Speed-E-Loans

[avfc2012]

Hi all,

 

I really need some advise please.

 

Stupidly I took out a loan with Speed-e-loan.

 

The amount was for £250, due to unforeseen circumstances I lost my job around the time the loan should have been paid back £397.50 Feb/Mar 2011.

 

I was paying token payments till January when someone told me to stop, as I only owe the £397.50 and nothing more....

 

Now Speed-e-loans are chasing an astronomical amount (well it is to me) of £1090.51 including interest and charges. (three phone calls today from them despite me requesting everything in writing)

I've emailed them today stating to provided full statement and also stuck to contact in writing only

and this is what I have received from Speed-e:

Thank you for your email. Please find attached a brerakdown of your transactional log with Speedeloans.

You borrowed £250.00 capital and was due to pay back a total of £397.50 in Feb/March 2011. To date your current outstanding balance is £1090.51 (inc. Interest charges etc)

Since you took out this loan you have paid back a total of £154.50.

Therefore taking everything into consideration the best settlement offer I can accept is £704.50 (I cannot offer you anything less than this).

If you wish to split this over 2-3 monthly payments I am willing to accept this also to make it more feasible for you.

 

 

Please examine and reply in which way you feel to proceed, interest is still incurring on this account so i do urge you to respond quickly so we can find a solution to this loan and get it paid off as quickly as possible

 

I've attached what they sent in the email as well, this was supposed to be a statement of account but it shows no Account number or Account holders name - It could be anyone's

In addition to this, the interest applied doesn't seem right as there's 3x of the 6th June, 2x 14th June there is no pattern to the charges is it daily/weekly/monthly or when they feel like it?

 

Really need some help, Is my friend right that I only owe them the £250 plus one months interest? Im on JSA so my money is budgeted but I know I can pay the remaining £245 within two months. [ATTACH=CONFIG]38339[/ATTACH][ATTACH=CONFIG]38338[/ATTACH][ATTACH=CONFIG]38337[/ATTACH]

[Nao]

Correct, all you owe is original loan amount plus 1 month interest minus any payment already made. The rest are unenforceable fantasy charges.

[avfc2012]

Is there anything that I can quote or say to them to tell them that I will be paying the £250 only.

As they are quite adamant that I owe them over a £1000..

[Nao]

The credit agreement ended the day you where originally due to repay, which is why they can't charge their 4000% or whatver interest anymore.

 

For the unfair charges see here http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft311.pdf relevant bit is under Section 5

[renegadeimp]

The credit agreement ended the day you where originally due to repay, which is why they can't charge their 4000% or whatver interest anymore.

 

For the unfair charges see here http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft311.pdf relevant bit is under Section 5

 

Yep. Thats why you DEFAULT on a loan and not simply miss the repayment. If the contract was for 3 months for example, then a £300 loan can be paid £100 per month. If you miss a payment, then they have the right to charge interest.

 

However, they offer 30 day loans, upon which the contract is legally ended, you have defaulted, and are in debt with them. It's also why multiple PDL's claim a rollover fee creates a new loan with the company. It's how they TRY and get around laws that involve interest.

[avfc2012]

Sorry I'm a little confused.

Are you saying that I am liable for the full £1k or just the £250?

Also how can they charge multiple interests the same day?

 

I would like to write back to them and sound intelligent by quoting something that proves I should pay a penny over £X amount.

[renegadeimp]

You are only liable for the original loan plus original interest. I quoted an example which is basic how things are calculated. However PDL's only offer 30 day loans. So the interest cannot be charged as they try to charge it. They would have to agree to an initial contract of a few months to be able to do this, and in doing so, would have to abide by different rules.

 

What they are doing is trying to pretend that they are offering proper loans, like credit cards/banks do, but operate under PDL regulations, of which there are very little.

[Nao]

You are only liable for the £250.

 

Below quote is from a different thread on this forum where someone complained to the FOS about a different PDL Company that tried to add fantasy charges:

 

Just received the judgement from fos and low and behold they have agreed with my complaint!!!!

 

They have basically said that I owe them the initial loan +1 months interest + the 1st default fee less the payments that have already been made! They also go on to say that an appropriate repayment plan should be agreed to if needed!

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?343976-Response-from-Minicredit-about-FOS-complaint&p=3945846&viewfull=1#post3945846

 

Don't worry about the default fee bit, while that is theoretically correct fees can't be disproportionate, unfair or anything else as outlined in the OFT document linked earlier, so even if the FOS says a default fee would need to be paid that default fee itself still needs to meet the guidelines and comply with any and all applicable laws to actually be enforceable.

[avfc2012]

I am going to approach S-e-L with a repayment for the £250. My email is as follows:

Hi, I’ve reviewed the information sent with the help of the CAB and another Consumer Advice service.

