The ombudsman have investigated my loan from Sunny but have decided that is was not irresponsible lending.

Since I lied on the application form (Said I was earning £1250 per month when in fact I was earning £0)

it was acceptable for them to have taken that information in good faith.

Sunny did perform a credit check

- but despite my 11 defaults and unpaid payday loans from 5 other lenders amongst other debts

decided I was an acceptable risk for a £400 loan.

Will have to try and approach the DCA and see if I can get a full and final settlement

that includes the removal of the debt from my credit report.

Did an ombudmsan say that, or did an adjudicator, because it goes against the very meaning of responsible lending. By their remarks, you can go to any lender, say you were earning thousands, and get a loan and no checks would need to be made.

I have appealed it because I believe it is an adjudicator

- I received the email around 5:30pm,

I called straight away but they had left so I could not discuss it today so emailed my response.

That was my first point

- I said I worked in a university HR department but actually I am studying HR at a university.

If I was asked for a statement or just one wage slip I would not have been able to supply anything.

On the income and expenditure I put £0 except for food and transport and nothing was ever queried.

My second point was they said they did a credit check

but I had 5+ outstanding payday loans, defaults and debts

- every report scores very poor.

But, I did apply and accept the loan so I am to blame as well.

I'll see what the ombudsman come back to me with

and if that fails then I will try and negotiate a settlement with the DCA

that includes removal from my credit report

- I imagine that would be unlikely though.

Well today has been a day of email tennis with the ombudsman, they initially stood by their decision say:

"You’ve said that Elevate didn’t verify any of this information,

however Elevate wouldn’t need to and the assumption would be that your answer were true, correct and honest.

I can see that Elevate did ask you the necessary questions,

as they wouldn’t be able to lend to you without any form of assessment.

So while there is some responsibility for Elevate to check this information

there is equal responsibility on you to provide accurate information to them.

Elevate have confirmed that they did carry out credit checks

and did find some adverse information

- so they reduced the amount they lent to you.

The loan was lent to you because based on the information you provided it was deemed affordable."

I said I wanted to appeal this and have been asked to provide my bank statements

showing a student account £2000 overdrawn and the details from my credit report.

I have sent this but I doubt I'll hear anything further today.

Well today has been a day of email tennis with the ombudsman, they initially stood by their decision say:

 

"You’ve said that Elevate didn’t verify any of this information,

however Elevate wouldn’t need to and the assumption would be that your answer were true, correct and honest.

 

 

I can see that Elevate did ask you the necessary questions,

as they wouldn’t be able to lend to you without any form of assessment.

 

 

So while there is some responsibility for Elevate to check this information

there is equal responsibility on you to provide accurate information to them.

 

 

Elevate have confirmed that they did carry out credit checks

and did find some adverse information

- so they reduced the amount they lent to you.

 

 

The loan was lent to you because based on the information you provided it was deemed affordable."

 

I said I wanted to appeal this and have been asked to provide my bank statements

showing a student account £2000 overdrawn and the details from my credit report.

I have sent this but I doubt I'll hear anything further today.

How wrong of them to lend to you if their checks should have revealed your adverse financial position ; they should write off what they wrongly lent.

BUT

Then you will have caused them to suffer a loss.

If you dishonestly made a false representation (lying about your income) in order to make a gain, or to expose them to a risk of loss :

What is to stop them reporting you for "fraud by false representation"?

Tread warily.

It's a mess I have created myself, I was worried about raising any kind of complaint because of the lies I had told on the initial application form. It was only after debt advice that I did, I was told it was extremely unlikely I would be reported or have action taken against me as it would highlight that suitable checks were not being carried out before loans were issued.

It is something I am concerned about but so far it has not been mentioned.

Well the adjudicator dealing with my complaint has changed their opinion and has now requested that Sunny remove any charges and interest, and remove any adverse history from my credit report.

This will remove a default from experian, and remove late payment notifications from equifax and call credit.

This will leave just the loan amount of £400 to be repaid.

new thread created

dx

I accepted the ombudsman adjudicators findings but Sunny have stopped responding to the ombudsman service. Their deadline is today. If they do not respond then the whole matter will have to be assessed all over again by an ombudsman. Extremely frustrating!

Alternativly

issue a small claims?

its a well worn tactic the pdl's use to frustrate and drag things out - the ombudsman usually does not take much more than a month or so in my experience if the adjudicator has upheld - then sunny will have 28 days

Sunny finally responded, and they have not accepted the adjudicators assessment and have requested an ombudsman to review the case. Don't know what the outcome will be on this.

My credit reports have just updated, on Equifax and Call Credit the loan shows settled (After 4 missed payments), where as on Experian a default has been applied. I thought maybe it was just a delay on Equifax and Call Credit but Experian had the default in Feb. Don't know why they differ.

The ombudsman have upheld my complaint for irresponsible lending and instructed Sunny to remove all interest and charges, and remove all record of the loan from my credit file.

In an unexpected move Sunny have cleared the principle amount as well and emailed me stating I need take no further action.

well done

dx

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