Default amount including charges & Interest

[countryboy212]

Hi,

 

I'm in the process of dealing with various Payday loan companies. I've come to arrangements with some, others are being a difficult.

 

Two of the companies are refusing to agree the amount owed. They insist on adding further charges and interest. I've said I won't pay them as they are "unfair". Some of these lenders are now marking credit files, I can deal with a late payment marker, but wish to avoid a default.

 

What happens if they issue a default for an amount including charges and interest which I am disputing? Would it be possible to get this removed?

 

Also. If they won't accept my offer. And I pay whats owed minus any added charges & interest. And then tell them they can whistle for the rest... Are they still able to issue a default.

 

Any help you can offer would be appreciated.

 

thanks

[teaboy2]

Stop right there with all repayments to all the payday loan companies that are being unfair to you. Send them each a CCA request. because i can gaurantee that if you took the loan out of the internet the amount on the CCA will be what you applied for and not what you were actually loaned, therefore making the debt unenforceable. They are also know for manaully modifying the agreement after the date of the agreement to, which is fraudulent and as such they'll have to write off the debt or you can take them to court for it. I have successes on those grounds with payday loan muppets when acting on behalf of my friend that had issues with them.

 

As with marks and default on your credit file, yes if they have agreement is uneforceable and have been modified (note the Computer File Directory and last modified date will appear on the bottom of the pages of the agreement and look like this C:\Users\UserName\Documents 12/02/2011 for example). Then yes they will have to remove the notes and defaults, after all they can not mark your credit file for fraudluent agreements thay have created can they!

 

You can find the CCA request letter here, just copy and pasted it and edit it to suite - http://www.consumeractiongroup.co.uk/forum/content.php?414-CCA-request-letter.

 

P.s once you have the Credit agreements from them, post them on here so we can disect them bit by bit for you.

Edited February 12, 2011 by teaboy2
added link to cca request letter

[harrassed senior]

Very interesting teaboy

[countryboy212]

Hi,

 

Thanks for advice. I think I have the agreements as most were emailed to me when the loans were taken out, so ill get them posted up here. Although I'm happy to pay the original amount borrowed and one months interest, after all I did agree to borrow on those terms. I'm just not prepared to pay there crazy fees. It's not just the fees tho, I contacted all the lenders before the loans were due for repayment (circumstances changed, and they all have proof of this) One company ignored/refused my offer of payment, then after about 2 weeks decided to accept it, only after adding extra charges and interest etc..

 

My main concern is the possibility of a default being placed with CRA's.

 

If the original amount owed was £150, they are demanding £400 with extra fees and charges. I pay them £150 and say they are not getting any more...Can/will they default me for the interest & charges they have added. If they do, what are my chances of getting the default removed?

[Bazooka Boo]

Two of the companies are refusing to agree the amount owed. They insist on adding further charges and interest. I've said I won't pay them as they are "unfair". Get their refusal to accept your offer of payments in writing.

 

 

What happens if they issue a default for an amount including charges and interest which I am disputing? Would it be possible to get this removed?

No, you can however add a notice of correction on your CRF to the effect that you dispute their interpretation as the amount includes unfair charges.

 

Also. If they won't accept my offer. And I pay what's owed minus any added charges & interest. And then tell them they can whistle for the rest... Are they still able to issue a default.

Yes, if the charges and fees are written in the T&C's of the agreement you signed they will add a default. However if you dispute the charges then it is highly unlikely for them to take any legal action against you just for these charges alone.

 

The interest they are charging on your account, is it for the total amount you borrowed OR is it also for the charges they have placed on your account also?

 

If you can work out what you borrowed and the amount you would have originally needed to pay back including the interest on what you borrowed, and you pay this off, then I seriously doubt they would pursue you for the charges alone.

[Bazooka Boo]

If the original amount owed was £150, they are demanding £400 with extra fees and charges. I pay them £150 and say they are not getting any more...Can/will they default me for the interest & charges they have added. If they do, what are my chances of getting the default removed?

 

Pay what you genuinely owe, the £150, plus any interest they applied at the time, it is quite likely they will default you for the rest if their charges, however as this is how they manage to earn their money, it is highly likely that these charges and fees will be unfair and can be questioned.

 

The default as I previously said can be attacked as and when, or even if they decide to pursue this avenue of debt collection.