Response from Minicredit about FOS complaint

[sillygirl1]

Their debt attempt fees are not to be included in your calculations, they are completedy unfair and unjust. It does not cost them £5 to try to drain your bank account at every opportunity.

[renegadeimp]

http://www.oft.gov.uk/shared_oft/Credit/complaint-form.pdf

 

OFT complaint form.

[Daddy2Alex]

Going back to the beginning...

 

It's worth noting that applying for their extension is by no means guaranteed so is in effect worth less than the email they write it on.

 

You have to apply for the extension which costs £5.99 (or thereabouts) and is then either down to a credit check or their own discretion (Minicredit have told me both ways) and it won't necessarily give you the extension.

 

IMO it's just another way for them to extort money out of people.

[sillygirl1]

Have you got back to the FOS as instructed and as they asked? That email really needs to be in their hands.

[Super Daz]

I have replied back to Minicredit & copied in FOS. I'll post here when I get a response.

[Super Daz]

I got another letter from Minicredit in the post today - I've OCR'd it & copied it below - I've also forwarded it to FOS.

 

FINAL NOTICE BEFORE LEGAL ACTION

 

On 30th April 2012 we will mark default status on your credit file.

Also be aware that forthcoming CCJ (County Court Judgement) on your name affects severely your ability to receive credit in the future including credit cards, mortgages.

To avoid further unnecessary costs please ensure payment is sent by return.

NB! To repay your loan by card please log in to Your http://www.minicredit.co.uk account.

Repay your loan by cash! - Read more http://www.minicredit.co.uk

Yours faithfully

Minicredit.co.uk

Debt Recovery

0871 8903015

http://www.minicredit.co.uk/contact

 

Amount overdue £906.00

Debt recovery costs £100.00

TOTAL BALANCE DUE £1,006.00

 

Despite all our efforts you have chosen not to settle our above outstanding account.

 

We have no alternative but to escalate the matter.

If full payment is not made by close of business on the 20th April 2012 the matter will be referred to our legal team. There will be additional legal charges added to your account.

[renegadeimp]

Theyre assuming they will win. If you have evidence to back up everything you say, then let them take you to court, submit a defense against all their claim, and force them to appear in front of a judge to explain themselves.

[Super Daz]

I was also under the impression that they cannot add any more charges etc. while there is an open dispute involving the FOS. Am I correct or not?

[renegadeimp]

They can but if the fos finds in your favor they just get wiped. It's basically a last ditch attempt to try and get more money from you.

[Super Daz]

I think I'm p***ing them off now - their latest response:-

 

You have accepted the Loan Agreement where it clearly states that every unsuccessful attempt to receive the repayment from the registered debit card cost up to £5. It is also written there that You have authorized us to seek the repayment from the registered debit card up to three times per day and when the card becomes invalid You have to update the details in our system. The response the Card Issuing Company has sent to us every time we have attempted to debit a payment from Your registered card is just “Declined”. No specific reason has been provided. The debit attempt fee £5 is being added according to the Loan Agreement.

 

You consider that You are not liable for more than the loan plus one month interest which is in total £266. This was the amount You needed to pay on the 31st of January 2012 (more than 2 months ago). Even if You would have made a request for the roll-over and the roll-over application would have been approved the interest calculation would have continued from the date of the roll-over until the new due date According to the Loan Agreement the interest becomes payable for the Customer from the date of issuing until final payment. This is the cost for using the loan and the fact is that You are still using that loan. The calculation stops when the loan is officially defaulted on the 120th day overdue.

 

The charges and interest that are being added according to the Loan Agreement from the date of issuing until the Customer makes the first contact with the Company explaining the financial difficulties are justified. The balance was £594 on the 24th of February 2012, the day You first contacted us asking for the repayment plan. In our first response e-mail we provided

 

The loan has already been 84 days overdue and not a single partly payment has been made by You towards the outstanding balance. As You requested the possibility to set up a payment arrangement we agreed to provide You with the possibility to clear the balance of £930 (frozen from the 28th of March 2012) with a payment plan through our debt recovery partner. You disagreed with that offer.

 

The settlement amount has to cover the loan principal amount, interest 1% of the principal per day and overdue penalties of £80. The settlement payment can be made with a one-off payment with interest added up to the date we receive the payment. You may also clear the settlement payment by partly payments latest by the 120th day overdue if You wish to avoid the default status on the credit reference. The interest calculation will end with the date of the last payment. The settlement amount with default date interest can be repaid over a longer period through our debt recovery partner with a payment plan but this option will include a default on the credit reference.

 

Which of the options explained above are suitable for You?

 

Please be aware that this response is not our Final Response to Your complaint. The Final Response will be issued when we have come to an agreement regarding the complaint.

[renegadeimp]

Doesnt matter what it states. They really need to get that through their heads.

 

Also the last sentence made be laugh. Wonder if they realise that they have to issue a final response within 8 weeks

[toptrapper]

"that this response is not our Final Response to Your complaint. The Final Response will be issued when we have come to an agreement regarding the complaint".

