Pay Day Loans - damage to your future credit rating

[Tawnyowl]

Orfoster.

Seems a decent enough letter to me.At the moment it is only a complaint.

See what they say,if anything.

Take a punt.

Good luck.

It will be interesting to see any reply received.

 

And maybe let the OFT know.

Consumer complaint form

 

The OFT gathers information from consumers regarding their experiences with payday lenders. If you would like to provide us with details of your experiences, please complete and return the complaint form below.

 

• Download the Consumer complaint form (pdf 577kb
  

And maybe you may want to look at this survey.

The survey, which aims to check on the industry’s progress in meeting government standards, includes questions such as: “Did the lender let you make the decision to extend the loan without pressurising you?”

.http://www.surveymonkey.com/s/PayDayCustomers

 

Here is the complaint link for Wonga.

Interest but i have not read the FLA rules but the links are there.

I know they are their friends.

http://www.wonga.com/money/node/58/

 

Spotted your post below orfoster.

Credit to you.

Better to try and fail than not to try at all.

People ,when reading this thread may realise what damage will be done to their credit file

and their futures if taking out these paydayloans from as you say and myself The LEPERS OF LENDING.

It will be interesting to see what they say about the credit file aspect.,the gesture of goodwill,etc

 

Just beginning to build up to another thread now about The Check Centre who have just invaded my town.

The things that are going on there.

My feathers are falling out with it all

But my beak is sharp.It is all i have got.

 

.

Edited July 31, 2013 by tawnyowl

[orfoster]

Complaint lodged with Wonga by e-mail just now.....lets wait and see!

[orfoster]

Raised complaints with both Wonga and Mr Lender here is my response from Mr Lender;

 

Thank you for your email.

 

 

 

A pay day loan from Mr lender will affect your credit file in either a positive or negative way. When you repay a loan, we will update your credit history with confirmation that you have settled your debt which may make you more desirable lending proposition to other lending institutions. If however you do not pay back a loan to Mr Lender, we will show this on your credit history making it more difficult for you to obtain credit in the future.

 

 

 

After reviewing your archived account we can confirm that you successfully applied for a loan on the 26th October 2012 for the amount of £100.00, £30.00 interest applicable.

 

 

 

Repayment of your loan was received on your due date the 15th November 2012 therefore the loan was paid in full and the account was closed.

 

 

 

As the loan was paid in full on the agreed due date there should be no negative marks made on your credit file by Mr Lender. If this is the case we would advise that you contact Callcredit who will in turn contact us should any amendments to your credit file need to be made.

 

 

 

https://www.callcredit.co.uk/stat-report-online/

 

 

 

Kind regards,

 

Think they've missed the point!

[orfoster]

My reply to their response;

 

Thank you for your prompt response.

 

 

 

I understand your points below but remain dissatisfied as it is not the case that a PayDay loan will affect a credit file in a positive way in any circumstance, Credit Reference Agencies for some time have been categorising Pay Day Loans differently to those from mainstream lenders - many mainstream lenders are reporting that by taking a Pay Day Loan it appears that borrowers are desperate by taking advances towards their income and therefore this is having a negative impact.

 

 

 

I took a decision to borrow from Mr Lender solely on the basis of your adverts that by taking a PDL it would improve my credit file, it has not.

 

 

 

At no time was I advised that taking a loan from Mr Lender would cause this to occur, infact I was advised that taking a loan would improve my credit worthiness as long as I repay on time (as your below e-mail suggests).

 

 

 

While there has been no negative marks registered by Mr Lender the loan itself has had a negative impact on my credit status due to it being categorised as (PayDayLoan) on my credit file.

 

 

 

Given that I received information from Mr Lender that was incorrect I have now suffered a detrmient.

 

 

 

In addition it is not the responsibility of Call Credit to challenge you as the Data Controller on my behalf, issues relating to the data accuracy would be resolved with us directly.

 

 

 

I require that given the above that all information is fully removed from my credit file in relation to the Mr Lender loan, failure to remove the information will result in a claim for compensation due to the damage caused based on receiving inaccurate advice.

 

 

 

I look forward to your response.

 

Their e-mail back to me today.....

