Minicredit !

[chez60]

I have been trying since 30th January 2013 to set up a repayment plan with these !

 

 

And this is as far as I have got !

 

 

 

Dear

 

 

I have considered the hardship application and can provide you with the following payment arrangements:

 

 

1. Settlement plan for the total balance £329 repayable latest on the 2nd of June 2013. This balance consists of the following:

 

1) Loan Principal £100

 

2) Interest 1% of the principal per day up to 02/06/2013 totalling £149

 

3) Overdue penalty £25 added on the 3rd of February 2013

 

4) Overdue penalty £55 added on the 5th of February 2013

 

 

Payments should be made at least once in every 30 days, but as we have not received any payments from you we expect the first payment of any amount (token payment) to be made latest on the 17th of February 2013.

 

 

In order to follow the settlement plan, please make sure that the registered debit card has been cancelled with the bank, as the system will continue to debit payment from the card registered in our system.

 

 

 

You may make payments towards the settlement balance by calling to our Customer Support by phone and authorising each payment via debit card.

 

 

The settlement plan will help you avoid the default mark on your credit report, that should be marked on the 3rd of June 2013.

 

 

2. Payment plan set up with our debt recovery partner from March 2013 for the total balance of £379 at the rate £20 per month. This balance consists of the following:

 

1) Loan Principal £100

 

2) Interest 1% of the principal per day up to 02/06/2013 totalling £149

 

3) Overdue penalty £25 added on the 3rd of February 2013

 

4) Overdue penalty £55 added on the 5th of February 2013

 

5) 50% of the debt recovery fee £100

 

 

The account would be forwarded to our debt recovery partner in the beginning of March 2013, who will contact you and set the payment plan up.

 

 

In order to follow the payment plan, please make sure that the registered debit card has been cancelled with the bank, as the system will continue to debit payment from the card registered in our system until the account is allocated to our partner.

 

 

The default mark on your credit report will be marked on the 3rd of June 2013.

 

 

Please consider the above and let me know your opinion latest by the 28th of February 2013.

 

 

So I got back to them after this e-mail and said I have been attempting to pay the original loan of £100 (80 received only) by a repayment plan and they have made no attempt to get this sorted so meanwhile they are adding extra !

 

and I then received this

 

 

Dear

 

 

I understand that you are claiming that the cause of the unforeseen financial difficulties is being single. The information provided to us during the registration stated that you are divorced, but not living together. We are relying on the information provided before applying for the loan because we are not able to ask any supportive documentation with this cause.

 

 

The only overdue charges are the penalties totalling £80 are considered payable with the settlement plan as interest is not considered to be an overdue charge. Interest is considered a cost of using the funds provided to you by Microcredit Ltd.

 

 

As payment plans last longer than 4 months and set up by our debt recovery partners, the debt recovery fee £100 is considered the cost for the administration of the payment plan.

 

 

Can someone help me as to what to do next ? Please

[EddiesMum]

I really wish you all the best, Minicredit are an evil company my advice is don't give them your debit card, as they will just clean you out, just send them Postal Orders its up to them whether they cash it or not!!

[renegadeimp]

Ignore those silly charges. They are unenforceable and unlawful.

 

The most you owe is £149 and a REALISTIC default fee. Not one they made up.

[EddiesMum]

Sorry wrong thread...plse ignore.

[pat1421]

Hi all,

I got in trouble with paydayloans. I am on debt management plan now to repay my debts. All creditors more or less ok except Minicredit that is playing their games.

Loan was 300 pounds and now is over 1000 and increasing every day.

I went through their complaint procedure insisting on repaying original loan and 24 days interest as loan was 24 days and one default fee.

Finally I got this response:

 

 

 

 

Dear xxx,

 

*

 

Your Complaint has been referred to me according to the Formal Complaints Procedure.

 

*

 

I apologize for the delay in answering your e-mail but I took time to process the previous correspondence between you and Microcredit Ltd.

 

*

 

A loan of £300 was issued to you on the 30th of November 2012 and you chose the due date to be on the 24th of December 2012. The loan has been overdue for 73 days already.

 

*

 

The first contact from you was on the 15th of February 2013 when you e-mailed to our Customer Support asking if it would be possible to set up a payment plan either through Harrington Brooks or directly. You were advised to fill in the hardship form on the online account in order to apply for a long term payment arrangement. In your further e-mails you also explained that the actual cause of the financial difficulties was over-commitment. Is this the case?

 

*

 

The OFT Debt Collection Guidance states that the Creditor should be open for discussing payment arrangement when the Customer is experiencing financial difficulties. The Creditor should be fair and reasonable when offering a payment arrangement for a Customer in financial difficulties.

 

*

 

What do the terms fair and reasonable mean?

 

*

 

The Customer whose financial difficulties were caused by an unavoidable and unforeseen circumstance should be in favour over the Customer to whom the non-repayment was known at the time of taking out the loan or the cause of the financial difficulties was over-commitment. Depending on the cause of the difficulties the creditor should consider suspending or amending charges and interest, but regardless of the cause should not demand payments that are more than the debtor can afford. The Creditor has the right to require supportive documentation regarding the cause of the financial difficulties to determine the time of the change and whether the cause was unforeseen or not. The reasonable payment arrangement can be set up only when the Customer provides documentation regarding the monthly income and expenditure. As per the OFT guidance we should not set up an arrangement where the Customer will be unable to pay for the basic needs due to the payment instalment amount.

