Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help

by dianne1985 Fri Jul 10, 2020 2:27 pm

So a Pay Day Lender (referred to as PDL in this post) went into administration and I've received a letter from Lantern saying the redress has cleared one of my balances with them. HOWEVER. We all know that my redress of £XXX is free money for them as they will have paid £x for it. I have been in dispute with Lantern for years over payday loans using the three letters process that goes round in circles. For most of them, the original debt has been written off or removed from my credit file through Irresponsible Lending Claims with the Financial Ombudsman so its just an annoying process that doesn't go anywhere!

My PDL one had this result and I received a refund of interest and charges paid etc. however the original debt was sold on to MMF (Now Lantern). I did not use the refunds to clear the Lantern accounts due to the 3 letters taking care of things! Fast Forward to now and somehow I've had a second redress from PDL :shh: but somehow paid directly to Lantern. As my original redress stated PDL had to

"take the debt back onto its own books and reduce it to reflect just the capital that Mrs X borrowed. If PDL is unable, or unwilling, to do this it must ensure that its interest and charges, and any other interest and charges added by the debt collection completely (Lantern), are refunded to Mrs X so she can choose whether to use the compensation to settle her debt directly.[/b]"

So I am now creating a letter stating that them holding the funds is theft and I require it to be paid to my bank account.

Any bits of legislation anyone can help with? For example: XYZ says they must make this refund within XX days

by flyingfish Fri Jul 10, 2020 4:01 pm

Just to be clear the "redress" is a refund of interest and/or charges which were judged to have been unfairly levied. Is that correct?

Was original loan taken out by "PDL" subsequently sold on to Lantern, or are Lantern acting purely as a collection agent?

And was this awarded by the FOS in a complaint against the original lender (now gone bust) or was the complaint against Lantern? If it was against Lantern, and they haven't done what the adjudicator instructed then I'd have thought the first point of call would be back to the Ombudsman.

by dianne1985 Fri Jul 10, 2020 5:29 pm

Yes the redress is a refund based on irresponsible lending. My own ombudsman case with this PDL was directly with the original lender.

Lantern bought the account from the Original Lender.

The OC did what they were asked to do. Somehow, I have received a second redress (of which i believe to be the same and an oversight along the way).

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Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help

Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help

Re: Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help

Re: Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help

Re: Redress from a Pay Day Lender sent to Lantern - I want it sent to me! Letter help