Minicredit Have Been Got

[fkofilee]

A payday lender has apologised to customers who received emails threatening to contact their employers if they did not settle their debts.

 

The National Debtline says it heard of numerous cases where MiniCredit acted in an overly aggressive manner.

 

MiniCredit says it has taken steps to ensure it does not happen again

 

The Office of Fair Trading (OFT) says companies should not act in a way that is likely to cause debtors public embarrassment.

 

27-year-old Emma Burgess from Manchester took out several payday loans last year when she had to move out of a shared flat and needed money to cover the cost of new accommodation.

 

When she found herself unable to pay back her first payday loan she borrowed more cash from another lender to pay it off.

 

Continue reading the main story

 

But her debt soon spiralled until she owed money to seven payday loan providers.

 

"I sought advice from a debt charity and they told me that I should be able to negotiate repayment plans," she told 5 live Investigates.

 

"I'd gone to the effort of getting an expenditure form and working all of that out.

 

"I'd sent that off to other companies who had seen what I could afford to pay and they understood what I offered them was reasonable and they accepted the plans."

 

Miss Burgess says MiniCredit was the only creditor to refuse to help her manage her debts. Instead, she received a reply saying they might contact her employer and start legal action against her.

 

"It was quite worrying being sat at work and wondering whether, when the phone rings, it's going to be them speaking to your boss about your financial problems," she says.

 

"It's quite embarrassing. I didn't want people at work knowing what was going on. It would have been quite awkward for me."

 

OFT guidelines on debt collection state that it is improper for companies to act in a way "likely to be publicly embarrassing to the debtor".

 

Companies must comply with OFT guidelines if they are to hold on to their licence and significant breaches can lead to a licence being revoked.

 

Spiralling debts

MiniCredit also threatened to send Miss Burgess's case onto a doorstep collector if she did not pay her debt in full within ten days.

 

Continue reading the main story http://www.bbc.co.uk/news/business-17127951

Drowning in debt?

 

 

 

 

Most complaints

The number of people taking out payday loans in the UK has more than quadrupled since 2006.

 

Finally The OFT is clamping down.

Edited February 25, 2012 by citizenB
Edited to smaller percentage of article and llink to article included.

[sillygirl1]

They state that only 54 complaints have been received by the FOS - they don't say how many the OFT/Trading Standards have received, or other organisations - if 54 complaints were made about a person in employment they would not be in employment.

 

54 complaints means their licence should be revoked and they should not be allowed to set up under any other trading name in this area ever again.

 

Just think if we had 54 defaults on our credit files the damage would be immesurable and very long lasting.

 

One law for one lot and another for the ordinary man...

[citizenB]

fkofilee, I have reduced the amount of copy/paste and added the link.

 

It is customary to copy/paste say 10-15% of the article and put the link

[Jon1965]

Isn't it great that finally these companies are going to be forced to play ball. My only fear is that they will clean up their act (with mass publicity) until the investigation is over then retourn to their illegal ways. Lets hope I am just too much of a cynic

[sillygirl1]

Seeing as I have been pointing this out since 2007 it has taken a LOT of time.... the powers that be like to bury their heads in the sand when it suits them, PDL companies bring in employment and fill empty high street shops so it is okay. Now they are getting adverse publicity they are "not amused"

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?339665-Have-you-been-treated-badly-by-your-payday-loan-provider-The-OFT-would-like-YOUR-help.

 

The OFT as you have advised are investigating these companies. Please read the thread above and add your comments. The OFT are inviting responses from those victims of PDL actions.

[ror24]

Have received this email from Minicredit overnight:

 

We would like to remind you that your MiniCredit overdue loan balance is £467.50.

 

If we are unable to recover full amount within next 10 days we'll send Your account to THE DOORSTEP COLLECTOR and You will incur extra costs.

 

We may also contact Your employer and start legal action against You. We also report the status of Your outstanding account to Credit reference agencies. All this process affects your credit score adversely and ability to receive credit in the future.

 

 

Best regards

 

 

Received at 0156. I like the fact Minicredit Director Andres Valdmann has given assurances that steps have been taken to ensure this wont happen again! It's assurances like this that will go no doubt aid the OFT in understanding the true nature of these companies. It also does not give me any hope that this matter will be resolved equitably despite my numerous attempts to repay via standing order they are always ignored.

 

Now where did I save the OFT email address.....?

[sillygirl1]

http://www.consumerdirect.gov.uk for the OFT

http://www.tradingstandards.gov.uk

 

and don't forget MP Stella Creasy

 

Bet Minicredit will claim it is an 'oversight'!

[Jon1965]

Oh wow an email like that is just such a gift. Yes it must be reported.

[ror24]

Already done!

[fkofilee]

Im glad that these companies are going to be clamped down on... It doesnt mean that these companies have to have their license revoked... However im by no means sticking up for them.

 

People are right , authorities stick their heads in the sand. The PDL market may have shot up however, curbing the damage it can do to you and the nations debt "Average".

 

1. If they were to curb the APRs at a reasonable amount ... dont really have any ideas as to what would be reasonable here (I suppose £100 loan, + 1 Months interest say, £20 ) And then they adhere to that under law it is a 30 day (Up to 45 Days in some cases ) contract.

2. Any extra "ad-hoc" fees, such as letter contact, passing to debt collectors etc, should be limited to small amounts. Thinking of companies profits here.... for example £15 missed payment fee ---> £3 missed payment fee,

Letter Sending Fee... (No Names!!) lol £10 Fee --- > £1 - £2 fee, etc, etc,

3.No interest will continued to be accrued either after the contract is broken.... this will help stop spiralling costs of debt.... (Here )

 

these are just small things that can help curb problematic situations

[toptrapper]

Anyone any ideas where the minicredit "apology" is on their website? The previous link below now diverts you to the homepage?

 

Edited March 20, 2012 by toptrapper

[sillygirl1]

I don't think we should have the link on here - just in case somebody thinks we are 'endorsing' this company - has been done before.

[toptrapper]

Good point, link removed. Just seems odd the 1 page apology has been pulled, at the same time they seem be mischevious in which FOS complaints are to be "settled"?

[sillygirl1]

Contact the FOS then and let them know what is happening - it is about time this lot were curbed, too many of these PDL companies are setting up shop with little legislation to stop them.

 

I've had one lot text me twice monthly for the last few months using the same mobile no and a different name all the time, keeping these messages just in case somebody wants to investigate - think I will pass them onto Stella Creasy.

 

I am not texting back STOP in its various forms as you can get charged for that.

 

I did think of texting back 'You have reached the phone of Sillygirl1 of the CAG, PDL companies beware!'.

[toptrapper]

Already in regular contact with FOS having registered a complaint against Minicredit during 2011. Still awaiting passing to an adjudicator so will add this new subterfuge on their part to the complaint.

[citizenB]

There is a summary in the BBC link in the first post

[toptrapper]

Thanks CitizenB, I'm just curious why Minicredit have removed the apology from their webpage. Admittedly it's not great publicity (albeith an extremely fair assessment of their conduct) but I'm wondering with my cynical head on, is this removal timed with other caggers having FOS complaints rejected?