Payday loan redress offer

peace2you

I had multiple loans from a payday loans company, made a complaint was offered about £50. Took it to FOS, adjudicator recommended the company  to refund all interest on  all interest from date x. 

Company  is offering to refund all interest on any drawdowns taken after date x , rather than all interest from date x. Offer over £300. Both date x is the same.
I do not totally understand the difference in interest. 

Now I'm asking myself if to carry on down the road of FOS or take the offer. Just need a bit of clarity of the difference on drawdown interest verses all interest.

Thank for any advice.

DullGreyGuy

So the adjudicator has said refund all interest charged from 1 Jan 2020 irrespective of when you took the loan
The company has offered to refund all interest charged on lending from 1 Jan 2020 and therefore wouldnt be refunding any interest on loans that you took before 1 Jan 2020 even if the interest was changed after 1 Jan 2020

What the difference is will depend on the dates you took the different loans and what X really is. 

Its up to you if its worth the rest of the process... you could reject their offer and go with the adjudicator but then the loan company could pay up or reject the adjudicator's decision and have it go to an ombudsman. The more senior members of staff in the FOS are not necessarily more generous, there are cases where they say the adjudicator got it wrong and either reverse a decision or reduce compensation. 

I dont know how long your complaint has taken to get here but you are often awaiting the same period again for an ombudsman. They could increase or decrease it. Its ultimately a gamble depending on how strong you feel about your case and how much you'd prefer the money today than the chance of higher money in X months.

peace2you

So if I understand correctly, all interest would include the interest for any active loans at date x not just new loans from date x.

I am leaning towards accepting the latest offer more for convenience and don't think there would be much of a difference. 

Thank you for your reply 

sourcrates

Also keep in mind these companies can go bust at a moments notice, for example if there is an increase in affordability complaints, so holding out for another few quid may not be in your best interests.

DullGreyGuy

peace2you said:

So if I understand correctly, all interest would include the interest for any active loans at date x not just new loans from date x.

Yes, that's what the FOS is suggesting