Bit of a mess RE: payday loans/bailiff letters etc.. :(

[niw]

Sorry for such a long post on my first post but I'm in a bit of a mess....

 

OK so in my own stupidity a while ago I took out a few different payday loans. They were with QuickQuid, Minicredit and Speedcredit (I think one of them was as txtloan.co.uk).

 

I'm now unemployed - I was doing some temp work at the time but that stopped - and receiving lots of different letters/emails/voicemails from various companies threatening me with bailiffs and court proceedings. I have no money, no possessions, (just debt) am staying at my mum's and on JSA - a sh*t situation after happily graduating from uni. The original amount for each loan was between £100-£200 but all the letters are saying I owe around £1000 each but they give a different amount every time and don't explain where from.

 

Now I'm trying to work out how to deal with it it's very confusing because of all the different DCAs etc saying they now own the loans and I don't even know which is which anymore or how much. I've had NDR, Marshall Hoares and Appleton Massey solicitors all on behalf of Speedcredit, Mackenzie Hall for QuickQuid and I think a few others too. I haven't been responding because I don't want to accept dealing with all these different companies and and their ridiculous charges (although from what I read most end up being the same company..)

 

This site seems great for info but I'm a bit overwhelmed there's so much! From what I gather I think I need a template letter to send each of the original creditors to basically say I have literally no money at the moment and please stop threatening to go round my mum's house and take her stuff? But I'm not sure where to start, and I can't event find addresses to write to for each payday loan company. They just give me call center numbers. Or do I have to deal with Mackenzie Hall/NDR/Marshall Hoares etc/ now they 'own' the debts??

 

Can anyone recommend what letters to send and where to?

 

To top it off I think I took one with Wonga too, but I've heard nothing from them so I'll try deal with all these first..

 

A bit of a mess as I said!

[Bombaymix]

Hello niw! Welcome to CAG.

 

Are you saying that these payday loans are with debt collection agency's and the payday loan companies are also contacting you by phone?

 

I'd personally write to each debt collection agency and ask them to prove that they are entitled to be collecting the debt. It may have been sold to them or they may be collecting on the payday loan company's behalf, they may have sent these notices to you already?

 

As for the threatograms... Nobody is coming to your mums house to take your stuff! They fill these letters with that garbage to try and scare you into paying them.

 

I'm sure the others will be along shortly to assist you.

 

The general opinion with payday loans is that you owe them the loan amount plus one months interest only.

 

To be honest with you, if they've gone to DCAs now that is fairly good news. Payday loan companies are less likely to accept a repayment plan, DCAs should accept.

 

A you're on JSA the maximum you should offer (when the debts have been confirmed) is £1 PCM. This is a token payment towards a very low priority debt.

 

Keep us updated. Don't worry about the bailiffs coming. Before that can happen they'd have to take you to court first and secure a ccj and still after that there are further obstacles before bailiffs could actually ever enter your home and seize goods... Nothing but a scare tactic. If you read through the letters I suspect they use the word 'may' quiet a lot and never 'will' and 'can'.

 

Regards

 

BM

[Bombaymix]

Btw, 'a bit of a mess'... Don't worry, it not the biggest bit of a mess on these forums. With the help and support of us, you'll be ok. I was in your position in December last year and am now fully paid up and can actually answer my phone again lol

[niw]

Thanks for the quick respose! And that's good to hear you managed to sort out a similar situation now - there may be light at the end of the tunnel yet!

 

I'm not overly worried - as such I have no money and they can threaten me as much as they like, but even if I got taken to court I can't be forced to give what I don't have.. Although I could do without an even worse credit record in the long run.. I'm just fed up of my mum not being able to answer the house phone and scared to answer her door.. If it was just me it wouldn't be so bad although I may lose my temper with them!

 

BTW the debts were with payday companies but they have passed them on the the various DCAs/bailifs or whatever they are mentions above, who all claim they legally own the debts. But at least with the Speedcredit one NDR, Marshall Hoares and Appleton Massey ALL are contacting me about it. The main one's I have been hearing from are NDR, Mackenzie Hall and Marshall Hoares. This is by post, email and voicemail. I find it a bit confusing as to who is claiming I owe what and on whose behalf (if that makes sense)

 

The advice above confirms what I thought, so should the first step be to write to these main debt collection agencies asking them to prove ownership of it and provide a breakdown? They most probably have sent me these notices already but alot of emails go in to the junk folder, same with some letters through the post.. And at what point/who do I write to inform about my JSA situation?

[Bombaymix]

Hey niw

 

Yes, I'd write to them asking for them to confirm they legally own the debt. Please ensure you add the line 'I do not acknowledge any debt to your company' (just in case they're pulling a fast one lol.

 

I'd leave any suggestions of an offer of payment until they've all proved that they are collecting on a debt that thy have either purchased or have been assigne the rights to collect.

