Hi there,

Need some advice on how to deal with this situation.......

Lost my job earlier in the year and, at the time, I had a loan from QQ for £800 with added monthly charge of £200 taking debt to £1000. At the end of April there wasn't enough money in my bank account to cover the whole debt so they took nearly all of what was in the account leaving 1/2 the original amount owed plus the £200 monthly charge. Around the same time they added a late payment charge of £12 to the account.

Since then I received a few emails from Quick Quid telling me the account was overdue and to make payment - which I've been unable to do due to having only JSA then ESA coming in. I also haven't made any contact with QQ since losing my job.

Last week I received an email from Muck Hall telling me the debt had been passed to them - the amount remains the same as QQ said it was - and to contact them about it. What I did was to block any further emails from Muck Hall (which was the same as I did with the email contact details from QQ). Later in the week there was a phone call from Muck Hall which I've not responded to either.

Today I've received a letter from Muck Hall Debt Purchase Ltd saying they have had the debt legally assigned to them and that I'm to pay up by Thursday (7 days from the date on the letter) and that there will be no further warning from them if payment isn't received by noon on that day and they will consider the account for legal action in the County Court. They also say they legally own the debt.

I can't afford to pay this debt at the moment - couldn't afford more than about £5/month if I'm honest!!

What should I do first?

Feebee_71

Don't be intimidated by the contents of a Mucky Hall letter, if you want to make payment you should offer them token payments of £1.00 per month as your icome is derived from state benefit. REMEMBER WRITE, NEVER PHONE.

I am sure others will be along, but you could write to MH to say you are currently unemployed and on benefits and in the circumstances are able to pay £1/month and ask for Standing Order details to set this up. Get proof of postage (free over the post office counter) and send a postal order with your first payment.

Thanks guys for the replies,

I will do just that, will be getting my next lot of benefits next week so will send them a letter and include a postal order.

I'm sure they won't be happy having to wait nor will they enjoy getting £1/month but, if they don't like it, they can always take me to court and be ordered by a judge to accept it!!

Feebee_71

Well, it's now gone noon and I've failed to meet their demands so I'm preparing myself for the 7 plagues to befall me and my family!

Do I sound suitably scared - not!

Feebee-71

OH Dear ! the next letter could come from the dreaded Merit Force. (however don't panic as I am not sure that they even exist)

If this goes to court you can sink Mucky Hall by showing the evidence that their client raided your bank account leaving you destitute... and the fact that QQ are an offshore based company and have yet to take somebody to court in the UK.

You MUST report Mucky Hall to East Ayrshire Trading Standards and report QQ to them as well.

All you need repay on a PDL is the original loan and one months interest, no matter what they may tell you. Its been tried and won in court a lot recently (several threads on the PDL forum show this). The PDL company are on a looser with their ultra high interest rates and the fact that these are SHORT TERM loans.

Well, today I got home and there was another letter from Muck Hall!!! Exactly the same information as the one received the other day and giving me until Monday to make the payment to them - this letter is dated Monday of this week - so 2 days before I was required to pay them back!!

Feebee_71

If this goes to court you can sink Mucky Hall by showing the evidence that their client raided your bank account leaving you destitute... and the fact that QQ are an offshore based company and have yet to take somebody to court in the UK.

 

You MUST report Mucky Hall to East Ayrshire Trading Standards and report QQ to them as well.

 

All you need repay on a PDL is the original loan and one months interest, no matter what they may tell you. Its been tried and won in court a lot recently (several threads on the PDL forum show this). The PDL company are on a looser with their ultra high interest rates and the fact that these are SHORT TERM loans.

Hi Sillygirl1,

With regards to repaying the loan, I did roll the loan over a couple of times and, each time, I paid the charge which was equivalent to the month's interest. All Muck Hall are asking for is the original loan plus one month's interest plus a late payment charge (x1) less the amount they took from my account in April. So, they are only asking for the original loan amount plus one month's interest in the end.

Can you tell me what it is that I am reporting MH and QQ to Trading Standards for? Sorry if that sounds dense but I want to do the right thing. The letter I've had so far has been pretty much a standard "your account has been bought by us and we're going to collect it from you now" - I have to say I'm confused by the fact they've bought it so soon rather than just being used by QQ as their agents. As for phone calls etc there has been one call to my home phone and one call + one text to a phone registered in my dad's name!!!

