Drafty Loan - Unaffordable lending complaint - Pay day loan

leenoa

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 :-)

brettcta

Why doesn’t that look right to you? It looks right to me.

adamp87

Refund & removing off your file seems like a win 

sloankettering94

Please avoid Drafty at all costs if you can, they will drive you into debt with their immense interest rate of 96% and have driven my life into depression and misery at the hopelessness of never being able to pay this predatory debt back. If you need financial help, or have mental health issues, they will not help you appropriately and have all but ruined my life. There are far better, safer, more competent companies that care for their customers who uphold their equality act commitments and don't rob them with ridiculous interest rates. 

ManyWays

sloankettering94 said:

Please avoid Drafty at all costs if you can, they will drive you into debt with their immense interest rate of 96% and have driven my life into depression and misery at the hopelessness of never being able to pay this predatory debt back. If you need financial help, or have mental health issues, they will not help you appropriately and have all but ruined my life. There are far better, safer, more competent companies that care for their customers who uphold their equality act commitments and don't rob them with ridiculous interest rates. 

Yes, they are a dangerous sort of rolling payday loan, so if you have used them for more than a few months, I suggest an affordability complaint. 

Jabby1

I've logged an affordability complaint with them and a few others, some have come back and said no so I'm sending them to FOS 
I'm still waiting to hear back from Drafty but expecting a no so think I'll be sending it to the FOS too and will let you know when I hear back from them 

dunstonh

class1972 said:

That sounds ok to me. You could always try xxxxxxxxxxxx  who I used to reclaim on my Overdraft and ask them to look at the calc. 

 First post promoting a claims company....  Spam button pressed.