1 monthloan

[madh21]

Hi. I wonder if someone could help me out please?

 

I took out a payday loan with 1monthloan at a time of need and have been rolling it over. It was due at the end of October and I wasnt able to pay or rollover. The loan was for £200 and the interest per month on that is £60 so £260 due on 28th Oct.

 

Today I have a letter stating as the debt is now overdue they have been forced to add another months interest and a £15 charge for the letter and you balance now stands at £372.50! This doesnt add up! It looks as though they have added a further £60 at the point it was due and another £60 after 2 weeks.

 

I have the agreement electronically so have copied it. Can anyone tell me if the agreement is ok and secondly, what have they added is different to what they state in the agreement in any case. It doesnt mention anything about interim added interest or charges for letters.

 

It does start by stating the parties of the agreement first and it signed electronically by me at the bottom.

 

1. On the execution of this agreement the Lender agrees to lend to the Borrower the sum of £200 ("the Loan") on the terms and conditions set out in this agreement.
   
2. Other Key Financial Information about your loan;


1. Duration of Agreement: 34 days
   
2. Total Amount Payable: £260.00 to be paid in one single payment on 28/10/2008
   
3. APR: 1,575 %
   
4. Total Charge for Credit: £60.00
   
5. Interests is charged on your loan at a rate of £30 per £100 borrowed.
   

[*]Interest on the Loan shall be calculated at a monthly rate of one twelfth of a nominal annual rate, the nominal annual rate being 360% per cent per annum and shall be charged on the balance of the Loan outstanding on a monthly basis where the loan and associated interest and charges not paid off in full on the repayment date above.

[*]Other charges applicable to this agreement:

1. To write to you following a failed repayment of your loan on the date specified above £10.00
   
2. If you move address during the duration of this agreement without first notifying Oasis, a tracing fee of upto £50.00
   
3. Any costs oncurred by us incurred in taking steps to enforce, or attempting to enforce, our rights under this loan agreement. Interest will be charged at the rate detailed in 3 both before and after any court judgement from the date payment is due until the date payment is made in full.
   

[*]Ending this agreement early:

You have the right to terminate this agreement early by paying Oasis all monies owed under the agreement. If you exercise this right the following is an example of the amounts payable per £100.00 borrowed.

1. If half the loan term elapses £130
   
2. If three quarters of the loan term elapses £130
   

Please be advised that these are only examples and the exact amount payable is available on request.

[*]IMPORTANT - READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not, the creditor cannot enforce this agreement without getting a court order.

The Act also gives you a number of rights. You can settle this agreement at any time by giving notice in writing and paying off the amount you owe under this agreement which may be reduced by a rebate. Examples indicating the amount you might have to pay appear in the agreement.

If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens’ Advice Bureau.

[*]Difficulty in making payments:

Missing your repayment could have serious ramifications and could adversely affect you getting further credit.

Repayment of this agreement will be made by Oasis debiting the debit card provided at the start of the application process no earlier than 00:01 on the repayment date above. Please ensure sufficient funds are available from this time. If you know that their will not be sufficient funds available please contact Oasis IMMEDIATELY so we can discuss this matter.

[*]The information that you have provided in this Agreement will be used by Oasis Payday Loans to enable Oasis Payday Loans to lend you the Loan. We will not pass your information to any third party without your consent. However, in the event that You default in Your repayment of the Loan, or we believe that false information has been supplied, we shall revert to your employer and any other relevant parties in order to recover any sum including interest for the outstanding Loan or confirm that you are in fact employed by the Employer you claim to be employed by. If you wish to benefit from the Loan, you will be required to provide Oasis Payday Loans with consent to contact your employer and any other relevant third parties in order to secure repayment of the Loan. If you do not wish Oasis Payday Loans to contact your employer, then Oasis Payday Loans cannot advance a Loan.

 

I confirm that I provide Oasis Financial Services Limited with consent to contact my existing employer as is required in order to arrange for the repayment of the Loan at a rate of no more than 10% (ten percent) of my monthly or weekly wage and I hereby consent to Oasis Payday Loans making disclosure of the Loan to my Employer on my behalf.

This is a Credit Agreement regulated by the Consumer Credit Act 1974. Sign only if you want to be legally bound by its terms.

By entering you name and the validation code sent to your mobile and/or home telephone by text message you are placing and electronic signature on this loan agreement. This has the same effect legally as signing physically signing a loan agreement

By signing this Agreement, you agree to its terms which are set out above and in the terms and conditions sent with the Agreement.

 

PLEASE...any advice would be appreciated.

Thankyou.

[hillards]

I'm no expert, but had a read of this and noticed the line reading

APR: 1,575 %

 

OUCH!!!

I would never have agreed to a rate as high as that...

 

Now... Where's the Shark repellent lotion...?

[madh21]

Thans for your comment but it doesnt really help me does it?