Should I not just write to them and offer them £1/month (though this would mean it would take probably the rest of my life to repay the amount being asked for!!

Feebee_71

As stated get the letter to East Ayrshire Trading Standards, they are taking liberties. Don't offer to pay them £1 a month, they will pass this to Scotcall or Meritforce and harrass you even more.

You are reporting both companies for being unreasonable and sending out misleading and inaccurate letters - East Ayrshire Trading Standards are well aware of Mucky Hall. You might be asked to sign a witness statement but this will go on Mucky Halls file, if they get enough of them (and they should have enough by now) they will have to do something.

Hello again Sillygirl1,

So, I'm sending them a copy of the letter/s sent to me by Muck Hall, to TS - I guess they've proved themselves to be inaccurate in that they've sent me a letter giving me a specific date to pay them by and, before that date has arrived, have sent me another identical letter giving me a different date to pay by!! And I am guessing they are being unreasonable in that they are demanding the whole amount owed with just 7 days from the date on the letter (giving me about 3-4 days by the time they've arrived in the post to me).

I won't offer to pay them anything at the moment but I'm guessing that, at some point in the future, I will have to arrange to settle my debt with QQ?

I know I have been wrong in that I've made no attempt to contact them since losing my job in April so they don't know why I've not paid them back, won't that go against me if I don't try to address the matter now?

What does annoy me is that the company who financed my car purchase have been so good in accepting a token payment each month (equals 10% of the actual monthly payment) and the only other people I've had a problem with are Creation who, after agreeing a token payment amount, have now apparently passed the account over to a DCA - though I've only been told this over the phone and have had nothing in writing from either the company or from a DCA!! (I have another thread in the DCA forum about this but am hanging on until I find out who it has been passed on to before I worry about that one again!!)

Feebee_71

Morning all,

With the post this morning came another letter from Mucky Hall regarding this situation!!

This time it's titled 'Failure to Respond - Notice' and tells me they've linked this alternative address as a financial link to my previous abode using a credit reference agency to provide the financial link information - am I supposed to be more worried about this? By the way, the 'alternative' address they have obtained is the same address they sent the last 2 letters to.

Again they have given me a week from the date on the letter to respond to them by making full payment of the amount owed and that, while their client would prefer an amicable settlement, they will not hesitate to to take such further action as may be appropriate - this last part is written in bold to make it seem scarier!!

I think I am going to write to them as advised previously and make the offer of £1/month due to my current financial situation.

Have to say, I've not contacted TS as I'm still unsure what it is that I should be telling them,

Feebee_71

Suggest that you do not respond to MH as previously suggested, you are not able to repay this at the present time and have informed QQ. If you offer them a £1 they will keep on at you. Let them stew for a bit, they are not going anywhere with this, ignore. Send an email to TS saying that MH and QQ are being unreasonable and sending out misleading and inaccurate letters.

Thing is Coledog, I've not informed QQ. I have really buried my head over thid debt.

Feebee_71

Latest Update

Having heard nothing from Muck Hall since I previously updated this thread - and, I admit, having done nothing about contacting TS due to not receiving and replies to my previous questions shown above in the thread - why I am contacting TS and the fact I've not yet admitted the problems behind my not being able to make repayment of this debt.

Today I've received another letter from Muck Hall giving me 7 days to either pay the account in full or make reasonable proposals for settlement otherwise legal proceedings shall be issued against me in the county court for recovery of the full amount outstanding. I really don't want a CCJ to be obtained against me and so I think I am going to have to write to them and offer them £1/month as advised at the start of this thread by crocdoc.

Feebee_71

Well, it's 2 weeks since I sent the letter to Muck Hall acknowledging their most recent letter and simply saying 'currently only minimum state benefits only, you can have £1/month as it's all I can afford'.

No response from them so far so will wait to see what they come back to me with!

Feebee-71

Update

Today I have received a response from Muck Hall following my letter informing them I am on minimum benefits and offering £1/month for the debt as this is all I can afford, I don't have a scanner (I know, everyone has one except me!!) so will type out their letter - amounts, reference numbers and any identifying information is created by me and bears no relation to those in the letter. Here goes............

