txt loan

[manaboutadog]

Hi everyone I'm in a repayment plan with txt loans for £50 a month at the time of the loan I borrowed £300 so the balance with interest was £351 to pay back when I set up the repayments with them they said I would have to pay back £504 I said yes just to get into the agreement with them and im paying by s/o so the payment I owe on 30/04/12 will take the amount I paid up to now is £351 should I stop payments after that because I have paid is the original loan plus interest and tell them to whistle for the rest ?

[renegadeimp]

Thats a tricky one, since you agreed to the plan. However, since the stated debt was £351, you need to demand a balance breakdown on how they came to this £504 figure. Then you can go from there.

 

If you are going to stop payments, then you need to cancel ALL CPA's on your account related to txtloans, and report your debit card as stolen, and cancel any Direct debits you have with them. If they have your details, they WILL use them and debit your account regardless. Yes, its technically theft, but for some reason the banks turn a blind eye to it. They are also known to pass around peoples bank details to other PDL's.

[manaboutadog]

Thanks for the comment they said it because its out of the cycle time for the loan I didnt default with them either and I pay by standing order so they have no details of mine .

[Guest Poguesy]

The credit cycle works as follows:

 

Day 1 - Assuming you receive a loan of £100. A repayment reminder is sent before the loan term elapses.

Day 16 - We collect £117, however, if the funds are not available;

Day 17 - a 1st reminder is sent and a £25 administration fee is added and interest accrues at the rate of £1.13 per day until your loan is repaid in full. The loan totals £143.13.

Day 27 - a 2nd reminder is sent and a £25 administration fee is added and interest continues to accrue at the rate of £1.13 per day until your loan is repaid in full. The loan totals £179.47.

Day 61 - the loan totals £218 and is passed to our Collection Partner which incurs an additional £54.50 administration fee. The loan totals £272.50.

 

Pay them what you originally owed then tell them to do one.

 

I offered them a full and final on what i originally owed and they accepted it.

 

If they try it on just make a complaint.

[renegadeimp]

You can counter that £25 administration fee very easily. Simply tell them that you are charging them £25 to read and act upon each and every letter they send. You are well within your rights to do so. Also that interest per day can be seen as unfair and indeed extortionate.

 

£1.13 a day. 365 days in a year = 412% at its base level over a year.

 

Poguesy has the right idea. Offer them a final settlement offer ( you might need to ask them a good few times). This is because they wouldnt go near a court with that debt due to the charges and interest on it. Especially the £54.50 "admin fee" to pass it to a DCA. Especially a DCA that has no legal rights at all over the debt or legal rights at all really.

[manaboutadog]

Cheers everyone for your comments I never defaulted I have no letters ever been sent and I spoke to them though there live service on the website to agree at the time to a repayment plan.

[renegadeimp]

You NEED to get the agreement in writing.

[manaboutadog]

Sorry what I mean is that this payment tomorrow that im going to pay will take what I have paided so far upto £351 which is what the loan was when I took it out so shall I not pay anymore after that or ask for a full and final off them they want £504 off me which I think is unfair as I have been paying £50 a month if they do want that I will pay them £2 a month what do u guys reckon ?

[renegadeimp]

Pay what you can realistically afford. If they want more, tell them to take you to court. Should they do so, chances are the judge will say they are getting an even lower amount, thats if the charges/interest on the account even stands up.

[Guest Poguesy]

Sorry what I mean is that this payment tomorrow that im going to pay will take what I have paided so far upto £351 which is what the loan was when I took it out so shall I not pay anymore after that or ask for a full and final off them they want £504 off me which I think is unfair as I have been paying £50 a month if they do want that I will pay them £2 a month what do u guys reckon ?

 

Don't pay them a damn penny more.

 

Get a formal complaint sent in, if you haven't done so yet, and take it from there.