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  • FIRST POST
    • JH1345
    • By JH1345 6th Jan 18, 9:17 PM
    • 8Posts
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    JH1345
    Advice needed regarding Payday Loans
    • #1
    • 6th Jan 18, 9:17 PM
    Advice needed regarding Payday Loans 6th Jan 18 at 9:17 PM
    Good Evening All,

    Iím just looking for a bit of advice regarding a MyJar loan that I took out in April 2017 - I have made a claim regarding this loan, and the previous loan that MyJar gave to me, because I feel they were both unaffordable and I have asked MyJar to refund the interest on the previous fully paid loan and the existing loan (which only has 2 remaining monthly payments left).

    I have already wrote to MyJar prior to the existing loan finishing next month because I understood that the complaints procedures are quite long winded and usually take up to 8 weeks to get a final written response.. so basically I was expecting a reply to be after my loan had finished.

    MyJar have came back acknowledging my complaint and have advised they will investigate it. Upon logging into my account, I can notice the status of the loan now shows as ďrepayment planĒ and the payments are now less than half of what I was paying monthly but now over an additional period of 4 months. Whilst I have NEVER missed a payment or had a late payment on the loan, I had to take out other forms of borrowing to pay off the payday loan hence the basis of my affordability complaint to the company. I think MyJar have put me on a payment plan, without contacting myself, and I didnít think they were allowed to do this. I even stated on my complaint email that I was intending to pay the full amounts remaining, because I genuinely will do this, and was wanting the loan interest to be refunded.

    My questions are as follows:

    Are MyJar within their rights to put me in a repayment plan without my knowledge or without my consent?

    As MyJar have done this without my consent, if theyíre unwilling to budge, will this affect my credit rating? I have not missed any payments and donít intend too!

    Whilst I appreciate MyJar probably think they are helping the situation, I am willing to and I will pay the loan on time (although I appreciate this may have to be done with a help in hand by other forms of credit!) and I do not want this to affect my overall future if I was to go for a mortgage in 2-4 years time! I have no defaults, no late payments or CCJs although my credit rating has detoroiated since the beginning of the year!

    P.S I am fully aware these loans are a plague on society and I should not have borrowed it but I just need advice not judgement!

    Thanks,
    J
Page 1
    • venison
    • By venison 6th Jan 18, 9:27 PM
    • 2,160 Posts
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    venison
    • #2
    • 6th Jan 18, 9:27 PM
    • #2
    • 6th Jan 18, 9:27 PM
    The fact that you have a history of borrowing from pay day lenders won't don't your credit history much good, the opposite in fact.
    Without being harsh surely you were aware of the eye watering interest rates these people charge?, and the fact that you took out 2 loans within a short period shows that if anyone was being irresponsible it was you? sorry but thats just how it looks from here.
    Ex Board Guide
    • JH1345
    • By JH1345 6th Jan 18, 9:39 PM
    • 8 Posts
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    JH1345
    • #3
    • 6th Jan 18, 9:39 PM
    • #3
    • 6th Jan 18, 9:39 PM
    The fact that you have a history of borrowing from pay day lenders won't don't your credit history much good, the opposite in fact.
    Without being harsh surely you were aware of the eye watering interest rates these people charge?, and the fact that you took out 2 loans within a short period shows that if anyone was being irresponsible it was you? sorry but thats just how it looks from here.
    Originally posted by venison
    Hello,

    Iím fully aware it wonít do my credit history and good but, unfortunately, sometimes people, like myself, have no choice but to get these loans in sheer desperation.

    Iím not denying I did not know the interest amount either. I was fully aware what the interest rate was.

    To be completely transparent, I do not think they completed a credit check because there is not one showing on my credit report. If they did they would, or should have, rejected the loan. Thatís the grounds for my complaint.

    I expected this response from various people. Tens of thousands of people have successfully claimed against unaffordable loans granted by payday lenders though - were they all wrong?

    As I said in my original post, I need advice on the questions I asked. I donít need a lecture.
    • forgotmyname
    • By forgotmyname 6th Jan 18, 9:48 PM
    • 27,218 Posts
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    forgotmyname
    • #4
    • 6th Jan 18, 9:48 PM
    • #4
    • 6th Jan 18, 9:48 PM
    Venison didn't mention your credit history he said your history of using payday loan companies. You used them several times so it will be harder to say you didnt know.

    No credit check showing on which report?

    Why would they reject your loan due yo your credit file if you have not missed any payments?
    Their business model is lending to high risk people and the interest rate goes with that.

