Paying money to a company that is getting shut down

[morritt89]

Hello

 

I have a quick question. What happens if you owe money to a company that is being shut down by the financial authorities? Once the company is shut down do you have to carry on paying or is the debt wiped off since the business does not exist?

 

Thanks

Steven

[cerberusalert]

I would have thought it would depend on why they were shut down, but if any agreement was enforceable then payment would still need to be made.

[morritt89]

Well the company has already been warned by thr OFT before foir trading on names that were not on its credit licence, making false claims and statements and threatning and abuse to customers as well as charging fees not in proportion to the amount owed

[cerberusalert]

Was it a payday loan?

[morritt89]

Yes it was a payday loan.

[cerberusalert]

The problem is although they may have had their licence withdrawn because of bad trading practices it doesn't necessarily mean that any agreement you entered into isn't enforceable.

 

PDLs aren't my forte so I'll ask someone else to pop into your thread.

[sillygirl1]

Which PDL company is it? Don't be embarrassed about naming and shaming them, they are shamed already - I suspect Toothfairy

 

Remember with PDLs you only need pay back the original loan amount and one months interest, not a penny more.

[morritt89]

Yes it's Toothfairy. Does that mean once I have paid back the original loan amount (£300) and one months interest (£54) I don't have to pay anymore? I have already paid this plus more and they still want more money.

One thing is though I didnt recieve a copy of the agreement which I was told meant the loan wasn't enforceable anyway

[sillygirl1]

Yes, where did you get the information they are being closed down? Have you got a link we can use on the site?

 

I would forget about not having the agreement, these are electronic agreements so there isn't the same 'safety net', but either way the fees and additional charges are unenforceable, you borrowed the money so you need to pay it back plus any interest for the initial period.

[morritt89]

Hi

I had a lovely phone call yesterday from a guy at the OFT regarding my witness statement. The bits I am allowed to repeat related to unfair and charges that do not add up and he also mentioned names not on the licence and about abuse and threats from staff. The juicy thing - "this company is very unprofessional and we are looking at what to do with its licence as there are so many complaints and so many rules broken." Thats all he was allowed to say and nothing is final yet as more complaints keep coming in but my witness statement and the documents I provided where very similar to others.

I guess it pays to complain.

 

Back to the point that I should only pay the original amount and 1 months interest - since I have paid more than that, does that mean I should just ignore them now and pay no more money?