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Hello Community,
would be extremely thankful, if someone would comment around the legal aspects on the following dodgy lending practices I have been unfortunately victim of -
In a nutshell, I was browsing through android app on my mobile, and made application for short term loan. Have been redirected (opened with chrome browser, outside of the app) to Loans2Go website. Worth noting, app provided indication of 25% charge (1 repayment), together with explanation that this was for demonstration purposes, and that I will be told the rate before accepting the loan.
So I am now in the Loans2Go website, and clicked on £300. No option for choosing a length, no information about the repayment amounts. No indication on the dates either. I have applied on 28th December, but due to wages being paid early, provided that my next payday is on 29th of Jan (2021). (Last working day). Quite a large part of information was pre-filled, (from the app), for instance work details.
So I have provided my next 2 pay dates. full name and bank account details. I got through to the page, where I had to give debit card details and I have been sent a confirmation code to my mobile as well.
I clicked submit, and have got the response - thank you, your loan application is submitted, we will process as soon as possible (or very similar wording). At this point, still no information about the loan product at all - how long is this for, how much I will be paying, no documents supplied (no agreement, no chance to receive the rate, as promised, no accept the loan prompt, no digital signatures requested, I have only agreed to the standard terms and conditions, and privacy policy, by clicking the checkbox). This happened around 3AM (early morning).
Few minutes before noon (11:50) (good 8 hours later), I have received the message, welcome to Loans2Go, your loan has been transferred. I have also received CPA first payment confirmation, on 31st of December (yes in 3 days of application date). Also the payments £68 monthly for 18 months was absolute shocking experience, as well as I am still not able to understand how they are able to charge fixed interest for all 18 months in advance. (Fixed interest loan, 207.6% yearly APR, applied for all term at the commencements. Am I being stupid, or it is actually a valid thing to do? I mean I have been provided with monthly payment plan (on 27th of each month, starting January, regardless that my payday is later). However on the actual CPA agreement (last page), the first payment has been scheduled on 31st of previous month - December indeed). With interest of (207.6 + 103.8 = 311.4% * £300 + principal = £1236 approx. payable, all 18 month interest has been applied. Naturally question arises, why I have to provide a monthly payment, if I have already paid for 18 months interest for full amount?). Basically they also explained, that the date was brought forward due to over 30 days being between the application date, and the first repayment (system doesn't allow longer periods), and nobody cared that no income will be received on the 31st of December & just to summarize - this was the first time I have seen the loan total, monthly payment amounts, payment dates, interest, and also have received a 6 page pdf document, to my e-mail, password protected (related to my personal information). On the document in question, my surname has been put in the borrower's field with the same date 28th of December (no hourly time, no digital validation on my printed last name, no affordability details I have provided, no income amount confirmed, how much I am getting monthly, no explanation on what other options I had, if I had any) (Just be mindful, I was forwarded by loan product search app, and wasn't even looking for 18 months loan offers). The agreement was more less standard, 14 days to withdraw, daily interest of £1.71 is what will be applied, for each day, I had the loan.
Ok, now the things started getting funny. Immediately sent them a web request (from my account area) to rectify the issue with first instalment date. Complained that I wasn't provided with the mandatory information about the product, and I haven't agreed to the first repayment date falling in 3 days. I hasn't received any response, and surprise surprise, in 3 days, they attempted to collect the first payment, and also posted me a letter about the missed payment.
So basically I am complaining now, disgruntled and requesting to withdraw from the loan, also asking why I haven't been supplied with the vital information about the loan product, also obviously furious what they have attempted to charge me which clearly wasn't affordable.
I have been advised after some standard thank you we sorry to hear type communication, (around week later) that I have actually been supplied with the agreement and accepted it, during the loan application. I have debugged (I am a web developer) their front end assets and methods, and given all the specific details, on each step, that they basically are blatantly lying. As I have never received any documents, nor I have been given the information about the loan - please suggest what are my legal options on this matter. I haven't decided which route I am going, however I am waiting, from them to advise, if they OK with sharp £300 settlement (no interest)
So that is how this lender is providing the service. By fake process and deliberate false persuasion, that the borrower has been correctly involved in the loan agreement process.
