Advice please

[sillysausage27]

Hi. I took out a loan with Speed Credit back in April, and have been paying either extension payments or partial repayments ever since. The original loan was £400, I have repaid £434, and still have a debt of over £600. It is to this end that I have written them an email today, and would appreciate any help from anyone with the letters/calls I am undoubtedly going to receive.

 

Here is a copy of the email:

 

To whom it may concern,

 

I am giving you notice that this month, July 2012, I shall be paying the extension fee only. This is due to extenuating circumstances.

 

I request that you calculate a repayment plan commencing next month, August 2012, on the 27th of each month, in order to reduce the debt.

 

My original loan was for £400, and I have so far repaid £434, with an outstanding balance of £638. I will be paying the £96 tomorrow, the 27th July 2012, which will reduce my balance to £542. This will then incur charges of £12 per hundred per week, so next month the outstanding will be £796.24. This debt is becoming impossible to pay off in one month, so I request a reasonable repayment plan of £100 per month over 9 months. This will mean that the original loan of £400 will have generated a debt with total repayments of £1430. From my calculation, this would equate to an APR of 1888%. This would be beneficial to give me the peace of mind that my debt was being repaid, and wouldn't just keep spiralling out of control.

 

With Regards,

XXXXXX

[JOHNINYORK]

I think that you should have asked for advice before you sent them that email.You are prepared to give them over £1000 in interest and charges for a £400 loan.Then they will find extra charges to load onto you,that is if they will give you a repayment plan.You are dealing with cowboys here,who think nothing of threats,intimidation and harassment.

I would be prepared to give them the £96,then if they want anymore,let them take you to court.Where they can justify putting all those charges on.

I would also be thinking about another bank account or lose your bank card.Regardless of what they say,they will plunder your account.

I am sure other people will have other ideas.

 

Regards,John

Edited July 26, 2012 by JOHNINYORK

[Jamie Kingston]

that's crazy - your offer is too too high. Only offer to pay back your outstanding balance as of today and £100 per month is more than fair and reasonable.

[renegadeimp]

Do not roll over the loan. Its wasting money. Youre basically giving them money for no reason.

[sillysausage27]

Hi. Thanks very much for your quick replies. A few things to say:

 

I found this forum after sending the email. I wish it had been the other way around, but can't change that now.

 

As for the suggestion of paying back what I owe, this is £638 at the minute. I am unable to do this, so can only pay the extension. The interest charged is in excess of my manageable repayment, so this is why I need to offer a substantial amount to stop the interest being charged.

[Jamie Kingston]

So from next month offer 6 payments x £100.00

[renegadeimp]

Dont pay the "extension". Skmply tell them you are unable to pay it back on time and you do t want the extension. Once that is done, youll haveto start sorting out debit cards and cpas as the pdl WILL ttry and debit your account for the full amount or whatever they can get.

[sillysausage27]

OK thanks for the reply Jamie. I'm confused though, because the contract says that interest will be charged at £12 per £100 per week, and surely I have agreed to this, so to offer £100 for 6 months, would not be paying the interest charged, just the outstanding balance, on effectively a 6 month interest free basis. Is this something I am capable of asking of them?

[renegadeimp]

When it comes to PDL's, remember this simple phrase:

 

"Just because it is in their terms and conditions, doesnt make it lawful or enforceable". If it did, then they could put ANYTHING in it. Thats why we have consumer laws, to stop companies throwing in silly terms.

[sillysausage27]

Right OK thanks renegadeimp. I was just under an obviously false impression that contracts were enforcible, as long as both parties had agreed to it. I feel like I'm in a minefield just waiting for the first explosion

[renegadeimp]

Most contracts are. However, with payday loans, they contain a lot of unfair terms and clauses which make part of the agreement unenforceable. They rely on debtors lack of knowledge to get them to pay the amount. It's also a reason why they offer "limited time reductions" in the amount owed, to make it look as if the lender is being generous and working by the rules , or when you question the charges, they remove most of them. They know, should it ever go to court, the judge will remove most, if not all of the additions.

[sillysausage27]

Hi. I emailed info@ speed credit. co. uk with the request for a repayment plan. Today I have received this email:

 

You have still not contacted us regarding your outstanding debt with our client Speed Credit in respect of your Speed Credit Loan***.

 

Please note that:

- all evidence and correspondence will shortly be sent to Solicitors and a case file prepared to be presented to the County Court for Judgement

- expect Recovery Agents to visit all addresses we have on file for you.

- your file is also with Bailiffs who will be pursuing this in conjunction with Solicitors.

 

We recommend you call immediately as we may be able to freeze any imminent activity on your file and come to a suitable arrangement with you.

 

You currently owe:

 

Loan and Interest GBP1072

Cash Transmission Fee GBP 5

Missed Payment Fee 1 (day 29) GBP 10

NDR Accept Case File GBP 200

Missed Payment Fee 2 (day 43) GBP 10

Solicitors - Case Preparation GBP 150

Missed Payment Fee 4 (day 71) GBP 10

Missed Payment Fee 3 (day 57) GBP 10

 

Repayments todate GBP530

Total GBP 937

 

You will be liable for the full amount and further Court fees if you do not contact us immediately on 0843 381 0843.

 

Yours sincerely,

 

 

DEBT MANAGER - Greg Campbell

NORTHERN DEBT RECOVERY

0843 381 0843

 

Please advise on what my next step should be?

