Hi,

I'd really appreciate some advice on how best to tackle Ladder Loans. In summary I borrowed £2000, have missed a few payments but even so have paid them more than £4000.

I'd now like to know whether a full and final settlement is the best option, or whether I can fight this and pay nothing more

The details are as follows:

1 - Ladder Loans is part of Inventive Finance Ltd, which I've found out runs a network of payday lenders. I was offered £2000 in July 2013 on an 18 month repayment schedule

2 - The APR per annum is an eye watering 299%, meaning that according to the CCA (which I now have), I agreed to pay them £5031.36 for that original £2000!

3 - I made 15 payments of £279.82 on time, so I've already paid them £4192.80

4 - Due to further financial difficulties (problems with my business), I missed payments no 16 (end Nov) 17 (end Dec) and what would have been final payment no 18 (end Jan). They've added £12 penalty charges for each of the missed payments

6 - They've never written to me about these missed payments or about adding penalty charges, I suspect they have been trying to call my mobile though. I asked for the CCA about 10 days ago and it arrived on Friday.

I'm now thinking of doing one of two things.

1 - Offering them a final settlement on the £862.56 they say I still owe, to get them off my back

Or:

2 - Making a formal complaint and seeing if I can eventually take it to the FOS.

I'd base this on them adding on penalty charges but not writing to me as well as the fact that I already paid them more than double. Am I correct in thinking that payday lenders can't now charge more than 100% of the original loan? Or did I read that wrong? Can a hugely inflated interest rate be challenged?

I'd really appreciate which is the best of the two routes to go down. Do I have a leg to stand via the complaints route, or would I be best just offering maybe £300 (so a third of what's still owed)

charges are reclaimable (with interest charged on those charges)

%apr cannot be challenged,

Not sure the new regulations are retrospective.

You might have to challenge under the fact they have failed to treat you fairly when in financial hardship. Asuming you can prove ytou told them

Also stay off the phone like you have. All in writing

Thank you, really appreciate the reply. I am not sure I could prove that as I hadn't heard from them at all one way or the other (other than my CCA request), but I am up for giving it a shot anyway.

Tactically I would like to see if I can make a nuisance of myself before trying to come to some final arrangement with them. I wonder if that's at all a realistic approach to take or if these firms just don't work like that?

Creating complaints can be tricky. Not being informed of a missed payment would not be grounds for them to dismiss £800+ if it has happened once or twice.

However...

If you have moved address and they have sent your personal data with account numbers and amount owed to an old address, which has caused you such distress and embarrassment, due to the current tenants knowing your in debt, that probably would.

Clearly you would of had to write to them prior them sendings letters out stating you changed address, not by recorded post since it is not a legal requirement.

But that is only if that's what has happened, If not then see what a final settlement would be.

Unless you actively want to challenge it via terms and conditions. Ie: Eco sign, size 10 text font, not apparent APR, irresponsible lending etc...

There are a few ways, which direction do you want to take?

thank you, I appreciate it. I'd love to challenge them any way I can, even on small technicalities as I'm assuming they might be more willing to cut the £800 down that way? I'd also like to play for time for a bit as I'll be in better shape in a few months time.

thank you, I appreciate it. I'd love to challenge them any way I can, even on small technicalities as I'm assuming they might be more willing to cut the £800 down that way? I'd also like to play for time for a bit as I'll be in better shape in a few months time.

Time is easy, just maximise timescales. If you dispute the amount owed as it was not apparent when you took the loan out they would need to investigate it. No collection activity for upto 28 days, if they require further time they can request a further 28 days totalling no more than 56 days to issue a Final Response. The Final Response Letter (FRL) must be in full. If they have not addressed all of your issues then they will have to write another one, or if you add a further concern you can extend it again.

The FOS require you to have a final and full FRL prior to investigating usually anyway.

The technicalities should not be used to defraud the system intentionally, however, if law has not been complied with you have every right to pursue it.

- Small print has to be a certain size (FCA)

- Data has to be kept accurate and up to date (DPA)

- Timescales and notifications need to be adhered to (FCA, CSA guidelines (if they are a member))

- Complaints process needs to be followed with due diligence (FCA, FOS)

- CCA needs to be verified with a signature, not a bill or account summary

A lot of people here will tell you to do everything in writing. Im very successful at writing debts off and I recommend you call them first. Escalate the call. Ask for it to be wrote as you word it over the phone. If they refuse to them they are not adhering to the DPA -keeping information accurate. It can not come more accurate than you saying it. If points in the FRL are not addressed you mentioned then you know they have not complied by either 1. Keeping accurate notes of your complaint 2. Purposley ignoring your concerns. Either way it's good grounds to add to your complaint. This can either take months if you are busy or take a few days if you want to deal with it promptly.

If they refuse to take your complaint over the phone then write a structured complaint. Do not draw it out and be firm with your words, not insulting. Use references to the relevant legislation where you believe they have breached. Set out your expectation straight away, be logical and reasonable. Then await your response..that should give you a head start

If you've paid double, for gods sake stop paying them. You've already paid them more than they are entitled to.

I'd love to stop paying them, because even though I was an idiot to take it on in the first place (well I was desperate like so many others), it sticks in my throat that they can get 5k from an original 2k.

But as I'm assuming these aren't the kind of people just to let it drop, I just need to figure out the right strategy that avoids escalating action on their part but also makes me trouble for them. It seems kicking the whole complaints process into gear followed by maybe a final offer a few weeks later seems the right approach?

Thank you very helpful - as I don't have a great deal of experience with people like this, I'd prefer to keep it in writing so I'm not caught out. But I will start the complaints process, so at the very least they can see it's not going to be easy getting the whole remaining lot from me.

Whatever route you take, stop blindly paying them simply because they are harassing you. Get the complaint off and throw it into dispute. If you told them you were in financial difficulty and they kept on piling on interest and UE charges, then thats their problem. Not yours. They would be in breach of various regulation if thats the case for unfair lending, not performing proper checks, plus in breach of their credit licence for not taking your circumstances into account, instead choosing to profit off the fact you cant afford to repay.

Done - I've challenged them on

a) not making the true cost clear to me when they followed up my online application by phone

b) adding £12 penalty charges, which is not a true or accurate reflection of any cost to them

c) not communicating with me about the charges or missed payments

d) charging me more than 100% of the original cost, and that I believe they should be classed as a short-term lender by virtue of them being part of a network of payday loan companies.

Thank you everyone, much appreciated. If / when I have to take this to the FOS I may be back!

Sadly they cant be a short term lender as its aa 18 month repayment contract. If it was 6 month, then maybe, but in reality, youre dealing with something similar to what welcome finance used to do.

Hi, I do suspect my complaint will be rejected. But I am hoping to make enough of a nuisance of myself so that a final settlement offer has a bigger chance of success. I'm not sure if that's a realistic strategy or not!

Get s full complain in and they have 8 weeks to sort it. If they don't, you can get the cos involved

Thanks for the advice with this. I followed the whole complaints procedure, and they've now written back. Though they've decided not to uphold my complaint, they did say the following:

"However as a goodwill gesture and in light of the costs that you have incurred by obtaining your loan, I am offering to extinguish your balance of £874.56 in full and final settlement of your complaint. Please contact our office within 14 days of the date of this letter if you wish to accept this offer"

Obviously a result I'm very pleased with! I guess this means it's worth tying companies like this up in paper work and complaints procedures, to make yourself more trouble than its worth?

Goodwill gesture means they know they are completely wrong but still won't admit it. They're making it look like they're doing you a favour. But if it gets you the result you wanted, then go for it.