Hi guys, was wondering if anyone can help me. I took a £100 loan with mini credit which meant I pay back £147, I have payed £50 which leaves just under £100, however I keep receiving letters saying I owenearly £600 which is ridiculous. I called to set up a payment plan but they were so rude & unable to do so, so I left it. I have now received a door stop collection notice & I'm scared incase someone comes & takes stuff from my home, can this happen? I even asked mini credit to pass my file to a debt collection company, that way I know I can pay back monthly installments till it's clear. Do I have to pay back that extra £500 or can I pay back the original settlement? Please help, I'm terrified

Hi

I've taken your two posts and created a new thread for you....please continue to post about your issues here

ims

No, they cannot come and 'take everything' from your house.

I suggest you read up on the posts about Minicredit.

How much did you orginally borrow?

Originally borrowed £100, then as I said it meant I was to pay back £147, I've paid £50 but the loan amount stands at £570. I have read the other posts, just wanted relevant advice to my own post!! What about the doorstop collection? And what about my details being passed to a DCA.. What happens next..

You still only owe £97, not the amount they claim.

Wait and find out - they will be in contact soon enough. Stop trying to think ahead at the moment, deal with the debt as it comes up in the pile. This is a low priority debt and they cannot contact your employer (as you are unemployed)

As you are unemployed try and get an appointment for CAB or call National Debtline.

As far as passing to a DCA this lot don't. They may try Marshall Hoares Bailiffs but they cannot use bailiff powers when collecting a common commercial debt.

Just fired off this email to them.....

Good evening.

The extra charges you have applied to my account are laughable and also the threats of doorstop collection are too.The letter stated they would visit between 17th February and 24th February.I had to take unpaid time off my work so I could meet then but they didnt show up. I am therefore considering making a claim for loss of earnings against your company.

I have tried to come to a satisfactory conclusion with you but everything is just thrown back.

I suggest you hurry up and either take me to court or accept my repayment plan of £50 per month for 9 months(£400 initial loan+£100 for 1 months interest less 2x£25 amounts you managed to take from my card).

I await your response.

Took loan of £400(received 480.50 after transfer charge!!!) end of November ,they claim I owe them £1371 on website or letter I received today says £1330!

Worst company I have ever dealt with bar none!

I will post the reply I get in due course.

Just fired off this email to them.....

 

Good evening.

 

The extra charges you have applied to my account are laughable and also the threats of doorstop collection are too.The letter stated they would visit between 17th February and 24th February.I had to take unpaid time off my work so I could meet then but they didnt show up. I am therefore considering making a claim for loss of earnings against your company.

 

I have tried to come to a satisfactory conclusion with you but everything is just thrown back.

I suggest you hurry up and either take me to court or accept my repayment plan of £50 per month for 9 months(£400 initial loan+£100 for 1 months interest less 2x£25 amounts you managed to take from my card).

 

I await your response.

 

Took loan of £400(received 480.50 after transfer charge!!!) end of November ,they claim I owe them £1371 on website or letter I received today says £1330!

Worst company I have ever dealt with bar none!

I will post the reply I get in due course.

Well folks,here is the response...

You may find the partly repayment possibility on Your MiniCredit.co.uk online

account 24/7 and use it for payments of any amount. You accepted the Loan

Agreement and therefore also the charges that have been added according to it.

As You are asking for the possibility for being able to make partly payments we

would like to refer You to the \\"Repayment\\" possibility on Your

on-line account.

Microcredit Ltd does not forward Your account to a third party collection agency

within 90 days from the due date and our own Debt Recovery department will deal

with the issue instead. On the 90th day overdue we will start Legal proceedings

against You.

Please read more about Your responsibility to make sure that the debit card

details are up to date from Your Loan Agreement that is available on Your

MiniCredit.co.uk account. The partly payments can also be made with Ukash

vouchers.

We are also willing to consider the possibility of a settlement figure if it is

reasonable and paid in full. Please contact our Customer Support on the number

08718903015 when You have funds available to offer as full and final settlement.

If the settlement is agreed, the payment has to be made with a debit card

immediately.

Kind regards

MiniCredit.co.uk

Can anyone make some sense of this?

