Payday Express **

[magictorch1976]

Hi All

 

I have continued this in an older thread but I understand that this is probably not the best way to do it, therefore I have started my own thread. Please help ! Thanks.

 

Hello

I hope you don't mind me continuing this thread as I also took a loan with these sharks at a time when I was desperate for cash, (to pay for electricity !)

My credit agreement looks just like Matthewluck1's with that horrendous APR.

I took the loan for £240 and have rolled the loan over month on month, paying the extension fee of £40. I have made 6 payments of the £40 which equals £240 (conveniantly) I also paid them £100 one month to reduce the capital amount owed. Therefore, I have in effect given them back all the money they lent me, just not their extortionate interest.

Since nearly having my house repossessed etc. (yes it's been a hard few months) I haven't paid them anything and yesterday, I got a phone call at work stating that I was in severe arrears and I need to cleart the balance.

 

I have asked them to send me a copy of my agreement which they have. It has an electronic signature where it says "signed on behalf of the creditor,) but it's a bit amateur, i.e they have just changed the font used to type it in order to make it look like a fancy signature.

 

I some questions and any pointers much appreciated.

1. The date of their signature is before the date I signed it, i.e. my signature is dated 11th July 06 whereas theirs is dated 3rd July 06. Therefore they executed the agreement before I signed it - does this mean anything in terms of "is it a properly executed agreement."

2. I want to tell them where to go. I have paid back £240 in extension fees plus £100 extra. The original advance was for £240. I was under immense financial pressure at the time with gas and electric company's forcing their way into my house etc. so I believe a judge would take this into account if they decided to proceed to court ?

3. As Matthew asked previously and I think this was missed, it states on the agreement that:

"The APR is 1268.2 APR" There is no % symbol after this amount. Is the agreement void in this case ?

If I am right in my thinking, and please correct me if not, I was thinking of a letter along the following lines:

Dear Sir/Madam

Further to our recent telephone conversations and the subsequent review of the credit agreement plus taking into account the amount of the original advance, it transpires that I have paid you back the sum of £240 plus £100 additional payments.

In accordance with the Consumer Credit Act Section 138, I deem the remainder of the agreement to constitute an extornionate credit bargain. I have inserted the relevant points from the Act below:

138.- (1) A credit bargain is extortionate if it –

 

(a) requires the debtor or a relative of his to make payments (whether unconditionally, or on certain contingencies) which are grossly exorbitant,

or

(b) otherwise grossly contravenes ordinary principles of fair trading.

(2) In determining whether a credit bargain is extortionate, regard shall be had to such evidence as is adduced concerning –

(a) interest rates prevailing at the time it was made,

(b) the factors mentioned in subsections (3) to (5), and

© any other relevant considerations.

(3) Factors applicable under subsection (2) in relation to the debtor include –

(a) his age, experience, business capacity and state of health; and

(b) the degree to which, at the time of making the credit bargain, he was under financial pressure, and the nature of that pressure.

(4) Factors applicable under subsection (2) in relation to the creditor include –

a) the degree of risk accepted by him, having regard to the value of any security provided;

(b) his relationship to the debtor;

© whether or not a colourable cash price was quoted for any goods or services included in the credit bargain.

 

I also conclude that upon reviewing the credit agreement thus signed, the terms and conditions most notably "Key Financial Information Section 3" and "Other Financial Information Section 4" are unclear terms that do not include either a monthly repayment or a loan term.

Finally, I did not receive a signed copy of my agreement together with my cancellation rights as detailed on the credit agreement, which states "The creditor will send you exact details of how and when you can do this." This is in direct breach of Office of Fair Trading guidelines as per below:

Unless the agreement becomes executed when the customer signs it, a second copy

must also be sent by post to him within seven days of the making of the agreement.

Where a second copy is not required because the agreement becomes executed when

the customer signs it, the trader must send by post a separate notice of cancellation

rights to the customer within seven days of the making of the agreement.