 

Thank you of your response, It is not a guarantee that a pay day loan with Mr Lender will improve your credit report. All important information will be provided upon application of a loan with Mr Lender to enable our customers to make an informed decision.

 

 

 

If you would like any amendments made to your credit report your should contact Callcredit on the details below;

 

Here is what my mortgage advisor has told me;

 

After making some initial enquires I would say that based just on the pay day loans alone we would not be able to find a lender that would consider an application at this stage, one or two of these in the min last 12 months is enough for lenders to decline. I would suggest that we would need to wait a minimum of 12 months since the last one before a lender would consider an application.

 

Their first response above strongly suggests having their loan would have a positive impact. It seems widespread that this isn't the case.

[citizenB]

Hmm, Mr Lender appears to be skirting round the issue - we want a straight answer to a question. Even if I repay my loan on time - I am still finding that having had a loan with your company (or any other PDL) WILL blight my credit rating. This is not how you advertise your loans - you claim that by having one and repaying it on time WILL not have a negative effect on my credit rating.

[orfoster]

Here is my draft response;

 

Dear Jessica,

 

Thank you for your response.

 

You have not addressed the issue in my complaint.

 

You have advised me in your response on 31 July that if I repay my loan on time that this would have a positive impact to my credit file, however, I am finding that although I repaid my loan on time I have received financial advice that a mainstream mortgage lender would not lend to me on the basis that I have had a pay day loan with Mr Lender, this is clearly contrary to your advertisements and your response to my complaint.

 

This is not how you advertise your loans, you clearly state (and have done so in your previous response) that by having one of your loans and repaying it on time won't have a negative impact on how other lenders would view my credit worthiness.

 

I require that you remove all information provided to Credit Reference Agencies relating to Mr Lender, if you fail to do so I am clear that you have mis-sold me a loan on the basis of your adverts which was the sole reason I took a loan with Mr Lender. If you fail to respond positively in this matter I will in addition seek compensation for the damage and distress caused.

 

In addition, you continue to refer me to Callcredit if I require anything amending on my credit file, Callcredit is a Credit Reference Agency, they do not have responsibility for the data held, that responsibility rests with you as the data controller.

 

If you do not agree please provide me by return and in detail the circumstances in which having a loan with yourselves would improve my credit file as you have not answered this point in previous complaints.

 

I look forward to your response.

 

Kind regards

Edited August 1, 2013 by orfoster
Final draft

[citizenB]

[orfoster]

Have updated final draft....off it goes!

[Tawnyowl]

Full of admiration for you,for having a go.

And the letters,superb.

Keeping watch Tawnyowl

Edited August 1, 2013 by tawnyowl

[orfoster]

WON! One down!!!!!

 

We would like to refer you to our previous email, we do state that by repaying your loan in full on the agreed date that it may improve your credit report, this is not guaranteed.

 

 

 

We will agree to remove the footprint from your credit report however, you will need to contact Callcredit regarding any amendments that you would like made on your credit report, they will in turn contact us.

 

 

 

Should you wish to find out more information regarding improving your credit report, we would advise that you contact a credit reference agency.

 

Whoop Whoop!

[citizenB]

:whoo:

[citizenB]

We would like to refer you to our previous email, we do state that by repaying your loan in full on the agreed date that it may improve your credit report, this is not guaranteed.

 

Perhaps that is how they should advertise in future..

[maroondevo52]

Anyone tried it with Wonga ?

[orfoster]

I have an identical complaint in with Wonga. Its been in a couple of days now, I will of course let you know the outcome.

[maroondevo52]

I have an identical complaint in with Wonga. Its been in a couple of days now, I will of course let you know the outcome.

 

Good stuff

[Tawnyowl]

First of all orfoster i once again would like to say well done.

I feel template letters should be made so many can do the same

If not now,when your battle with them reaches its conclusion.

I am sure or get the feeling there is more to come.

This is all proving very interesting.

The battle may be won but the war is not over comes to mind.

Just a few things to say and add,as usual.

 

Complaint lodged with Wonga by e-mail just now.....lets wait and see!

 

Come on Mr WONGA you give out the loans quick enough.Sure your legal loan shark spies are about.

