Payday Loan Claims - Financial Ombudsman Updates

38 replies
Found 12th Jul
So, we've got the Wonga thread ongoing, and a lot of people have now received their outcome, however a few people (myself included) have passed claims to the Financial Ombudsman.

I have currently got 5 complaints in with the FOS.

First two were raised on 6th June, other than a letter of acknowledgement I've yet to receive any further contact - the final 3 were raised on the 2nd July.

I thought it would be a good idea to keep a running thread of people's experiences with the FOS, and see what's being upheld etc.

  1. Misc
  2. Payday
Groups
  1. Misc
  2. Payday
Top comments

Where does irresponsible borrowing come into this? Not directed at the OP, I am curious though. It seems like a lot of people who made use of these loans now think it's Christmas again.
38 Comments

That's a lot of complaints, are the 5 complaints for different financial companies? Did you not manage to get an offer from the financial companies, as thought it cost the banks £500+ per complaint handling cost anything that gets referred to the FOS?

Original Poster

Chanchi32

That's a lot of complaints, are the 5 complaints for different financial … That's a lot of complaints, are the 5 complaints for different financial companies? Did you not manage to get an offer from the financial companies, as thought it cost the banks £500+ per complaint handling cost anything that gets referred to the FOS?



All different companies. Those 5 made no offers, 3 of them I feel are unlikely to be upheld, but 2 of them I feel will be.

For the sake of raising one complaint, I may as well refer them all - it does cost them over £500 (amusingly, 2 of them are claims for below that amount!).

TheUrbis9 m ago

All different companies. Those 5 made no offers, 3 of them I feel are …All different companies. Those 5 made no offers, 3 of them I feel are unlikely to be upheld, but 2 of them I feel will be.For the sake of raising one complaint, I may as well refer them all - it does cost them over £500 (amusingly, 2 of them are claims for below that amount!).




Am surprised you didn't at least get an offer to stop the complaint going to the ombudsman for one of the companies. For the 2 you believe will be upheld, what's the basis of the complaint?

Following as I bet my Money Shop complaint will be going that way at the end of the 8 weeks. Hoping to pick up some tips from the pioneers!

Original Poster

Chanchi32

Am surprised you didn't at least get an offer to stop the complaint going … Am surprised you didn't at least get an offer to stop the complaint going to the ombudsman for one of the companies. For the 2 you believe will be upheld, what's the basis of the complaint?



That was my surprise, and I warned them before doing so, but they still refused to back down.

The other two are rolled over many times, close to my salary amount at the time and were both entered into repayment plans.

Sorry not wanting to appear daft but what you making claims to the financial ombudsman about?

Graham1979

Sorry not wanting to appear daft but what you making claims to the … Sorry not wanting to appear daft but what you making claims to the financial ombudsman about?



Irresponsible lending.

Where does irresponsible borrowing come into this? Not directed at the OP, I am curious though. It seems like a lot of people who made use of these loans now think it's Christmas again.

Referred to FOS (wonga) they didn't uphold as over 6 years old! FOS called me Monday to say they were taking the complaint forward and had requested the file from wonga!

redcantona

Where does irresponsible borrowing come into this? Not directed at the … Where does irresponsible borrowing come into this? Not directed at the OP, I am curious though. It seems like a lot of people who made use of these loans now think it's Christmas again.



I think theres probably some who are jumping on the bandwagon, but there maybe some that were granted credit who shouldn't have been given credit in the first place. The argument is that lenders need to do the right credit checks as part of responsible lending and some of the payday lenders have been somewhat lax e.g. lent more than the customer said they earned.

Good luck, I am pursing similar claims against car leasing companies. Hoping to keep the cars by proving negligent lending and aggressive sales tactics.

For those who feel this is somewhat scrounging, instead of being rude about it why don't you just leave the thread and keep your opinions to yourself! Some people had no option but to try and borrow at extortionate rates to feed their families and spiralled into a situation of unmaneagable debt that let's hope you judgemental lot never find yourself in!! So as my mum always said if you haven't got something nice to say then don't say anything at all! Thanks

Original Poster

Chanchi32

I think theres probably some who are jumping on the bandwagon, but there … I think theres probably some who are jumping on the bandwagon, but there maybe some that were granted credit who shouldn't have been given credit in the first place. The argument is that lenders need to do the right credit checks as part of responsible lending and some of the payday lenders have been somewhat lax e.g. lent more than the customer said they earned.



