I took out a £100 loan from Mini Credit (although I only actually recieved £80.50 of it) which I assume is the case for everyone who takes out loans with this company - I think they claim it is a charge for sending the money within 15 mins. A "fast track" service or something? Even though there isn't an option, and I didnt' specify

Anyway the due date for this loan is at the end of March, and I will not be in any sort of position to pay it back in full which according to my account it will be £139

I am currently on JSA and I usually get other PayDay loans to pay it off to give me breathing space for a bit, but I am now unable to obtain credit from anywhere else due to my extremely poor credit score.

(Probably a good thing as I would get even more into debt)

I did take the loan and I intend to pay it back, but I simply can't afford to do so in one lump sum. Most decent companies would allow a payment plan to be set up but from what I've read online this is not a decent company.

I understand they will keep adding ridiculous charges for 90 days, whilst constantly harrasing you making their idle threats, right?

What would be the best course of action for me to take to deal with these people?

I don't intend to phone them, want to keep everything in writing, but should I offer them a Payment Plan, even though they will probably reject?

I need ever penny I can get at the moment so can't really afford to send letters, what with making sure it's Recorded Delivery too. Is there a verified E-Mail Address I can use to communicate with them?

What should I do?

Write to them using the contact form on their website and ask them. If they say no, then contact the OFT and enter a complaint for unfair practice. Make sure to tell minicredit that all communication must be done in writing. They and others are currently under investigation, and are trying to keep people in contact by phone calls, so there is no traceable evidence.

Since you have legitimate reasons for not paying it back ( after all, you took the money for a good reason), if it ever goes to a court, all you need to do is provide copies of all contact witht hem and to you, and prove your situation using expendature forums.

In short, dont worry. They will send you a LOT of mails/phonecalls purely to scare you into paying a huge amount. They have even started adding random amounts of charges to the account.

One thing you really need to do though is cancel any bank cards you have registered with them, and if possible, change your account number. They have been known to randomly try and debit random amounts from peoples accounts up to 3 times a day, even though legally, they cannot take any money from your account without your express permission, and only on days and times that YOU agree to.

Also remember that it is a very low priority debt and your other debts should be dealt with first.

Send in the email and see what they say. If they say no, send your intial email again stating that you are unable to pay it as they want it to be paid, and send a complaint to the OFT.

Also, try http://www.direct.gov.uk/en/Dl1/Directories/UsefulContactsByCategory/Governmentcitizensandrightscontacts/DG_195356

They should be able to help you with all legal issues too. But first, you need to get a response from minicredit in writing, so you have proof that they are refusing payment options.

Thanks for that. Great post, very helpful!

If/when they reject my payment plan offer should I make small token payments or not pay anything?

The bank account details they have for me is an account that I don't really want to close if I can help it, even though it has £0.00 in it (no overdraft) - would ringing up my bank to say I've lost my card make any difference?

My JSA is paid into an alternative account which they have no details about.

Are MiniCredit known for taking court action often? (I've read a lot of topics about them on here and haven't seen any evidence of it actually happening, just threats.)

I'm not overly concerned about the prospect of going to court as I have nothing to hide. I'm on JSA and obviously have hardly any disposable income at all. Thus having to resort to PayDay loans in the first place.

I would also hope that a judge would look unfavourably on all the ridiculous interest and fees that they add. By the stage of court action, my original £100 loan would probably have turned into a figure closer to the sum of £1,000 - how is this in anyway justifiable?

Stick to what you initially said. You have explained your situation and if they do not note it and make allowances then under OFT regulations it is known as an unfair practice. Send the letter/email again and state that. If they keep adding charges excessively to your account then make the offer of the original loan plus one month settlement. Make sure you keep your complaint up to date with the OFT, and make sure EVERYTHING is in writing. That is your legal statutory right.

Minicredit will not take you to court because they know that pretty much all charges and interest will be wiped off and they will end up with a much lower settlement figure. Mainly because their charges are 100% made up and have no bearing on reality. As ive said before, it is one of the lowest priority debt imaginable. Your main debts are bills and cost of living payments ( gas, electric etc). Should con-credit ever take you to court, as long as you can prove what you said, prove that youve kept in constant contact in writing explaining the situation and theyve refused to acknowledge it, then the judge will side with you.

It's the same with most debts. In short, don't worry at all about it. You cannot repay it back as they want it to be repaid. You have contacted them to come to an arrangement, and theyve refused to listen and keep adding charges. You are in the right, they are in the wrong. Any court in the UK would easily see that. But as i said before, get that OFT complaint in and keep it up to date. Make sure any and all communication is done by TYPED letter with a pre-processed signature, or by email direct from your mail provider. That way you have concrete proof of everything and it can be easily traced.

If you are still unsure or worried, then contact that advice line i linked. They will be able to tell you exactly what to do and can even put you in touch with a legal representative.