 

I would include a paragraph in your letter about telephone harassment. Tell them they are not to contact you by telephone and request they remove any numbers they have for you from their system. Also, remind them that they are only allowed to visit you at home by appointment and that you will certainly not be making one of these appointments NOT ever

 

Regards

 

BM

[niw]

Thanks, that sounds like the plan for now then! I'll reply to each company that has sent me letters, is there a generic template that covers the above points? Just want to know if there's any particular wording or legislation I need to quote.

 

Also, on the letters I can find for Mackenzie Hall there is an address I'll use to write to, but the MiniCredit letter and website doesn't have one? And Marshall Hoares and NDR appear to be next door to each other..Should I still send separate response to all of them?

[Bombaymix]

Marshall Hoare/NDR same company... Just reply to the last letter you received. Do they show the same reference number?

 

Microcredit ltd (trading as minicredit.couk)

30 Borough high street

London

SE1 1XU

[Bombaymix]

Here's the link for the "prove it" letter http://www.consumeractiongroup.co.uk/forum/content.php?428-General-debt-letter-if-you-know-nothing-of-the-debt

 

It should get the ball rolling with the DCAs to prove they own the debt or have the right to be collecting it at least

[renegadeimp]

and on JSA

 

Regardless of if you owe the debt or how much it is, the absolute most you will have to pay back is £1 a month. The PDL's will not like it one bit, but theres absoutely nothing at all they can possibly do. IF you prove to them you are on JSA by way of a letter from your adviser at the jobcentre, and they try to take you to court for the amount owed, it is 99.99% guaranteed that the judge would find in your favour.

[niw]

Lots of helpful advice here

 

I'll start with that letter linked to above asking for proof. I think they have sent me various claims they've legally bought the debts but that will help to clarify who owns what, and I'll just reply to the most recent of NDR/Marshall Hoares.

 

Once that's confirmed I want to get a full breakdown of the debt so I can look at what I originally borrowed and the interest/charges they've added, then explain I'm unemployed with a letter from my job center, offering a token £1 a month.

 

When I finally am in a position to negotiate repayment is it right then that I will be looking to offer the DCAs the original loan plus 1 month's interest (assuming they do officially own the debts)? As I thought it was them who have added on £200 +£100 charges for administration etc...

[renegadeimp]

Just remember, use the letter from the CAG library and NEVER refer to it as "MY debt" or " My account". Only refer to it as its stated in the template letter.

 

AS a general rule, NEVER pay the DCA's unless they own a debt. They have absolutely no legal rights at all unless they own it. Payments and negotiations should always be made direct to a creditor.

[Bombaymix]

Lol, they're good at adding on ridiculous charges. Just stick to loan amount plus one month interest, they would never be able to justify their added on charges in court!

[renegadeimp]

They could justify a few of them, but certainly not the ones they are trying for. Also, make sure you are issuing formal complaints to the lender and the regulatory bodies.

[niw]

I've had a look at that template letter, and through some of the pile of letters I got through the post that haven't been thrown away.

 

With the SpeedCredit debt Marshall Hoares have sent me a letter which opens with the paragraph:

 

"We are writing to give you formal notice that Speed Credit has legally assigned the rights of the above debt to Marshall Hoares Bailiffs. This means Marshall Hoares now legally own this debt."

 

Does this count as sufficient notice or do I still send the template letter saying I don't recognize the debt and ask for proof?

 

The same applies with Macknzie Hall on behalf of QuickQuid.

 

However, I think MiniCredit have only contacted me directly so I can't really send that letter denying knowledge of the debt? Or can I lol.

[renegadeimp]

They may own the debt, however it doesnt mean the debt is valid. Remember, the debt was in dispute before the sale, which means both parties have breached their credit licence.

 

If you dont have knowledge of the debt, then send the prove it letter and give them 7-14 days to prove it by letter. If they ask for more time, dont give them any. 14 days is more than enough time.

[niw]

OK so I have written letters to NDR and Mackenzie Hall asking for full proof of the alleged debts. I do recognize the debt with the OCs but not these DCA guys unless they prove they legally own them.

 

What is the letter I should send to MiniCredit then as an Original Creditor? (And Wonga too/any of the other OC's if they try again)

[renegadeimp]

Im not sure i understand something here. Are you saying Minicredit is still harassing you, even though the debt has been passed to a DCA? If so, you MUST start complaining. More than one party going after a debt , at a time, is a very big no-no.

[niw]

Im not sure i understand something here. Are you saying Minicredit is still harassing you, even though the debt has been passed to a DCA? If so, you MUST start complaining. More than one party going after a debt , at a time, is a very big no-no.

 

Sorry some of it is a bit confusing because there's so many different companies involved! There are FOUR payday debts in total (very stupid I know) which I'm trying to deal with individually.