Exactly.

tempt2 h, 22 m ago

Good luck, I am pursing similar claims against car leasing companies. …Good luck, I am pursing similar claims against car leasing companies. Hoping to keep the cars by proving negligent lending and aggressive sales tactics.


Wow sums it up perfectly!

katcoppard

For those who feel this is somewhat scrounging, instead of being rude … For those who feel this is somewhat scrounging, instead of being rude about it why don't you just leave the thread and keep your opinions to yourself! Some people had no option but to try and borrow at extortionate rates to feed their families and spiralled into a situation of unmaneagable debt that let's hope you judgemental lot never find yourself in!! So as my mum always said if you haven't got something nice to say then don't say anything at all! Thanks


I can't see any 'rude' comments unless you are referring to mine. If that is the case you need to change your definition of rude.

Graham1979

Sorry not wanting to appear daft but what you making claims to the … Sorry not wanting to appear daft but what you making claims to the financial ombudsman about?


Lenders have an obligation to check a loan is "affordable" - so you can repay it without having to borrow more. That rules out all my Money Shop loans. A couple of years I was trapped, could only pay one by getting another.

Who knew this? Noone! I saw this thread hotukdeals.com/mis…=17. That has template letters you can use from debtcamel.co.uk/pay…ds/. And there seem to be loads of people getting their money back through the Ombudsman if the lender rejects, which is why this thread was started.

Now some people are saying it might work for things like car finance where they never check you before giving you big loans.
Edited by: "CaroFielding" 13th Jul

CaroFielding

Lenders have an obligation to check a loan is "affordable" - so you can … Lenders have an obligation to check a loan is "affordable" - so you can repay it without having to borrow more. That rules out all my Money Shop loans. A couple of years I was trapped, could only pay one by getting another.Who knew this? Noone! I saw this thread http://www.hotukdeals.com/misc/wonga-refunds-due-2691492?page=17#comments. That has template letters you can use from https://debtcamel.co.uk/payday-loan-refunds/. And there seem to be loads of people getting their money back through the Ombudsman if the lender rejects, which is why this thread was started.Now some people are saying it might work for things like car finance where they never check you before giving you big loans.



Of course they check you. Do you think they would risk giving you thousands of pounds if your financial situation declarations suggested that you might not be able to repay it?

Lending you £300 on a payday loan isn't the same risk as lending you £10/15/20k.

Edited by: "deeky" 13th Jul

deeky

Of course they check you. Do you think they would risk giving you … Of course they check you. Do you think they would risk giving you thousands of pounds if your financial situation declarations suggested that you might not be able to repay it?Lending you £300 on a payday loan isn't the same risk as lending you £10/15/20k.


Plenty of reports of people being given loans that are VERY high for their wages. If yours was OK you don't complaint. But other people may have been left in a mess by irresponsible lending.

deeky

Of course they check you. Do you think they would risk giving you … Of course they check you. Do you think they would risk giving you thousands of pounds if your financial situation declarations suggested that you might not be able to repay it?Lending you £300 on a payday loan isn't the same risk as lending you £10/15/20k.



They may do checks, but unlike Banks the sub prime lenders aren't as picky, mainly small loans with little risk, it's a cynical yet profitable model.

Target customers that a bank would laugh at if they asked for a £300 overdraft, charge very high interest rates, slap on punitive charges for late payment, as soon as they pay off 30-50% sell em another loan to trap them into a cycle of debt.



redcantona

Where does irresponsible borrowing come into this? Not directed at the … Where does irresponsible borrowing come into this? Not directed at the OP, I am curious though. It seems like a lot of people who made use of these loans now think it's Christmas again.



Payday loans should be stopped imo.
They are used to exploit those struggling and snare them with further debt.

However, the OP putting in 5 claims is absurd and in some cases people need to take some sort of responsibility for their actions.

The fact that people are bragging about this is getting a bit daft.

