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Claiming from a payday loan company?(19 Posts)
What did you think was going to happen? In what way did you think it was missold?
Err how was it missold? And surely you'd be in a position to know you couldn't afford it more than they would.
I doubt it. The inflated interest rates are well publicised. Sorry you got sucked in but you presumably approached them in the first instance.
I'm baffled, really. If you applied for the loan, knowing you couldn't afford it, that's your responsibility.
I do understand, I've been there -getting a loan to 'consolidate' a previous loan and then realising it doesn't help at all. But once you realise you have to take responsibility for your mistake. Not claiming that you shouldn't have been given the loan.
So basically you want some free money because they helped you out of a hole but you had to pay them back at the advertised rate?
There was a point in time, though, that you applied for loans knowing that the payment was more than you could afford. There was. It seems wrong, to me, to present it as if you had no choice.
Legally....who knows. Perhaps you have a claim.
I understand that. I don't understand trying to get money back that you willingly accepted at the time.
I hope someone will tell you the legal position.
I don't know the legal position here but I believe that these criteria and the process for making a claim/ formal complaint are all supposed to be in layperson's terms and easy for you to do yourself. In your position I would give it a go, you don't have anything to lose (a bit of time I suppose ...). it does sound as if you reached a point where it would have been very obvious that you couldn't afford the repayments, if the loan company had checked, and I believe they had an obligation to check. Well done for getting this far, that must have been difficult journey.
Welllll....that's why I always ask the PPI companies to take me off their phone lists when they call. As far as I'm concerned, I defaulted on the loan (that probably shouldn't have been given - certainly not with PPI) so I'm not interested in it any more.
That's a personal view.
It is highly likely that they will respond to your claims of misselling by saying that you misrepresented your situation. You can then appeal that decision and show that you were able to afford the loans, and the fault was on their side and not yours.
It is unlikely that either company will agree that they missold the loan. They will claim that the loan was missold because you misrepresented your circumstances, and therefore they are not at fault. Eventually, you can escalate to a regulator, who will decide based on the information that is provided - your application forms for the loans, the reason that you couldn't make the initial repayment and got stuck in the spiral, etc.
It is time consuming, and it's difficult to predict how likely you are to see the money back without knowing what it was that meant you couldn't pay them back. When you borrowed the initial £100, were you likely to have £100 + the quoted interest the next month to pay them back, or was it always going to be difficult to do so without another loan?
It's complex. If you've got time and grit to spare, it may well be worthwhile. If getting into an extended legal letter fight about who made the first bad decision is likely to affect your mental health, or take up time that you could spend doing something more productive, it's not. It's a very personal decision.
Legally you have every right to say that they should have refused to lend to you because you couldn't afford to repay it, but they have every right to counter that by saying you agreed that you could repay it. I'm presuming that you've accurately represented yourself and your situation in every application - if you haven't, it becomes much more complicated.
Did you always declare all your loans when you took out anew one and did declare all you everything honestly when you took out the loans.
Also, when did the affordability criteria come in to play? Were they in force when you took your loans out?
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