Help with minicredit

[AmyJoslin]

Hi I am also having great difficulties with mini credit, my bill was 200 and

Now it's 1,200!! I've emailed and everything asking for a payment plan but they just won't accept this, they have put 3x doorstop collector fees and never had try come

To

My door! They are now threatening legal action, any advice guys! I'm

Thinking about writing to

The financial ombudsman, will this work domtoynrhink?

[sillygirl1]

The FOS is not the first line of attack here, you MUST report them to the OFT and Trading Standards FIRST.

 

http://www.oft.gov..uk for the OFT

http://www.tradingstandards.gov.uk for Trading Standards

 

Both organisations are taking a pro-active approach to the murky world of Payday loans and already have an extensive file on this lot.

 

The FOS will take about a year (yes, a YEAR) before anything is done, by that time it is too late. Also if they go to court the fact you have complained to the FOS is irrelevant, it is the complaints to the OFT and Trading Standards which are recognised here.

 

They CANNOT charge AT ALL for a debt collector, that goes way beyond the OFT Guidelines in Debt Collecting.

[sequenci]

Nope. Theyre not listening at all.

 

 

1) Please fill in your current income details. They are only allowed to see the total amount incoming per month. No specifics.

 

2) Please fill in your current expenditure details. Only allowed to see total outgoings. No specifics.

 

3) Please fill in your creditor details. They are not allowed by law under the Data Protection Act 1998 to see ANY of this info. They are breaking OFT guidance regulations just for asking.

 

 

 

Ignore it and send it to the OFT as part of your ongoing complaint.

 

I'm really sorry to say that all of this is incorrect.

 

Of course it's completely at the debtor's discretion to send a financial statement, but if they are looking for an affordable repayment program to be arrannged then the debtor has the duty to send a comprehensive financial statement which breaks down all income, outgoings and creditor information. Only this will show a creditor that the offer of payment is fair and reasonable whilst also demonstrating that all outgoings are also fair and reasonable.

 

They are certainly not in breach of the OFT guidance for asking.

 

Hope that makes sense.

 

Seq.

[sequenci]

They CANNOT charge AT ALL for a debt collector, that goes way beyond the OFT Guidelines in Debt Collecting.

 

Actually the guidance says the following:

 

Charging for debt recovery: charges should not be levied inappropriately or unfairly

Remember that legally challenging the fees being levied on the ground of proportionality/fairness is a separate argument, away from the guidance.

[renegadeimp]

I was under the impression that they werent allowed to ask for specific creditor info on a short term unregulated low loan

 

Ill be the first to admit im wrong if thats not the case, however a lot of pdls have buckled when theyve been told no and agreed to a plan. we had reports a while ago about some pdls contacting creditors by various means about the debtor.

 

I mean, i can see the need if the LEGITIMATE debt is around £700+ as that is a lot of money. However, when the debt is £150-£300 for example, does the PDL really need a full list of creditors and that much personal info? The same with DCA's too.

Edited May 18, 2012 by renegadeimp

[sequenci]

What I mentioned above is simple the general rule when dealing with creditors, it's the process used by every advice agency, the courts, the insolvency service etc.

 

The creditors would have an obligation to seriously consider an offer if all the debtor's circunstances + ability to pay is presented to them.

 

Of course some might accept an offer without the need to have this information, some are pretty reasonable when they want to be.

 

What you must keep doing is report any unfair practices to the OFT, that's the prime route forward with these firms right now

[byronvick25]

Got an reponse from minicredits complaints manager with the following

Dear

 

The Following Response is being sent to You according to the Formal Complaints Procedure.

 

I am writing to You to confirm the verbal offer I made over the phone on the 21st of May 2012.

 

Microcredit Ltd received the loan application for £150 on the 29th of January 2012. The due date was chosen to be on the 15th of February 2012 in the amount £175.50.

