Wonga help - now on IB. Wonga say defaulted on payment plan - never had a payment plan"

[2ltr16valve]

HI all,

 

I have had a wonga loan that I buried my head in the sand over for a long time (around a year)...

 

I think checking back on my bank statements that the loan was in 10/2010 as that is the last wonga payment received to my bank for around £600.

Now, I defaulted on this loan as I was in hospital and very ill around that time. I did call wonga at the time to try to make a plan as I could not afford to repay it, but was told there is nothing they can do and to wait for the debt collectors ??

So with all that was going on, with ongoing illness etc I just left it.

 

Now I got a letter from Gothia ? who I believe were know by something else before, saying I owe circula £1500 !!! now, I am sure this is made up hugely of fees and intrest on the loan.

 

From reading about on here, I see that they can only charge the one months intrest and fees are not allowed? either. Would that be correct ? The exact loan amount was £637.

 

I want to pay this off as it is affecting my credit file but do not know how I can make a payment plan I can afford, being I only receive Income support (IB, due to being sick).... So do not have a huge income and have three children as well.

 

 

Can anyone that has been in a similar situation help wiht any pointers ?

 

Thanks in advance

[rebel11]

Hi 2l

 

Have a read of 7 and 8 in my signature.

[LindaSmallman]

Why don't you call Gothia and ask for a settlement? Or better still send them a letter showing your on I.B and offer what you can afford. The worst they can say is no, but they can't have what you simply have not got, no matter how many letters they send!

[2ltr16valve]

Why don't you call Gothia and ask for a settlement? Or better still send them a letter showing your on I.B and offer what you can afford. The worst they can say is no, but they can't have what you simply have not got, no matter how many letters they send!

 

Is the standard advice not to deal with the dca ? The amount being collected by gothia is over double what was borrowed, and includes charges and extra intrest that can not be charged post 1 month (duration of loan) from what I gather reading around.

[2ltr16valve]

Can someone explain the loan + 1 months intreast thing please as I am about to email them.... they are claiming £1463 for a £637 loan !! outragous

[2ltr16valve]

Just had a reply to my email and to be honest.... I am fuming !! The cheeky sods are saying that I have already set up a payment plan online in my account before and defaulted on this, hence why its been passed to gothia !!! the cheek of them !! I have never entered into a payment plan with this company, since the original loan default.

 

 

 

Hi - Thanks for your email.

 

I have reviewed your account and can confirm that repayment plans were setup by yourself online and both have defaulted. Your account was therefore passed on to Gothia which means we have no control over the account but I highly recommend you contact them and inform them of your circumstances and they will be able to assist you further. Should you have any further questions please do let us know.

 

 

Regards

 

 

 

 

 

Kind regards,

 

 

I have replied stating that I want proof of these so called payment plans, as I certainly NEVER agreed to any.... to have agreed to a payment plan, would have meant they contacted me, which they have not !!

[cerberusalert]

Title updated as requested.

[caro]

Is the standard advice not to deal with the dca ? The amount being collected by gothia is over double what was borrowed, and includes charges and extra intrest that can not be charged post 1 month (duration of loan) from what I gather reading around.

 

What does your agreement say about the interest post 1 month or if you default on payments?

[2ltr16valve]

Right, today have had a letter from "Resolution Legal Services" saying they are undertaking a reviw of my case with the view of pasing it to their solictors with the intention of obtaining a ccj... goes on to say alternatively and agent may contact me to arrange a repayment arrangement.

 

Anyway, I have made a offer direct to Wonga who called me and said they would pass it onto gothia.... to which I have had no responce what so ever ! The email sent to the CEO was deleted without being read (have non read receipt as proof).

 

What now ?

 

I have offered original loan + 1 months intrest... ~£1000 over 12 months as I am on a limited income, and I doubt even a court would make me pay more than £80pm.... at most I think they would order £10p.w but I could show I cant afford that either..... so who knows.

[sillygirl1]

You are going about this slightly back to front, the fact that you can PROVE you were ill and now on IB will scupper any company that tries to enforce this. At MOST you should repay £1 a month as your benefit is for you and your day to day living, NOT for dubious past debt.

 

If I were you I would go to the local CAB and ask them to write Wonga, or you can email the head man yourself - Errol Damelin [email protected] Explain that you are on benefits and this debt is being passed around and should it go to court Wonga are going to be worse off....

 

Under the new OFT Guidelines there has to be communication between the debtor and creditor to try to settle the debt and any disputes before going to court - too many times I am reading about these debts being passed around and fees being added etc.

 

Too many times the loan and one month is being queried when it is a proven method, even with large loans they can now only go for three months interest..

[2ltr16valve]

You are going about this slightly back to front, the fact that you can PROVE you were ill and now on IB will scupper any company that tries to enforce this. At MOST you should repay £1 a month as your benefit is for you and your day to day living, NOT for dubious past debt.

 

If I were you I would go to the local CAB and ask them to write Wonga, or you can email the head man yourself - Errol Damelin [email protected] Explain that you are on benefits and this debt is being passed around and should it go to court Wonga are going to be worse off....

 

Under the new OFT Guidelines there has to be communication between the debtor and creditor to try to settle the debt and any disputes before going to court - too many times I am reading about these debts being passed around and fees being added etc.

