Minicredit, doorsteppers and court

[jimbo49]

Hi all,

 

First time poster,so please go easy

 

I'll get straight to the point. In jan took out a loan with minicredit for 300-400 odd (not entirely sure on the amount - more on that later). To cut a long story short I lost my job and have been unable to pay. Received their "doorstep collector" letter 4 weeks ago asking for 800quid otherwise the doorstepper would recover the debt "however they see fit" . As the wording on their letter is deliberately ambiguous and potentially misleading , plus their "debt collection" charges seem laughable,I rattled off a letter querying the amount they were asking for (making my debt justifiably queried or disputed, as per the OFT 'guidelines').

 

The reply I received an embarrassing use of the English language, god knows who wrote it. Poor grammar, poor structure and incorrect use of capitalisation, but that's by the by. Essentially they have classed my request for a breakdown of my account and charges as a "complaint" and said they won't provide a copy. Apparently, I need to email [email protected] to get hold of that (surely they are obligated to act on my previous require by letter?).

 

In my letter, I mentioned I wasn't looking to dispute the existence of such account, just the amount, and until such time as I receive a copy of the breakdown and charges I won't be entering into any further correspondence. I also mentioned that I am willing to pay, just not the figure they are quoting. I obviously also informed them I was withdrawing their implied right of access to my property, had no wish to make any appointment to meeting them or their third party agents and any attempt to visit my property would be classed as trespass and harassment with a civil claim being filed against their company in court.

 

Needless to say the doorstepper didn't show up, however their letter states they don't pass accounts to 3rd party DCA's and will take me to court after 90 days have elapsed. Since then (in the last two weeks) I've had two more letters (from Minicredit) with £100 debt collection charge added onto the "account" for each "letter".

 

How then, this is clearly a bit of a joke. I'm willing to pay what I can afford. I have no problem paying the original amount plus some interest but £300 of "collection" charges for posting a couple of letters is taking the pi$$ just a bit.

 

What's everyone's thoughts on how to proceed with these people? I'd heard something about payday lenders now not being able to add charges after 60 days. Admittedly I was driving at the time so not paying 100% attention - if anybody could elaborate on this point and provide any further advice it would be greatly appreciated.

 

Before any smart alec comments, I'm fully aware this post is is a little long winded - so thanks for reading!!

[renegadeimp]

DOnt worry. Nobody on here will judge you. We're not like other sites.

 

Minicredit are one of the worst PDL's going. As you rightly said their business practices are bordering on the hilarious. They pile on charges whenever they like and in any amount they like. They know they are not enforceable, however they hope you dont.

 

Send them the doorstep template and the telephone harassment letter from the library on this site. http://www.consumeractiongroup.co.uk/forum/content.php?65-legislation

 

Tell them that OFT guidance states that they cannot take you to court after 90 days due to various reasons. These include not coming to a mutual repayment plan, adding on charges and interest that is not legally enforceable, and the fact that they are using the courts as a first line of debt collection.

 

You can safely ignore the £100 "debt collection" charge as per the reasons above.

 

Just write to the PDL and ask them to come to a repayment plan arrangement that doesnt leave you in further hardship. Even if it means you pay them £1 a month for the forseeable future.

 

Have a good read of this subforum. Then you'll know what you're up against and how to go about dealing with these "people".

[jimbo49]

thanks renegadeimp, I've already told them they can't visit my property and thankfully they only have an old , no longer used, payG number for me down as my contact details.

 

Is there any way I can make them provide a full statement of the account , after their partial refusal to do so , in their response to my letter. Surely under their consumer credit license they are obliged to respond to any such request? (I guessing here).

 

Also, I'm assuming when I mention a repayment plan they will try and get a load of info out of me regarding my income and outgoings, other debts, inside leg measurement, star-sign , favourite colour etc lol - surely that's not really any of their business - what info am I obligated to provide (nothing to hide, but these cowboys have really got my back up!)

 

Have they ever successfully taken anybody to court? I'd almost fancy letting it get to court to really lay into these sharks, watching them justify £300 to 2 pieces of a4, about 4 lines of text, 2 envelopes and 2 stamps - surely no court would deem the way they carry on as "fair" - although I've heard horror storeys about charging orders and all sorts of rubbish actually being granted at court to payday lenders. Maybe just hearsay but thought I'd ask.

 

Thanks again.

[renegadeimp]

They cannot refuse you a itemized balance. If they do, then they are hiding something and you need to report them to the OFT and FOS, and possibly trading standards.

 

For an I&E they can have one, but in simplified format.

 

Income per month: xxx

Rent/mortgage: xxx

Food: xxx

Socializing: xxx

Water: xxx

 

Etc. List your high priority debts ( PDL's and the like are low priority)

 

Once youve done this, work out how much is left, then take your total number of low priority debts and share the remaining amount between them. Make sure you keep some cash behind as "emergency funds" inc ase you need anything during the month. Under no circumstances give the PDL any specific details about your other creditors.

 

They have taken people to court but have only won by default, when the debtor didnt know what to do and so didnt submit a defence. The cases where a debtor did submit a defence, along with evidence, Minicredit rolled over backwards to try and settle out of court, and even when debtors still took it to court, the PDL simply didnt show up.