Minicredit - Extortion?

[EddiesMum]

Hi I am new and a bit desperate please excuse me.

 

I have had various Payday loans with the Minicredit, always paid them back - no problems however, yesterday I got a default notice saying that the loan had not been paid. I immediately checked with my Bank (Barclays), who told me it had gone out and they told me the time it went and also the authorization code from them!!

 

Rang Minicredit, and informed them of all the above (they said that because I moved and hadn't updated my records with them - I moved on the 12th January and to be honest I plumb forgot, they said that because the money is pending... I have defaulted!! . I re-checked with Barclays (who I have to say have been extremely helpful) who said it is upto to Minicredit to claim the funds - I am quoting what Barclays said "it is their responsbility to claim it". I have emailed Minicredit and told them all of the above. I also filled out a complaint form.

 

I will not ring them again, its 0871 number (so they can make even more money from me!). I haven't updated my address with them....I am too scared too! they are saying that I now owe them £55 plus another £25... the alleged loan default is 1 day old... geez these people are a nightmare!!

 

Anyone got any ideas how to deal with these dreadful extortionate people?

 

Thanks and any help gratefully received, I am so upset my hands are shaking as I type this!!

[EddiesMum]

Just had this reply from them!!

 

According to Your loan agreement it is one of Your contractual responsibilities to keep Your billing address up to date. When MiniCredit (Microcredit Ltd) attempted to claim £128.00 yesterday on 12/02/13 at 08:01:39 Your bank confirmed that the registered billing address does not match with the address You have provided to our company. Unfortunately we are not able to accept those funds due to the billing address conflict as it would be considered a fraudulent transaction. Our customer support team also explained the same issue over the phone today. Please consult with Your bank's authorisation department and ask them to cancel the authorisation code and release the funds back to Your available balance. Full repayment with a correct address is still necessary. Please keep in mind that daily overdue charges will be added.

[renegadeimp]

Why do they need a correct address? Btw, remind them of UK law where they cant refuse a valid form of payment. Perhaps get a prepaid debit card or use standing order.

[EddiesMum]

Why do they need a correct address? Btw, remind them of UK law where they cant refuse a valid form of payment. Perhaps get a prepaid debit card or use standing order.

 

Thanks so much for the reply!! It has now gone from £128.00 to £208.00 in one day!! The £128 is sitting in the system. TBH, I am not going worry about this anymore....I am quite happy to go to court over this I have kept all the emails... So its down to them not me. Thank you for the mention regarding UK Law I will send them one last email and leave it at that!

[renegadeimp]

Those charges can never be enforced. Dont worry about them. One of minicredits old tricks ( which they seem to be using again) is to not debit the account and then add on charges. They claim that the money was never in the account, even, as you have proven via your bank, the money was always there.

 

I can write you up a letter if you like, but i need you to post up copies of their correspondence with you, minus personal info. This way i can get exact info to use against them in a formal complaint.

[EddiesMum]

Thanks so much for your help renegadeimp I am so grateful!! I have felt so alone today haven't been able to go out but I feel a bit better now thank you). The above is the only reply I have had from them other than the standard acknowledge claim email. I have just sent one last email to their claim's dept.... telling them what you said that they are in breach in UK Law by not accepting a valid form of payment, also they have admitted that they have the money, because they are asking me to get my bank to send it back me!! - Madness!! I have also said I am happy to go to court and I look forward to hearing what the judge has to say about this! Oh and I look forward to receiving the costs awarded in my favour!! - what do you think? I don't really want to write to them... because then they would have my new address and come round? What do you think I should do?

[renegadeimp]

IF they try and come round ( they wont, because they would be breaking the law as well as the terms of their licence if they do), then treat them like any other person you dont want at your home. They have zero, nil, nadda rights whatsoever.

[EddiesMum]

This is what I emailed them:-

 

Having taken legal advice, I am informed that you Minicredit,. are in breach of UK Law by refusing a valid form of payment. Barclays bank confirmed they authorised the payment on 12/12/13 and you yourselves have admitted that fact. I am quite happy to go to court over this and I look forward to the Judge's decision and the costs that will be awarded to me when this ridiculous case is heard!

[renegadeimp]

In future emails use the phrase "independant legal advice". Seems to work better

 

If they still chase you after that email, then we'll help you with FULL complaints to the OFT and also send minimuppets a formal complaint, which will force them to reply.