You say-

We hope it never comes to this, but if you still feel unhappy after discussing the matter with us, you can make a formal complaint in writing to [email protected]. We will normally respond to your complaint – and endeavour to resolve it - within 48 working hours. If your complaint is particularly complex, however, it may take longer to investigate. In these cases, we will always explain why there is a delay and tell you when we will contact you again. If you are not satisfied with our response you can appeal the decision by writing to us again, stating your objections and providing any new information to be considered.

 

Unhappy,thousands will be.

When they find out about what this toxic loan will do to their credit file.

You do not like surprises,well maybe brace yourselves.

 

In these cases, we will always explain why there is a delay and tell you when we will contact you again.

Have they.

 

They must be finding it complex orfoster.

 

That taking a loan out with them will,not may damage your credit file.

When a bank or other lender considers further finance to you.In the future.

 

Quote Orfoster. WON! One down!!!!!

And email received from Mr LENDER

 

1-We would like to refer you to our previous email, we do state that by repaying your loan in full on the agreed date that it may improve your credit report, this is not guaranteed.

 

But really it will not improve your credit file.It has been proved.

 

 

We will agree to remove the footprint from your credit report however, you will need to contact Callcredit regarding any amendments that you would like made on your credit report, they will in turn contact us.

 

2-Nearest info i can find.

Credit report agency responseThe agency has 28 days to act, and the relevant detail in your credit report will be marked as 'disputed' in the meantime. This is so any lender searching your file will know not to rely on that piece of information.

If the credit reference agency doesn't amend your records, you have a legal right to send it a notice of correction (up to 200 words), which will be added to your file.

 

Just coming to THE CFA

I know what many think of them

But rules are rules.

 

The CFA is the principal trade association representing the interests of major short-term lending businesses operating in the UK.

CFA members are governed by the Consumer Credit Act 1974 (as amended by the Consumer Credit Act 2006); Consumer Credit Regulatory Guidance issued by the Office of Fair Trading; the Data Protection Act 1998; Privacy and Electronic Communications (EC Directive) Regulations 2003; Consumer Protection from Unfair Trading Regulations 2008 and related Office of Fair Trading Guidance Financial Services (Distance Marketing) Regulations 2004; the Enterprise Act 2002, and Money Laundering Regulations 2007.

 

A lot to take in there.Go through.

 

http://www.cfa-uk.co.uk/our-standards/customer-complaints.html

 

You can complain to your lender by phone, email and in person, as well as by letter. You will be told about the company’s complaints handling procedure. And you will be automatically sent a copy of their complaints handling procedure if you make a complaint. This is also the case for any third party who is properly authorised by you in writing to act on your behalf.

 

Were you.Automatically sent a copy of their. complaint handling procedure .

 

If not-

 

Further information about your rights to complain, including steps to take if you are not satisfied with the progress of your complaint can be found in the CFA’s Lending Code for Small Cash Advances.

Where complaints cannot be resolved immediately (or by close of business the next working day), you will receive:

 

• a prompt written acknowledgment of your complaint;
  
• a final response (or an explanation of why the company is unable to provide this) no more than eight weeks after receiving the complaint.
  

And let us not forget this ladies comment-

 

 

After her mortgage application was referred

I've just had a very tedious call with Wonga who could only say, they can not do anything about my credit now, and to try with another mortgage company. I asked to speak to a manager and they point blank refused which I thought was terrible customer service. I got the names of the people I spoke to.

 

Once again orfoster,well done.

And i love this comment from someone who may be near.

 

Remember a loan in the hand is worth 6 years of financial ruin in the bush!

 

Whoop Whoop!

Best wishes Tawnyowl.

Edited August 2, 2013 by tawnyowl

[orfoster]

I posted a copy of my complaint to Wonga today by 1st class post, you know, just in case they missed the e-mail........

 

My point with Mr Lender is that they seem to be hiding away from the fact that they are the Data Owner and to raise a dispute with Call Credit who will contact them....making me jump through hoops. *thinks should have claimed compensation*.

 

Ironically tonight I have just spotted that in June Vivus applied a "default" marker despite me paying a loan back in Feb....I've claimed £500 compensation from them due to the mistake, wonder if that's too little or too big.