 

What?!?! That's total gibberish! so, it's not a final response, as they've not come to an agreement?! Eh!? Get this off to FOS, also OFT. They're now deciding the FSA rulebook (specifically DISP), can be interpreted to suit themselves.

[Super Daz]

It seems like we will never reach an agreement because they are so unrealistic with their charges, they basically arent willing to budge an inch. They are also upset that I havent payed them anything - firstly this wasnt the 1st loan I'd have with them & that was paid in full. Second I refuse to pay with card in case they raid my account - they have refused to provide me with any alternative method of payment so I'm not refusing to pay - just refusing to give them my bank account details or card details.

 

Lastly, why has the word "you" been spelt with a capital each time? lol

[renegadeimp]

Dont worry about it. They have 8 weeks to issue a final response to your complaint from 24 hours after they recieve it. After that you can contact the FOS and they will investigate. You dont need to remind them of it. They should already know. It seems they are trying it on.

 

Minicredit are one of the worst PDL's around.

[Super Daz]

OK got another response now - it seems they are trying to fob me off onto their debt recovery partner - possibly so they can say to FOS that the debt is no longer in their hands or something.

 

Response follows:-

 

 

Our debt recovery partner has more payment options that can be provided to You besides the debit card payment possibility. We will forward Your account to our debt recovery partner who will be in contact with You shortly.

 

The first e-mail we received from You was sent through the MiniCredit.co.uk account on the 24th of February 2012.

 

As we do not agree with the amount £266 as the full and final settlement and You asked what is the amount we would agree on if settled under a monthly payment plan.

 

We are willing to decrease the balance frozen on the 28th of March 2012 by the debit attempt fees and the debt recovery fee. The balance we are willing to agree is £460 (loan principal £200, interest £180 up to the 28th of March 2012 and overdue penalties £80).

 

This amount will be forwarded to our debt recovery partner to be repaid under a payment plan.

[emma1989]

hold firm. i got sorted quickly with opos- though i know others didnt. Stick to your guns about the figure you want.

[Angelina1]

Super Daz

 

I don't blame you for not giving them your account details, they have mine and are currently taking money out of my account as and when they feel like it. I have contacted my bank and my bank stated that they are acting in an agressive and unfair manner as they are supposed to inform me of the amount to be taken and the date prior to taking it. My bank have even told me to seek further help because of the way they are acting and to keep on to them about freezing interest and accepting a payment plan. I am currenty sending email after email to them but I'm getting nowhere. They have taken roughly £250.00 since the 18th of April and £115.00 of that was taken in one week. My bank even looked into blocking my card against them but even if that is done, they can still find other wys to debit my account.

 

At the moment I am having to stay up until the early hours when I know money is due to go into my account and then quickly transfer it over to my savings account. This is causing a knock-on affect at the moment as by this horrid company taking whatever they like, it is leaving me with less money and other bills are not getting paid. However, my bank have said this is the best thing I can do at the moment until this evil company agree to something reasonable (which will never happen).

 

I am a single mother of two disabled children and I am not working either. I have tried to explain to them that I cannot afford to pay anymore than they are already taking but they will not listen. I really do not know what to do next, so any help would be greatly appreciated.

[Super Daz]

Angelina, the bank must cancel the continuous payment authority if you ask them to. Alternatively you might want to get a new bank account & stop using the old one - thats what I did.

[Angelina1]

Thanks Super Daz, my bank originally thought it was a continuous payment and they were prepared to cancel it, but they are using what is called a 'sweep' payment. I am currently trying to find out what exactly that is. Closing my account is one option but I have so many direct debits etc. that it will take a fair bit of time to sort it out. I am a stubborn person too lol, and to be honest I think that myself or anyone else shouldn't have to close their accounts because of theses bullies.

 

Anyway, thanks for your advice and I hope you and many others manage to beat this evil company!

[renegadeimp]

http://en.wikipedia.org/wiki/Sweep_account is the only thing i can think of offhand that they are trying to use.

[FrugalJo]

Daz

How are things with the minicredit saga?

[Super Daz]

I'm awaiting a decision from the FOS now. Anyone have any idea how long this takes?

[renegadeimp]

Could be a few weeks to a month or two. It depends if theyre backed up and what rubbish the PDL says to them.

[Al88]

I got a reply from OPOS - Minicredit debt recovery regarding a loan that I took of £100, they wanted £810.00 which I told them I wasn't paying then I got a make me an offer letter, So I offered them the original loan of £100.00 although I only got £80 of it plus £50.00 for interest and charges so £150.00 total and within an hour I got a response and they accepted my agreement of that sum.I would stick to your guns and only pay the amount due in the beginning

[sillygirl1]

Shows how these DCAs are becoming wise to the PDL overcharging - one DCA has pulled out of collecting for PDL companies due to the level of complaints and interest from the OFT and Trading Standards (Fredricksons - who at least showed some sense in making the 'commercial' decision).