So I emailed them and said

You are breaching OFT guidance yet again. You state that you are going to add nearly £150 in charges as well as extortionate interest. This is not considered reasonable costs and I will make a complaint to the OFT and the Financial Ombudsman should you do this. You should not continue to add interest and charges to someone in financial difficulty. I will give you one last opportunity to accept my offer as I would like to resolve this in the fastest time possible. I was being reasonable, but you being a payday loan shark believed you could bully me into submission, you believe that you can ignore regulations and guidelines and make your own rules up. You are wrong. In the meantime please provide me with bank details that I require to make payment as I believe that you withholding this information from me is deliberate action by you to prevent me from paying to get me further in debt with you.

Thank you for the e-mail. As responsible lenders, we always aim to help our customers in financial difficulties and be understanding and fair and conduct our business in compliance with all relevant legislation, regulations, regulatory guidance and requirements. We always exercise forbearance and consideration of debtor's circumstances, in particular in relation to those who are particularly vulnerable or experiencing severe financial hardship. However, we have no obligation to arrange 0% repayment plans. The current nominal APR of your loan is 365.25%. In the offer that was sent to you, the APR was 60%, so we have already agreed to decrease the interests rate significantly. Since you have stated that you are not able to make the payment in full, we have been willing to arrange a repayment plan for you, so that you could pay the debt off in parts. However, as it is with all other purchases - in case you wish to pay for something in parts and over a longer period, the total amount to be paid, will be higher then the amount you would need to pay if you would make the payment in one go (because the funds that have been issued will be returned over a longer time period) and thus the total amount of the repayment plan will be higher then the original balance. It is the same with all purchases that you wish to pay for in instalments. Please be advised that even in case you join a Debt Management Agency, the creditors are not obligated to freeze the interests completely. It has been our best and final offer. Please confirm if you would like to accept the offer. Alternatively, we would suggest you to seek independent advice or assistance. It is important that you receive correct advice and assistance from properly authorized people, such as the free advice organisations listed below. You should be aware that information or opinions that you may find online, such as in website forums, may appear reliable but may not necessarily be legally correct or it may be inappropriate for your particular circumstances. The free advice organisations listed below will be better positioned to provide you with personal advice from trained staff. Some of these organisations are also usually recommended by regulators. Citizens Advice: For advice and information on debt and other topics, visit your local Citizens Advice Bureau (address in the phone book) or go to www-adviceguide-gov-uk (England and Wales), www-cas-gov-uk (Scotland) or www-citizensadvice-co.uk(Northern Ireland). National Debtline: If you live in England, Wales or Scotland phone 0808 808 4000 or go to www-nationaldebtline-co-uk for debt advice and information. Advice4DebtNI: If you live in Northern Ireland phone 0800 917 4607 or visit www-advice4debtNI-com for debt advice. Money Advice Scotland: If you live in Scotland, phone 0141 572 0237 or visit www-moneyadvicescotland-org-uk to find contact details for debt advice in your local council area. StepChange (formerly Consumer Credit Counselling Service): For debt advice throughout the UK phone 0800 138 1111 or visit www-cccs-co-uk Advice UK: Regionalized debt advice - see website www-adviceuk-org-uk Pay Plan: For debt advice throughout the UK, please call 0800 280 2816 or visit www-payplan-com Money Advice Service: Government funded advice and signposting for debt advice. Call 0300 500 5000 or visit www-moneyadviceservice-org-uk Trading Standards Service: www-direct-gov-uk or contact your local Trading Standards office. Community Legal Advice: If you qualify for legal aid phone 0845 345 4345 for free advice or visit www-communitylegaladvice-org-uk This has been our final response, if this is not satisfactory to you then you have a right to have your complaint dealt with under the Financial Ombudsman Service at: The Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Website: www-financial-ombudsman-org-uk Consumer helpline: 0800 0234 567 (from a landline) 0300 123 9123 (from a mobile) E-mail: complaint.info@financial-ombudsman-org-uk Switchboard: 020 7964 1000 Fax: 020 7964 1001

Hello,

Peachy emailed me today stating the following;

You have the option to agree or to disagree.

 

As you have not confirmed the repayment plan offer then please note,

we act as follows:

 

 

We charge you interest at the rate applicable of 1% per day (fixed)

(365% per annum);

 

1 day after the due date we will send you an overdue reminder

resulting in a £25 administrative fee and interest on the principle

sum at the rate applicable of 1% per day to be added to your loan.

 

3 days after the repayment date another overdue reminder including a

£12 administrative fee and interest on the principal sum at the rate

applicable of 1% per day will be sent.

 

7 days after the repayment date an overdue reminder including a £12

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

14 days after the repayment date an overdue reminder including a £12

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

21 days after the repayment date an overdue reminder including a £12

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

28 days after the repayment date an overdue reminder including a £12

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

35 days after the repayment date an overdue reminder including a £12

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

42 days after the repayment date an overdue reminder including a £49

administrative fee and interest on the principle sum at the rate

applicable of 1% per day will be sent.

 

If you have not repaid the full amount of loan including

administrative fees and interest by the 45th day of the loan cycle we

will hand your debt over to our Debt Collection Partner.

 

Please note that we might charge you with other reasonable costs that

have incurred as a result of you missing your payments, such as

reasonable legal costs or the additional costs that would involve

instructing a debt collection agency to recover amounts that are due

from you. Late repayments may affect your credit rating and may result

in legal action.

What would be the best way to reply to them? Im at a loss...

Also, could you post the contents of the letter you got from CG that said that?

Here is the email;

Since you have stated that you are not able to make the payment in

full, we have been willing to arrange a repayment plan for you, so

that you could pay the debt off in parts. We have even been willing

make the repayment plan offer to you without the required evidence of

change in financial difficulty and the respective income and

axpenditure sheet. However, as it is with all other purchases - in

case you wish to pay for something in parts and over a longer period,

the total amount to be paid, will be higher then the amount you would

need to pay if you would make the payment in one go. As previously

explained, there will be no penalty charges added for the overdue time

during the repayment plan period, however a small daily interest will

remain (because the funds that have been issued will be returned over

a longer time period) and thus the total amount of the repayment plan

will be higher then the current balance. It is the same with all

purchases that you wish to pay for in installments.

We have no obligation to arrange 0% repayment plans.

This has been our best and final offer.

Hello

I am talking with Peachy to setup a repayment plan. I took the amount due and split it over 10 months so it's affordable whilst I pay for a council tax arrear that has surfaced from 2 years ago.

The counter offered with a 12 month plan adding a 1% daily interest rate adding over £200 to the total, can they do this? I thought it was the loan plus original interest they could charge?

Any advise would be greatly appreciated.

Thanks

A foolish man