Payday Loans and Ombudsman Appeals

[Soapie]

My son used a payday loan firm whilst he was in financial difficulty. Unsurprisingly this did not help him get out of debt. My son completed the application form and put incorrect information about his day to day costs on the form so as to give the impression that his earnings covered his costs. Were the payday loan company at fault for accepting apparently unlikely values on an application form? Should they have checked this more thoroughly? Did my son commit an offence by putting false information on an application for a loan? Is there a case for applying to the ombudsman for compensation? Is there a time limit for challenging this?

[Amethyst]

If he pushes it he risks having a CIFAS application fraud mark put against him - that could cause far more problems for him than he'd gain by claiming unaffordability through the ombudsman.

What is the current position with the loan ?

[Soapie]

Hello and thank you for your response and advice. The current position is that the loan and interest were paid off (by me!). I'll heed your advice as he is in enough financial mess already!

[Amethyst]

Sadly I think that is the best option. Annoyingly, they'd probably have leant to him had he put down his truthful information in the application, and then he would have had a complaint to make. It's just not worth the risk of having a Fraud marker put against him as it would stay there for the next six years. His credit file is likely suffering from defaulting on the loan anyway, and that it was a payday loan has an even greater effect, so he's unlikely to be getting much in the way of credit anytime soon ( a blessing most likely ).

I hope he's paying you back ( however slowly ).

What else has he got going on financials wise?, anything you need help with just shout, or have a read about others dealing with those companies across the forum for ideas xx