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Mis-sold PDL - Claim back interest fees - any experience?


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Hi everyone,

 

I had several payday loans over the years and after 18 months of repayment plans I am finally PDL debt free since a few months.

 

It all started with one payday loan in 2008 and then quickly spiralled out of control with in the end 15 paydayloans every month in 2012.

 

Over the years I paid over 20,000 GBP interest.

 

I have googled a bit and some sites suggest that some payday loans might be mis-sold and list criterias for mis-selling. I am sure some of the criterias are meeting my case, so I will now start the procedure to claim back the interest paid due to mis-selling.

 

I will start with the first company I started with back in 2008. When I could not afford to pay back the first loan in full they offered over the phone to pay back and re-loan the same day a higher amount (to cover loan plus interest), which I did. When, after a few months, I reached their maximum loan amount, they again offered over the phone to pay back and re-loan the same day, which I did... for another 3 years month after month. I will argue that the mis-selling started when I reached their maximum and they still loaned me month after month for 3 years, ignoring that I clearly could not afford to pay back loan in full and therefore contradicting the short-term purpose of this type of loan (therefore "mis-selling"). The interest alone for this company is over 6,000 GBP.

 

I would like to know if anyone of you ever tried to reclaim interest on basis of mis-selling, and if yes, how it went and what your experience is?

 

I will post updates as I go along.

 

Thanks

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Thanks, Jamie. Well, I think I am probably willing to fight it in court, at least with the companies who sold me PDL for years month after month. Have started with the first email now being sent: "Dear Madam or Sir, I am writing in relation to loans associated to my account, which I do not believe were sold to me correctly or fairly. The loans were taken out from from xx xxx 2009 to xx xxx 2011 (Loan IDs:xxx, xxx) The reason I believe that these were not sold to me correctly is that this type of loan is a short-term loan and not intended for long-term borrowing. Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interest that I have incurred as a result of having these loans, in total 5,615.00 GBP. I look forward to your prompt response to this email. If I have not had a satisfactory response from you within eight weeks of this letter I will contact the Financial Ombudsman Service to formally investigate my complaint. Kind regards" They have 30 days to reply so I will sit back and wait for things to come...

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Winning is not guaranteed. You would have to prove that you were mis sold it. And since you kept taking out the loan month on month, year after year ( your own words), and didnt default or query it, it will be difficult.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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Edited.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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  • 2 weeks later...

Thanks for your replies so far.

 

Well, 10 days have passed and no response yet, not sure if this is a good or a bad sign, but I will just sit here and wait, have nothing to do :-D

 

Have also sent now email to the second PDL, they actually have a complaint procedure and should reply within 7 days, let's see. Here it is: "Dear Madam or Sir, I am writing in relation to loans associated to my account, which I do not believe were sold to me correctly or fairly. The loans were taken out from from xx xxx 2010 to xx xxx 2011 The reason I believe that these were not sold to me correctly is that this type of loan is a short-term loan and not intended for long-term borrowing. Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interestlink3.gif that I have incurred as a result of having these loans, in total 1,581.59 GBP. I look forward to your prompt response to this email. If I have not had a satisfactory response from you within eight weeks of this letter I will contact the Financial Ombudsmanlink3.gif Service to formally investigate my complaint. Kind regards"

 

Will keep you updated...

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Well, I like your optimism... and I wish you all the very best, but I rather suspect that you will not succeed.

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Im with cb. You wouldnt even get this past a judge in a court. The way you try and describe it sounds more like trying to reclaim charges you knew were part of the loan, agreed to it and now you want to reclaim for whatever reason.

 

Its commendable that you want to do this but you are very unlikely to succeed. You'd have to prove the misselling. That is something you havent done yet.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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Well, I received the first response from one of the companies I wrote to so far. Here it is:

"Thank you for your message. These loans were issued based on your history of timely repayment, as well as credit worthiness. It is your responsibility as a consumer to borrow within your personal financial means.

You were sent the terms and conditions of each loan to review and accept before the loans were issued.

We have blocked you from taking any future loans.

Should you require further assistance, please do not hesitate to contact us."