[renegadeimp]

Get it to the OFT in a complaint. It's obvious they are ignoring you purely to hike up the debt and to try and get more money. Keep hold of the letter/email just in case they try and take you to court. You can show a judge the amount of abuse, bullying, harassment, blackmail that they are doing to you. As well as all the unfair charges and ignoring your offers of repayment.

[sillysausage27]

Thanks renegadeimp. Should I email NDR, or is the email I have sent to Speed Credit sufficient? I couldn't seem to find an email address for NDR, and as they are one and the same I would have thought they could see correspondence with the other (Speed Credit haven't as much as acknowledged the email to them). Are they allowed to insist I call them, or is the email sufficient?

[renegadeimp]

Send a complaint to each company involved, and aslo the OFt, trading standards, your local MP and Stella Creasy MP.

[sillysausage27]

Sorry I meant with regards to the repayment plan request. Do I need to send that to NDR? I have sent it to Speed Credit.

[renegadeimp]

Send it to whoever owns the actual debt. If the original creditor hasnt sold it, then only converse with them and ignore the childish DCA's that come your way. If SC tell you to deal with the DCA's, simply say no. There is nothing in law that says you must deal with some DCA that has NO legal rights to the debt. Therefore you will only be communicating with the original creditor, and failure by that creditor to acknowledge or help towards a repayment plan will be recorded and presented in court as part of a defence against any action.

[sillysausage27]

Quick question. If the licence is revoked, will all existed debt be unenforcible? As I have paid more than the loan, I don't really want to give them another penny.

[renegadeimp]

If you have paid the original loan plus original interest, then they have to justify the unfair charges on the account. Don't rely on them losing their license to get out of any chance of paying it.

[sillysausage27]

Today I have received this email, any idea on a suitable response?

 

Your have made NO effort whatsoever to resolve the matter of your debt with our client Speed Credit in respect of your Speed Credit Loan***. We have no option now but to allow Solicitors, Door Agents and Bailiffs to deal with this case. You are liable for the full debt and will be pursued together with all evidence of your constant refusal to speak to us. This will NOT act in your favour as this matter progresses.

 

You currently owe:

Loan and Interest GBP 1168

Cash Transmission Fee GBP 5

Missed Payment Fee 1 (day 29) GBP 10

NDR Accept Case File GBP 200

Missed Payment Fee 2 (day 43) GBP 10

Solicitors - Case Preparation GBP 150

Missed Payment Fee 4 (day 71) GBP 10

Missed Payment Fee 3 (day 57) GBP 10

 

Repayments todate GBP 530

Total GBP 1033

 

Please note

1. Door Agents have been dispatched

2. Solicitors have been briefed

3. Bailiffs have been informed

Judgement will be sought and a Warrant of Execution to seize goods/obtain an attachment of earnings.

 

CALL 0843 381 0843 NOW to STOP further action

 

Yours sincerely,

 

 

DEBT MANAGER - Greg Campbell

NORTHERN DEBT RECOVERY

0843 381 0843

[renegadeimp]

Get it in a full complaint. They are breaking oft guidance all over the place in that letter.

[sillysausage27]

Right I have managed to negotiate a repayment plan (I know this is against advice, but I wanted a quiet life - sorry guys). I paid £100 on Friday in cash at the bank which would leave 4 payments of £100 to close the loan. I come home to find this after the Bank Holiday weekend:

 

You have failed to honour the payments you agreed to so this file has been fast-tracked for recovery through the courts and by recovery agents.

 

You should contact Northern Debt Recovery within 24 hours days on 0843 381 0843 or we will be left no option but to send our Recovery Agents to all addresses we have on file for you in order to obtain payment. This will incur additional fees.

 

We will shortly be liaising with solicitors to obtain a County Court Judgement against you. Once this is secured we will return with a Warrant of Execution from the County Court and certified Court Bailiffs to seize go ods up to 9 times the value of what you owe.

 

Legal and Recovery fees have been added to your file. Below is a breakdown of what you owe

 

Loan and Interest £1168

Cash Transmission Fee 29.04.12 5

Missed Payment Fee 1 (day 29) 27.05.12 10

NDR Accept Case File 10.06.12 200

Missed Payment Fee 2 (day 43) 10.06.12 10

Solicitors - Case Preparation 10.06.12 150

Closing Amount Discount 09.08.12 533

Missed Payment Fee 4 (day 71) 08.07.12 10

Missed Payment Fee 3 (day 57) 24.06.12 10

 

Repayments todate £630

Total £400

 

These fees may be reduced if contact is made immediately.

 

WE STRONGLY RECOMMEND YOU CALL US IMMEDIATELY ON 0843 381 0843. We can in certain circumstances put you on a more affordable payment plan but this requires your cooperation.

 

WARNING: This debt will only increase in size the longer you ignore it as interest , Court fees and Bai liff fees continue to accrue.

 

If this debt has already been settled please contact us immediately so we can correct your file.

 

Yours sincerely,

 

 

DEBT MANAGER - Greg Campbell

NORTHERN DEBT RECOVERY

0843 381 0843

 

NOTICE: The contents of this e-mail are intended for the named addressee only.

 

It contains information which may be confidential and which may also be privileged. Unless you are the named addressee (or authorised to receive for the addressee) you may not copy or use it, or disclose it to anyone else. If you received it in error please notify sender immediately and then destroy it.

Now the amount "outstanding" is correct, but the letter seems to make out I haven't paid... help?

[renegadeimp]

Its their normal threat letter. Send it to the oft and file it away incase you need it for court action in the future.

[Jamie Kingston]

quiet life? - just email them back or call them and get them to confirm in writing threat they have indeed received the payment and that you in fact did not default on the payment arrangement, it's probably an error.