Loan - Problems paying back

[channel99]

I took a loan out with these guys a few months ago and have "rolled" it over once "4th November 2010". I intended to "roll" it over again and indeed attempted to do so on the morning of Fri 3rd Dec (one day before it was due) they charged me £5.50 and said NO they could not roll it over, as I had 16 days off work in November due to illness and only found out on Fri 3rd Dec that by employers was not paying me for any of the time off.

 

Anyway I emailed Minicredit on Friday 3rd Dec at 13.12 to advise that I could not repay the loan and to not attempt to take the funds from my debit card on the due date, Sat 4th Dec, as they would not be able to get the funds. I got an automated email saying they had received my email and would get back to me. The amount due at this stage was £520.

 

On Sunday 5th Dec I received via email a "Default" notice "NOTICE OF DEFAULT SUM UNDER SECTION 86E OF THE CONSUMER CREDIT ACT 1974" advising that as they were unable to collect the payment from my debit card I was being charged £25. This was followed by another email the same day advising that if I did not pay by 7th Dec 2010 that a further £55 would be added to the balance.

 

I emailed them on Sunday 5th Dec advising that I already told them the money would not be there and to contact me to discuss, this was replied to today Mon 6th Dec with a standard, we tried to take the payment and therefore £25 was added and to pay in full by 7th Dec or another £55 would be added.

 

Should I tell them the situation and ask that no further charges are added and then offer a repayment plan? I am already £700 short this month due to my sickness in November and worried where I am going to get the money from?

 

Thanks in advance of any help.

[rebel11]

Hi Channel

 

Welcome to CAG

 

The guys will advise as soon as they are available. I've removed the name of the company.

[sillygirl1]

The have no right to default you in this manner, and should it go to court (which is what they like to threaten) you would only owe the original sum borrowed.

 

Minicredit seem to be one of the worst for milking a situation and need to be reported asap to the Ministry of Justice, Office of Fair Trading, Trading Standards and Watchdog.

 

Keep everything in email and should they go to court you have a nice trail of how you tried to negotiate and how they tried to leech from you.

 

Get another bank account set up - Halifax do a good online one - and have any income paid into that, Minicredit WILL go into your account and take money as and when they feel fit.

 

Why is your employer not paying you sick leave? You should be able to get some money from them, if not then report your employer to the local Trading Standards and to the CAB who should be able to help.

[channel99]

Hiya thanks for message. Should I be honest with them and advise them of the situation? When should I mention a replayment proposal? Can they really take money when they wish? I am with halifax but keep the account for debit card payments and just transfer money from my nationwide account when I need to. They dont have the nationwide details but do have the Halifax. If I keep less than the £520 in there at all times, will they/can they dip in and take any random amounts?

[channel99]

Ref sickpay will get the minimum but it is a pittance.

[sequenci]

The have no right to default you in this manner, and should it go to court (which is what they like to threaten) you would only owe the original sum borrowed.

 

Minicredit seem to be one of the worst for milking a situation and need to be reported asap to the Ministry of Justice, Office of Fair Trading, Trading Standards and Watchdog.

 

For what reason? What are they actually doing that is wrong?

[sillygirl1]

They are actually breaking banking code, they go into accounts NOT on the date given and take funds to find out how much is there, and force an overdraft situation, we have several CAGGERS who have had this problem.

 

Because they use debit card details which you authorise the banks believe they have the right to take any money they want whenever they want - this is incorrect but sadly perpetuated by bank employees (I have been told that ANYONE who has your debit card details can take what they want from your bank account BECAUSE you have given them the debit card details.....)

 

There is no actual law to stop this happening which is why these companies get away with it. I can provide evidence from my own bank accounts of this type of company doing this (not this specific one - never dealt with them) but other big 'names' in the sector.

[channel99]

So should I contact them and advise them of the situation. When should I mention a repayment plan?

[sillygirl1]

Mention it in your email - keep everything in email - tell them you feel you are liable for the original amount borrowed and one months rollover fee ONLY, if they tell you you owe over £1000 then invite them to make you bankrupt....

 

Offer what you can comfortably afford, for instance £100 a month over the next five months....

[sequenci]

They are actually breaking banking code

 

I appreciate that, a great deal. I'm just being a bit of a pedant but some of those organisations you have mentioned really do not get involved with complaints of this nature. The MoJ and OFT are certainly not worth bothering with. The FOS and TS are the two to go with.There are some good pointers in relation to dealing with debts within my blog. I'm about to write one specifically about payday loans - Like you say, these firms are often a law unto themselves.