 

I've had a total of 6 PDL's in the last 12 months, I took them literally because I was trying to improve my rubbish credit file and I won't allow it that they have misled me (and thousands of others).

[Tawnyowl]

I posted a copy of my complaint to Wonga today by 1st class post, you know, just in case they missed the e-mail........

 

Yes,i see.And the letter should generate a response.If not the email

 

My point with Mr Lender is that they seem to be hiding away from the fact that they are the Data Owner and to raise a dispute with Call Credit who will contact them....making me jump through hoops. *thinks should have claimed compensation*.

 

Worth a punt.

 

Ironically tonight I have just spotted that in June Vivus applied a "default" marker despite me paying a loan back in Feb....I've claimed £500 compensation from them due to the mistake, wonder if that's too little or too big.

 

Good on you.500 A useful amount.Interest free-that would sting them a touch.

 

I've had a total of 6 PDL's in the last 12 months, I took them literally because I was trying to improve my rubbish credit file and I won't allow it that they have misled me (and thousands of others).

 

I like your style.

And the letters.

Good luck, Tawnyowl

[maroondevo52]

This is Experian's rep on MSE's take on things..............

 

"The data on your credit report should correctly reflect how many loans you have had. If it doesn't, you need to either take it up with the PDL provider or ask the CRA to do it for you. While some mainstream lenders might see promptly repaid PDLs as positive, others might not, so you definitely want to make sure your credit history is accurate in this respect."

 

 

What sort of help is that to anyone ?

[citizenB]

This is Experian's rep on MSE's take on things..............

 

"The data on your credit report should correctly reflect how many loans you have had. If it doesn't, you need to either take it up with the PDL provider or ask the CRA to do it for you. While some mainstream lenders might see promptly repaid PDLs as positive, others might not, so you definitely want to make sure your credit history is accurate in this respect."

 

 

What sort of help is that to anyone ?

 

 

It is no help at all, M

[Tawnyowl]

It is no help at all, M

To true.

It does not help at all.

 

Totally agree.

Now where did that little fellow come from.

I feel Orfoster is perhaps at this very moment hard at work with his Quill composing a letter about this

Looking forward to the reply that may come soon from Wonga.Why do i find it so hard writing that name..

Edited August 4, 2013 by tawnyowl

[orfoster]

Today I've discovered that a "Pounds to Pocket" loan has been classed differently recently on Call Credit as an "unsecured loan" rather than an "advance against income" which would have a positive impact so it does depend on what the type of borrowing has been classed as on each entry of the credit file.

[orfoster]

Today I've discovered that a "Pounds to Pocket" loan has been classed differently recently on Call Credit as an "unsecured loan" rather than an "advance against income" which would have a positive impact so it does depend on what the type of borrowing has been classed as on each entry of the credit file.

 

Actually, my question now is.....who categorises the loan with the Credit Reference Agencies? The lender directly? Do they decide its an "unsecured loan" or a "pay day loan" or an "advance against income", because if so how can they claim it could ever be positive if its the latter two?

[citizenB]

TBH, even if it is categorised as an "unsecured loan" - Mainstream lenders are going to be aware of the company name. They are also going to see that this loan was for between 1 and 3 months and automatically realise it is a PDL (whatever they choose to call it).

[Tawnyowl]

TBH, even if it is categorised as an "unsecured loan" - Mainstream lenders are going to be aware of the company name. They are also going to see that this loan was for between 1 and 3 months and automatically realise it is a PDL (whatever they choose to call it).

 

I am so glad you answered that question citizenB

I was stewing thinking of any answer.

It was beyond the old owl.

As i read it over and over - i got a vision.

Of that chap in Coronation Street in the cafe-Roy i think asking in his voice that question.

So much deep thought must have gone into it.

Orfoster i am not making light of the post and am watching carefully and you have my full support

I feel you know that..

Just saying i was glad someone else managed to answer.

Allows me to fly off and find news on the payday lenders

Best wishes for the future battles orfoster.

And get some ink for the Quill.Sounds like you may need it.

Thank goodness for the wise ones in these forums,is all i can add.

Tawny.

Edited August 4, 2013 by tawnyowl