***Payday Loan Reclaims"

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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Legacy_userLegacy_user Forumite
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edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi all,

Sorry if this is not the right place to ask, or has already been answered! I did search for previous answers but didn't come up with much luck.

Starting in 2010, when I was young, poor and stupid, I took out a number of payday loans with several companies. I very quickly got into the downward spiral of borrowing from Peter to pay Paul and eventually with everything else that had gone on in my life financially, I ended up defaulting on 3 separate loans and having to add them to my Debt Management Plan. Knowing what I know now, had a proper check been carried out, I would never have been granted these loans. The borrowing pattern alone should have been enough to stop any further borrowing.

Anyway, it's done now and the DMP has finished, everything has been paid off and I'm technically debt free with the exception of a credit card for vet or car related emergencies.

Now, I have clearly been living under a rock as up until a couple of months ago I was unaware that people had been successfully claiming for unreasonable interest on these loans. It wasn't until I received an email from MSE that I learnt of this. I wasn't entirely sure when I had taken out these loans, but I could remember by the logos who I had approached for loans and sent out an email asking for the information they held on any loans I had with them previously, how much etc etc.
Payday Express, Payday UK and Mr Lender got back to me fairly quickly, Quick Quid appear to have just ignored me for the moment.

I've then used Resolver last week to open cases and begin the process in the hope of claiming something back.
Mr Lender then came back with the following in an email (they refused to liaise over Resolver because it wasn't the email address they had on record from when I took the loan out 🙄🙄🙄) :
"The FOS has time limit rules in place where they cannot consider a complaint if the event the consumer is complaining about was over six years ago or over three years from where the consumer became aware that they had a reason for making a complaint.!

We can confirm your loan was issued over six years ago and therefore this would fall outside of the six-year rule meaning the FOS would not review your complaint unless they had reason to believe you were not aware within the last three years that you had a reason to complain. Based on the reason for your complaint being related to your affordability and ability to repay your loan, we believe that you would have been aware more than three years ago that you had reason for a complaint on these grounds.

Therefore, if you feel you only became aware within the last three years that you were in a position where you could make a complaint to Mr Lender, we ask you to provide the detail of when you became aware and how you became aware of this so we can investigate this further.!"

As I mentioned, I only became aware of the possibility of claiming a couple of months ago, but it has clearly been a thing for a long time now. But I'm not sure that will wash or that they will believe me!
Has anyone had any success claiming outside the 6 year window? Or does anyone have any advice to hopefully come to a favourable result?

Thanks 🙂

Replies

  • [Deleted User][Deleted User] Forumite
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    Sounds like any complaint you might make is now timebarred unless you can show you have very compelling reasons why you haven't complained before now.
  • SystemSystem Forumite
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    I guess my compelling reason is that I had been working so hard to become debt free for the last 7 years that I genuinely wasn't aware I was able or allowed to complain about such things. It didn't even cross my mind.
    Yes in hindsight the loans should never had been given to me, yes I acknowledge the interest rate was appalling, yes I acknowledge that I properly struggled to get where I am now, but did I believe I was taken advantage of at the time it happened? Probably not. I was just grateful I'd got the money and could now eat, or pay for electric or put fuel in my car to get to work even though I'd now be worse off the next month cos I'd have to pay it back. I was of the opinion that that's just how it is so I just need to pay it all back regardless of how long it takes. Which I did eventually - 7 years later.

    But since reading all the articles available in the media over the last month or so since I discovered this was an issue, I do believe my situation was exploited (as many others were to a far more serious level. Redundancy followed by low income job, spiralling debts, rapidly diminishing financial credibility) but yet these companies still loaned to me over and over till I got so stuck I had nowhere to go. Actively encouraging an extension or a roll over at times. Clearly sufficient financial checks or verifications were not carried out otherwise any sensible creditor would have rightly deemed me high risk and not have loaned.

    So yeah, I guess my compelling reason is I simply did not know that I could complain about unaffordability of anything, let alone a payday loan. ��
  • SocajamSocajam Forumite
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    Yes in hindsight the loans should never had been given to me, yes I acknowledge the interest rate was appalling, yes I acknowledge that I properly struggled to get where I am now, but did I believe I was taken advantage of at the time it happened?

    This from your comment made me laugh.
    Are you implying that these people came to your house and forcibly made you fill in the forms in order to get a loan. I really don't think that you are, but it is so common place on this forum that people seem to think that they were taken advantage of when in fact they were the ones who approached these companies to borrow money to live a lifestyle that they could not afford.
  • [Deleted User][Deleted User] Forumite
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    speshal_86 wrote: »
    I guess my compelling reason is that I had been working so hard to become debt free for the last 7 years that I genuinely wasn't aware I was able or allowed to complain about such things. It didn't even cross my mind.
    It's not this forum you need to convince....
  • -taff-taff Forumite
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    There is a very long thread about reclaming payday loans on the debt free wannabe board.
  • SystemSystem Forumite
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    This from your comment made me laugh.
    Are you implying that these people came to your house and forcibly made you fill in the forms in order to get a loan. I really don't think that you are, but it is so common place on this forum that people seem to think that they were taken advantage of when in fact they were the ones who approached these companies to borrow money to live a lifestyle that they could not afford

    Of course I'm not, but these loans were marketed towards people who were not well off financially in the first place. And all with very little questions asked or verifying, making it an easy option for those with poor credit or whatever other reason someone could not get normal loans/cards etc.

    Of course I approached these companies myself but as a last resort, which rapidly snowballed. But for me it was certainly not to live a lifestyle I could not afford by any stretch of the imagination but I won't get into my personal circumstances at that time here.
    I'm definitely not partaking in the whole 'poor me' thing either, I borrowed the money and I have now paid everything back (eventually). But the point is, it has become clear from all the public information available that I likely should never have been granted them in the first place.

    Anyhoo, it was merely a post (albeit lengthy) to find out if there had been any successes outwith the six year window. I'm off to dig out the thread - taff has mentioned!

    Thanks all ��
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