Caroline Wayman, the Chief Ombudsman at the Financial Ombudsman Service (FOS) gave evidence to the House of Commons Treasury Select Committee on 22 January 2019. Here I am just picking out some of her remarks which are relevant to payday loan affordability complaints. Complaint numbers Wayman talked about "the unprecedented growth" in FOS complaints about payday lenders this year. This was … [Read more...]
Payday loans - easy to take out - hard to escape from. This page has all Debt Camel's articles about them, the most recent first.
If you think you were given a payday loan which was unaffordable - you could only repay it if you borrowed again soon afterwards, read How to ask for a payday loan refund which has step by step instructions and free template letter.
Tens of thousands of people have got a refund of the interest they paid on some of their loans using this approach!
In 2018 and early 2019 QuickQuid was been refusing to consider any affordability complaints about loans made after March 2015. First it rejects a refund on any of these recent loans when a customer complains. Here is an example of how QuickQuid even classifies these loans separately in its reply to a complaint: Then, when a customer takes the case to the Financial Ombudsman (FOS), … [Read more...]
Having a recent payday loan on your credit history can make it much harder for you to get a mortgage at a good rate - or even at all! If you have used payday loans, in the middle of 2020 the best advice for a mortgage application is: wait until at least 2 years have passed after your last payday loan; always go through a good broker; a payday loan affordability complaint may help … [Read more...]
Lending Stream has changed its complaints handling to make it harder for customers to make an affordability complaint and ask for a refund of the interest they have paid. Until recently you could send them a complaint email, as you still can to the other payday lenders. Now all emails to firstname.lastname@example.org or email@example.com bounce back. Instead, you have to complete … [Read more...]
I have been encouraging people to send a simple template letter to ask for a payday loan refund if they were given payday loans they could only repay if they then borrowed again. And often people get template letters in reply - the lender just copies a standard rejection filling in the number of loans. Is this the point you should go back and try to negotiate with the lender to get a better … [Read more...]
It's become harder to get a payday loan as large, medium and small payday lenders have gone bust or just stopped lending. Here are some of the biggest names you may have heard of: Payday UK, Payday Express and Cheque Centres in 2017; Wonga and the Money Shop in 2018; Wageday Advance in 2019. So where can you go if you need a loan and you are refused? Or if you simply want to avoid … [Read more...]
The Wonga Administrators sent a letter in late October to some of Wonga's creditors with their proposals to handle the administration. These include: background on the events before administration; how to decide the payday loan affordability complaints that have already been sent to Wonga; and how to encourage other customers to submit a complaint. These Proposals were agreed by a … [Read more...]
Mr X has received a reply from QuickQuid saying why it will not consider an affordability refund on payday loans that are more than six years old. This part of QuickQuid's reply isn't related to the details of Mr X's case. It looks like a standard response QuickQuid is sending everyone whose complaints include these older loans. I often see pretty poor replies from payday lenders to people … [Read more...]
On October 15, the FCA sent a Dear CEO letter entitled Affordability of High Cost Short Term (HCST) loans to payday lenders. This letter tells the lenders to review their affordability assessments. There are some very clear points about what the FCA expects a payday lender to do if it is not making good affordability assessments now or hasn't done in the past. "Chains of loans" over an … [Read more...]
The Financial Ombudsman (FOS) has published in September 2018 two Decisions involving payday loans over six years old: Mr H has complained about fifty-four payday loans Lender C lent to him between March 2010 and September 2014. Mrs W’s complaint is about nine short-term loans from Lender D between November 2009 and July 2012. In both cases FOS has decided that its rules do allow it to … [Read more...]