Original Poster

dtovey89

Payday loans should be stopped imo.They are used to exploit those … Payday loans should be stopped imo.They are used to exploit those struggling and snare them with further debt. However, the OP putting in 5 claims is absurd and in some cases people need to take some sort of responsibility for their actions. The fact that people are bragging about this is getting a bit daft.



Difficult to rank something as being absurd when you have literally no idea as to the circumstances.

dtovey89

Payday loans should be stopped imo.They are used to exploit those … Payday loans should be stopped imo.They are used to exploit those struggling and snare them with further debt. However, the OP putting in 5 claims is absurd and in some cases people need to take some sort of responsibility for their actions. The fact that people are bragging about this is getting a bit daft.



Whether people like it or not there is a demand for pay day loans. Stop them and then you will find un-regulated lenders will fill the gap. If a person needs £300 to feed their family, they will get £300 to feed their family.
Edited by: "OllieSt" 15th Jul

TheUrbis

Difficult to rank something as being absurd when you have literally no … Difficult to rank something as being absurd when you have literally no idea as to the circumstances.



5 pay day loans in is some sort of inception styled scenario.

You would have thought if they didn't pay one or two back in time then no one else would provide the loan.
OllieSt

Whether people like it or not there is a demand for pay day loans. Stop … Whether people like it or not there is a demand for pay day loans. Stop them and then you will find un-regulated lenders will fill the gap. If a person needs £300 to feed their family, they will get £300 to feed their family.



No one needs £300 to feed a family. Unless you're talking about a months worth of food and then a pay day loan isn't really feasible.

Original Poster

dtovey89

5 pay day loans in is some sort of inception styled scenario. You would … 5 pay day loans in is some sort of inception styled scenario. You would have thought if they didn't pay one or two back in time then no one else would provide the loan. No one needs £300 to feed a family. Unless you're talking about a months worth of food and then a pay day loan isn't really feasible.



Who said the loans weren't paid back? All of mine were cleared.

TheUrbis1 h, 0 m ago

Who said the loans weren't paid back? All of mine were cleared.



in that case, In what way do you feel you have 5 cases for irresponsible lending?

TheUrbis

Who said the loans weren't paid back? All of mine were cleared.



So why are you raising this with the FOS?

dtovey89

So why are you raising this with the FOS?



probably seen all the PPI promises!

Chanchi32

I think theres probably some who are jumping on the bandwagon, but there … I think theres probably some who are jumping on the bandwagon, but there maybe some that were granted credit who shouldn't have been given credit in the first place. The argument is that lenders need to do the right credit checks as part of responsible lending and some of the payday lenders have been somewhat lax e.g. lent more than the customer said they earned.



So attempting to claim compensation based on fraud!

TheUrbis

Difficult to rank something as being absurd when you have literally no … Difficult to rank something as being absurd when you have literally no idea as to the circumstances.

OllieSt

Whether people like it or not there is a demand for pay day loans. Stop … Whether people like it or not there is a demand for pay day loans. Stop them and then you will find un-regulated lenders will fill the gap. If a person needs £300 to feed their family, they will get £300 to feed their family.




It was an example. You didn't address the issue though. Take away pay day lenders, the vacuum gets filled. It's more likely to get filled by un-licencsed lenders than High St. banks.

OllieSt

Whether people like it or not there is a demand for pay day loans. Stop … Whether people like it or not there is a demand for pay day loans. Stop them and then you will find un-regulated lenders will fill the gap. If a person needs £300 to feed their family, they will get £300 to feed their family.


yeah but in my case I Kept borrowing because I couldn't afford the previous loan and was too scared to just stop paying. Silly me but it is the lender who should have stopped lending. There are rules that lenders have to follow otherwise they are no better than loan sharks. And so far as Ive found out lending to me every month for 2+ years is irresponsible.

CaroFielding

yeah but in my case I Kept borrowing because I couldn't afford the … yeah but in my case I Kept borrowing because I couldn't afford the previous loan and was too scared to just stop paying. Silly me but it is the lender who should have stopped lending. There are rules that lenders have to follow otherwise they are no better than loan sharks. And so far as Ive found out lending to me every month for 2+ years is irresponsible.