[hillards]

Sorry, but - if you read through the various threads about CCA claims being made, they are usually quite old and against unenforceable agreements. In the past couple of years there have been some changes made to the Consumer Credit Act and it's usually advised that they are quite valid these days.

 

The one you've reproduced has all the warnings, and you've already agreed that you have signed it electronically, which appears to seal you into it's conditions. I have stated that I am no expert, so please do not accept that as fact.

 

I must have read it a bit more carefully as you say in your original post "It doesnt mention anything about interim added interest or charges for letters." but if you look at 4.1 it says "To write to you following a failed repayment of your loan on the date specified above £10.00 ". Section 3 covers how they add interest.

 

Although I'm sure others will agree, I will make a personal note that I see the Consumer Action Group as a site to receive help on dealing with hassle from debt recovery companies or assistance in handling unlawful charges, such as those the banks made. It's not here as a means to try and get out of what appears to be a watertight agreement.

 

From the way I read it, 4.3 allows them to add whatever they like to the total if you default. You have agreed to this condition. If they add £500 for sending a letter then you may be able to argue that it was unreasonable. It depends on how they value their time, someone at their office on £30 a hour may be a very slow typist. Add the cost of paper, envelope, electricity used, cost of premises - it's not just down to the value of the stamp.

 

Sorry, it may not be 'help' as you requested, but I'm just trying to point out how these loan sharks operate. They usually make sure all the conditions are correct before they part with money.

[madh21]

It states that it will chargfe £10 for a letter not £15 and it refers to how interest is calculated but says 360% per year divided equally between 12 months hence 30%. I am not trying to get out of paying it at all but I want them to adhere to their agreement if it is enforceable. £260 was due on 28th Oct which cover the interest for October. By the end of november I would say it was fair to add a further £60 but they have added £120 worth of interest when only 14 days late. This is what I am disputing and thats not what it states on the agreement. Adding interest to the balance is not the same as charges to enforce the agreement.

[KER]

I think your answer is in clause 3 above. If you don't pay by the date, they'll start charging you the 360% on monies due.

 

They only charge you 1/12th if you're paying correctly.

[hillards]

If you don't mind, I'll back out of this one as I am not in a position to give advice on what is, and what isn't, allowable. I just tried to give an opinion on what I saw and conclude that you should try and confirm the charges made.

 

You started off saying you couldn't see anything about charges for letters, I quoted the section, now you agree it's there, but say they've upped the cost. I don't have all the details, and couldn't do much for you if I had. A lot of what is said on this site is comment rather than legally binding fact.

[madh21]

Hillards - I was talking about interim interest not charges - I new they were there.

 

Ker - That paragraph goes on to say that they will charge 1/12th of 360% per month whilst the payment is not made in full.

 

Despite all of this it does not say anywhere that they can and will add interest will nilly as they see fit. Or is is ok for them to do just do what they like?

[spamheed]

As Ker rightly states, the interest rate of 360% is being applied to the full amount plus charges.

[KER]

"I confirm that I provide Oasis Financial Services Limited with consent to contact my existing employer as is required in order to arrange for the repayment of the Loan at a rate of no more than 10% (ten percent) of my monthly or weekly wage and I hereby consent to Oasis Payday Loans making disclosure of the Loan to my Employer on my behalf."

 

 

 

That's a term and a half that one!!!!!!

[KER]

edit.. have to think about this one a bit further.. it's confusing...!

 

This is what it appears they are doing.

 

You took out a loan for £200, you expected to pay £30 interest per £100 so the loan in total was £260. You have now defaulted. Therefore, they have added the original £60, another £60 for the current month, and sent you a letter which has cost £10. What they have then done, with the £130 extra charges, is calculated 30% interest on top of that, which comes out to £370!

Edited November 12, 2008 by KER

[madh21]

So what you are saying is that next month they will charge a further £30 per £100 outstanding and 30% interest on top? This is gonna spiral!

[madh21]

The letter actually says that they have been forced to add a further months interest of £60, they at no point mention that they have added interest on all of it. Infact 260 +60 +60+15 comes to £395 and not £375 as they state???? Neither does the theory fit that Kew mentioned so I am really confused. I think I will as them.

[KER]

The letter actually says that they have been forced to add a further months interest of £60, they at no point mention that they have added interest on all of it. Infact 260 +60 +60+15 comes to £395 and not £375 as they state???? Neither does the theory fit that Kew mentioned so I am really confused. I think I will as them.

 

 

Where are you getting the extra £60 from?

 

£60 you expected for October, they've then added on £60 for November....!

[popeye1]

You should get in touch with them asap ,phone them .

I can read that para [3]in two ways so you should check with them

You are right that the figures seem not to add up ,as others say ,a bad loan,so get in touch straightaway,good luck

[KER]

You should get in touch with them asap ,phone them .

I can read that para [3]in two ways so you should check with them

You are right that the figures seem not to add up ,as others say ,a bad loan,so get in touch straightaway,good luck

 

Yes I agree re Para 3. It may be that the OP has missed out an important comma that is on the original notice....