Ignore it. You only owe them the original loan amount plus one months interest MINUS what you have already paid. If they demand more, refer them to the fact that since the abolition of the Rule of 79, Section 87 of the CCA Act has preference, and it clearly states that if the original loan term has ended (the one month period) then only the loan and interest are due. Even big companies can only charge 3 months interest on outstanding loans. There are dozens of lawsuits in regard to this that have successfully been won and proved it beyond a doubt.

(Thanks to sillygirl1 in another thread for that very useful bit of info).

Basically minicredit are trying to scare you into paying the huge amount. Notice how they say they will accept half as a settlement. This is because they know that you dont owe the amount they say and are trying to get anything they can.

If they try to contact you again saying you owe the huge amount, state the above again and offer them what remains of your original loan plus the one month interest. Let them know that you give them 14 business days to respond, and if they dont respond within the timeframe ( meaning the reply must be in your inbox or on your doormat in those 14 days, then you will consider the debt fulfilled and settled and any form of communication from themselves or their representatives AFTER this period will be deemed as harassment and treated as such.

Also make sure you send a copy to:

http://www.tradingstandards.gov.uk

http://www.consumerdirect.gov.uk

and ensure you note that in the letter to minicredit as well.

Play them at their game. You could even go as far as saying that any letters sent to you by them after the 14 days will incur an "administration charge" to cover the cost of you reading it, of whatever you feel like putting. You could even say £50 per letter. Trust me. Ive done it with a few Companies that were hounding me 6-7 years ago when i had already paid off the money i owed.

They will not take you to court, and if they try to register a default on your credit rating, then enter a claim in court and sue them. Instructions to do this can be found on this site.

Feel free to see the thread i created about my sisters problem with them. After delving deeper, we came up with a few good titbits to ensure that we win.

there is NO proof that the loan + 1 month interest advice is correct sadly

CAG does not endorse such claims

dx

Ignore it. You only owe them the original loan amount plus one months interest MINUS what you have already paid. If they demand more, refer them to the fact that since the abolition of the Rule of 79, Section 87 of the CCA Act has preference, and it clearly states that if the original loan term has ended (the one month period) then only the loan and interest are due. Even big companies can only charge 3 months interest on outstanding loans. There are dozens of lawsuits in regard to this that have successfully been won and proved it beyond a doubt.

 

 

(Thanks to sillygirl1 in another thread for that very useful bit of info).

 

Basically minicredit are trying to scare you into paying the huge amount. Notice how they say they will accept half as a settlement. This is because they know that you dont owe the amount they say and are trying to get anything they can.

 

If they try to contact you again saying you owe the huge amount, state the above again and offer them what remains of your original loan plus the one month interest. Let them know that you give them 14 business days to respond, and if they dont respond within the timeframe ( meaning the reply must be in your inbox or on your doormat in those 14 days, then you will consider the debt fulfilled and settled and any form of communication from themselves or their representatives AFTER this period will be deemed as harassment and treated as such.

 

Also make sure you send a copy to:

 

www.tradingstandards.gov.uk

www.consumerdirect.gov.uk

 

and ensure you note that in the letter to minicredit as well.

 

Play them at their game. You could even go as far as saying that any letters sent to you by them after the 14 days will incur an "administration charge" to cover the cost of you reading it, of whatever you feel like putting. You could even say £50 per letter. Trust me. Ive done it with a few Companies that were hounding me 6-7 years ago when i had already paid off the money i owed.

 

 

They will not take you to court, and if they try to register a default on your credit rating, then enter a claim in court and sue them. Instructions to do this can be found on this site.

 

 

Feel free to see the thread i created about my sisters problem with them. After delving deeper, we came up with a few good titbits to ensure that we win.

The thing is what do I do now?

Do I continue to bombard this sad excuse of a company with emails,letters?

Or do I pay them £50 a month until I reckon my dues have been paid?

Or do nothing and wait for them to react?

One letter is sufficient. Outline YOUR preferred payment plan or settlement. Tell them that their payment plans are impossible for you to abide by and then give them 14 Business days to respond. See what they say. Make sure EVERYTHING is in writing. Never contact them by phone and ensure you state in your letter or email that all contact to and from minicredit is to be written communication only.

For the amount you owe, Take the total loan amount, add £50-100 on top for interest (depending on the loan amount), then subtract what you have already paid.

there is NO proof that the loan + 1 month interest advice is correct sadly

 

CAG does not endorse such claims

 

dx

You mean apart from the multiple lawsuits with gave way to legal precedence resulting in even major Financial corporations only being allowed to charge a max of 3 months interest, even if the account was in multiple years of default?

