Payday loans and credit files.

[Jamesbrit1]

Hi all I hope you can help me please with my new quest.

 

I am in the process of rebuilding my credit report after being really really stupid in the past but all is well now, just got 2 defaults and they will be off next year. YEY!

 

Anyway I have been taking out small payday loans from PDUK after reading this on there website,

https://www.paydayuk.co.uk/payday-loans/rebuild-your-credit-with-paydayuk.php

 

It states that they may help rebuild/improve credit files if they are paid back on time.

 

I have taken about 15 PDUK loans out all for about £50 and then paying them off in full, or maybe deferring a month and paying interest and most of the £50 being sensible.

 

Trouble is when I checked my credit file and spoke with Credit Expert/Experian they have told me that payday loans are so so bad for your credit file even if you pay them off in full and on time. They told me that they are only open a month and you build no history (I was told that lenders like to see well managed accounts over a period of 6 to 12 months).

 

So my question is, is this advert misleading and is there anything I can do about it?

 

I have referred this to the FOS and the advertising standards authority yesterday 20/04/12. Can you think who else to send my complaint to?

 

I feel I have paid excessive interest under the belief they were helping only to find out its a load of rubbish!

 

Any advice would be greatly appreciated and lets see these scumbags disappear!

 

James

[renegadeimp]

The advert is misleading. Pdls say that it MAY help rebuild, knowing full well it never will. Credit status is built on mid-long term standing. Not a loan you have for 4 weeks that isn't even regulated.

 

Experian rightly informed you, and they know infinitley more than anyone who works for the pdl's. You also need to get a complaint into the OFT as well and let them know you were mislead into taking the loan out.

[Jamesbrit1]

The advert is misleading. Pdls say that it MAY help rebuild, knowing full well it never will. Credit status is built on mid-long term standing. Not a loan you have for 4 weeks that isn't even regulated.

 

Experian rightly informed you, and they know infinitley more than anyone who works for the pdl's. You also need to get a complaint into the OFT as well and let them know you were mislead into taking the loan out.

 

Thanks renegadeimp for your help, will write up the letters tonight and have them sent first class recorded.

My only problem is that experian are happy to give me this advice freely over the phone but won't give me anything in writing. Any ideas?

 

As an end result I would like these loans taken off my credit file, they are all settled in full and on time so no issues regarding removing bad information.

 

How would you guys suggest I go about this to give me the best chance.

 

James

[renegadeimp]

Which details exactly? The only things you need to know is that for the FOS to start an investigation on your behalf, you need to have exhausted the creditors own complaints system, hence the reason for a FINAL RESPONSE letter.

 

Once they have proof of this, they will start an investigation. Thats in its simplest form. However, you get much more credibility if you can back everything up in writing about the complaint, and also inform the OFT, OFCOM ( if you get harassing or abusive calls) and possibly trading standards. Even the ASA is getting involved due to multiple PDL's saying that taking out a payday loan can get your credit rating higher, which is just not possible.

[renegadeimp]

Ahh. I dont have the name for him/her, but its easy enough to write and ask for a copy of their complaints procedure. They have to give the name then.

[Jamesbrit1]

Thank you for all your replies, you have all helped so much!!

 

My plan of action is to send a complaint off to pduk regarding what is I'm my option false advertising that there loans may help build credit files and that I only took them out under the impression that they would help m and that due to this misleading advertising I would like them to remove all entries from my credit file.

I will inform them that I have also informed the fos and they will be hearing from them shortly.

 

I will also send complaints of miss advertising including print out from there website to the financial services authority, trading standards, consumer direct, oft and ofcom.

 

Sound about right?

 

James

[renegadeimp]

Make sure to email Stella creasy mp too.

[Jamesbrit1]

I've just looked her up, I may well just do that and my own local MP Helen Goodman just for good measure!

James

[Jamesbrit1]

I have a link here to a previous complaint which is,

http://www.consumeractiongroup.co.uk/forum/showthread.php?343127-PayDay-UK-multiple-credit-records-for-one-loan&p=3803358#post3803358

 

So they know I'm not messing, I'm also going to try and claim the £300 restitution, that's also in the letter being sent tomorrow!

James

[ncp2008]

Hi James,I have read with great interest your battle with paydayuk or MEN consumer finance. I wondered if you could update me with how you letter/s requesting removal of all entries on your credit fie was resolved?I too have been scammed into thinking applying with them would improve my credit report - this had an awful affect on my rating so much so I was refused a mortgage because these were on my file.I would be so grateful if you could let me know and hopefully offer me some hope!Many thanks,Niall

[Jamesbrit1]

Hi NCP, sadly for me nothing happened. I tried all avenues including the Ombudsman, trading standards and the advertising standards authority but they all came back stating they PDUK had done nothing wrong as the wording had been wrote in a way that suggested it will improve your credit report but doesn't actually say there loans will improve your credit report if that makes sense. I have since wrote to PDUK asking where they got the evidence from which allows them to make the claims they make and I just get a snotty letter back revering to the Ombudsman's decision and that they will not discuss it further. Im not sure if anything can be done to be honest, if you have any ideas please share them as I would love to get these wiped. James

[RossW]

Hi NCP, sadly for me nothing happened. I tried all avenues including the Ombudsman, trading standards and the advertising standards authority but they all came back stating they PDUK had done nothing wrong as the wording had been wrote in a way that suggested it will improve your credit report but doesn't actually say there loans will improve your credit report if that makes sense. I have since wrote to PDUK asking where they got the evidence from which allows them to make the claims they make and I just get a snotty letter back revering to the Ombudsman's decision and that they will not discuss it further. Im not sure if anything can be done to be honest, if you have any ideas please share them as I would love to get these wiped. James

 

James, do you still need these removed. I have copies and screen shots of their site stating the following "This will help your credit rating" this information was on their website from mid 2009-early 2012. I'm currently using this information coupled with irresponsible lending .

[lee_st3]

James, do you still need these removed. I have copies and screen shots of their site stating the following "This will help your credit rating" this information was on their website from mid 2009-early 2012. I'm currently using this information coupled with irresponsible lending .

 

Hi RossW

 

I could really do with these screenshots you have if you wouldn't mind sending them?

 

I have tried PM'ing you, but you have that option switched off

 

Could you let me know if you can sort this for me?

 

Cheers!