 

In order to apply for a loan from MiniCredit the Customer has to sign up on our webpage http://www.minicredit.co.uk. After entering the personal, employment and Banking details the Customer receives the pre-Contract to the entered e-mail address and a PIN number to the mobile phone number in order to sign the Loan Agreement on our webpage. After signing the Loan Agreement a copy is also sent to the e-mail address of the Customer. When the Loan application is completed and the Loan Agreement signed the system performs a Credit check and verifies the Bank Account details to make sure that the personal information and address details match with Bank Account and Sort Code.

 

All Customers have the possibility to apply for the roll-over soonest 3 days and latest on the due date if full repayment is not affordable. The information how to apply for the roll-over and how much it costs is available on the online account on our webpage http://www.minicredit.co.uk 24/7. The roll-over application can be only performed through the online account on our webpage.

 

You neither applied for the roll-over nor made the full repayment latest on the due date the 15th of February 2012.

 

The total outstanding balance £1034.50 from the date of issuing (29th of January 2012) until today the 21st of May 2012 consists of the following:

1. Loan principal £150

2. Interest in total £169.50 (1% of the Principal per day)

3. Overdue penalty £25 (was added on the 1st day overdue)

4. Overdue penalty £55 (was added on the 3rd day overdue)

5. Debit Attempt fees in total £535 (every unsuccessful attempt to receive the repayment costs up to £5)

6. Debt Recovery fee £100 (was added on the 30th day overdue)

 

We have received no payments towards the outstanding balance.

 

We are willing to decrease the total amount of debit attempt fees by £420 and waive the debt recovery fee £100 from the current balance £1034.50.

 

We are able to accept the amount of £550.50 as a full and final settlement repayable under a payment plan through our debt recovery partner. The settlement balance consists of the original repayment amount £175.50, interest for 120 overdue days £180, debit attempt fees £115 and the overdue penalties of £80. The contractual interest rate is 1% of the principal per day from the date of issuing until default date the 120th day overdue. The first overdue penalty of £25 was added on the 16th of February 2012 and the second overdue penalty of £55 was added on the 18th of February 2012. The above described overdue charges and interest are in accordance with the Loan Agreement attached to the current e-mail.

 

Your account will be forwarded to our debt recovery partner within May 2012 who will contact You shortly after to set the payment plan agreement in place.

 

Please confirm whether the above described offer is acceptable?

 

 

Kind regards,

 

Kristel Martinson

MiniCredit Claims Department

 

0871 890 3015

Fax 020 71382919

http://www.minicredit.co.uk

kristel.martinson@minicredit.co.uk

have left here contact details for anyone that want them as they have agree to my debt management company they are on £1per month and my DMC will offer them a settlement of between 10-35% of that £550 so in the end will only be paying back £55-£193max all in all i'm happy this is on its way to being sorted thanks all for your advice

[renegadeimp]

3. Overdue penalty £25 (was added on the 1st day overdue)

4. Overdue penalty £55 (was added on the 3rd day overdue)

5. Debit Attempt fees in total £535 (every unsuccessful attempt to receive the repayment costs up to £5)

6. Debt Recovery fee £100 (was added on the 30th day overdue)

 

and all unenforceable.

 

Proof of that?

 

We are willing to decrease the total amount of debit attempt fees by £420 and waive the debt recovery fee £100 from the current balance £1034.50.

 

and

 

We are able to accept the amount of £550.50 as a Full and final settlement repayable under a payment plan through our debt recovery partner.

 

But even then:

debit attempt fees £115 and the overdue penalties of £80.

 

Still unenforceable

[sequenci]

Not unenforceable. Challengable's probably a better term.

[byronvick25]

understand that but like i said it with my DMC now and stress is off and all i will end up paying is £55-£193max

[renegadeimp]

Not unenforceable. Challengable's probably a better term.

 

Yea. Better term. However it does make you wonder what planet they seem to be living on with those figures. Minicredit knows it too, thats why they "waived" 50% of the loan. Prob because they know a £1000 figure for a £150 would be seriously questioned.

[sequenci]

They are massive penalty charges and certainly worth challenging for sure. Not only does it raise arguments specific to the charges but also it questions whether or not there is an unfair relationship between the debtor and the creditor as a whole. I think there is likely to be. More about that in our guide to payday loans which is coming real soon