Thanks for your time, apologies for long post, felt that should provide as much detail as possible, so we can thoroughly discuss and fight against this fraud.
would be extremely thankful, if someone would comment around the legal aspects on the following dodgy lending practices I have been unfortunately victim of -
In a nutshell, I was browsing through android app on my mobile, and made application for short term loan. Have been redirected (opened with chrome browser, outside of the app) to Loans2Go website. Worth noting, app provided indication of 25% charge (1 repayment), together with explanation that this was for demonstration purposes, and that I will be told the rate before accepting the loan.
So I am now in the Loans2Go website, and clicked on £300. No option for choosing a length, no information about the repayment amounts. No indication on the dates either. I have applied on 28th December, but due to wages being paid early, provided that my next payday is on 29th of Jan (2021). (Last working day). Quite a large part of information was pre-filled, (from the app), for instance work details.
So I have provided my next 2 pay dates. full name and bank account details. I got through to the page, where I had to give debit card details and I have been sent a confirmation code to my mobile as well.
I clicked submit, and have got the response - thank you, your loan application is submitted, we will process as soon as possible (or very similar wording). At this point, still no information about the loan product at all - how long is this for, how much I will be paying, no documents supplied (no agreement, no chance to receive the rate, as promised, no accept the loan prompt, no digital signatures requested, I have only agreed to the standard terms and conditions, and privacy policy, by clicking the checkbox). This happened around 3AM (early morning).
Few minutes before noon (11:50) (good 8 hours later), I have received the message, welcome to Loans2Go, your loan has been transferred. I have also received CPA first payment confirmation, on 31st of December (yes in 3 days of application date). Also the payments £68 monthly for 18 months was absolute shocking experience, as well as I am still not able to understand how they are able to charge fixed interest for all 18 months in advance. (Fixed interest loan, 207.6% yearly APR, applied for all term at the commencements. Am I being stupid, or it is actually a valid thing to do? I mean I have been provided with monthly payment plan (on 27th of each month, starting January, regardless that my payday is later). However on the actual CPA agreement (last page), the first payment has been scheduled on 31st of previous month - December indeed). With interest of (207.6 + 103.8 = 311.4% * £300 + principal = £1236 approx. payable, all 18 month interest has been applied. Naturally question arises, why I have to provide a monthly payment, if I have already paid for 18 months interest for full amount?). Basically they also explained, that the date was brought forward due to over 30 days being between the application date, and the first repayment (system doesn't allow longer periods), and nobody cared that no income will be received on the 31st of December & just to summarize - this was the first time I have seen the loan total, monthly payment amounts, payment dates, interest, and also have received a 6 page pdf document, to my e-mail, password protected (related to my personal information). On the document in question, my surname has been put in the borrower's field with the same date 28th of December (no hourly time, no digital validation on my printed last name, no affordability details I have provided, no income amount confirmed, how much I am getting monthly, no explanation on what other options I had, if I had any) (Just be mindful, I was forwarded by loan product search app, and wasn't even looking for 18 months loan offers). The agreement was more less standard, 14 days to withdraw, daily interest of £1.71 is what will be applied, for each day, I had the loan.
Ok, now the things started getting funny. Immediately sent them a web request (from my account area) to rectify the issue with first instalment date. Complained that I wasn't provided with the mandatory information about the product, and I haven't agreed to the first repayment date falling in 3 days. I hasn't received any response, and surprise surprise, in 3 days, they attempted to collect the first payment, and also posted me a letter about the missed payment.
So basically I am complaining now, disgruntled and requesting to withdraw from the loan, also asking why I haven't been supplied with the vital information about the loan product, also obviously furious what they have attempted to charge me which clearly wasn't affordable.
I have been advised after some standard thank you we sorry to hear type communication, (around week later) that I have actually been supplied with the agreement and accepted it, during the loan application. I have debugged (I am a web developer) their front end assets and methods, and given all the specific details, on each step, that they basically are blatantly lying. As I have never received any documents, nor I have been given the information about the loan - please suggest what are my legal options on this matter. I haven't decided which route I am going, however I am waiting, from them to advise, if they OK with sharp £300 settlement (no interest)
So that is how this lender is providing the service. By fake process and deliberate false persuasion, that the borrower has been correctly involved in the loan agreement process.
Thanks for your time, apologies for long post, felt that should provide as much detail as possible, so we can thoroughly discuss and fight against this fraud.