 

As far as I know MiniCredit have NOT passed on the debt to a DCA. I think they have just contacted me directly. The letter I'm looking at from them said the next letter I receive will be from the Court. I guess I need to let them know I can't pay it at the moment, but also they are asking for £913 for a £100 loan. Do I need to dispute the amount before discussing repayment? The letter doesn't break it down into charges/interest etc. just gives the total amount so I don't know how they arrived at that.

 

The DCA's are contacting me on behalf of two OC's SpeedCredit and QuickQuid. I haven't heard anything from Wonga recently.

[renegadeimp]

Ok. Could you clarify the info a but more. Could you list each PDL you owe and the actions they, the DCA or you have taken so far for each. It would be much easier if we could get the info for each.

 

As for the comment about minicredit saying they will take you straight to court, they cant do that. They are not allowed to use the courts as a first like of debt collection. And it would be a very bad idea if they did so, especially if you have full written evidence of your attempts to arrange a plan, and their refusal and harassment.

[niw]

Ok. Could you clarify the info a but more. Could you list each PDL you owe and the actions they, the DCA or you have taken so far for each. It would be much easier if we could get the info for each.

 

As for the comment about minicredit saying they will take you straight to court, they cant do that. They are not allowed to use the courts as a first like of debt collection. And it would be a very bad idea if they did so, especially if you have full written evidence of your attempts to arrange a plan, and their refusal and harassment.

 

No problem, part of the help here is clarifying it for myself too because I had buried my head in the sand for a while hoping to get a new job and sort it out but now I'm fed up! I know I'm in the wrong having ignored them.. I've made no contact so far but now I want to. At the moment I'm on JSA so can't afford to repay, but as soon as I can I will - but I won't want to pay more than the original debt + one month interest.

 

I get hundreds of missed calls, voicemails, SMS, emails, and letters. Most have been ignored but the info here is what I can gather from the letters in front of me that I can find.

 

PDL Minicredit: Have sent "last letter before legal action. Next letter will be from the court"

 

PDL QuickQuid: Have sold debt on to DCA Mackenzie Hall who are threatening home visit plus have added charges.

 

PDL SpeedCredit: DCAs Northern Debt Recovery AND Marshall Hoares have contacted me saying they now legally own this debt (apparently same company). Marshall Hoares emailed to say they have booked a home visit in the next 7 days and have added lots of charges.

 

PDL Wonga: Have not sent me any letters for a while, I'm not sure what the situation is with them.

 

 

I have not taken ANY actions yet for any of them, other than draft a letter asking for proof of ownership from the two DCAs

 

I can't remember the original amounts borrowed and none of the communications tell me, they just give their big total amount - but each was less than £150 originally and has now been inflated to round £1000.

 

About as clear as mud?

[renegadeimp]

Well, good news, you are on benefits, so they get £1 a month or nothing. Their choice

 

As for the missed calls, voicemails, sms's etc, send them http://www.consumeractiongroup.co.uk/forum/content.php?493-Harassment-by-telephone-response-letter You MUST make official complaints if they breach that instruction. Send it 2nd class and by free proof of posting to each PDL. Give them 7 days to update their systems accordingly.

 

Minicredit are just blowing hot air. They are jedi masters at it. They know they cant take you to court, as the last time they did, minicredit realised they were wrong,. a rep didnt turn up and the judge found in favour of the defendant.

 

Mackenzie hall are well known to CAG. WE like to call them mucky hall, as they will harass you until you break. 99.9% of their charges are unenforceable. As for home visits, have a read of http://www.consumeractiongroup.co.uk/forum/content.php?441-If-you-do-receive-a-doorstep-visit-we-give-these-suggestions-to-Members

 

Regarding your Speecredit debt and the two companies claiming to own it, do NOT pay them. Instead, dispute the account and get official complaints off to the OFT and especially their local trading standards. Their local TS have an extensive file on Mucky hall.

 

With wonga, i would hold off until you hear something from them. However, they are usually willing to help, but you might need a letter from your JSA advisor before they will update your account status.

 

They wont be forthcoming with the totals as they know they are illegally adding on ficticious charges purely to get more money.

 

Follow the advice here, and make sure you are sending complaints in to the PDL's and regulators.

[sillymoo2]

minicredit is the worst!!! but all the other payday lenders llike wonga where quite understanding when i was made redundant..... If they have all been passed to debt companies and you need to sort yourself out and these ppl wont agree to what your willing to pay. call payplan, the are free debt company who will help your sort your financial position and deal with your creditors..... just be a bit more firmer than I was! wish i carried on reading more posts before i jumped the gun and totally hung myself this month.... good luck

[renegadeimp]

Minicredit do not care about your circumstances. They are the lowest of the low and only care about getting their money back anyway they can. We call them "Legal loan sharks" for a very good reason.

