Reckless lending appeals outcomes.

ColdPizza

So I have two reckless / unaffordable lending appeals. Have received two replies from the lenders. 118 118 money have rejected it. So have progressed to FOS

Lendable have accepted my claim. Here is their response. Can anyone help me make sense of it. I understand the the overt but also is there anything between the lines. I’ve just added the summary: 

“My summary

In reviewing the bank statements, you have provided, it is evident that discrepancies exist between the information included in your credit report and the details submitted with your loan application. These inconsistencies raise concerns regarding the affordability of the loan you applied for. It is crucial to note that during the application process, data indicated that the loan may not have been financially viable for you. This red flag should have triggered additional due diligence and scrutiny from Lendable to ensure that sound lending practices are maintained.

With that in mind, I sincerely apologise for any detriment being sold this loan may have caused you. I would also like to offer to waive the interest and charges on this account and only expect the principal loan amount to be repaid.

We will therefore freeze the interest on the loan moving forwards and will waive the interest and charges that have accrued on the loan so far. Any interest or charges that have accrued will be waived once the principal loan amount has been repaid. 

Although we believed the loan repayments to have been affordable for you at the point of sale, we are sensitive to the fact that a change in circumstances may have made the repayments unaffordable and can therefore also discuss your options regarding the monthly repayment should you be unable to afford the normal amount moving forwards.

In addition to this, we will amend our reporting to the Credit Reference Agencies (CRAs) to remove any arrears that have been reported on the account and will report the loan as having been in Good Standing throughout.

Allow 7-10 days for these changes to be reflected on your account.

Please let me know if you feel I have missed anything in my analysis or if you have any further questions.”

FlorayG

To me it reads that they just expect you to pay back exactly the amount you borrowed and they won't charge any interest

DullGreyGuy

ColdPizza said:

So I have two reckless / unaffordable lending appeals. Have received two replies from the lenders. 118 118 money have rejected it. So have progressed to FOS

Lendable have accepted my claim. Here is their response. Can anyone help me make sense of it. I understand the the overt but also is there anything between the lines. I’ve just added the summary: 

“My summary

In reviewing the bank statements, you have provided, it is evident that discrepancies exist between the information included in your credit report and the details submitted with your loan application. These inconsistencies raise concerns regarding the affordability of the loan you applied for. It is crucial to note that during the application process, data indicated that the loan may not have been financially viable for you. This red flag should have triggered additional due diligence and scrutiny from Lendable to ensure that sound lending practices are maintained.

With that in mind, I sincerely apologise for any detriment being sold this loan may have caused you. I would also like to offer to waive the interest and charges on this account and only expect the principal loan amount to be repaid.

We will therefore freeze the interest on the loan moving forwards and will waive the interest and charges that have accrued on the loan so far. Any interest or charges that have accrued will be waived once the principal loan amount has been repaid. 

Although we believed the loan repayments to have been affordable for you at the point of sale, we are sensitive to the fact that a change in circumstances may have made the repayments unaffordable and can therefore also discuss your options regarding the monthly repayment should you be unable to afford the normal amount moving forwards.

In addition to this, we will amend our reporting to the Credit Reference Agencies (CRAs) to remove any arrears that have been reported on the account and will report the loan as having been in Good Standing throughout.

Allow 7-10 days for these changes to be reflected on your account.

Please let me know if you feel I have missed anything in my analysis or if you have any further questions.”

They're saying they accept they should have questioned the affordability of the loan at the time but didnt.

The principle amount is the amount you borrowed. So if you borrowed £5,000 then they are saying you just need to repay them the £5,000 (inc previous payments) and no interest or charges past or present will be applied. They aren't proposing deleting the charges/interest to date but will simply wipe them off once the £5k of total payments has been made

ColdPizza

Would it be best to keep them out of a DMP and just renegotiate a monthly repayment directly with them? Or should I keep them in any future DMP I arrange with Step Change. 

I pros i am thinking is if I keep it with them directly I can overpay them if ever I’m able to do so and clear the debt quicker. The cons they might hardball me into a higher monthly repayment than I can afford. Currently I repay them £200 a month. My total loan repayments are about 1500 a month. Step change DMP would be around £350 a month for all debts. 

Grumpelstiltskin

Nobody can hardball you into paying more than you can afford. You just pay them what you want, if they are not happy you can always pay them nothing.

sourcrates

If you go with Stepchange they would expect you to include all of your unsecured borrowing, you cannot pick which debts you enter debt management with, its all or nothing.

If you self manage you are free to do as you please with regard to creditor payments.

Rob5342

I'd just manange everything yourself and pay everyone whatever suits you, having Stepchange involved just makes everything twice as complicated as it needs to be (you have to come up with a budget to convince Stepchange to pay your creditors what you want them to pay them, when you could simply pay them that amount yourself)

ColdPizza

Decisions decisions. Thanks for all the advice. The lendable reply was the first good news I’ve had in months. Everything just suddenly went down hill, I know it’s my own fault for getting into the mess. Buy loans has been something I’ve always managed and benefited from then suddenly things turned to crap. 

ayupmeduck

my lendable claim went to the ombudsman as Lendable weren't replying to me and they didn't reply to the ombudsman either in the time frame.

It went in my favour - all interest removed, balance reduce by how much I'd already paid and removed it completed from my credit file, a few months later they offered a 50% discount payable in instalments. My balance went from £5000 is to £1770!

ManyWays

It does look like a good offer, but it may be sensible to work out now how much more you have to pay: the 5000 you borrowed less all the payments so far. And ask Lendable to confirm this amount. And also get a monthly repayment agreed now. If you are going for a DMP in the near future, tell Lendable this, otherwise what can you afford to pay them?  

agentblackcat

This is a great result. You need to get them to confirm what you are now due them and arrange a repayment to them you can afford.