Mini credit and excessive charges.

[Stressedandfedup]

I'm posting on behalf of a friend.

She took a payday loan out with Minicredit in February this year for £100. She received £80 after having £20 deducted for a draw-down fee.

She was due to pay the total loan +interest of £130 mid march but due to unforeseen circumstances, there was not enough funds in her bank for the d-card transaction to take place.

She thought about extending the time on the loan online but they wanted £50 just to look at it.

Minicredit then attempted to take money from her bank on a few occasions without success but they added charges onto the loan.

Because my friend is on a low income, is a single parent with 4 children, she was worried they'd try to take the full amount of debt (on a continuous payment authority) so she asked her bank for advice. They said there was no point cancelling her d-card as they will be able to take funds straight from the bank account (is this true??).

Since then Mini credit has taken £50 about 2 weeks ago and then 3 amounts totalling £150 in the early hours of 25th April. This meant she was unable to buy her groceries for the family and is now very stressed over this situation. (She sufferes with anxiety/depression/other conditions which has been made worse because of the stress).

Her bank has now confirmed that they have cancelled the continuous payment and said they'd refund any payments that Minicredit may take in the future.

My questions are:

1) is there anything else she can do to make sure Minicredit can't take anymore funds?

2) what can she do about the excessive charges?

3) should she be able to get some funds back from Minicredit?

[renegadeimp]

Get your bank to fully refund those charges and get that CPA cancelled. you also must report minicredit as they have already had their credit licence actioned for this, and are on the verge of losing it. They seem to be doing one "last hurrah" lately as the FCA are coming down hard on PDL's.

[Stressedandfedup]

Thanks renegade.

So can my friend expect her bank to refund all but the actual loan amount?

Who does she need to report to? And is there a letter I can play with?

[renegadeimp]

Everything that was an unauthorised transaction MUST be refunded.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority

 

http://www.fsa.gov.uk/static/pubs/consumer_info/know_your_rights_guide.pdf pages 15,16 and 17

[N1ck180]

I had a loan of £120 with minicredit an I couldn't repay it for 2 months, I paid back £175 an they still believe I owe them over £500 I'm refusing to pay that! I would rather take them to court! NO ONE USE THESE LOAN SHARKS!! If you going to get a payday loan there are plenty out there which are much better then minicredit! DO NOT USE MINICREDIT!!!!!

[Stressedandfedup]

Hi. I have an update on this issue.

CPA cancellation has been enforced so no more debits are being taken. My friend has managed to get a fresh bank account and card.

However, today she received a letter from Minicredit that is very upsetting. I will type it below:

 

Dear ##

Microcredit ltd (trading name Minicredit.co.uk) has received a chargeback regarding the payments debited from your debit card. We would like to remind you that by signing the loan agreement you have authorised microcredit ltd to debit payments from your bank account using the debit card details registered with us.

 

It is considered FRAUDULENT BEHAVIOUR TO MAKE A CHARGEBACK when you have registered and RECEIVED THE SERVICE regarding which the payment has been taken.

 

You have broken the loan agreement and your account will be forwarded to our debt collection partner. They will contact you in due course.

 

We also report your illegitimate actions to relevant national register what may severely reduce your ability to receive credit or other services in the future. We advise you to immediately contact your bank and WITHDRAW THE CHARGEBACK to avoid further escalation of the matter.

 

Kind regards

Minicredit.

 

 

 

Is any of what Minicredit is threatening within the law? (Debt collection obviously are).

My friend is planning on going to CAB for advice for all her debts but I wanted to know we she'd stand and what she (or I on her behalf) can do about this.

[renegadeimp]

Report them. It is not fraud to make a chargeback at all.

 

Theyre trying to scare you into letting them keep the money

[Stressedandfedup]

Thanks renegade. Which body is best to report them to?

[renegadeimp]

FCA and file a full complaint with minicredit so you can get the FOS involved as well. IIRC, theyve tried this trick with a few other CAG members too.