Advice needed regarding Payday Loans

JH1345 · 6 January 2018 at 10:17PM

Good Evening All,

I’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).

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 “repayment plan” 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 didn’t 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 they’re unwilling to budge, will this affect my credit rating? I have not missed any payments and don’t 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

[Deleted User] · 6 January 2018 at 10:27PM

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.

JH1345 · 6 January 2018 at 10:39PM

venison wrote: »

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.

Hello,

I’m fully aware it won’t do my credit history and good but, unfortunately, sometimes people, like myself, have no choice but to get these loans in sheer desperation.

I’m 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. That’s 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 don’t need a lecture.

forgotmyname · 6 January 2018 at 10:48PM

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.

JH1345 · 6 January 2018 at 10:54PM

forgotmyname wrote: »

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.

I could have a perfect credit rating. This doesn’t mean the lender should not conduct an affordability check - if they did they’d know I’d struggle to repay the payments.

Again though, I’m getting political replies regarding payday loans and the rights/wrongs of these. This seems a common theme throughout payday loan threads. I haven’t expected answers “I do or don’t like” to be quite honest. If you re-read my OP, you’d see that I asked some simple questions regarding whether MyJar are able to do what they’re doing..

-taff · 6 January 2018 at 11:09PM

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 · 6 January 2018 at 11:19PM

-taff wrote: »

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.

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 “affordable”. With two months remaining, I’d rather struggle and get it paid than let it have a huge impact on my credit file.

Arleen · 6 January 2018 at 11:31PM

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?

[Deleted User] · 7 January 2018 at 1:02AM

JH1345 wrote: »

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 don’t need a lecture.

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.

forgotmyname · 7 January 2018 at 3:05AM

JH1345 wrote: »

I could have a perfect credit rating. This doesn’t mean the lender should not conduct an affordability check - if they did they’d know I’d struggle to repay the payments.

Again though, I’m getting political replies regarding payday loans and the rights/wrongs of these. This seems a common theme throughout payday loan threads. I haven’t expected answers “I do or don’t like” to be quite honest. If you re-read my OP, you’d see that I asked some simple questions regarding whether MyJar are able to do what they’re doing..

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.

enthusiasticsaver · 7 January 2018 at 12:44PM

I don’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.

Advice needed regarding Payday Loans

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