Lending Stream Default

[btd332]

Sorry for the length bit of a messy one here:

 

Got into a bit of a payday muddle with this company and

 

set up a repayment plan with them back in April 2013.

The repayment plan was accepted and

 

I was paying around £25 total on the 1st of every month on 5 separate lending stream accounts.

This was to last until 1st December 2013 when the account would be fully paid or so I thought.

 

The last payments went through 1st of December and

I though great I am finally rid of this horrible company.

 

However, imagine my surprise just a few days ago (Feb 5 2014)

when Lending stream send me an email saying I still owe £85 and

the debt will be passed to debt collectors within 7 days if I don't pay.

 

Add to this I checked my credit report and lending stream had actually defaulted my account 27 ocotober 2013.

 

As you can imagine I was very confused and called Lending Stream immediately.

 

Turns out according to Lending stream some of the payments on my repayment plan

didn't actually go through and this is why payments are outstanding.

 

They agree with me that money was always available on my account

(my wages go through last working day of every month)

and say because I had 5 accounts that I was repaying every month

my bank probably rejected some payments due to security and fraud prevention.

 

I called my bank and they dispute this and

I also mentioned to lending stream why did they not tell me all these months payments had not gone through

and simply send an email randomly out of the blue when I though the debt had been paid off.

 

They mentioned its my responsibility to ensure payments are made.

 

Is there anything I can do in this situation,

surely it is the responsibility of lending stream to collect money

as long as I have funds in my account and at least inform me if payment is outstanding.

 

What's the next step here

 

Many Thanks

[silverfox1961]

Hi and welcome to CAG

 

As I see it (regarding the default) as you were paying 'token payments' (£5 per account) you should have been defaulted immediately not 6 months later.

 

Information Commission guidance states that where token payments are being made, a default should be placed straight away so you could challenge this.

 

As to the debts. Yes, it is your responsibility to ensure payments are made and you should have checked your bank statements however, you say your bank is disputing this. I think it would be useful if you can get your bank statements from the inception of the payment arrangement so that you can check. (if you have online banking, this should be easy)

[btd332]

Hi and welcome to CAG

 

As I see it (regarding the default) as you were paying 'token payments' (£5 per account) you should have been defaulted immediately not 6 months later.

 

Information Commission guidance states that where token payments are being made, a default should be placed straight away so you could challenge this.

 

As to the debts. Yes, it is your responsibility to ensure payments are made and you should have checked your bank statements however, you say your bank is disputing this. I think it would be useful if you can get your bank statements from the inception of the payment arrangement so that you can check. (if you have online banking, this should be easy)

 

I assumed we have an 'arrangement to pay' where although each account was being paid off £5 a month, the total was still £25 a month and the debt would have been fully paid off in 8 months (a full repayment plan was set up). I assumed a token payment was one were initially paying little to nothing with the idea of paying more as your budget allowed later on.

 

My bank is saying if there were funds available in the account they would not have stopped lending stream taking the money even if they took 5 separate payments a month. Furthermore, although I accept the repayment of the debt is ultimately mine I cannot understand why lending wouldn't tell me until 8 months later that some of these payments hadn't actually been coming out, do they not have a duty of customer care to ensure the customer is made aware of this

[siennasmummy]

Hi,

Sorry to jump in here but I'm after some help for my sister. She had a loan at Christmas from Lending Stream and has just defaulted. I have had payday loan nightmares 5 years ago and so have advised her on what to do ( and never to take one out again!!!)

She just wants to know, do they send letters to her home or will they email her about repayment as she still lives with our parents and is worried that they may find out

Thanks