Defaulting from 9th June

[Welshy27]

I have spent the day reading all of these threads about MiniCredit and how they have treated people when they've defaulted on their loan. I will owe £589.90 (incl interest) next Sat and do not wish to attempt to roll over the loan again. I have already sent them three emails in the past two days to ask how their partial repayment works and was shocked to discover all of those additional charges they add on a daily basis. I got their usual standard uncohearant reply:

Dear xx

 

On the 1st day overdue £25 penalty will be added and on the 3rd day overdue a second penalty of £55 will be added. On 30th overdue day £100 will be added as a debt expense recovery fee. The interest and the overdue charges such as attempt fee\'s will be added daily according to the Loan agreement until full repayment. We accept partly payments You make on Your MiniCredit.co.uk account, but we do not freeze the balance. You have the option to make payments of any amount 24/7 on Your MiniCredit.co.uk online account from third day overdue.The settlement or settlement plan must be discussed only over the phone with customer support agent and after Your account gets overdue."

 

And here are one of my replies so far to them:

 

I am fully aware of your additional charges that you continue to add:

1) £25 on 1st day and £55 on third.

2) Daily ongoing Interest charged at 1%

3) Daily £5 charge for attempting to take funds from account

4) £100 after 30 days for debt management

 

Since I can demonstrate willingness to make frequent reasonable partial payments, I insist that these additional charges are completely waivered at your discretion - especially since I am contacting you in advance about this to show goodwill. I wish to settle my loan as quickly as possible by making these partial payments since this will prove a more efficient repayment method than rolling the loan over. I believe these above charges to be legally unreasonable (especially 2,3 and 4) and by law I'm only required to pay the original loan amount and one month of interest. As a customer who has notified you in advance with a solid plan of repayment, I would like a personal response of how we can proceed with my loan/account with you once it becomes overdue.

 

I want to know if I can do anything proactive before the 9th so to completely prevent them continuing to add daily interest/card attempt charges etc once I'm in arreas. I have written an email to the FSO and understand the importance of communicating at all times in writing. The thought that they could still automatically take money from my account even if I were to cancel my card really panics me and I don't want to have to set up a new bank account. I am trying to show my willingness to pay back the original loan and interest by making contact with them in advance. I am obviously not prepared to pay any of their additional charges that they will continue to apply (no matter how much I partially pay in regular frequency.)

 

I am on benefits due to a long term ongoing related sickness - would this work in my favour in terms of making repayments if passed on to a DCA? I also live with my parents so don't need them potentially accidently opening a demanding letter from Minicredit etc - even worse someone turning up at the door! It seems almost more convinient for them to immediately pass my debt over to perhaps OPAS who may agree to a flexible repayment schedule without anymore additional charges. I know they are linked but is this worthwhile to try approaching them independently by email to explain my debt and suggested repayment plan?

 

Many thanks to those who contribute to this forum - it has helped me to start undertstanding how this PLD company works. I would very much appreciate any help or support that people can offer.

 

Thanks

Welshy

[Welshy27]

I sent the complaints department another email this morning with

 

Dear MiniCredit.

 

I wrote to you two days ago in regards to my account and have yet to receive notification of my email as being received and dealt with, as promised by your policy:

 

"Our Customer Service staff will acknowledge your complaint by email within 1 business day. When we acknowledge your complaint, we will provide you with these details, which summarize how we will handle your complaint."

 

Below is a copy of my email which highlights my concerns regarding the account:

[[**my email above**]]

 

Having read other people's experiences of defaulting on their MiniCredit loan, I am very concerned as to the practices that you undertake and charges that you subsequently apply. To avoid all of this hassle, I am wondering whether it would be worth you immediately transfering the debt over to perhaps a DCA like OPAS or Mackenzie Hall who I believe will be more willing to negotiate a repayment plan without any additional charges. I would appreciate an immediate personal response and not a copy/paste reply of your terms and conditions.

 

They quickly replied with the option to apply for Hardship which I've briefly read about on here. Is it a good idea to do if I no longer have to 'deal' with MiniCredit and come to a partial repayment settlement with a DCA? Here is their reply which at least used Standard English!:

 

Dear XX

 

If You do not wish to use the settlement plan option that was explained in the previous e-mail we can activate a hardship form for You.

You would need to fill in the hardship application on Your Minicrdit.co.uk online account, sign it and forwarded this to us. If the hardship application is accepted Your account will be defaulted immediately and forwarded to our debt Recovery and Legal partner who will be able to set up a mutually agreeable payment plan.

In order to apply for Hardship status of your account please follow the

instructions below:

 

1) Please fill in your current income details.

 

2) Please fill in your current expenditure details.

 

3) Please fill in your creditor details

 

4) Please review the details.

 

5) Click Print the form

 

6) Sign, date and fax the form to 020 7138 2919

 

7) Our team will need to assess the proposal. You will be notified with the decision within 5 working days to your email address registered with us.

 

We may require documentary evidence of your claims.

