vunerable position.

So, my question is, despite the fact the loan wasn't in my name but it was I who has ended up settling the debt, am i entitled to any releif on the thousands and thousands of pounds i've had to pay out?


Any help much appreciated.
Please excuse if the words don't flow particularly well, it's still quite emotionally draining to recall what I went through and it's hard not to digress.


Thanks in advance,
Regards,


Chris

Replies

  • zx81zx81 Forumite
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    No, you aren't, but the person who took out the loans can make a complaint if they wish.
  • Rainbowgirl84Rainbowgirl84 Forumite
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    You had no contract with the loan companies and therefore were under no legal obligation to pay the debt.
  • ndf9876ndf9876 Forumite
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    Although I'm no expert, I believe that any complaint regarding mis-selling would have to come from the individual whose name was on the credit agreement (unless they've passed away which is irrelevant I suppose in this case).

    Any refund owning would go back into the account where the original payday loans were deposited. If you were transferring cash into this person's account so they could repay the loans, you wouldn't see any of it.

    I *think* you would need to start court action to reclaim that money, but others will probably be able to give better guidance on that front. I do know from reading past posts where things like Amigo Loans \ guarantor loans have gone south due to breakdown of relationship, recovering the money was very difficult or impossible.

    So I'm sorry to be the bearer of bad news, but I do not think you will see a penny back in your bank account as a result of any possible mis-selling claim.
  • Thanks for the responses.


    I thought this would probably be the case.
    What I think galls me more is that if they come across the same article, potentially, they will get compensation on a debt they never paid.


    I was advised previously that taking them to small claims court may be my best bet, but it wouldn't cover the fully extent of the damage done.

    Appealing to their better nature was my best bet and unfotunately they don't have one of those.
  • zx81zx81 Forumite
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    I think you need to accept the money is gone and move on.

    The loan companies had legal agreements in place and they didn't get paid back by your friend. It's hard to believe you would fare any better even if you got a ruling in your favour.
  • Yeah I know.
    If only it was as easy to do as it is to type...


    Fortunately councilling has helped and the old saying time heals all wounds.
    I don't want to dwell but people have won less in a competition and called it a 'life changing' sum of money.


    Hence why small claims court wasn't an option for me.
  • Les79Les79
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    Bit of a tricky situation to be in :(

    You could potentially try appealing to their better nature again but incentivize it a bit; offer them some % of the final payout. But you'd need to get that into a written contract and maybe get their permission for you to speak to the lenders on your behalf. Problem is that it could end up going to court at a later date if they squelch on the agreement.

    Could work perhaps?

    Also, and I have ZERO idea how successful this would be, you could maybe take them to small claims court armed with:

    - The breakdown of loans + interest + charges where possible
    - What you paid
    - Evidence to show that the friend would be likely in winning a "irresponsible lending" complaint with the Financial Ombudsman

    And asking for an amount which broadly reflects the interest/charges plus 8% statuary interest.

    But sod me, who knows with that one!

    Could maybe also ring up some of the relevant bodies to see if they have any further info:

    - FCA
    - FOS
    - CAB
    - Solicitor (free consultation)
  • keepcalmandstayoutofdebtkeepcalmandstayoutofdebt Forumite
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    Bartonaldo wrote: »
    Thanks for the responses.


    I thought this would probably be the case.
    What I think galls me more is that if they come across the same article, potentially, they will get compensation on a debt they never paid.


    I was advised previously that taking them to small claims court may be my best bet, but it wouldn't cover the fully extent of the damage done.

    Appealing to their better nature was my best bet and unfotunately they don't have one of those.

    Not everyone is interested in compo - my realistic figures were £90 Payday Express and £100 Mini Credit - both on back of money claim online filed in 2012.

    I took out my first payday loan around 25th July 2009.


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