Drafty Loan - Unaffordable lending complaint - Pay day loan

leenoa · 19 May 2021 at 11:51AM

So i submitted a complaint to FOS in relation to a credit line facility I had with Drafty Loans. they give you a credit limit to which you can withdraw upto at any given time.
My complaint with the FOS was upheld and they issued the following to drafty to rectify this:

A) Remove all interest, fees and charges from the account from 31 October 2018.

Treat all payments made towards his account since 31 October 2018 as though they had been repayments of outstanding principal.

C) If at any point would have been in credit on his account after considering the above, you will need to refund any overpayments with 8% simple interest* calculated on these payments, from the date they would have arisen, to the date the refund is made.

D) If there is an outstanding principal balance, then you can use any refunds calculated as part of “C” to repay this. If a balance still remains after this then you should try to agree an affordable repayment plan. If you have previously written-off any principal, then you shouldn’t pursue outstanding balances made up only of principal you have already written-off.

E) You should remove any adverse payment information recorded on credit file from 31 October 2018.

below is what i have paid and still owe.

Outstanding balance: £931.00

Total repayments made : £2506.76
Interest paid : £1315.69

Drafty have accepted this and come back with an offer but I don't think its quite right has anyone else had experience of this with them or anything similar and does their offer look right ?

Below is a breakdown of the offer:

Interest and charges paid from 31 October 2018 – £1,105.46
8% simple interest – £169.06
20% tax deduction – £33.81
Outstanding principle – £931.40
Total to be refunded to you – £309.31
Removal of any negative information about the credit facility from your credit file – recorded from 31 October 2018

Help please :-)