    You dont need a lecture = you only want the answers that you agree with? Sometimes the answers wotn be what you like.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • JH1345
    • By JH1345 6th Jan 18, 9:54 PM
    • 8 Posts
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    JH1345
    • #5
    • 6th Jan 18, 9:54 PM
    • #5
    • 6th Jan 18, 9:54 PM
    Venison didn't mention your credit history he said your history of using payday loan companies. You used them several times so it will be harder to say you didnt know.

    No credit check showing on which report?

    Why would they reject your loan due yo your credit file if you have not missed any payments?
    Their business model is lending to high risk people and the interest rate goes with that.

    You dont need a lecture = you only want the answers that you agree with? Sometimes the answers wotn be what you like.
    Originally posted by forgotmyname
    I could have a perfect credit rating. This doesnít mean the lender should not conduct an affordability check - if they did theyíd know Iíd struggle to repay the payments.

    Again though, Iím getting political replies regarding payday loans and the rights/wrongs of these. This seems a common theme throughout payday loan threads. I havenít expected answers ďI do or donít likeĒ to be quite honest. If you re-read my OP, youíd see that I asked some simple questions regarding whether MyJar are able to do what theyíre doing..
    • -taff
    • By -taff 6th Jan 18, 10:09 PM
    • 7,420 Posts
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    -taff
    • #6
    • 6th Jan 18, 10:09 PM
    • #6
    • 6th Jan 18, 10:09 PM
    You told them the loans were unaffordable. They are taking you at your word and initiating a repayment plan so that it is now affordable.
    • JH1345
    • By JH1345 6th Jan 18, 10:19 PM
    • 8 Posts
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    JH1345
    • #7
    • 6th Jan 18, 10:19 PM
    • #7
    • 6th Jan 18, 10:19 PM
    You told them the loans were unaffordable. They are taking you at your word and initiating a repayment plan so that it is now affordable.
    Originally posted by -taff
    I can see the logic behind that!

    Because I have not directly asked for a repayment plan, however, can they do this? I would think they would have to contact myself to agree it and to see what was ďaffordableĒ. With two months remaining, Iíd rather struggle and get it paid than let it have a huge impact on my credit file.
    • Arleen
    • By Arleen 6th Jan 18, 10:31 PM
    • 1,150 Posts
    • 863 Thanks
    Arleen
    • #8
    • 6th Jan 18, 10:31 PM
    • #8
    • 6th Jan 18, 10:31 PM
    Pretty sure if you want you can stick to your original payment schedule if you prefer (although it depends on what sort of contract you've signed with them). And as they did this without your acknowledgement it will not report adversely on your credit report, aka not show as defaulted/late payments unless your contract states differently.

    As for your affordability complaint, the only thing a credit check would show for them is missed/late payments, not how much is left in your wallet. The only way to know whether they did or not is to get your statutory credit report from ALL 3 AGENCIES, pay 2 quid each, and check against them. But that doesn't really matter, as you had no adverse credit file so it wouldn't turn you down.

    I am also pretty sure that all application forms ask for: your income, your monthly expenditures and ticking a box "I can afford this loan". Did you fill those truthfully, especially the final checkbox?
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 7th Jan 18, 12:02 AM
    • 3,236 Posts
    • 1,697 Thanks
    keepcalmandstayoutofdebt
    • #9
    • 7th Jan 18, 12:02 AM
    • #9
    • 7th Jan 18, 12:02 AM

    I expected this response from various people. Tens of thousands of people have successfully claimed against unaffordable loans granted by payday lenders though - were they all wrong?

    As I said in my original post, I need advice on the questions I asked. I donít need a lecture.
    Originally posted by JH1345
    Hello

    To be fair this isn't reclaim the right. This is a board for people who would like to be savvy perhaps as to what they are getting into before they do so. Sometimes when things are posted by others it doesn't mean it is the whole truth and nothing but, I personally think these pay outs should have come with a confidentiality agreement and something else but we're not here to discuss that.

    The answers and advice need to come from the lender and Financial Ombudsman Service, in very worst cases.

    In a very distant past I've worked in PPI claims - it now has an expiry date. Equally there have been folk who've lost out to the proper doorstep lenders the illegal ones and perhaps never seen justice so if your ok now try and see you are still lucky.
    "If you are caught in a rainstorm, once you accept that you'll receive a soaking, the only thing left to do is enjoy the walk"
    • forgotmyname
    • By forgotmyname 7th Jan 18, 2:05 AM
    • 27,218 Posts
    • 10,964 Thanks
    forgotmyname
    I could have a perfect credit rating. This doesnít mean the lender should not conduct an affordability check - if they did theyíd know Iíd struggle to repay the payments.

