My Email to the CEO of Minicredit

[Daddy2Alex]

Dear Andres,

 

I am writing to you today to discuss with you my extreme displeasure at having dealt with your company in the last few weeks.

 

I took out a £120 loan from your company on the 7th February 2012, with the repayment date set at the 3rd of March with a due amount of £150. So far, no issues!

 

Unfortunately, due to unforseen circumstances, I was unable to pay the loan amount back in full on the date set. So, I phoned Minicredit a day before the due date, originally to ask for an extension (I paid the "fee" to find out if I was eligible), and when that result came back as a no, I asked if I could set up a payment plan to pay back the loan as soon as possible, in amounts I could afford. Immediately, your "Customer Services" rep started citing the Terms and Conditions at me, finally stating, "if you couldn't afford to pay it back, you shouldn't have taken it in the first place" before they then hung up on me. What appeared to have escaped their attention was the fact that had everything continued as it was meant to be, there would have been no reason for me not being able to afford the repayment.

 

Since then, I have had ongoing "conversations" with your customer services team via email. I have stated in each email that I want to pay this loan back, with an agreed amount paid each time and all I get back in return is copied and pasted parts of your Terms and Conditions with no actual attempt to answer any of my queries. I have also phoned your customer services team on a couple of occasions, and met with nothing but aggressive, rude and entirely unhelpful people.

 

I refer to the OFT Guidance document which states: " failing to allow for alternative, affordable, repayment amounts when a reasonable proposal is made by a debtor or a third party representative acting on his behalf (for example, a debt adviser)," and it goes on to state under the Deceptive and Unfair Methods; "under appropriate circumstances, failing to refer on to the creditor reasonable offers to pay by instalments." So far, your company has completely ruled out any form of payment plan, instead referring me to UKash vouchers which themselves are fairly unreliable as there is very little (if any) trace of where the money actually ends up.

 

I have also noted, with growing amusement, how my outstanding loan amount keeps raising each day. I would very much appreciate it, if you could explain to me just how you can justify these charges, and if at all possible, please don't insult my intelligence by copying and pasting your Term's and Conditions back at me.

 

For example, your charge outlined in your Terms and Conditions states: "If we unsuccessfully attempt to obtain repayment 30 (thirty) days

after the due date we may charge further £100 manual debt collection recovery fee." seems somewhat excessive. I refer here to the Office Of Fair Trading Guidance for Businesses involved in Debt Collection which states: "Charging for debt recovery: charges should not be levied inappropriately or unfairly." As such, I would like a response from you outlining how you deem a £100 charge fair and reasonable please.

 

I would also like to discuss your company's policy of Continuous Payment Authority and linked to this, your £5 charge for failed transactions. I request that you explain to me how a failed transaction costs you any money at all, let alone £5 a time, up to 3 times a day and as such, how you deem such a charge as "reasonable".

 

Again, I refer to the OFT's Guidance document which states:

 

m. misusing a continuous payment authority, including by (this is a non-exhaustive list):

• debiting a debtor's account other than on a date or dates as expressly set out in the relevant agreement, unless otherwise specifically agreed with the debtor subsequent to the agreement having been concluded (for example, where an alternative repayment plan has subsequently been agreed between the creditor and the debtor)

• debiting lesser or greater amounts than those expressly set out in the relevant agreement unless the debiting of such amounts has been specifically agreed with the debtor subsequent to the agreement having been concluded (for example, where an alternative repayment plan has subsequently been agreed between the creditor and the debtor)

 

As you were only authorised to debit my account on the due date of the loan, your company is in direct breach of this statement as you have continuously charged my card with varying amounts since the due date has passed. Considering that your company appears to only accept UKash vouchers as a "repayment" please can you explain to me why you have been attempting to debit my card, and also charging me for the privilege at the same time. I have since withdrawn my authority for Minicredit and any associated companies to attempt to debit my account with any amount, although Minicredit has so far failed to acknowledge any receipt of this.

