Missold Very Credit How to Claim a Refund

Very is an online retail company in the United Kingdom, part of Shop Direct Group, owned by John Caudwell. Very was launched on January 1, 2009 and specialises in fashion, homeware and electricals.

The Shop Direct Group is a UK-based ecommerce and multichannel retail business, formally known as The Littlewoods Organisation. It has over 17 million customers and a turnover of over £2 billion. The group consists of several well-known brands, including Littlewoods.com, Very.co.uk, Isme.com, Woolworths.co.uk and Additionsdirect.co.uk – as well as own brand labels such as Good Life Shoes, Merseyside Shops and K&Co.

The main focus of the Group is on making online shopping easier for customers by offering finance plans, payment methods and delivery options to suit each individual customer’s needs.

In 2017, it was revealed that Very had mis-sold credit agreements to customers, leading to investigations by the Financial Conduct Authority (FCA). This article will discuss what unaffordable lending is and its consequences for both lenders and borrowers.

Very was a company that mis-sold credit to customers, meaning it failed to provide adequate information or fully explain the details of its product offerings and associated costs to potential customers before they took out a loan. This led to many individuals taking out loans from Very without fully understanding the repayment plans involved, or being informed of interest rate hikes, and thus being unable to meet repayments or falling into debt due to excessive charges that had not been made clear prior to signing up for a loan agreement.

Because very did not adhere to existing regulations on selling credit agreements, this practice has come under scrutiny from regulatory bodies who have implemented fines on the company with regards to its mis-selling of credit agreements. Actions taken by these authorities include additional restrictive orders, enforcement notices and other sanctions which were aimed at protecting consumers from unfair practices in form of mis-selling.

What is Mis-Sold Credit?

Mis-sold credit is a term used to describe when a lender or retailer has provided an unsuitable or incompatible financial product or service to customers. When credit products such as loans, mortgages and credit cards have been mis-sold, the borrower may not have full disclosure of information when taking out the loan, or have entered into agreements without understanding all the terms and conditions. Credit can be considered to be mis-sold if certain elements, such as fees and charges relating to the credit agreement were not made clear before it was concluded.

The most common cases of mis-sold credit centres on people who are unable to pay back their debt, but also covers instances where misleading information about interest rates and repayment arrangements has been given. In addition, some unscrupulous lenders will attempt to entice customers in with offers that don’t exist or push specific products which might not suit their needs; this isn’t borne out in just financial services but affiliated sectors too such as energy brokers making inaccurate estimates because they are overcharging consumers.

It is also important that any promotional material is accurately only described as being a representation of what the customer could get from taking up the offer. If lenders aren’t transparent about what exactly they are offering their customers then this can fall foul of unfairism and constitute mis-selling if found out.

As part of a large package of compliance measures put in place by regulators in recent years for all firms dealing with retail clients, including banks and other lenders, financial firms must now provide accurate advice and ensure that consumers understand everything about the product before making any decisions on committing funds through a loan facility. As such any institution acting fraudulently has responsibility for compensating those wronged by their unethical practices related to mis-selling financial products.

What is Unaffordable Lending?

Unaffordable lending occurs when a lender extends credit to a borrower whose financial situation is unstable or unlikely to improve. This type of loan can lead to long-term debt and bankruptcy if the borrower is unable to meet the repayment terms. The consequences for the borrower can be dire, leading to excessive fees, high interest rates and possible legal action taken against them by the lender. In addition, unaffordable lending can have an overall negative impact on both lenders and borrowers alike, such as decreased access to credit, potential bad press for lenders, and increased delinquency rates for borrowers. As such, it’s important for both parties involved in a loan agreement to make sure that it’s affordable from the beginning.

When it comes to determining whether or not borrowing money would be considered unaffordable, there are several factors at play. These include income level and size of loan compared with debt-service capacity (the ability of the borrower to afford monthly payments). Additional contributing factors include employment status, credit score and history, number of dependents (if any) and expenses outside of just repaying back the loan itself.