And here my reply:

"

Complaint – To the Complaint Manager. Dear Madam/Sir. Thank you for your email dated 06 August 2013. You have not provided information why the loans you sold me between XXX XXX 2010 and XXX XXX 2012 were appropriate for my circumstances and for long-term borrowing, nor have you agreed to refund all fees and interest. During the time between XXX XXX 2010 and XXX XXX 2012 every time I called you I was informed by you that you do not offer repayment plans and that I can easily repay in full and take out a new loan for the same amount immediately or soon afterwards. I still expect a full refund of all fees and interest that I have incurred as a result of having these loans. I calculated 1,522.00 GBP for fees/interest paid to you during this time period and in addition 8% interest (228.64 GBP up to 6 August 2013 and 0.33 GBP daily from 7 August 2013 onwards until full refund is received). Please send me your final response. Kind regards,"

Let's see. Next step will be FOS.

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Well, received a second response from same company, this time from the complaints manager (was not even aware they have one, or actual people with actual email addresses :-))

 

Here is their response:

 

[The usual complaints procedure standard email] +

"These loans were issued following the business liasing with a credit reference agency which showed a creditworthiness higher than our required minimum. Furthermore, the business had taken into consideration employment information you had provided in your loan application. Additionally, the fact that you had taken out previous loans beforehand indicates that you were fully aware of the consumer responsibility of an identical product in relation to your personal finances.

 

Finally, as you had agreed to the terms and conditions of each loan to repay interest and charges as explained in section 9 of the loan agreement, we cannot consider any activity on your account to be unfair.

 

As the business had conducted proper credit checks and applied interest and charges in line with the OFT Guidelines, we believe that no refund is due."

 

 

And here is my response to the above to them:

"Dear Mr xxxxx,

 

Thank you very much for your quick reply.

 

I do not doubt or question that your company has checked with a credit reference agency my creditworthiness, however I question that the products you sold me were suitable for my financial circumstances. These loans are only suitable for short-term borrowing, yet you sold them to me over a period of more than one year continuously as long-term borrowing.

 

I therefore still have the opinion that these were mis-sold to me and therefore expect a full refund plus interest.

 

Thank you and

 

Kind regards"

 

Well, I will not give up so quickly :-)

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Have contacted now the 4th PDL company:

 

"Dear Madam or Sir,

 

I am writing in relation to loans associated to my account, which I do not believe were sold to me correctly or fairly.

The loans were taken out from from xxx January 2011 to xxx November 2011

 

The reason I believe that these were not sold to me correctly is that this type of loan is a short-term loan and not intended for long-term borrowing.

 

Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interest that I have incurred with you as a result of having these loans (2,653.23 GBP), plus 8% interest on these (508.75 GBP), in total 3,161.98 GBP.

I look forward to your prompt response to this email.

 

 

 

If I have not had a satisfactory response from you within eight weeks of this letter I will contact the Financial Ombudsman Service to formally investigate my complaint.

 

 

Kind regards"

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Well I phoned the ombudsman regarding the complaint, my point is that no reasonable affordability checks were carried out.

 

Ombudsman has said that they WILL contact the company's on my behalf all need to do is give them my details, the loan company details and a reference number the company can track my history via.

 

Unexpected that they would help so quickly and forward the complaint on my behalf. They said if it was rejected then they would initiate a full complaint.

 

Will keep you posted.

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Have contacted now the 5th PDL. I had so many of these loans with so many companies it will take forever to contact all. I need to automate the process :-)

 

"Dear Madam or Sir,

 

This is a complaint.

 

Per your complaints procedure please see below the required details:

 

Full name: xxxxx

Address: xxxxx

Date of birth: xxxxx

Daytime telephone number: Not existent, please communicate in writing only.

 

Full details of my concern:

 

I am writing in relation to loans associated to my account, which I do not believe were sold to me correctly or fairly.

The loans were taken out from from 19 July 2010 to 04 November 2011

 

The reason I believe that these were not sold to me correctly is that this type of loan is a short-term loan and not intended for long-term borrowing.

 

Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interest that I have incurred with you as a result of having these loans (2,687.50 GBP), plus 8% interest on these (500.94 GBP), in total 3,188.44 GBP.

I look forward to your prompt response to this email.

If I have not had a satisfactory response from you within eight weeks of this letter I will contact the Financial Ombudsman Service to formally investigate my complaint.