 

*

 

*

 

We will not be able to provide you with the payment arrangement or reduced balance before we have received the necessary documentation, which we are entitled to receive.

 

*

 

You have disputed the charges on top of the original loan amount plus one month interest, but please be aware that the section 87 in the Consumer Credit Act 1974 does not apply for an overdue credit. This applies for the long-term credits when the Customer wishes to repay the credit back before the final payment date.

 

I will look forward to your reply and the documentation we need to assess the payment plan request.

 

*

 

Kind regards,

 

*

 

Kristel Martinson

 

MiniCredit.co.uk

 

Head of Customer Support

 

and Claims Department

 

 

0871 890 3015

Fax 020 71382919

http://www.minicredit.co.uk

kristel.martinson@minicredit.co.uk

 

*

 

*Now I will file complaints with OFT and FOS.

What else can I do? Are they right about section 87 of CCA?

[EddiesMum]

Hi Pat, sorry to hear of your troubles I would just send them a postal order for the amount which you think is fair, ignore those additional, unlawful charges, they would never stand up in Court as Renegade Imp has said. Report them to OFT as well, I think they are investigation anyway. I also think they are a bunch of Russian gangsters!! Everytime I have rung them I get someone with a Eastern European accent.... very strange.... they deliberately refused my payment despite the bank authorising it just to make more money out of me they are [problem]mers, pure and simple. They sent me a text the other day saying they have forwarded my case to their doorstep collection agent....I am just waiting for them to turn up. I have a dog... who already scared the life out of the baliff ( a Court Sherriff), who came looking for the previous tenant here! - lol

 

Has anyone ever had them turn up? I wonder?

 

I just can't take them seriously especially with the name of "Kristel" as head of their Customer Support and Claims Dept (Customer Support and Claims are the same dept?) -

 

I think they are just chancers....plain and simple.

 

Good luck.

All the Best.

Edited March 8, 2013 by EddiesMum
won't let me type scammers!! should read: they are scammers pure and simple

[fletch70]

Hi Kristel is just a silly cow who couldn't find her own head let alone be a head of department.

 

I am not sure what you were claiming about s87 however this section is to do with default notices.

 

It seems to be their policy to blame you for any problems.

 

BTW the owner is Estonian not Russian.

 

As for payment you could wait till it goes to OPOS. the dca.

 

I do agree that a complaint to the fos and oft are in order.

[EddiesMum]

Hi Fletch, you seem to know a lot about them!! (how unfortunate! ) do you know if they really send a "Doorstep Collector" round? I don't think they are a legitimate company....has anyone actually checked their consumer credit licence is valid? ... just a thought...

[liz01]

Hi Fletch, you seem to know a lot about them!! (how unfortunate! ) do you know if they really send a "Doorstep Collector" round? I don't think they are a legitimate company....has anyone actually checked their consumer credit licence is valid? ... just a thought...

 

hi eddiesmum, ive had awful problems with them, im not giving up now im only going to pay what i think i should be paying back and the rest they can go and swivel! when i first started the process of dealing with all our debts, i am seriously ill and needed to get things on track just to help clear my head of the things that i shouldnt be worrying about and concentrating on the things i should, like my illness, and yes at the beginning i was scared when i got their emails etc etc, but not anymore, i have learnt so much from this forum, i actually couldnt care now, oh yes i will pay it back, i owe it, but NOT their stupid excessive made up fees etc, as for doorstep collector, im sure i read on here somewhere that their licence does not cover them for anything outside the office, cant remember the exact wording but the licence does not allow them to come to your doorstep! im sure someone will correct me if im wrong.

[EddiesMum]

Hi Liz, sorry to hear you are not well, I hope you get better soon, yes! I was exactly like you in the beginning, I didn't go out for a few days as it really got me down... but now I couldn't care a less.... I am paying them back next week with a postal order (less the fee it cost and postage). Am going to send them a "To Whom it May Concern Letter" without my new address on it... and offer a full and final settlement - if they don't cash the PO then its their problem, just like they didn't claim the debit card payment. TBH I am not worried if do they come round, they have no powers and my dog would luv to meet them .... lol Take care x

[EddiesMum]

The other thing is maybe a bunch of us go their offices.. in Borough High Street, I would luv to see their faces... they are just faceless, bullies, who rely on scare tactics to get more money out of people!! They are just leeches!!

[fletch70]

Hi yes i have had a bit to do with them,look at other comments on the minicredit forum. Yes their ccl is up todate. 0621701.

They have accused me of fraud, of telling lies etc etc

 

I have nothing but contempt for them. I have not and will not pay them a penny until i get an apology and retraction of the fraud allegation along with compensation for distress. So i doubt they will ever get a penny. They have been told my conditions.