    Again though, Iím getting political replies regarding payday loans and the rights/wrongs of these. This seems a common theme throughout payday loan threads. I havenít expected answers ďI do or donít likeĒ to be quite honest. If you re-read my OP, youíd see that I asked some simple questions regarding whether MyJar are able to do what theyíre doing..
    Originally posted by JH1345
    How do they do an affordability check? Which is different to a credit check that you mentioned earlier. If i give you access to my credit file can you tell me if im credit worthy?

    Will it tell you if i am employed or not? NO. I could have loans and credit cards and be unemployed. Yet not a single missed payment or late payment anywhere to be seen.

    They rely a lot on what you tell them. Did you tell them you could not afford to take the loan when applying? You knew the charges and interest rates because you had used them before as you said.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 11:44 AM
    • 6,609 Posts
    • 13,870 Thanks
    enthusiasticsaver
    I don!!!8217;t think they can force you into a repayment plan. Have they not written to you explaining their actions? I think they have taken what you have said at face value and think you cannot afford the loan so have reduced the payment. Get in contact and tell them you can now afford it. Much as I think payday loans are dreadful I am not sure about the claiming back of interest when you knew full well how much it was.

    Using Payday loans will affect your chance of getting a mortgage in the future.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Tarambor
    • By Tarambor 7th Jan 18, 12:55 PM
    • 3,046 Posts
    • 2,202 Thanks
    Tarambor
    Good Evening All,

    I!!!8217;m just looking for a bit of advice regarding a MyJar loan that I took out in April 2017 - I have made a claim regarding this loan, and the previous loan that MyJar gave to me, because I feel they were both unaffordable and I have asked MyJar to refund the interest on the previous fully paid loan and the existing loan (which only has 2 remaining monthly payments left).
    Originally posted by JH1345
    You didn't miss any repayments, you're not on target to miss any so clearly they weren't unaffordable were they?

    It is hard to claim they were unaffordable when you met the repayments for both loans. For the first loan you'd have had to lie on your application about your income for it not to be seen as unaffordable for example overstating your income or understating your outgoings or both and/or lying about your employment status. Given you said you were desperate I'd not put it beyond the realms of possibilities that you told a porkie pie or two and you don't get your interest refunded for lying on an application. In fact if you even hinted to them that you misled them on the application by saying something like they should've known the figures were different they could call the police and you could find yourself being arrested for fraud. For the second loan from them you'll have most likely only had to state that it was affordable and again if it wasn't and you said it was you're again lying on an application.

    The reason so many people have got interest back is mostly due to mis-selling and mostly confined to just a few lenders such as Wonga.
    Last edited by Tarambor; 07-01-2018 at 1:01 PM.
    • z1a
    • By z1a 7th Jan 18, 1:15 PM
    • 1,362 Posts
    • 1,302 Thanks
    z1a
    "I feel they were both unaffordable"

    But you knew this when you took the loans out.
    • JH1345
    • By JH1345 7th Jan 18, 5:28 PM
    • 8 Posts
    • 0 Thanks
    JH1345
    You didn't miss any repayments, you're not on target to miss any so clearly they weren't unaffordable were they?

    It is hard to claim they were unaffordable when you met the repayments for both loans. For the first loan you'd have had to lie on your application about your income for it not to be seen as unaffordable for example overstating your income or understating your outgoings or both and/or lying about your employment status. Given you said you were desperate I'd not put it beyond the realms of possibilities that you told a porkie pie or two and you don't get your interest refunded for lying on an application. In fact if you even hinted to them that you misled them on the application by saying something like they should've known the figures were different they could call the police and you could find yourself being arrested for fraud. For the second loan from them you'll have most likely only had to state that it was affordable and again if it wasn't and you said it was you're again lying on an application.

    The reason so many people have got interest back is mostly due to mis-selling and mostly confined to just a few lenders such as Wonga.
    Originally posted by Tarambor
    Your post right there optimises the snobbery and rudeness of some people on this forum. I would, however, like to address some of the things you have pointed out here - Iím sure people who are in a similar position to me may find this helpful in the future. I also can only think your arrogance will be because youíve not had a Payday loan before and you do not understand the stress and strain this can put you under.

    1) You have claimed I have told ďporky piesĒ on my application. I havenít. Unfortunately, suck it up, youíre wrong.

    2) Iíve never, ever read about a pay day lender taking someone to the police for not being up front about their income though. If you want to look at some pay day lenders, it actually clearly states on their website they verify your income by other means - sometimes theyíll ask for a statement if theyíre unable to verify this. In my case, they never asked for this. They either verified the income or they didnít do the check. If this case was to go to the ombudsman, the ombudsman would ask them to prove how they did their income checks just like they would ask the lender to prove they did a credit check. This is a FACT.