 

Any thoughts on how I should proceed?

Thanks

[renegadeimp]

Opus is just minicredit under another name and theyre useless. Mh have a "reputation". Do a quick search on here to get a good idea of their tactics.

[Welshy27]

Just an update to say that I filled in the Hardship Application on the weekend and will await a reply. I found a direct email address on here to someone at OPOS and sent them a proposed repayment plan if Minicredit would transfer the debt over to them. They have been very helpful and accepted my offer/conditions which I'm obviously pleased about. I just now want this to be dealt with ideally before Sat (due date) so I no longer have to deal with Minicredit and their absurd charges for defaulting. Am I right in thinking that once the debt gets passed over that Minicredit will block access to my account and that my debt no longer has directly anything to do with them? My main concern is their practice of attempting to take funds repeatedly on a daily basis and this is why I no longer want any involvement with them and would prefer to clear it with OPOS.

[renegadeimp]

I hope you didnt fill any creditor specific details or give your bank details/employment details in that hardship form.

[Welshy27]

Under the creditor section, I just typed Minicredit and the amount due. You only have to write in figures and not go into specific details. I'm on long term sick benefits and live with parents so had very little to fill in on the form.

[renegadeimp]

If you are on government benefitd or even ssp then you ONLY pay £1 a month

[Welshy27]

Thanks for this - I was wondering about whether I could make this as a maximum payment due to being on benefits. However, despite it's appeal, I don't fancy paying £1 each month for potentially the next 40+ years to clear a £500+ debt - wouldn't this affect my credit too? I just want to be rid of this debt and suggested in my email to OPOS a repayment of £30 a month. I'm not sure whether it's worth emailing MiniCredit again to state that I'm on benefits and my intention of repaying OPOS back at the above rate in the hope that they accept and approve the hardship?

[renegadeimp]

Yoh wont have to pay it that long. Just tell them youll pay £1 a month to be reviewed every 6. benefits are for you to live on. Not for bills.

[Welshy27]

Well it's D-Day tomorrow! I've transferred my money into my savings account. MiniCredit didn't accept my hardship application by email and insisted I faxed it which I did on Wed. I haven't heard anything back but they say it can take five working days for them to reply - they didn't reply to my message about asking just for confirmation that they've received it. I just hope that come tomorrow when my account goes into default that the wheels will be put into motion so that my account can be passed on to OPOS by early next week.

[renegadeimp]

You know Opus are the same company right? It's pretty much another desk in the same room.

[Welshy27]

Yeh I do but I'd rather deal with them since they are willing to set up a monthly repayment plan without any extra charges. They've already confirmed in writing that they would support me in a monthly repayment plan once Minicredit pass the debt onto them which I have insisted they do. I'm hoping I can also negotiate the total amount due with OPOS seeing as I took the £450 loan out in mid April, rolled it over once at a cost of £125 and as said am on disability benefits. I'm quite willing to pay £20-30 per month and then review a settlement perhaps at the end of the year. I just want to be rid of all this.

[renegadeimp]

If you are on benefits, then £1 a month is the max they get. No negotiation. If they took you to court, which is unlikely, the judge will tell them £1 a month. He could even reduce the debt or wipe it.

[Welshy27]

If you are on benefits, then £1 a month is the max they get. No negotiation. If they took you to court, which is unlikely, the judge will tell them £1 a month. He could even reduce the debt or wipe it.

 

That's great cannon fodder for sure - I will bear it in mind if all goes to plan and it gets passed on to OPOS. Just want to also say thanks to you so far for responding to my thread and for all the advice you have given on these forums that has helped me along the way. I will keep you updated.

[Welshy27]

Minicredit immediately rang me two minutes after I sent them an email about the progress of my hardship application. They were willing to immediately pass the account on to OPOS but only if they added on a charge of 120 days worth of interest at £4.50 per day!! I told them that it was against FSA regulation and law to add such a charge, told them to email me that charge in writing and then hung up on them. I have emailed OPOS to ask if they would 'wipe' such a charge since they are willing to help me. I think I am nearly there in getting this sorted - hopefully.

[renegadeimp]

Theyre playing their old tricks again. You MUST report them to the relevant authorities. If you dont, then you are agreeing with them and letting them get away with what they are doing.

[Welshy27]

Thanks for the usual quick reply! I have just emailed the OFT about my case - anyone else I should report it to at this stage?

I will be very interested to see if Minicredit do actually confirm in writing those proposed charges!

[Welshy27]

I rang up the person at OPOS who I've been emailing and explained what Mini Credit had said on the phone. He gave the indication that he would be able to wipe these charges but couldn't say for sure until it had been officially passed over which I can appreciate. His other advice was that once it gets passed over that I should file a complaint with the FOS about the charges which would give more chance of the charges being wiped. I'm half tempted to verbally agree for Mini Credit to pass on my account with these charges with the intention of them hopefully being eventually wiped out by OPOS. I just don't want the stress of still being stuck with Mini Credit and them trying to touch my bank account on a daily basis. At least with OPOS I'd be back in control and again he proved to be somewhat helpful and understanding.