 

The OFT goes on to state: "If a debtor is, or appears as if he may be, experiencing difficulties meeting repayments (for example, because an attempt by the creditor to recover a repayment is unsuccessful), we would expect the creditor, or the business seeking to recover repayment on the creditor's behalf, to exercise forbearance, and, if appropriate to do so, amend or suspend any continuous payment authority (or any other means of recovering repayments) in order that a more sustainable repayment plan might be agreed with the debtor. Continuing to seek to extract any or all monies from a debtor's account, where a debtor has failed to make a full or partial

repayment, by repeated attempts to exercise a continuous repayment authority would, in the OFT's view, constitute an irresponsible lending practice for the purposes of section 25 (2B) of the Act since such a practice facilitates 'failing to treat borrowers in default or arrears difficulties with forbearance'."

 

Being that you state on your website that you are in fact a "responsible" lender, I would like an explanation as to just how you can justify this statement being that there are quite a few discrepancies about this.

 

I feel bound to inform you that I will be taking my complaint further than just Minicredit as I feel completely let down by your company and it's so called customer service.

 

I look forward to your response.

 

Kind Regards,

 

DR

[Daddy2Alex]

It's a bit long winded... But there are one or two good points there!

 

Not holding my breath for a reply, but it could make for interesting reading if I get one!

[silverfox1961]

Hi

I am very sorry but that email is far too intelligent for them to understand one iota of what you are going on about.

If you resend, please try to stick to words of one (possibly two) syllable(s)

 

:madgrin:

[Daddy2Alex]

Hi

I am very sorry but that email is far too intelligent for them to understand one iota of what you are going on about.

If you resend, please try to stick to words of one (possibly two) syllable(s)

 

:madgrin:

 

hahaha

 

how about... "You annoy me!" Pretty much covers everything I said originally!

[jelly1001]

Can you tell me what the CEO's email address is. I'd like to forward him my complaint

[Daddy2Alex]

Can you tell me what the CEO's email address is. I'd like to forward him my complaint

 

It's andres . valdmann @ minicredit.co.uk

[CJShep]

Did you get a reply back? It would be nice to know how you go on with it

[renegadeimp]

Doubtful if you get a good response.

Edited April 10, 2012 by maroondevo52
Removed line.

[renegadeimp]

Yea... those terms and conditions are not legal. They can not override OFT guidance regulations which clearly state that if you are in financial difficulty then they are obliged to come to a mutual agreement on a repayment plan. They cannot force you to take out another loan, or "roll it over" thereby incurring more costs.

[Daddy2Alex]

Just a quick update...

 

No response from the CEO (surprise surprise).

 

The only thing I've had from Minicredit since is a letter telling me they've referred my case to their Doorstep Collections and charged me £100 for the priviledge.

[renegadeimp]

Thats an unfair and illegal charge. Not to mention you should tell them you withdraw their right to come onto your property.

[Daddy2Alex]

Thats an unfair and illegal charge. Not to mention you should tell them you withdraw their right to come onto your property.

 

I withdrew my authority for them to charge my bank card (long since cancelled and they're still charging it) but they emailed back telling me I had no right to do that...

 

In regards to coming onto my property, does it make a difference if it's my property or not??

[renegadeimp]

They emailed you saying that? Perhaps you should quote the FSA regulations to them.

 

In reponse to your last question in shouldnt. The letter covers everything as it also states that you have no desire and you explicitly revoke permission for them or their representatives to contact you or come to where you are.

[Daddy2Alex]

They emailed you saying that? Perhaps you should quote the FSA regulations to them.

 

In reponse to your last question in shouldnt. The letter covers everything as it also states that you have no desire and you explicitly revoke permission for them or their representatives to contact you or come to where you are.

 

Their response to my withdrawing authority was:

 

"Microcredit Ltd always acts according to the Loan agreement and in the Loan agreement You have provided us the right to debit Your debit card until full repayment is made and when the Loan goes overdue there is no option to withdraw the right as it was provided when You signed the Loan agreement."

 

I did point out that it was written in the OFT Guidelines for Debt Recovery but that appeared to confuse the cutter and paster of T's and C's.

 

Will email them again shortly revoking permission for them to visit me or contact me by anything other than email.

 

The loan amount is now £668... Not bad considering the original outstanding amount was circa £160 at the beginning of March!

[renegadeimp]

I can write a letter completely debunking what they say and put them firmly in their place if you like. It's a pretty simple and straight forward one.

[FrugalJo]

D2A

Please keep us posted as I'm about to take these guys on.