FOS Stage on Irresponsible lending complaint - PDL Western Circle Ltd trading as Cashfloat - Default Notice being Threatened

[johealey]

Hi

 

A friend of mine took out a loan with Cashfloat/Western Circle for £300 in September and was due to make the first payment in October. 

She didn't make this payment and when I told her about this wonderful site she hit them with an IRL claim

- they have already added some £155 in interest and charges  to date.

 

She is constantly receiving text messages about making a payment when there is an outstanding complaint against them. 

She has offered £10 a month and all charges and interest to be frozen but as the letter was sent at the end of October they have 8 weeks to respond.

 

Today she has received a text message threatening her with a Default Notice and adding this to her credit file unless they come to a new agreement. 

It states that a Notice of Default will be sent to her home address and also her email address.

 

She doesn't use the internet much so I said I would ask on here to see if there is anything she can do to stop this. 

Her next payment isn't due until the 29th November.

 

Any help or guidance would be appreciated as she's getting really worried about this with them threatening her with a Default Notice.

 

Thanks Jo 

[dx100uk]

block the text /report as spam

 

block and bounce their email AD's

 

if her IRL complaint is successful the default must be removed

 

only converse ever in writing.

 

dx

 

[johealey]

Thanks, they have just emailed this to her.

 

IMPORTANT - YOU SHOULD READ THIS CAREFULLY
 

DEFAULT NOTICE under Section 87 (I) of the Consumer Credit Act 1974
 

This is a Default Notice served under Section 87(1) of the Consumer Credit Act 1974.
 

In breach of clause [3] of the Agreement, reference XXXX, you have failed to pay the monthly instalments which fell due on 31-10-2019 on time and in accordance with the terms of the Agreement.

 

To avoid further action, please pay the arrears to us, which total XXXX by 04-12-2019.

 

If the action required by this notice is taken before the date shown no further enforcement action will be taken in respect of the breach.

 

If you do not take the action required by this notice before the date shown then the further action set out below may be taken against you.
 

If you fail to pay XXXX on or before 04-12-2019, we will enforce our rights and:

• Send you a letter terminating your Agreement;
• Demand you pay the balance due under the Agreement to us;
• Report your default and non-payment to credit reference agencies; and
• Issue legal proceedings and request Judgment for the balance due under the Agreement.

If the arrears are not discharged and the Agreement is terminated, you must make payment of the balance referred to above as a lump sum. If that lump sum payment is not made on 04-12-2019 balance will be recalculated as at the date when such payment is actually made or to be made.

In your own interests, you are strongly urged to contact us by telephone on 0203 757 1933.

 

If you have difficulty in paying any sum owing under the Agreement or taking any other action required by this Notice, you can apply to the Court which may make an order allowing you more time.

You should be aware that if we take you to Court and get a Judgment against you requiring you to pay us the money you owe us under the agreement, you may have to pay us both the amount of the Judgment and interest under the agreement on all the sums owed by you at the date of the Judgment until you have paid these in full. 

 

If you are not sure what to do, you should get help as soon as possible. For example you should contact a solicitor or your local Citizens' Advice Bureau.

 

This notice should include a copy of the current FCA's information sheet on default. This contains important information about your rights and where to go for support and advice.

If it is not included, you should contact us to get one.

If you would like to speak to us to discuss your arrears or the content of this notice, please contact us on 0203 757 1933

 

We look forward to hearing from you.

Yours Sincerely,

[fkofilee]

On what basis has this user done an IRL Claim? 

What reasons have they done it for? 

[johealey]

A number of already existing PD loans that she has an arrangement to pay with and she's taken this one out - as the saying goes robbing peter to pay paul!

[johealey]

Hi - just to update you on this.

 

My friend has now managed to stop the Default by agreeing to a repayment plan of £10 per month whilst she went through the IRL claim.  They have this week rejected the claim.

 

The original loan was for £300 taken out in September, they have added £210 in interest and charges since she couldn't make the payment due at the end of October!

 

Can she at least get the interest charges refunded so that it reverts back to the £300 - or is this not possible?

 

Thanks 

[dx100uk]

off to the fos

PDL's always refuse IRL.

 

 

[johealey]

Amazing thank you - will work with over the weekend via the pack on here

 

[johealey]

Firstly, I hope everyone is staying safe during this trying time

 

Back in December 2019 I opened a topic with regards to a friend of mine having issues with Cashfloat - I think the topic has been dormant for so long it has been closed off, however, if you are able to add this new topic to the existing one that would be great.

 

to update you,

she agreed a payment plan of £10 and went to the FOS on the basis of an IRL claim. 

 

Due to the Pandemic the FOS are some months behind, however, she received a response a couple of weeks ago to say that the FOS had written to Western Circle suggesting that they remove all interest and charges, and add the 8% interest etc. 

Western Circle have refused their request and have asked for the Ombudsman to make a final decision.

 

Personally, I have never experienced anything like this so I do not have much to tell her re the next steps. 

 

Has anyone else had this experience and is there much chance of her being successful and having the interest/charges removed which amount to around £200?

 

Thanks 

[BankFodder]

Thanks for the update. The chances tend to be in your favour that the ombudsman will confirm the decision of the adjudicator – but obviously can't be sure. You have to wait it out.

If you get a decision in your favour and if Western Circle refused to implement it then you can enforce it directly in the County Court. We will help you

[dx100uk]

did the FOS write to her with this decision themselves?

 

dx

 

[johealey]

Yes, she had an email from them a few days ago.  I don't believe she has had any contact with Western Circle, its all be done through the FOS

[dx100uk]

sorry I thgink I read your reply wrong.

 

so the FOS has told them to remove all int and charges, what's the bit about 8% about?

p'haps it might be better to post up exactly what the FOS sent to her rather than Chinese whispers?

 

the Ombs himself rarely disagrees with their adjudicators...so is she happy with the decision?

 

 

 

 

[johealey]

I have attached the FOS response, where it shows XXXX I have taken out my friend's name.

 

There is currently £200 in interest and charges which she is fighting to get removed from this loan.  

Cashfloat - FOS Reponse.pdf

[dx100uk]

the FOS have clearly stated that Western Circle Ltd trading as Cashfloat should not have loaned her the money in the 1st place.

 

the fos has stated that ALL interest and charges should be removed.

 

the FOS has stated that the initial sum loaned - £300 - is what is owed.

 

the FOS have stated that any payments made to date be used to reduce that £300 sum.

 

if Western Circle Ltd trading as Cashfloat disagree with that..tough luck on them.

 

she should continue whatever payment arrangement is inplace until see has paid Western Circle Ltd trading as Cashfloat the £300.