[liz01]

Hi Liz, sorry to hear you are not well, I hope you get better soon, yes! I was exactly like you in the beginning, I didn't go out for a few days as it really got me down... but now I couldn't care a less.... I am paying them back next week with a postal order (less the fee it cost and postage). Am going to send them a "To Whom it May Concern Letter" without my new address on it... and offer a full and final settlement - if they don't cash the PO then its their problem, just like they didn't claim the debit card payment. TBH I am not worried if do they come round, they have no powers and my dog would luv to meet them .... lol Take care x

 

thankyou eddiesmum, WELL would you believe it, after several exchanges of emails the last 2 days, and me NOT backing down and prepared to go to court, (they would be unlikely to do this!) they have now agreed the initial loan, one months interest and one £25 fee!!! and i get to pay it monthly and no set months to pay it in!!! hopefully complaint to OFT helped too,although it will be paid asap! so from over £1000 for a £100 or should i say £80.50 loan, a few months ago, i now have to pay just over £150! brilliant. thankyou all so much for all your help. Now to tackle a couple of other small non priority debts and im sorted! and can now concentrate on my illness and hopefully getting better. So please all of you going through the same thing, keep going, do not back down and they will give in eventually, bombard them daily with emails and YOUR offer of payment etc. wish you all well.

[renegadeimp]

Stop hypothesizing and get those complaints going to the OFT. That is the single most important thing to do right now.

[EddiesMum]

Thats great news Liz!! but I am agreeing with RenegadeImp get those complaints in, coz they are being investigated as we speak! In the meantime, I will let you know if my dog meets any of their "Doorstep Collectors" - lol

[liz01]

Thats great news Liz!! but I am agreeing with RenegadeImp get those complaints in, coz they are being investigated as we speak! In the meantime, I will let you know if my dog meets any of their "Doorstep Collectors" - lol

 

hi thank you eddiesmum,i think renagadeimp might have been saying that to the comment above mine, as i have already done a full and frank complaint, they deserve to be investigated and licence taken away. oh please do let me know would love to know how your dog reacts!!!! hope everything gets sorted for you soon too.

[EddiesMum]

Lol I will do! and same to you hun x:grouphug:

[pat1421]

Thank you guys for a lot advice on this forum.

Yep I am submitting complaints to OFT FOS and maybe trading standards soon. I will keep offering them repayment plan of original loan plus 24 days interest plus one default fee.

I am not sure about section 87 of CCA myself but this thing was

posted many times here that as deemed by s87 of CCA you only owe loan plus one month interest because contract was for 1 month.

I also got their final notice before legal action letter by post. But this must be worth as much as their doorstep collection letters

- rubbish empty threats.

The only thing is they will mark my file with credit agencies on 1st of April. Not sure how to rectify things with credit agencies.

Anyway I will keep sending them my repayment offers and ask for a court action if they dont enable me to repay my loan. I will never ever agree to pay then more.

[renegadeimp]

They cannot mark a default without following a set procedure. They cant simply say "pay now or we'll mark your file".

[pat1421]

One more thing.

I asked them for breakdown of charges and they stated:

direct debit attempts charged up to 5 GBP daily.

In the loan agreement included with their reply email it says:

direct debit attempts charged up to 3 GBP daily.

I asked twice about this discrepancy and no reply to that issue.

They always send the same messages repeating the same things.

[renegadeimp]

The DD attempts are unlawful and unenforceable. Especially since they say every day even so, if youve previously told them you are in financial hardship and told them NOT to debit your account.

 

I hope you are getting it into a full complaint with the OFT.

[fletch70]

They cannot mark a default without following a set procedure. They cant simply say "pay now or we'll mark your file".

 

That is what they do renegade and when you challenge the cra they say that they have given you enough notice etc.

[fletch70]

Need for default notice.

(1) Service of a notice on the debtor or hirer in

accordance with section 88 (a “default notice ”) is

necessary before the creditor or owner can become

entitled, by reason of any breach by the debtor or

hirer of a regulated agreement,—

(a) to terminate the agreement, or

(b) to demand earlier payment of any sum, or

© to recover possession of any goods or land, or

(d) to treat any right conferred on the debtor or hirer by

the agreement as terminated, restricted or deferred, or

(e) to enforce any security.

(2) Subsection (1) does not prevent the creditor from

treating the right to draw upon any credit as restricted

or deferred, and taking such steps as may be

necessary to make the restriction or deferment

effective.

(3) The doing of an act by which a floating charge

becomes fixed is not enforcement of a security.

(4) Regulations may provide that subsection (1) is not to

apply to agreements described by the regulations.

[ (5) Subsection (1)(d) does not apply in a case referred to

in section 98A(4) (termination or suspension of

debtor's right to draw on credit under open-end

agreement). ]

 

That is S87 of the cca. If anyone can explain to me how it applies to pdls i would be grateful

[renegadeimp]

That is what they do renegade and when you challenge the cra they say that they have given you enough notice etc.

 

Doesnt matter if they gave you 10 YEARS notice. They still have to follow a set procedure before its added.

[fletch70]

What is the procedure before they can add a default. I have read the ICO guidelines and can't see where its set out