What the FCA are trying to establish is that by ensuring lenders are responsibly lending it will make irresponsible borrowing more difficult. But when it is clear that some irresponsible borrowing is being labelled as 'silly borrowing' theres a long way to go. Silly borrowers will turn to unregulated loan sharks if they are desperate and they will then find out the real differences between them and regulated lenders. The FCA are fully aware of a vacuum if they simply ban pay day lenders, a vacuum that will be filled by less scrupulous illegal companies not High Street lenders. To think no pay day lenders will equate to no £300 borrowing is fundemently s flawed way of thinking.

Edited by: "OllieSt" 16th Jul

OllieSt

What the FCA are trying to establish is that by ensuring lenders are … What the FCA are trying to establish is that by ensuring lenders are responsibly lending it will make irresponsible borrowing more difficult. But when it is clear that some irresponsible borrowing is being labelled as 'silly borrowing' theres a long way to go. Silly borrowers will turn to unregulated loan sharks if they are desperate and they will then find out the real differences between them and regulated lenders. The FCA are fully aware of a vacuum if they simply ban pay day lenders, a vacuum that will be filled by less scrupulous illegal companies not High Street lenders. To think no pay day lenders will equate to no £300 borrowing is fundemently s flawed way of thinking.



I think part of the problem is these loans often take place online. By doing this online, they have no way of assessing the state the person is in.

Nor does the the person taking out the loan have to face up to another person by asking for it.

You must have heard about people drunk online shopping? There are people who take pay day loans out inebriated. Imagine the damage some people who have hit the oblivion button can do like that, googling one company after another.

Do you think they would loan to people who weren't sober in a shop? It's so low effort too. You don't have to go there, you don't have any travelling time to cool down or think it over.

Not defending these people making these terrible decisions, but it highlights how ridiculous and unscrupulous they can be.
Edited by: "MSK." 16th Jul

katcoppard12th Jul

For those who feel this is somewhat scrounging, instead of being rude …For those who feel this is somewhat scrounging, instead of being rude about it why don't you just leave the thread and keep your opinions to yourself! Some people had no option but to try and borrow at extortionate rates to feed their families and spiralled into a situation of unmaneagable debt that let's hope you judgemental lot never find yourself in!! So as my mum always said if you haven't got something nice to say then don't say anything at all! Thanks



I'm sensing a pattern emerging amongst those whose mothers said that, and as reasonable as the advice sounds I'm just going to have to go with the statistics and refrain from passing it along to my own kids.

Has anyone had any results from this. I got paid out from wonga. Over £1500 back. These were all paid off but gave me a lot of trouble at the time.

interested to know what happened with everyone else?

Jd36921st Aug

Has anyone had any results from this. I got paid out from wonga. Over …Has anyone had any results from this. I got paid out from wonga. Over £1500 back. These were all paid off but gave me a lot of trouble at the time.interested to know what happened with everyone else?

I'm just going through the ombudsman now, after they refused to accept my complaint.

Just received an email from Myjar. My complaint with them as been upheld. They are refunding Interest & charges.
Edited by: "gren05" 23rd Aug

I may decide to get a loan irresponsibly and then claim that it was irresponsible of the lender to give it in the first place and get "my" money back. Who wouldn't want a loan that doesn't really cost. I might claim for the stress the irresponsible lending put me in too.

zainarafiq53 m ago

I may decide to get a loan irresponsibly and then claim that it was …I may decide to get a loan irresponsibly and then claim that it was irresponsible of the lender to give it in the first place and get "my" money back. Who wouldn't want a loan that doesn't really cost. I might claim for the stress the irresponsible lending put me in too.


Maybe you need to go back & read your own words that you wrote on the 24th Feb 2016 & don't judge people until you know their circumstances...( see your words near bottom of page starting ''Wow.....did not realise'' .....in link below) . We are not all as sensible as you ......


hotukdeals.com/dis…e=2
Edited by: "gren05" 23rd Aug
Post a comment
Avatar
@
    Text
    Top Discussions
    1. 5 Letter Scrabble Game52322855
    2. word association Game74244904
    3. Add one, leave one game54415428
    4. Without giving away your age, name three things that remind you of when you…4176

    See more discussions