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PDL and credit rating - Removal of record and compensation for higher interest rates


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Hi,

 

Having read through the other threads about credit rating I give it a go with one of the PDL advertising positive effect. I take it one step further claiming compensation for the higher interest rates I had to pay due to negative rating (I could actually watch my rating going down the more PDL I had, despite paying all on time in the beginning).

 

Here is my email to them:

 

"Dear Madam or Sir,

 

This is a complaint.

 

Per your complaints procedure please see below the required details:

 

Full name: xxxxx

Address: xxxxxx

Date of birth: xxxxxx

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

 

Full details of my concern:

 

I am writing in relation to the effect on my credit rating and on the interest I incurred with other credit providers due to my credit rating, in relation with loans associated to my account with you. The loans were taken out from from 19 July 2010 to 04 November 2011

 

When I took out the loans with you your website stated: "As soon as you repay your loan on your payday, we will report that to the Credit Reference Agency, so that they will know that you have repaid your loan. This may help to improve your credit rating, as the Credit Reference Agency can see that you have repaid a loan. We will report this every time you take out a loan and repay it to us. However, if you do not repay your loan, this will also be reported to the Credit Reference Agency, which will have a negative impact on your credit rating as other credit providers will be able to see this. This may adversely impact your ability in the future to obtain credit facilities for things such as mobile phones, vehicle finance or other credit products." This statement is still present on your website as of 08 August 2013.

 

This statement indicated to me that:

- A positive effect on my credit rating is expected if I take out a loan with you and repay on time

- A negative effect on my credit rating is expected if I take out a loan with you and do not repay on time

 

However I have now learned that if I take out a loan with you and repay on time this in fact had a negative effect on my credit rating as other credit providers see having a payday loan as negative criteria. This situation worsened as having payday loans over a longer period of time has even more detrimental effect.

 

This was not made clear to me by you and therefore I was treated unfair.

 

Unless you can provide proof that taking out these loans had no negative effect on my credit rating, I will expect

- A full compensation of costs I have incurred having this negative credit rating impact and therefore having received higher interest rates (+20% APR) from other credit providers from 03 August 2010 to 04 November 2011 (676.62 GBP), plus 8% interest on these (126.74 GBP), in total 803.36 GBP

- The complete removal of all entries from your company with any credit reference agency you reported to

 

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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Good luck PDL victim,

 

keep us up to date with how you are getting on.

 

I am writing up my compaints just now, I will go straight to the FOS regarding complaints about inadequate affordability checks being carried out before any money was lent to me (please dont anyone reading this think i excuse my own part in the mess) and try and get back some of the interest and charges that way.

 

With regards to the CRAs I know the PDL companies didnt log any information with equifax. The information was logged with call credit and experian. I still think that the data should be removed as the PDL companies did not inform me that once the credit agreement was signed that information would be passed to the CRAs and marked as an "advance against wage" and that this is treated differently to a loan from say a high street bank.

 

I have yet to see anywhere in all the Ts&Cs i have reviewed where this is stated, its not even in the adequate information documents that PDLs now provide to borrowers. All marketing apart from wage advance is that the item they are selling is a "short term loan"

 

I contacted the ICO to see if they had any opinion on this and all I got was to complain to the lender and if no response was recieved then send in a complaint and they will review it.

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Good luck to you as well!

 

I will definitely post updates as they come. Also interesting to read how you will get on (as I will probably end up with going to fos once the 8 weeks I gave the PDL are over (or once I have final responses from them).

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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I would not call them, but only communicate in writing, simply to be not talked into something and to have some trail of communication if it goes to fos. Had you sent your complaint to their complaint department email ([email protected]) or to their standard email address?

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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Hello,

How are you getting on?

Personal view is that removing the footprint from your credit file is worth thousands so am not claiming compo but am watching with interest.

George Loveless - “We raise the watchword, liberty. We will, we will, we will be free!"

 

My advice is only my opinion, I am not a legal expert.

 

IF YOU LIKE THE ADVICE I'M GIVING AND ARE HAPPY WITH IT, CLICK THE SCALES ON THE BOTTOM LEFT OF THIS POST AND TELL ME.

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Hi orfoster,

 

I have no response yet from the PDL company. As soon as I have one I will post it here.

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,

Did you set them a deadline to respond?

Don't be afraid to send them a nudge!

George Loveless - “We raise the watchword, liberty. We will, we will, we will be free!"

 

My advice is only my opinion, I am not a legal expert.

 

IF YOU LIKE THE ADVICE I'M GIVING AND ARE HAPPY WITH IT, CLICK THE SCALES ON THE BOTTOM LEFT OF THIS POST AND TELL ME.

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Hi orfoster,

 

Yes, I gave them 8 weeks to respond (which will be 3 October) before it goes to 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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It seems as though action for damages is available to the individual under Conduct of Business rules see here http://www.fshandbook.info/FS/html/FCA/COBS/Sch/5.

 

My question is which act are they referring to because I can't find a section 138D in the Financial Services and Markets Act 2000 nor in the CCA.....

 

And my other question is are they regarded as a "firm" in accordance with the rules. Maybe you could give the FCA Consumer Helpline a call and find out if PDL's are subject to COBs.

 

As you'll see the fair,misleading bit is right there so that is the way in which a claim would be brought.....

George Loveless - “We raise the watchword, liberty. We will, we will, we will be free!"

 

My advice is only my opinion, I am not a legal expert.

 

IF YOU LIKE THE ADVICE I'M GIVING AND ARE HAPPY WITH IT, CLICK THE SCALES ON THE BOTTOM LEFT OF THIS POST AND TELL ME.

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