Kind regards"

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi, I'm in exactly the same position as you, I was in the PDL rut for nearly 4 years and I dread to think how much interest I have paid, some months it was over £1000. There were many times that I approached some of the lenders to see whether they would offer me alternatives in maybe freezing the interest just to give me some breathing space, instead month on month limits increased sending me deeper into debt. Like you no real checks were made and it's only now that the help is out there giving people the opportunity and advice to challenge these loan companies, I wouldn't have dared not pay each month as I was scared that they would hound me at work and whilst I have to take resposibility for my choices I feel that when you ring in dire straights the initial no just leaves you desperate, also this isn't the sort of thing you can easily share with family/friends as I was embarrassed that I had been so stupid.

 

Luckily for me I came into some money earlier this year and was able to pay them all off. I can't tell you what a relief it was, what then ensued had only be described as harrasment, I was literally hounded with texts and emails wanting me to take out further loans, I mailed and called them for weeks telling them to take me off their mailing lists it's only when I threatened to report them that they stopped hounding me, but it goes to prove that they aggressively market and positively encourage people to get into debt. Also their claims that they help repair your credit rating is an out and out lie. Each rollover I had with wonga showsup as a new credit agreement and I have pages and pages of them on my file this being a detriment to my credit score.

 

I am encouraged by your attempts to get some of your money back and I was thinking about doing the same thing myself but just didn't know where to start, I've no idea how many loans I have had and I'm actually a little scared to find out. I guess first step is getting the information from them?

 

Any other advice or encouraging stories would be great!

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Hi PDLVictim2,

 

Good to hear I am not alone and congratulations to be PDL debt free.

 

I would start by getting an overview what you have paid to which company over the years. The easiest way to get this might be from your bank statements, and if you do not have all, you might try to phone your bank and ask for assistance (beware of fees for re-sending statements because they might want to charge a fee per statement month, ask instead for a summary, e.g. all transactions to and from Wonga). Another option are the PDL websites, e.g. Quickquid or Minicredit have your loan history online when you login (if you still can or want to login). Finally, as you already said, you can contact the PDL directly and request your loan history with them, they have to provide this, but it might take time until you get it.

 

It will not be nice and you probably will cry (I did :-)) when you find out how much in interest and fees alone you have paid over the years, it will probably be 1000s or even 10000s of pounds. But no use crying over spilled milk, it is time to limit the damage already done.

 

1) Claiming back interest/fees because of mis-selling:

I strongly believe there is a chance to get at least some of the money back, if not all. The main idea is that PDL loans are clearly for short-term borrowing instead of long-term borrowing. I would consider any recurring loan with a PDL over 3-4 months as long-term borrowing. So in our cases where we had loans over years repeatedly this is clearly long-term borrowing and therefore mis-sold, as it was the wrong product for us. I am trying to think what reasoning the PDL can come up with to counter my claim and here is what I can think of:

- PDL are advertising on their websites and in their T&C that this product is not for long-term borrowing as it is expensive: True, but this is exactly my point. If they do not want to sell this for long-term borrowing, why did they sell it to me month after month over years

- You have taken out this loan by yourself and agreed to our T&C: Well, yes, but it was not clear to me that this would cost me 1000s of pounds to borrow a few hundred quid over a year. Your examples on the website indicate it will only cost me a few quid, not a few 1000s. Plus, every time I contacted you to ask how I should pay you ever back as I can only afford interest you told me not to worry, I can simply repay and take out another loan immediately after that

- We limit rollovers to x-times to avoid long-term borrowing, but you did not rollover but took out a new loan agreement every month: True, so you sold it to me every month to avoid your own limitation? You have to do affordability checks, clearly if you have to sell me the same loan amount every month for years I can not afford to ever pay it back, can I?

- We perform credit checks with the credit agencies and you met our criteria: Alright, so you have done credit worthiness (history) checks, that's great, but have you also done affordability checks? Have you asked for my bank statements, to discover I have 10 PDL loans where the interest alone is eating up my disposable income? Have you asked how many other PDL loans I have? Have you stopped lending to me once it went on for months?