[EddiesMum]

Oh that's brilliant renegadeimp thanks so much - yeah lets see what they come back with if anything? I knew they had a bad reputation... but didn't realise how bad till this... why are they so horrible? its just extortion - blatant extortion they just want more money out of me... But thanks so much for your kind offer, I will definitely take you up on it if I need to Thanks.

[renegadeimp]

My sister had huge problems with them early last year. She paid back her £100 loan in full 2 weeks after the due date and they tried to say she owed £600 in charges. Needless to say, a nice little letter to them the day after we received theirs, and we've heard nothing since may 2012.

[EddiesMum]

Oh wow, that's terrible, but great your letter worked hopefully it will for me also thanks so much for your help today its just so great that I am not the only person who has gone through this. You would think the government would do something about all these companies wouldn't you?

[renegadeimp]

Many people including MP's have tried. The government seems to ignore them. We know why they do, but we are not allowed to say it here, as it could bring CAG into disrepute.

[EddiesMum]

interesting! can you pm me? I promise I won't post it on here.... I am very intrigued!!

[EddiesMum]

sorry should read very!! lol,

[EddiesMum]

typing mistake - ignore

[EddiesMum]

Just to let you know, I had Barclays cancel the continuous payment authority today... just in case they suddenly decide that they can take the money without my address!! LOL. Barclays have said if they don't take the £128 (original amount that is in pending) it will go back to me so I will then have to send it to me them so how by some other means other than debit card.... I don't have a chequebook so I am guessing that they won't accept a bank transfer? I suspect they will start harrassing me soon for the £208 +?

[renegadeimp]

If they wont accept your payments, try this idea by COnniff, one of our site admins here.

 

Send them a postal order to their head office, and tell them that you will be deducting the cost of the postal order, and stamp/stationary from the amount you legitimately owe, until the debt is clear. It might sound weird, but they CANNOT refuse to accept this payment. If they won't cash it, it is their problem. Not yours. You have sent them the money you owe. What they do with it once they receive it is entirely up to them.

[EddiesMum]

Yes that's a good idea, I will do it when the bank sends the funds back to me... I will send it registered post too. They have sent me another email saying that if they take the funds its fraud - rubbish excuse!! do you want me to post it up?

[renegadeimp]

Yep. Just make sure to delete any personal info including reference or barcodes.

[EddiesMum]

okay here it is...

 

A MiniCredit Claims Department member has replied to your claim, #756153 with the following response:

 

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

 

Microcredit Ltd used our contractual right to debit the payment from Your registered debit card on the chosen due date. When we processed the payment we received the information from the Card Issuing company that they have a different address registered and our system detected a fraud condition and rejected the transactions.

 

It is explained in the Loan agreement that it is Your responsibility to make sure that the billing information You have provided is correct.

 

The funds at the moment have not left Your bank account but they are being reserved by Your bank and will be released in 5-7 business days depending on Your bank when the authorization code expires.

 

 

 

We hope this response has sufficiently answered your questions. If not, please do not send another email. Instead, reply to this email.

 

Kind regards,

Minicredit Claims Department

[renegadeimp]

Try this. Get them to give you their bank details so you can make a payment yourself. If they refuse, tell them that you will send them a Postal ORder for the amount, and you will deduct the cost of the PO, stamp and stationary from the amount you owe. That should make them shift,

[EddiesMum]

Unfortunately, I deleted it from my Blackberry, so I can't get the message back if I delete off there (don't know why but it doesn't stay on my Gmail account) the email just says that I failed to make the payment by the due date etc. and I now them £248.00 so its gone from £128 to £248 in less than a week! TBH I am just going to ignore these emails and texts now. When the £128 gets put back in my account from Barclays next week I will send them a postal order to their Borough High St address (its the only address they have so assume its correct). If you could help with a final letter I will include with the PO that would be fantastic!!

[renegadeimp]

Make sure to deduct the cost of the PO and stationary used from the total debt.

[EddiesMum]

I will thanks also the cost of sending it registered post! LOL, the Minimuppets have tried to debit the same card today for £25.... (this is the card that they say is fraudalent if they use it... and yet they are trying to debit it again...what a bunch of liars they are!!