[sillygirl1]

Don't phone them, unless you can record the call.

 

As already discussed their £100 fee for debt management is illegal and unenforceable and very much against the OFT Guidelines.

 

From the 24th of this month the PDL companies have their own code of conduct, and I bet this lot break every one of the code (that is if they are members).

 

OPUS are the next desk in the Minicredit chain so you would still e dealing with Minicredit.

[Welshy27]

I decided to ring Minicredit (yes I know it's not advised) to discuss their phonecall earlier about the proposed additional charges that they would add on as a total even when they send it on to a DCA. They said they don't normally do this until after 120 days and hence why they would forward this amount on to what's already due. They couldn't guarantee that it would go to OPOS - they mentioned Fredricksons and Mackenzie Hall as other options but I thought the former no longer had anything to do with Minicredit? It would be forwarded to one of them within a week and I emphasized my preference for it to go to OPOS - a default would be marked on my credit.

 

They explained the option of settling my account with them over the 120 days and I expressed concern at their continuous daily attempts to take funds and the £5.50 transaction fee for each time I wanted to make a partial payment. The advisor told me to cancel my card to stop this (surprised at this and already had done) and that if I made a payment each time over the phone with my new card that there would be no fee and that my card details wouldn't be stored - hmmm! They refused to give me their bank account details to pay it into. This would then allow a final settlement to be agreed where fees could be wavered after making regular payments (have this confirmed in writing from previous email). However if I stick with them, I would still receive correspondence through the post from them which I don't want - can't risk my parents opening it.

 

There are pros/cons to each of these situations and not sure now what is best. I know I've said that I'd rather deal with a DCA but them adding on 120 days worth of interest (£500 roughly) on top of the £600 due is obviously extortionate. OPOS would I think be happy to clear that charge and have agreed to my payment plan on the original loan/interest - with possibility for negotiating total amount. However what if it doesn't go to OPOS and I end up in more difficulty with MckHall who won't accept my payment plan and won't clear those fees? Should I just stick with Minicredit and try to pay off the original loan and interest within four months but have the hassle of them continuing to add charges to my account whereby there is no certainty as to how much is waivered and to risk them not actually using my new card details that I would give over the phone!?

[renegadeimp]

Never speak to them on the phone ( but you already know that).

 

ALso, you will just get a cocky min wage rep answering the phone who has been told to say and do anything to get money out of you. Thats why you might have more luck emailing or writing a letter to the management. Once the management know you wont be pushed around and know your rights, they back down and negotiate with you. The min wage reps simply do not care at all what happens. All they are after is your money, and as much of it as they can get.

 

As for the interest, i wouldnt worry. They cannot apply that to your account at all. It is not enforceable and should your debt go to court, you can tell a judge exactly what happened, and chances are he will wipe it from the debt. They are pretty much charging you for something that hasnt happened yet. And 4 months in advance to boot.

[sillygirl1]

Your contract was signed for x days, not for 120 days, so they are making a mockery of contract law, haven't you already read the threads about this company on this site?

 

Fredricksons stopped dealing with PDL companies due to the 'interest and levels of complaints' sent to the OFT... so there they showed some sense.

 

Mucky Hall are terrible, you cannot deal with them reasonably as they do not know the meaning of the word. They will shout over you, try to get your bank details and generally make your life even more miserable, they are not above calling at work, I told the oik who phoned me at work that if he phoned hourly til I paid the alleged bill he would be wasting his time, and got onto Trading Standards who saw them off.

 

You really need to read the Minicredit threads, all their 'added extras' are unenforceable so all you really owe is what is on your contract.

[Welshy27]

Thanks for both of your quick replies yet again! My head is just in a right spin now as to the options available and which is the lesser of the two evils really. I'm going to send the same email off to MackHall that I sent to OPOS and see if they reply to my agreement should the debt be passed on to them instead. I've got a few days to decide before Minicredit would pass it on to them should I give them permission to.

[renegadeimp]

Ok. before your head explodes, go take a break and clear your head. What PDL's say, and what is actually allowed to happen are two different things. DO NOT contact ANY DCA's until your debt has been passed to them. Especially the less reputable ones that PDL's love to hire.

[Welshy27]

I think that is wise advice Rene after the day I've had. I panicked when I rang them back because at first they were denying that my hardship had been approved and thus couldn't proceed - they demanded documentation which showed why I couldn't repay etc which I said was against data protection. I then stated how they shouldn't have called me about it and that by their own words on the application that they were required to contact me by email with their decision. I have now received written confirmation from Minicredit that they will pass it on to a DCA should I decide to proceed with that option. However, there email does not mention any of the charges that were discussed so I could try disputing them with the DCA on that basis once it gets transferred. I have taken your advice and not contacted MackHall but think I am leaning more towards the option of cutting ties with Minicredit and dealing with a DCA.