    3) Correct. I have not missed any payments and I am on track to make the repayment of the loan without any missed or late payments. Whilst this is fantastic, I have had to take further pay day loans to keep up with the payments, withdraw money from credit cards and from other means. The whole point of being granted a loan, is that you can make the payments comfortably. I was unable to keep up the payments without significant financial pressure. In my eyes, due to this, no matter what you think or say this means the loan was unaffordable. Whether I asked for the loan or not, itís the lenders responsibility to check that it was affordable. Using your logic, it would be acceptable for someone to take out loans with multiple banks, for large sums of money, and it would be the consumers fault. Do you not recognise the fact that in that scenario the bank would also be heavily to blame for this situation?

    4) Believe it or not, in sheer desperation, people, like myself, will take loans not thinking of the consequences. Is this solely their fault? No, I donít think it is. I strongly believe, in this case, My Jar need to take some responsibility for granting me a loan which I would struggle to pay comfortably.

    5) Last point, you mentioned compensation is only for customers generally who were with Wonga. Again, youíre wrong. I suggest you take a long look through claims with the financial ombudsman for ALL pay day lenders and youíll find their are a large number of upheld complaints that are given in favour of the customer for unaffordable loan. You can actually look through the cases (if you have got enough time). Thereís My Jar, Swift Sterling, Mr Lender and many other lenders on there and they still arenít being responsible.

    I hope this thread serves its purpose because the truth is on the financial ombudsman website and whatever the numerous people claim on here PayDay lenders are not saints. Iíll update people when I have further information.
    • Tarambor
    • By Tarambor 7th Jan 18, 5:38 PM
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    Tarambor

    4) Believe it or not, in sheer desperation, people, like myself, will take loans not thinking of the consequences. Is this solely their fault? No, I don!!!8217;t think it is. I strongly believe, in this case, My Jar need to take some responsibility for granting me a loan which I would struggle to pay comfortably.
    Originally posted by JH1345
    Why should loan companies have to compensate you because you willingly took out a loan you chose to take out knowing fully what the terms were and you knew what money you had to repay it with? It is entirely and solely the fault of the applicant. Nobody put a gun to your head and you weren't moaning how badly done to you were at the time when the money hit the bank.

    MyJar could only go on the information YOU provided them so given you passed affordability tests either you lied on the application or you are so poor at managing your own personal finances that other things happened after you took the loan out which made repaying it hard. Certainly if the latter is the case then how is that the responsibility of MyJar? How are they to know that so many months into the repayment you're going to do something to make your finances worse which means you're going to struggle to repay it? They're not and it wouldn't be reasonable to expect them to.

    And as to those who have won, you'll be lucky to find any where it just involved one or two Payday loans. Usually the cases involve people who've had several, some running concurrently and them basically going straight from one to another over several loans.
    Last edited by Tarambor; 07-01-2018 at 5:44 PM.
    • JH1345
    • By JH1345 7th Jan 18, 5:52 PM
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    JH1345
    I donít think they can force you into a repayment plan. Have they not written to you explaining their actions? I think they have taken what you have said at face value and think you cannot afford the loan so have reduced the payment. Get in contact and tell them you can now afford it. Much as I think payday loans are dreadful I am not sure about the claiming back of interest when you knew full well how much it was.

    Using Payday loans will affect your chance of getting a mortgage in the future.
    Originally posted by enthusiasticsaver
    They acknowledged the complaint within 24 hours and when I logged in on to my account I saw that the loan had changed to a ďrepayment planĒ status. I have called them to see why this was done without my knowledge or consent and I was told the complaints team would be in contact to advise what their resolution is.

    I would rather pay the loan in full without a payment plan, and continue in the PayDay loan cycle for a couple of months, because once this loan has finished Iíll have £500 of my monthly wage back. For the sake of 6 weeks, I think I can almost deal with it. Itís just whether it compromises my other bills as my monthly wage is going out within the first week of the month!
    • Tarambor
    • By Tarambor 7th Jan 18, 5:56 PM
    • 3,046 Posts
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    Tarambor
    It sounds that you'd be better off posting on the Debt Free Wannabe board than in here to try to sort out your finances so that you're not seeing your monthly wage disappearing in the first week. Hopefully it'll also allow you to get into the position where you have an emergency fund so no longer need to use payday lenders in the first place.
    • JH1345
    • By JH1345 7th Jan 18, 6:13 PM
    • 8 Posts
    • 0 Thanks
    JH1345
    It sounds that you'd be better off posting on the Debt Free Wannabe board than in here to try to sort out your finances so that you're not seeing your monthly wage disappearing in the first week. Hopefully it'll also allow you to get into the position where you have an emergency fund so no longer need to use payday lenders in the first place.
    Originally posted by Tarambor
    Good advice. Iíll have a look now.

    Thanks,
    J.
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