 

Too many times the loan and one month is being queried when it is a proven method, even with large loans they can now only go for three months interest..

 

 

Hi SG,

 

I have emailed the head man, it was deleted wihout being read.

 

I emailed a few people, and I got a call back from one of them - well, emailed me and I called them ..... as I didnt want the harrasing phone calls as well.

 

 

The company ive spoken to today, outright refused loan + 1mth... unless I paid in full there and then, then said the most they could do was over 3 months which I know is rubbish as wonga have done much longer before.

[caro]

You are going about this slightly back to front, the fact that you can PROVE you were ill and now on IB will scupper any company that tries to enforce this. At MOST you should repay £1 a month as your benefit is for you and your day to day living, NOT for dubious past debt.

 

If I were you I would go to the local CAB and ask them to write Wonga, or you can email the head man yourself - Errol Damelin [email protected] Explain that you are on benefits and this debt is being passed around and should it go to court Wonga are going to be worse off....

 

Under the new OFT Guidelines there has to be communication between the debtor and creditor to try to settle the debt and any disputes before going to court - too many times I am reading about these debts being passed around and fees being added etc.

 

Too many times the loan and one month is being queried when it is a proven method, even with large loans they can now only go for three months interest..

 

Thanks for this SG, but can you please clarify why they can only go for one month or 3 months interest. Also what's the threshold where it changes? It would really help people to be able to quote this in any dealings with these companies.

[TweedleDee]

Thanks for this SG, but can you please clarify why they can only go for one month or 3 months interest. Also what's the threshold where it changes? It would really help people to be able to quote this in any dealings with these companies.

 

From my understanding from SG's posts, it seems that the Deputy District Judges or District Judges have agreed on occasion that one month is adequate interest for this loan. There are no precedents that I can see unless SG has an unreported case in the High Court as a minimum that we don't know about which would bind the lower courts.

 

In addition, it is forgotten that interest is at the court's discretion. Therefore if a debtor has behaved unreasonable, then the court may enforce contractual interest until judgment. If the creditor has behaved outrageously, then the court may disallow all interest.

 

Therefore we may offer 1 month's interest, but at the end of the day, it is up to the judge to see whether he will allow it or not. Think it is time that there was a test case put through for the one month interest argument or at least an advocate's opinion. I apologise for digressing.

[sillygirl1]

It is common sense that dictates this, as well as other bits of legislation. I am not a legal person and have explained this time and time again on this site.

 

I am no longer helping on the PDL forum, I have my own issues to deal with and cannot spend time explaining the same issue on at least 15-16 threads per day.

 

Use your common sense and read the other threads with this company and you will find the answers.

[caro]

I've tried to find confirmation and I know you've helped a lot of people on the PDL forum which has been greatly appreciated.

 

I hope you get your own issues sorted soon. I know from experience that sometimes we all have to take time out for ourselves, but thank you so much for all you've done here.

 

Best of luck SG and look forward to continuing to see you around the site. At least you know where to look if you need any help and support yourself!!

[TweedleDee]

It is common sense that dictates this, as well as other bits of legislation. I am not a legal person and have explained this time and time again on this site.

 

I am no longer helping on the PDL forum, I have my own issues to deal with and cannot spend time explaining the same issue on at least 15-16 threads per day.

 

Use your common sense and read the other threads with this company and you will find the answers.

 

Thank you SG.

 

I want to express the same sentiments as caro and wish you all the best.

 

You would think that because an agreement is only for 30 days, that interest stops however what is the difference between that and a loan that got terminated and they still are charging interest post termination, or a 2 year loan that was supposed to be paid off in full in 2 months and we are now 3 months post default and they are charging interest.

 

There is none and it is at the courts discretion.

 

I appreciate the fact that you say you are not legal however we all have a responsibility for what we say and can't use that as an umbrella in case it goes wrong or if we can't explain what we are espousing.

 

Ps. Common sense is not equal to law. Common sense dictates that.

[caro]

Thank you SG.

 

I want to express the same sentiments as caro and wish you all the best.

 

You would think that because an agreement is only for 30 days, that interest stops however what is the difference between that and a loan that got terminated and they still are charging interest post termination, or a 2 year loan that was supposed to be paid off in full in 2 months and we are now 3 months post default and they are charging interest.

 

There is none and it is at the courts discretion.

 

I appreciate the fact that you say you are not legal however we all have a responsibility for what we say and can't use that as an umbrella in case it goes wrong or if we can't explain what we are espousing.

 

Ps. Common sense is not equal to law. Common sense dictates that.

 

While some judges do use their common sense, it is their job to make a decision based on their interpretation of the law. This is why it's so important to be able to demonstrate in court why you say what you say.

 

I'm not a legal person either although I've picked up some bits and pieces along the way since I've been on CAG. I think the onus is on the individual to look at all the advice offered before deciding which way to proceed. It's important for people to feel free to be able to offer views and opinions openly to enable us all to explore different possible angles and find a way ahead which hopefully will help many others in the future. This kind of discussion and exploration of ideas has been vital to CAG and caggers.

 

It has to be said though that sometimes just standing up to creditors and fighting back is enough to make them back down, but in a court of law you need to make sure you know the facts.

 

Once again, good luck SG. I know a lot of people are very grateful to you for all the time, help and support you've given, and that includes me.