Minicredit Hell!

[BIGMAN2708]

Hi, like many others I have had to use the services of a Payday loan company to help with my finances. I used Minicredit for a small loan of £100. I rolled over the loan for the first month hoping to pay it all off the following. Unfortunately this was not possible so I applied to roll over again and was refused. I phoned to ask why and they said it was due to my credit file. Having recently checked my credit file there were no changes since taking out the initial loan. They were having none of this and demanded the full balance of £134, I offered to pay that months interest of £47 to which they accepted but even with that payment they would not roll over the loan, they still wanted the outstanding balance. I asked them kindly if they would reconsider but was told no.

 

I sent a formal complaint and get the standard reply back, once again refusing and stating sections of my contract detailing my obligations to pay back the loan in full. Since then I have sent them a further letter to make a complaint, asking for interest to be frozen and a payment plan to be set-up, and again this was refused.

 

The balance is now £880 and they are threatening legal action through the courts. I thinking this might be the best route as I can then highlight their ridiculous charges and lack of assistance with the matter.

 

Really need some advice on where to go next, do I try FOS? or is there a better route to take?

[PDLVictim]

Hi BigMan,

 

I cannot give advice from experience as I pay Mini Credit in full due to their high charges and non-acceptance of repayment plans. This is obviously both too late in your case and also was not possible in your case.

 

I would definitely report to both OFT and FOS. Some people here might say FOS is the wrong "address" as they are only regulated by OFT, but there was this article some year ago where Mini Credit closed the files for all who complained to FOS (if I understood correctly). OFT will obviously not help you in your case directly, but it is good the more complaints they get about Mini Credit.

 

Keep all correspondence to Mini Credit so if it goes to court you can prove you wanted to set up a repayment plan and they "refused". Their stance obviously will be that they agreed to your repayment plan from the beginning (which they did), they just did not freeze interest and charges (which they cannot be forced to).

 

Unfortunately there is little on these forums (similar to Toothfairy Finance) if actually someone was taken to a court room by Mini Credit and what the outcome was.

 

The issues I see, but I am not a legal person, is that the fees and charges are in the agreement. In addition the agreement is open-ended. So from their point of view they did/do the following:

- 1) They did not roll over (responsible lending)

- 2) They offered repayment plan, but without freezing of charges/interest

- 3) If you start paying back at some point (I think after 90 days) they will add no further fees/charges, "just" interest, to enable you to "actually" repay/reduce the original loan (according to OFT guidelines)

 

I really would be so keen to know what a court outcome would be.

 

In your case, and only if the monthly amount you could pay them does not exceed interest and charges, the best advice is probably to save some money to make them a full and final settlement over in a few months. If you go that route send them also letters to not call/visit you.

 

Sorry to not be of greater help.

[Fook-minicredit]

Hi, like many others I have had to use the services of a Payday loan company to help with my finances. I used Minicredit for a small loan of £100. I rolled over the loan for the first month hoping to pay it all off the following. Unfortunately this was not possible so I applied to roll over again and was refused. I phoned to ask why and they said it was due to my credit file. Having recently checked my credit file there were no changes since taking out the initial loan. They were having none of this and demanded the full balance of £134, I offered to pay that months interest of £47 to which they accepted but even with that payment they would not roll over the loan, they still wanted the outstanding balance. I asked them kindly if they would reconsider but was told no.

 

Ask them to validate the 'alleged' deb. -

 

 

Re: Account/Credit Card/Reference Number:

Dear Mr xxxx

I would be happy to settle any financial obligation I might lawfully owe, as soon as I have received the following documentation from you:

1. Validation of the debt (the actual accounting);

2. Verification of your claim against me (a sworn affidavit or a hand signed invoice in accordance with Bills of Exchange Act (1882) );

3. A copy of the contract signed by both parties and therefore binding both parties.

 

 

ps.. these racked up 12 grand in damages to me coz they harrassed me for a debt that they could not prove i owed..now the 800 got discharged last week, and now they owe me and im not gonna stop until they pay up within 7 days , i dont care what i need to do, to make them pay ...they got more to lose than i do im in exactly the same situation as you, if u want advice about these people just message me, id be quite happy to help.

Edited August 17, 2012 by honeybee13
Named removed to preserve confidentiality.

[ihateyes]

Hi, like many others I have had to use the services of a Payday loan company to help with my finances. I used Minicredit for a small loan of £100. I rolled over the loan for the first month hoping to pay it all off the following. Unfortunately this was not possible so I applied to roll over again and was refused. I phoned to ask why and they said it was due to my credit file. Having recently checked my credit file there were no changes since taking out the initial loan. They were having none of this and demanded the full balance of £134, I offered to pay that months interest of £47 to which they accepted but even with that payment they would not roll over the loan, they still wanted the outstanding balance. I asked them kindly if they would reconsider but was told no.

 

Ask them to validate the 'alleged' deb. -

 

 

Re: Account/Credit Card/Reference Number:

Dear Mr xxxx

I would be happy to settle any financial obligation I might lawfully owe, as soon as I have received the following documentation from you:

1. Validation of the debt (the actual accounting);

2. Verification of your claim against me (a sworn affidavit or a hand signed invoice in accordance with Bills of Exchange Act (1882) );

3. A copy of the contract signed by both parties and therefore binding both parties.

 

 

ps.. these racked up 12 grand in damages to me coz they harrassed me for a debt that they could not prove i owed..now the 800 got discharged last week, and now they owe me and im not gonna stop until they pay up within 7 days , i dont care what i need to do, to make them pay ...they got more to lose than i do im in exactly the same situation as you, if u want advice about these sharks just message me, id be quite happy to help.

 

Minicredit are a [problem].

 

ive heard this before, wherey they refuse a rollover, but if you pay, the loan and reapply you get your loan.....

 

SO WHY?

 

Well cos they are going to sting you £19.50 to send the loan to your bank account. and not their is no option on their site not to have this faster payment.

[honeybee13]

Hello fook-minicredit and welcome to CAG.

 

Just so you know, advice by PM is not recommended here. It's in everyone's interests for advice to be given on open forum, where it can be scrutinised.

 

I've removed your name from your transcript of the letter, in order to keep this confidential for you.

 

My best, HB