You mean apart from the multiple lawsuits with gave way to legal precedence resulting in even major Financial corporations only being allowed to charge a max of 3 months interest, even if the account was in multiple years of default?

Hi

I'm doing some stuff in this area....can you please let me have some links to these cases as they may be useful.

Thanks

ims

It pays to report them to FOS, i did, and received a call yesterday from the FOS, after they have investigated this cowboy outfit, Mini credit are wiping the debt off.

am not a fan of quoting that Acts have been repealed when they haven't and don't normally use legal terms such as lawsuit - it is CASE LAW in the UK anyway....The 'rule' quoted is the 'rule of 76'.... it hasn't been repealed, just altered.

Even big companies can only charge 3 months interest on outstanding loans. There are dozens of lawsuits in regard to this that have successfully been won and proved it beyond a doubt. - I did NOT at any time say there are dozens of loawsuits on this matter, I do not have recourse to such information.

Just clearing up this as a few people have commented to me about the misquoting.

There is NO such thing as a rule of 76. There is, however, a rule of 78 - which is all to do with how some lenders USED to calculate early repayment costs on loans; this rule is no longer used. The new method is outlined in The Consumer Credit (Early Settlement) Regulations 2004. I can't see the relevance here.

We've been asking for evidential proof of these claims for months and yet nothing has been forthcoming. We're keen to ensure that the advice given on CAG is accurate, so any help would be gratefully received.

Even big companies can only charge 3 months interest on outstanding loans

Are you sure about that also?

I did not say that - that is my point, part of this has been completely misquoted.

I am now backing out of this thread as I am not getting into the 'we need evidence' as I cannot provide it, I do not have the resources, time nor knowledge of how to find 'evidence' other than the threads I have helped on.

Wish I had just left this thread alone!

Ignore it. You only owe them the original loan amount plus one months interest MINUS what you have already paid. If they demand more, refer them to the fact that since the abolition of the Rule of 79, Section 87 of the CCA Act has preference, and it clearly states that if the original loan term has ended (the one month period) then only the loan and interest are due. Even big companies can only charge 3 months interest on outstanding loans. There are dozens of lawsuits in regard to this that have successfully been won and proved it beyond a doubt.

 

 

 

Unless you can provide proof of these "dozens of succssful lawsuits" this is very dangerous advice to keep repeating.

Not really dangerous when even major companies can only charge 3 months interest. Otherwise the debt would keep mounting and it would become impossible to pay back. The payday loan companies try to bend the rules as much as they can. I mean cmon; some are charging over 200 for a loan that's less than 10 days overdue.

Also read up on the cases that were taken to court and had the interest wiped, plus the fact that the OFT are fully investigating the business.

Not really dangerous when even major companies can only charge 3 months interest. Otherwise the debt would keep mounting and it would become impossible to pay back. The payday loan companies try to bend the rules as much as they can. I mean cmon; some are charging over 200 for a loan that's less than 10 days overdue.

 

Also read up on the cases that were taken to court and had the interest wiped, plus the fact that the OFT are fully investigating the business.

Yes you are correct...the OFT are investigating PDL companies.

Can you point to any information to these cases of 3 months interest please?

ims

Not really dangerous when even major companies can only charge 3 months interest. Otherwise the debt would keep mounting and it would become impossible to pay back. The payday loan companies try to bend the rules as much as they can. I mean cmon; some are charging over 200 for a loan that's less than 10 days overdue.

 

Also read up on the cases that were taken to court and had the interest wiped, plus the fact that the OFT are fully investigating the business.

Sorry, I think it is you who needs to read up on cases.. Have a look round the Legal Issues forums and you will see that some debts have tripled in size due to the interest being added - Plus if a judgment is awarded against you it is likely that post judgment interest will be added to the debt.

Yes, some debts have been wiped by courts, but that is more to do with infractions of the regulations / no paperwork, etc.

There have been one or two instances where.. when a defence of an unfair relationship has been used, the Judge has reduced the interest. But we have still to see these judgments.

But certainly not because of some non existent law that allows for only 3 months or 1 months interest to be applied.

Also please bear in mind that we are only interested in either statute or case law that is binding on the lower courts