 

I had a closer look at the PPI mis-selling scandal. Some of the above can be transferred to what happened with PPI. Also for PPI (at least for some) the exclusions where PPI will not pay were mentioned in the T&C and people agreed to them. Still they were mis-sold for two main reasons: People were not really aware of the issues and it was the wrong product for them. Well, regarding PDL, I was not really aware that it cost me so much and it was the wrong product for me.

 

Then I am thinking from a PDL perspective: Where do I make the most profit with? Well, I make the most profit with returning customers who have to borrow from me again and again. What is the greatest business threat to me? Well, one of the greatest is actually mis-selling, because if at some point the fos or a court or someone else indicates that the majority of my loans were mis-sold I have to refund some or all of the money I earned from these returning customers. But this is the money I need to finance my business as I have a lot of other customers who defaulted and cannot ever pay me back the original loan amount. So if I have to repay for loads of mis-sold loans I might go into administration (which actually happened for some companies with PPI).

So chances are that if more and more complaint cases come in to the PDL in this direction that they will notice this (some are really small companies) and will try to settle before it goes to fos and court.

 

So what have I to lose making these complaints and trying to getting my money back? Well, nothing at all. I have repaid all my loans, so they cannot harrass me. Complaining to the PDL cost me nothing. Complaining to fos cost me nothing. Going to court via small claims cost me little.

 

I truly believe the more of us are trying this, the better the chances are that the PDL and/or fos or anyone else will recognize that these loans were mis-sold. In addition I believe that some of these companies do not have much buffer in monetary terms (Wonga might make millions, but others are smaller, and most of them work with money they borrow themselves), so if this really will go into the direction where PPI went it is better to start claiming sooner rather than later, i.e. before they are out of business.

 

2) To credit rating: You might have seen my other post:PDL and credit rating - Removal of record and compensation for higher interest rates

 

I think that is also at least worth a try :-)

 

Edited by PDLVictim
type

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi PDLVictim and a big thank you for sharing your journey with us

 

I too am going through the process of claiming mis-selling from a number of PDL companies and found your thread whilst searching the internet for something to give me a bit of hope :wink:

 

Like you, I got into that horrible cycle of rolling loans over and re-loaning month after month as it spiraled into a complete nightmare. My story with this vile parasites started when I had a complete breakdown after a series of miscarriages and was unable to work full-time (I am half employed and half self-employed so lose a lot of manner with the latter when unable to work). Over the years since I have been fortunate enough to get well again, with lots of love and support, and to go on to have my two busy little babies. I have also (finally) managed to pay off the last of the loans but now that I am feeling well and strong I also feel very angry that these companies are allowed to make such huge profits by preying on the vulnerable. So I knew it was time to fight back!

 

I am claiming mis-selling on the grounds of irresponsible lending (I was already in more than £50k debt following a previous breakdown when my first marriage ended and at the time of applying for the loans was making token repayments - all of which was perfectly clear from any credit check); and on mis-selling in that, as you say too, the loans were clearly not suited to my needs.

 

I will keep you posted on my progress and wish you and PDLVictim2 well.

 

Take good care :-)

 

Mummy

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Hi mummyfightsback,

 

Thank you for sharing, it is unbelievable that PDL are claiming to perform credit checks when clearly they do not, or if they do, their criteria are clearly not appropriate. My guess is that all they do when performing credit checks is checking the address is correct. Clearly no affordability checks and irresponsible lending.

 

I am glad that you found a way out of it and even more glad that you also try to reclaim. With more and more people reclaiming the PDL will get more and more under pressure (let alone that each case ending with fos will cost them 550 GBP).

 

Thank you for keeping us updated, take care as well :-)

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi,

 

Received from one of the companies the following letter:

 

"We are in receipt of your correspondence dated August 7, 2013, advising of your loan suitability concerns

regarding your loans with SwiftSterling.co.uk. We have included a copy of your loan agreement for your

reference. All loan terms with SwiftSterling.co.uk comply with the Consumer Credit Act 1974.

We have reviewed our records and can confirm that all verifications performed using the information

supplied in your loan application returned satisfactory results. One of the requirements for a loan is to

verify that you were actively employed, and your employment was confirmed prior to the release of any

credit to you.