MH Ref : M12345678

Client : Mackenzie Hall Debt Purchase Ltd

Sub client : Quick Quid

Client Ref : 9876543

Principle Sum : £XXX:XX

ATTENTION - REQUIRES IMMEDIATE ACTION

Our client, Mackenzie Hall Debt Purchase Ltd., has instructed us to commence further action against you for the balance outstanding. To avoid this action a monthly repayment plan must be in place within the next 7 days. You can set your Direct Debit arrangement by telephone, calling one of our operatprs on 01563 556 544.

We require a first payment of £60:89 on 01/11/11, followed by instalments of £61:01 from 01/12/11 until the balance is cleared.

No response to resolve this matter will leave us with no option but to sanction a doorstep visit to your property by our field collectors, Meritforce.

Important: If you are not the named person above please contact us quoting Address ID: CM56789012 to stop any further communication.

Yours faithfully,

Claire Thomson

Mackenzie Hall Ltd

They have obviously taken no notice of my letter from the end of last month when I offered £1/month. The amount they are demanding is almost a week's benefit and I have no intention of paying such an amount to them.

I just wonder what I should do now in response to these jokers?

Feebee_71

Personally I would ignore the fools until they learn to read and respond properly - send them this letter recorded (second class) delivery which revokes your permission for anyone to 'doorstep' you. If someone does turn up, hand them a copy of that letter. I do not think that they are going anywhere with this, if they did bother going to court they know that they are only going to get what you have offered. I always find that trying to make 'token' payments is a waste of time anyway, better to say that your current circumstances mean NO PAYMENT untl things improve. I have recent experience of them chasing someone for one of these QQ loans they have 'purchased' and the documentation is rubbish anyway . .... ....http://www.consumeractiongroup.co.uk/forum/content.php?441-If-you-do-receive-a-doorstep-visit-we-give-these-suggestions-to-Members

Anyway, feel very tempted to tell anyone who chases this I am not the 'named person'

Ok, will get the 'no doorstep visit' letter off to them and see what they come back with. Should I send them another letter re-iterating that the maximum amount will be £1/month or leave them to work it out from the letter I sent last month?

On my side is that I live in a 2nd floor property so there's no worry about them peering in through windows (unless they employ Spiderman!!) and, as well as my own front door, they would have to get through a door entry system main front door to the actual block of flats!!

Feebee_71

I really would not bother with them. If the worst they can threaten is a 'visit' they are not even being that threatening. You have made a reasonable offer, personally would not even have offered A £1 but you are trying to do the right thing. If they should take court action you have evidence that you have done this. I have not yet seen anyone take court action on one of these loans and if they did - a £1 would be what they would get anyway!

I'd get their letter to the OFT asap and explain that they are not helping you resolve this issue, and that their communication is very misleading as you have communicated and explained you are receiving benefits - they should back off....

Thanks sillygirl,

Can you tell me please...

If I originally took out a loan for £XXX and rolled it over the maximun number of times allowed by the payday loan company paying back the interest each month that (over the rollover period) totaled the amount borrowed and one months interest charge, then the loan company raided my bank account for 50% of the original loan amount meaning they've had 140% of the original loan and interest amount - do I still owe them any money?

Feebee_71

IMHO No, you do not owe them one single penny more - they have breached the agreement you had by raiding your bank account - if it got to court this fact alone will bring down the wrath of the judge.

On the subject of accounts being raided I had a discussion yesterday with the branch manager of my local Halifax who said if any PDL company empties your account go to the police and report it as theft. It is NOT a civil matter as they have breached the contract to take x amount on x date. Explain that you need the crime number to enable the bank to get your money back and stop them taking further funds.

The companies that do this MUST be reported to the relevant authorities, OFT and Trading Standards.

Just because they have your bank details doesn't mean they can take what they want when they want it. You gave them the bank details for a transaction up to X amount and they have taken more than they were legally entitled to.

Good bit of advice SG. Feebee I would be ignoring MH, they have obviously bought another lemon. Definitely report to OFT, http://www.oft.gov.uk/contactus