If the terms and conditions of the advance had been made clearer as you are required to do by law, I would have enforced my right to cancel the agreement immediately upon receipt of the correct documentation and your deliberate avoidance of allowing me the opportunity to do this has and or will cause direct financial impact.

In relation to the above, I do not acknowledge any debt to your company and no further payments will be made and I am acting in accordance with my rights under the Consumer Credit Act.

I am no longer resident at the address where I took out the loan and therefore, I would appreciate it if you would correspond with me at my work address, marking any items as "Private and Confidential."

Please feel free however to acknowledge this letter and the cessation of the agreement by email to:

Yours sincerely.

 

Any help appreciated all - thanks very much in advance. On a further note, I have emailed twice asking for a breakdown of payments I have made and they have not responded....

 

Cheers

[pmhcfc]

bump for someone in the know better than I

[madh21]

I too like yourself took out one of these loans at a desperate time and too rolled it over for several months. After learning what I have done from this site I emailed a request from them for a copy of the CCA. It doesnt actually stipulate a repayment schedule does it? Nor details of roll over? It is a pathetic excuse for a CCA. I challenged them on this and also stated that I had infact repaid the amount borrowed and more and informed them that if they wanted anymore I would challenge them in court. They wiped out the account within 10 days.

 

Hope this helps.

[magictorch1976]

It does. Thank you Madh21. I have written the letter and emailed it stating basically bog off ! They have replied stating they will be in touch once they have spoken to their solicitors !!!

 

Thanks for the info - much appreciated. I will keep you informed !

 

J.

[madh21]

Good for you. Thats basically what they told me. In a professional way, I told them I didnt believe they had a leg to stand on and invited them to take me to court and whilst they were doing so I would prepare my defence in anticipation. Al my correspondence was by email.. they faxed me a copy of the agreement without cost at my request. I will try and dig out my emails, I'm sure I still have them.

[magictorch1976]

I must admit, they are not nasty people or heavy handed, unlike some companies on here - they faxed me a copy as well with regards to the credit agreement.

 

Any emails you have would be much appreciated !

 

Cheers !

 

J.

[madh21]

This is probably the email that prompted action:- They had given me some waffle about precontract information being part of the agreement.

 

I note you comments. 'Pre-contract' information is not part of a credit agreement in the eyes of the law which I am sure you are well aware of. The 'credit agreement' that exisits between ourselves does NOT contain all the prescribed information as required under the Consumer Credit Act 1974 (amended 2006) and is in fact totally unenforceable. (again, which no doubt, you are fully aware of). Yes, you may hold cheques for a running account (which is nolonger operational as advised by myself) but my point is that the repayment schedule for banking these cheques should have been made explicit within the agreement, together with detailed information regarding the rollover of accounts.

Regarding the issue over the bank error, would you have planned to return this money had I not contacted you? It should be returned to the account from which you took it. ie, Lloyds TSB, the details of which you hold.

As for the outstanding balance, given the discrepancy identified from the 'credit agreement', I could argue that you have no right to add any interest or rollover fees to my account as I have not signed agreeing to this. I have been informed by my advisor that If I proceeded to court over this then It would be within my rights to pursue any money paid to you above £720 + 25% face value of the cheques (as stated in the credit agreement). which makes a total of £875. My repayments have already exceeded this total.

May I suggest that this now ends the matter and brings my balance to £0 and I will not attempt to recover any other monies paid to you.

I look forward to receiving you response.

---------------------------------------------------------

There were other issues aswell which are detailed in the email, ie, they took money without my authorisation and took a week to give it back! Basically, they did exactly as I asked so they know they wouldnt have won.

Hope this helps.

[TV Researcher]

Hi,

I am a researcher for Channel 4 and am working on the payday lending sector. If you have any experience of these firms I'd be very grateful to hear from you. Please either send me a private message or call me on 07504-638-758 and I will happily call you back.

Apologies if I have not placed this in the correct thread.

Philip