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Payday loan refund claim

edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
4 replies 2.7K views
Alext1878Alext1878 Forumite
3 posts
edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
Hi all, I submitted a claim through resolver about quickquid and affordability. I received the below response and I'm a little confused as to if I'm getting anything back or not. Anyone had similar response and could let me know your thoughts please. Thanks in advance

We would like to take this opportunity to respond to your complaint dated 05/04/2019. Please accept this as our Final Response Letter.
We are sorry to learn that you are dissatisfied with the lending decisions made and services provided by CashEuroNet UK LLC (CEU). CEU offers products under brand names QuickQuid (QQ), Pounds to Pocket (P2P) and OnStride (OS) and as such we will review your complaint as it relates to all our brands. We take all complaints very seriously and would like to thank you for bringing this matter to our attention.
Your Complaint
We understand that you are dissatisfied about irresponsible lending.
Complaint Investigation and Findings
We have now had the opportunity to investigate your complaint and are able to provide you with our findings in this final response
Responsible Lending
Proportionality of Checks
When you first borrowed from CashEuroNet UK LLC we were regulated by the Office of Fair Trading (“OFT”). However, in April 2014 regulation of consumer credit became the responsibility of the Financial Conduct Authority (“FCA”).
Both the OFT and FCA required us to conduct proportionate checks to ensure any borrowing would be affordable and sustainable.
Our checks were not expected to be exhaustive and we were entitled to use our judgement when determining the types of checks we would conduct to assess affordability. When reviewing your complaint, we have assessed our lending against either OFT or FCA regulations, depending on whether you borrowed from us before or after FCA regulations were implemented.
We have assessed loans funded before FCA regulations were implemented using the “other credit commitment” (OCC) value taken from your credit report at the time of funding and used a reliable average for all remaining expenses. In assessing loans funded after FCA regulations were implemented, we used validated expenses figures. We arrived at those figures by validating your declared expenses for various categories from your loan application against credit reference agency and Office of National Statistics data.
Affordability
In assessing whether your loan(s) were affordable, we evaluated whether your total repayment across the loan term was sufficiently less than your total estimated disposable income across the loan term, after taking into account your expenses. Your expenses were gathered and determined as explained above. We further assessed affordability by viewing your account history for hardship. If we concluded that any of your prior loans were in hardship status, we evaluated whether any subsequent loans were issued without an adequate gap in time in between.
Dependency
In assessing whether you exhibited dependency upon short term loans, we closely reviewed whether you took out multiple loans in short succession and whether there were negative changes in your individual circumstances such as a decrease in income and/or an increase in “other credit commitments” between said loans. We further analysed dependency by examining whether you had any loan(s) with numerous extensions or rollovers and if so, whether any subsequent loan was funded in close proximity thereafter.
Creditworthiness
In assessing whether you exhibited sufficient creditworthiness at the time of funding your loan(s), we carefully analysed whether any loan was funded in close proximity to a prior loan that was in arrears for a significant duration before it was paid off.
Your Loan Investigation Summary
<<See table 1 in Annex>>
*Please note that for any loans funded prior to FCA regulation, the “Loan Term EDI” column will state N/A for the reasons explained above.
Conclusion
CashEuroNet UK LLC Complaint Upheld/ Not Upheld: Upheld
Based on our investigation methodology laid out above and your individual circumstances, we have come to the above decision on your irresponsible lending complaint.
Please see the table below for the reasons for our decision.
<<See table 2 in Annex>>
Please see below the summary of our offer.
<<See table 3 in Annex>>
This offer represents the interests and fees you have paid us on loans we have upheld, plus 8% simple annual interest on those interests and fees, minus 20% tax withholding (on the 8% simple interest) to be remitted directly to HMRC on your behalf. If you have any outstanding balance with us at this time, we will first apply the redress towards the balance and any remaining redress will be paid to you as a cash refund
● Interest and fees eligible for refund: £ 1027
● plus 8% statutory interest £ 721.68
● less 20% withholding £ 144.33
● Total Owed to you £ 1604.35
● Total Waiver Amount: £ 600.96
● Total Refund Amount £ 1003.39
● Total Outstanding balance after the redress: £ 0
OFFER TERMS
By agreeing to accept this offer you confirm that you are fully satisfied in the resolution of your complaint. This offer is in full and final settlement of all claims, complaints and causes of action against CEU alleged by you to arise in relation to your loans with CEU, as set forth in your complaint. By agreeing to accept this offer, you are also agreeing not to bring any claim or action against CEU by way of complaint, court action, or reference to the Financial Ombudsman Service.
To accept our offer, please reply to us at this email address with your confirmation within 28 days of this letter and we will arrange for the monies to be credited against your outstanding balance. If you do not accept the offer within this time, it will be withdrawn and we may not be able to guarantee this amount in the future. Once you accept, we will close the complaint as satisfactorily resolved.
You have the right to refer your complaint to the Financial Ombudsman Service, free of charge - but you must do so within six months of the date of this letter.
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.

Replies

  • zx81zx81 Forumite
    27.7K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
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    Yes. They've upheld your complaint.

    The amount is shown in the letter.
  • Hi, thanks for the reply. I get that they have upheld it but I don't understand the figures. Am I getting back the £1604, the £1003 or £0? Not sure what the waiver amount means and also the Total Outstanding balance after the redress means. Sorry my original post wasn't very clear. Thanks
  • zx81zx81 Forumite
    27.7K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    You're getting £1003.

    The £600 is being offset against a remaining balance.
  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
    ✭✭✭✭
    plus 8% statutory interest £ 721.68
    less 20% withholding £ 144.33

    And depending on your circumstances in the current tax year you could be owed some or all of the £144.33 tax deducted back.

    Or you could owe HMRC an additional £144. Or more if you have a particular niche tax situation.

    But chances are if you are earning less than £50k (taxable pay not "salary") and have minimum other savings interest (ignore ISA's) then you will be due the £144 back.

    You can make a claim to HMRC after 5 April 2020.
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