In some cases unaffordable lending isn’t necessarily intentional but rather due to lack of knowledge on behalf of both lender and borrower alike; either party may fail to properly assess affordability prior signing off on a loan. Nevertheless, when this happens its essential that steps are taken as soon as possible by both parties in order to rectify any issues arising from unaffordable lending quickly in order avoid further damage being caused not just financially but also emotionally and psychologically too.

Overall it pays for all parties involved in a loan agreement to do their homework before committing either financially or emotionally so that the risks associated with unaffordable lending are reduced or avoided altogether.

Is Unaffordable Lending the same as Irresponsible Lending?

The answer is both yes and no. Unaffordable lending, which generally involves taking out a loan or borrowing money at a rate of interest that is too high compared to the borrower’s income, is often considered to be irresponsible. On the other hand, it can also be argued that lenders may offer loans knowing they’re unaffordable and hoping that borrowers will default – making for a different form of irresponsibility.

In terms of consumer rights, affordable lending must always prioritize consumer protection by ensuring the loan agreement is fair and reasonable and giving clear information upfront about all the risks associated with taking out a loan. In addition, responsible lenders should consider any potential negative consequences for borrowers before extending credit.

There are several indicators which suggest whether a loan may be considered unaffordable or not such as costs being more than 20-25 percent of total family income or when any additional fees increase interest payments beyond 25-30 percent APR (Annual Percentage Rate). Such loans would most likely be seen as irresponsible, particularly if Financial Conduct Authority (FCA) guidelines have been flouted in their provision.

On the other hand, when considering possibilities such as refinancing debt in order to reduce monthly payments, this could potentially be deemed ‘socially responsible’ lending based upon its objective – helping people manage debt in financially viable ways.

Ultimately though, responsibility lies both with borrowers who must budget adequately and make realistic decisions when applying for credit – and with lenders who need maintain sensible criteria that ensure reasonable levels of affordability when offering loans.

How Do I Make a Claim for Mis-sold Credit from Very?

Making a claim for mis-sold credit from Very boils down to being aware of the process and your rights. It is important to remember that if you feel that you were given unsuitable, misleading or poor advice when purchasing Credit from Very, it is possible to make a complaint and potentially receive compensation.

The initial step when making a complaint is to contact Very directly. Customers have 8 weeks from the time of their purchase to inform them of the problem, however, some products have 30 days in which time customers are able to reverse the transaction. If this has not been fulfilled then customers should speak with a manager at their local very store or call customer services who will help guide them through it all.

Once Very have been contacted and customers believe that their complaint has not been resolved then taking legal action may be an appropriate response. Customers should seek advice and support from organisations such as ‘Money Advice Service’. The organisation can provide free and impartial advice along with helping customers source sources who can help provide legal guidance if required.

The Financial Ombudsman service also provide independent complaints resolution within 8 weeks and therefore should be utilised if relevant to the circumstance. Before claiming with The Financial Ombudsman Service (FOS) claimants must first escalate their case with Very themselves as FOS cannot act until this has been done firstly.

It’s also important to bear in mind before embarking on any claims process that there is no guarantee of success – each claim is assessed individually, so they should always ensure they know exactly what they’re entitled too before beginning any process- including what evidence needs to be produced etc. Additionally, it is worth noting that refunds may take up to 12 months in certain circumstances but again this depends on each individual case entirely.

How to Claim for a Very Missold Credit Refund using our Service

First and foremost if Very has leant money irresponsibly to you, we have to assess whether this is the case. We would contact the firm regarding initial concerns that you have and ask for information and review so that we can look at the information obtained from them at the time and questions that they asked and the answers provided.

If there hasn’t been any for of lending which is incorrect we can confirm this to you and as we work on a no win no fee basis no fee is due. Our fee of 24% inclusive only relates to refunds that are made after establishing that the lending was irresponsible.