Until your most recent loan with SwiftSterling.co.uk, we were unable to locate any correspondence from

you advising that our loans were causing you hardship, and all your loans up to this point had been

successfully repaid on the scheduled repayment date. For this most recent loan, with the selected

repayment date of December 30, 2011, we had responded to your financial hardship concerns on

February 7, 2012, and removed all loaning fees applied to this loan. Your payment of £1000.00 was

received on June 29, 2013, successfully clearing the outstanding principle balance on your account. We

consider this account paid in full, with no further obligation to our company."

 

Here my reply:

 

"COMPLAINT - TO THE MANAGER

 

Dear Madam/Sir,

 

Thank you very much for your reply to my complaint from 07 August 2013.

 

I do not doubt that you have successfully verified that I am in employment. However, re-loaning month after month clearly shows unaffordability.

In addition when I called you during the period in question you reiterated that repayment plans were not possible, but that I should repay in full and immediately re-loan.

You are also acting as a broker and therefore have additional responsibility to choose the right product for your clients.

 

I still believe that these loans were not sold to me correctly, this type of loan is a short-term loan and not intended for long-term borrowing.

 

Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interest that I have incurred with you as a result of having these loans (2,653.23 GBP), plus 8% interest on these (508.75 GBP), in total 3,161.98 GBP.

I have reviewed your companies and noticed that neither Northway Financial Corporation Limited nor Northway Broker Limited are part of the Financial Ombudsman Scheme and both are based in Malta. As a consequence I am unable to pass this complaint on to the Financial Ombudsman if it is not resolved. Therefore, if this complaint is not resolved satisfactory within eight weeks from 07 August 2013 I will make claims against both companies via the European small claims procedure in court.

 

Thank you and

 

Kind regards"

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi,

 

To the above from SwiftSterling I also noticed when reviewing the agreements that they split the fees into two companies (one for the loan and one as a broker). The loan fee equals 29.9% interest and the majority is booked to the broker fee. This seems to circumvent charging more interest in Malta than allowed.

 

So depending on their response to my last email I will also let them know that I will inform the Malta Financial Services Authority, as their company structure seems to violate the MFSA rules of clashing of interest.

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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have reviewed your companies and noticed that neither Northway Financial Corporation Limited nor Northway Broker Limited are part of the Financial Ombudsman Scheme and both are based in Malta. As a consequence I am unable to pass this complaint on to the Financial Ombudsman if it is not resolved. Therefore, if this complaint is not resolved satisfactory within eight weeks from 07 August 2013 I will make claims against both companies via the European small claims procedure in court.

 

 

Would they not have to have an OFT licence ?

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They have an OFT license, but are not part of fos, only of CCTA (UK) and of MFSA (Malta)

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi,

 

I received first response from one of the PDL as follows:

 

"Thank you for contacting Quick Quid. It is our highest priority to resolve any client issues as soon as possible. To address your concerns , copies of your loan contracts for reference are available once you log into your account . Under our website under code of practice the disclosure entails: Tell you how the loan works and the total cost of the loan (including an example of the price for each £100 borrowed, together with fees and charges) before you apply. Check whether the loan is suitable for you taking account of your circumstances. Carry out a sound, proper and appropriate affordability assessment and credit vetting for each loan application and before the loan is extended (rolled over), to check you can afford the loan.

If you have any additional questions please feel free to contact our department."

Here is my reply:

"COMPLAINT - TO THE MANAGER

 

Dear Madam/Sir,

 

Thank you for your response to my complaint from 22 July 2013.

 

You state a "sound, proper and appropriate affordability assessment", however these loans (from xxxxx 2009 to xxxxx 2011 - Loan IDs: xxxxx) were taken out successively over nearly 2 years, therefore indicating unaffordability. In addition when contacting you during this period you stated repeatedly that I can easily repay in full and take out new loan immediately and that no other repayment options were available.

 

I therefore still believe that these loans were not sold to me correctly. This type of loan is a short-term loan and not intended for long-term borrowing.

 

Unless you can provide proof that these loans were appropriate for my circumstances, I will expect a full refund of all fees and interest that I have incurred as a result of having these loans, in total 5,615.00 GBP, plus 8% interest.

If I have not had a satisfactory response from you within eight weeks from 22 July 2013 I will contact the Financial Ombudsman Service to formally investigate my complaint.

Kind regards"

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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