Both have informed me that the only amount due is £243.00 ( £397.50 less payments of £154.50).

 

They have stated that “you (Mr XXXXXX) are only liable for the original loan (£250) plus original interest (£147.50) as Pay Day Loan's only offer 30 day loans. So the interest cannot be charged as the company are trying charge it. They would have to agree to an initial contract of a few months to be able to do this, and in doing so, would have to abide by different rules.”

 

With that said I wish to resolve this amicably.

 

Section 187 of the Social Security Administration Act 1992 is an Act of Parliament which over-rides charges/penalties being taken or applied to an account if the person is in receipt of any of the following benefits: Income Support, Tax Credits, Child Benefit, Job seekers allowance, Incapacity benefit, Disability living allowance, Attendance Allowance, CSA payments, Other DWP payments.

These social security benefits are granted to stop hardship and are designed to meet *basic day to day needs*, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).

Basic day to day needs as per the DWP: food, water, shelter, sanitation, education, clothing, transportation and healthcare including personal care.

 

Due to myself receiving Job Seekers Allowance (JSA) at a rate of £71.00 per week (previously was on Employment and Support Allowance), so I would require a re-payment plan for the £243.00.

As mentioned in your email below the maximum period of time you were proposing was 3 months. At £243 this would nearly be a 3rd of the monthly rate of JSA and would put myself in further financial hardship.

 

I therefore propose the following:

Should there be any, a removal of any Default entered on to any of my credit reports (Experian / Equifax / Call Credit)

A repayment for £250 (£243.00 + £7.00 admin costs to set up this arrangement) over a period of 6 months. Commencing 28th September 2012 and further payments on or before 28th of each calendar month. (£41.67 x 6 monthly payments on or before 28th each calendar month).

 

If I am in a position to pay more than the £41.67 pcm, I will do so with no prejudice/charges/penalties or fees being applied to the account.

 

As I am hopeful of re-entering employment, I suggest that this schedule be reviewed no earlier than the 28th November, to see if I am in a position to make a final settlement on the account. Again if I am in a position to settle the account at any time, I will do so with no prejudice/charges/penalties or fees being applied to the account.

ALL PAYMENTS will be made by bank transfer to the account details used previously (Sort Code: XX-XX-XX; Account Number: XXXXXXXX with client ID XXXXXXXX)

 

Should this not be correct, or any of the details change, please inform myself in writing via email with at least 7 working day’s notice.

 

I hope that the information provided and the proposal will be acceptable. (please reply to this email with confirmation).

However should this proposal not be accepted by yourselves, I will deem the account as in query and exercise my right to approach the FSO to seek resolution.

Regards

Mr XXXX

As previously mentioned: Please be advised that I will only communicate with you in writing.

I have noted your repeated attempts to contact me by telephone and these have been duly logged by time and date.

Each call received will be greeted with a response of “Everything in writing as previously mentioned” and then the call will be ended

 

What do you think? I was going to originally put £300 instead of £250, but thought why do I want to give them money? I think £7 is reasonable admin costs (as if there would be any).

I thought to include a bit of jargon that was given to me when I first made a claim for JSA about charges & penalties etc.. as they have been made fully aware (proof of benefits) my situation previously.

[Nao]

Yes, thats fine.

[avfc2012]

Result!!!!

Just received an email from Speed-e-Loans:

Dear Mr xxxxx,

I apologise for the late reply, i have been discussing your account with management most of the morning and they have authourised me to put your agreement in place. £250 will be needed to be paid over 6 months with the first payment being made on or before 28th September of 41.67.

The bank details you hold for Speedeloans are correct so bank transfer/standing order is fine.

I hope this has helped you

Kind Regards,

Andrew Wright

 

so thats gone from the balance of £1090.51 to the minimum acceptable settlement of £704.50 to £250.00

 

Thanks for your help.

[Guest Radgie]

Good one pal

 

I suspect the "discussing your account with management most of the morning" is another term for we know we ain't gonna pull one over on you!

[renegadeimp]

Nice job. And radgie hit it right on the nose

[avfc2012]

I've just checked and the email didn't leave my outbox till 12:47 Today and his response was at 13:03!

 

Oh well - time to start the whole process with CashChoice (apparently I owe them £1400 from £200) and Payday Express.

[Guest Radgie]

I find it amusing how they make out they've went through thorough procedures and discussed the account in-depth to arrange a repayment plan.

 

Makes me laugh lol

 

Keep us updated on payday express

[Nao]

Well, usually PDLs do know exactly well where they stand legally with their unfair fees, of course if one wanted the apparent lack fo procedures to follow to wipe off the fees could be used s a basis to question the procedures for approving the loan in the first place:wink: