Evening all,

A few years ago my mum foolishly went to PDL companies for help when things went bad

- she was ill and quite vulnerable and ultimately ended up taking an overdose to escape the constant badgering from these companies

when she got into the inevitable mess. (this is when I became aware)

I made a complaint to one of my mums payday loan companies because

1) they were reporting different things on different CRAs and

2) I believe they had irresponsibly loaned her the amount.

Their response was that they hadn't irresponsibly loaned the money, as my mum had ticked the box confirming she could afford to pay it back

They did not take into account that she had other PDLs with other companies (one of which was a sister company to this one)

or that she had a live CCJ and other defaults on her credit record.

In their final response,

they sent a summary showing the PDLs she'd had with them, and the previous one she had (before the latest one that she couldn't pay)

was rolled over/deferred for TEN months and then the latest one was taken out just 6 days after the last one was paid off

- And they say they wasn't irresponsibly lending?

surely deferring a loan for 10 months should raise flags that somethings wrong.

although they denied they did anything wrong

they did say that they would extinguish the outstanding amount

and because of an 'internal error' causing them to incorrectly report on my mums CRA,

they'd remove the credit entry from her file.

I wrote and asked them to confirm that they would not sell it to a 3rd party or that the company that have just taken over

MEM Consumer Finance (Instant Cash Loans - ICL) would not pursue it.

This is their response but I am not confident it wont get passed around.

'With regards to your comments concerning the debt being sold or transferred to any other company,

as it stands the debt remains with us.

If you wish to accept the offer to extinguish the outstanding balance of £XXX and remove the loan details from your mothers credit file,

this offer will be in full and final settlement of the complaint.

If you choose to accept the offer we will no longer pursue your mother for the debt.

Now call me a cynic but I don't see a confirmation that they wont sell it on. Any thoughts please?

Also, should I be reporting them to the FCA regarding the 10 month deferral situation

and lending to my mum when it should have been clear there were affordability issues?

Thanks guys

Hi, my thoughts.

as it stands the debt remains with us

As the loan is still with them and they extinguish it, there will be nothing to sell on so it seems (to me) that they are trying to get out of a bad situation before the FCA comes down on them from a very great height.

Thanks Silverfox,

I am very dubious about they way these companies phrase things, and as they didn't actually say 'we confirm that we will not sell it on' thought it was best to check.

Just ensure that you keep any correspondence from them for at least a couple of years .. although I suspect they will honour what they have said.. as Silverfox has already mentioned.. the FCA appear to be keeping an eye on the Pay Day Loans, I doubt they will provide ammunition to have them closed down

Thanks guys

I would think that's enough to bat away any DCA that might get their grubby mits on it.

dx

Evening all,

Just a quick update on this thread - Loan extinguished and entry on CRA removed

Wonga have also confirmed that mum wouldn't have passed new affordability checks and have wiped debt and removed CRA entry. - Never originally received email in Oct as loan had been sold on to DCA

Think it's worth complaining to any PDL companies if you think you wouldn't have met lending criteria - we took the chance and it paid off

Absolutely

And complain to the fca when they refuse.

Other things to look for include unlawful admin fees etc