 

 

As for the comment by sillymoo about payplan, they are very good, but you need to remember, there is absolutely no obligation for a creditor to sign up to a DMP.

[niw]

I'm writing to MiniCredit to inform them of my situation. Depending how understanding they are I'll decide what to do then.

 

* Update/more info on Marshall Hoares * - They just sent me the following email (they have sent this a few times in the last 2 weeks. I have yet to contact them in any way):

 

BY LETTER AND EMAIL

 

Online payment ID: *****

Outstanding amount: 941

 

Letter of Instruction & Notice Reminder

 

Reference: BAILIFF/INTR/****

Client: Speed Credit - Speed Credit Loan**

Client Ref: *****

 

Date: 17/08/2012

 

Dear ****,

 

We are writing to give you formal notice that Speed Credit - Speed Credit Loan** has legally assigned the rights of the above debt to Marshall Hoares Bailiffs. This means that Marshall Hoares Bailiffs Limited now legally own this debt.

 

YOU WILL HAVE OR WILL SHORTLY RECEIVE A HOME VISIT

 

We intend to pursue you fully for all outstanding sums (GBP 941) including any fees we incur collecting this debt. Payment in full must be rec eived no later than 17:00 to avoid further door collection fees being added to your file. DO NOT IGNORE OR THIS WILL COST YOU MORE

 

Debt GBP 536

Cash Transmission Fee GBP 5

Missed Payment Fee 1 (day 29) GBP 10

NDR Accept Case File GBP 200

Missed Payment Fee 2 (day 43) GBP 10

Solicitors - Case Preparation GBP 150

Missed Payment Fee 3 (day 57) GBP 10

Missed Payment Fee 4 (day 71) GBP 10

Missed Payment Fee 5 (day 43) GBP 10

 

Repayments todate GBP 0

Total GBP 941

 

TAKE NOTICE: You should accept this letter as formal notification that unless payment is received within 4 days then your account will be fast-tracked and considered for the following:

 

Consequences of inaction:

1. Court Judgement legal action will be automatically started in the County Court for recovery of the full amount outstanding. Any such proceedings will includ e additional claims for legal costs and interest which will increase the amount you will be required to pay.

2. Warrant of execution will be applied for to enable us to seize goods at your addresses and or an attachment of your earnings.

3. Register of Judgements any judgement will be entered in a public register, the Register of Judgements, Orders and Fines Credit Reference Agencies, who will supply them to credit grantors and others seeking information on you financial reputation. This will make it very difficult for you to get credit.

4. Credit reference Speed Credit have already advised the Credit Reference Agencies of your DEFAULT. This may seriously affect your ability to obtain credit in the future. Once the balance is paid in full, only then will the default be shown as “Default Satisfied”.

 

To AVOID A HOME VISIT or further action you should PAY IMMEDIATELY

 

1. online using a card by visiting:

 

marshall hoares .com

 

OR

 

2. at bank either over the counter at the bank or by electronic transfer to:

 

Barclays Bank

Account Number: 93462382

Sort Code: 20-50-94

Reference: Use your mobile number as a reference

 

This debt will not go away and should not be ignored

 

You can contact us on 08433811111 to discuss your outstandig debt.

 

Yours Faithfully

 

 

 

Anti - Fraud

Marshall Hoares Bailiffs

Telephone: 0843 381 1111

 

 

The content of this email should not be considered as an acceptance of any offer unless we previously review and expressly approve in writing your terms and conditions relating to the subject matter of this email.

 

The information in this email is private and confidential. If you are not the intended recipient(s) or have otherwise received this email in error, please delete the email and inform the sender as soon as possible. This email may not be disclosed, used or copied by anyone other than the intended recipient(s). Any opinions, statements or comments contained in this email are not necessarily those of Marshall Hoares Bailiffs Limited. If you wish clarification of any matter, please request confirmation in writing.

 

Marshall Hoares Bailiffs Limited.

Registered Company No.: 6871092

Consumer Credit License: 631168

 

Should I still be asking them to prove they own the debt and send the letting saying I don't recognize any debt to Marshall Hoares? Surely if I dispute the ownership of the debt they can just say this formal notification has already been issued to say they legally own it.

 

Also it doesn't say how the original debt figure was reached in terms of amount borrowed plus interest.

 

I will include the letter requesting all communication to be in writing and not to phone me and remind them that they can not visit my home without prior agreement and I do not agree to this. Should I also say about my JSA situation now, or wait, or contact the OC about that?

[renegadeimp]

Be aware, minimuppets will ignore and continue to harass you or add on tons of unfair charges and demad you make a payment upfront. If you make this payment they will then use your details to try and debit the amount they claim you owe either in one amount or in multiple transactions until your account is dry.

 

They very rarely agree to a repayment plan. However post up their reply when you get it. if they say no then ive got a nice letter you can send their way.

Edited August 17, 2012 by renegadeimp