Problems with Minicredit setting up Repayment Plan

[TheBooksss]

In short, I have been having very bad problems with my mental health and suicidal thoughts, my finances have spiralled out of control and I have been off of work ill.

 

I contacted Minicredit asking for a repayment plan and they sent me nonsense about lots of fees and whatnot. I am not in the best of positions as my old wages were on there (£1300/mo instead of the now £850/mo). I took out the loan after already being signed off for work. I basically irresponsibly took out this loan because of a lack of judgement and I was already grasping at things.

 

May I point out that upon taking this loan out I had full intention of paying back and that my sickness was prolonged longer than I expected.

 

I have managed to work out repayment plans with all other creditors aside from Minicredit. They have asked me for bank statements and sicknotes which I have already sent them.

 

It was due today, I basically would like to know how I can minimise the damage of this to my bank and get a secure repayment plan in which isn't going to require me to pay what I cannot afford.

[TheBooksss]

A MiniCredit Hardship Department member has replied to your application, #Numbers with the following response:

 

Thank You for finding the time to take photocopies of the documentation. The second sicknote attachment showed that You were unfit for work starting from 13/10/13. You have applied for the loan on 28/10/13, 2 weeks after You were fully aware of the fact that You are not working and unable to make a repayment if You take out a payday loan. We are disappointed to learn that You still proceeded to apply for credit while knowing that the repayment is not affordable.

 

It is our aim to be responsible lenders. We perform a credit check before issuing out every loan. As there were no defaults on Your credit check file and income according to Your loan application were £1377.00 we approved Your request and issued a loan of £220.00 to You on the 28th of October 2013. Credit check results do not reveal the specifics of the customer's income and expenses, therefore it is the consumer's responsibility to provide correct information so that proper affordabilty checks could be made. We had no means of knowing that You were off work due to Your medical condition in order to prevent this loan application.

 

 

 

Even though our service was misused and we may consider ourselves to be a victim of irresponsible borrowing we are still willing to come forward and remove one charge from each of the previously given payment offers. Our revised proposals are as follows:

 

The first option is a settlement plan for £483.10, paid through our payment collection partners. Our default period is 120 days. You would need to make at least one payment a month towards the balance and clear the whole remaining balance by the 22nd of March 2014. Choosing this option means that You are able to avoid a default on Your credit reference file. The settlement plan balance consists of the following:

 

1. Original due date balance £291.50

 

2. Reduced overdue charges £20.00 (2nd overdue of £20 charge waived)

 

3. Interest for 60 days £171.60

 

 

 

The second option is a long term payment plan for £503.10, also paid through our payment collection partners. This arrangement allows reduced monthly payments over a longer period of time, however choosing this option means that a default on Your credit reference file can not be avoided. The payment plan balance consists of the following:

 

1. Original due date balance £291.50

 

2. Overdue charges £40.00

 

3. Interest for 60 days £171.60​

 

(recovery fee £50 waived)

 

The contractual interest rate is 1.3% of the principal per day from the date of issuing until the 60th day after the chosen due date. The above described overdue charges and interest are in accordance with the Loan Agreement.

 

 

 

Please let us know what You decide considering the above latest by the 27th of November 2013. If no response is received or alternative arrangement set up by then we will proceed with the second option of a long term payment plan.

[renegadeimp]

Typical junk they send out to everyone that breaches OFT guidance and states unlawful things.

[renegadeimp]

http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?335-Minicredit-Minicashloans

 

Have a good read of that forum.

[TheBooksss]

 

Have a good read of that forum.

 

Thanks, have read into it but I can't really find a direct route of action that I should take. I'm a bit overwhelmed by everything and I'm very mentally drained at the moment, I was hoping that somebody with a lot more knowledge than me could give me pointers of where to start and what to do.

[renegadeimp]

You put your foot down with them and you tell them what they are getting and you will not, nor will you ever pay any unlawful charges or interest they decide to levy on your account for personal gain.

 

Sit back, have a cup of tea and try and relax. Minicredit are notoriously slow to do things. They like to threaten people until they cave in rather than do any actual collection activities.