PayDay loan hole

[renegadeimp]

Normal threat letter from them. We see it all the time on here. File a full complaint to the OFT and get the letters sent to them. As ive said before, toothfairy and speedcredit have already been shut down, hopefully we can get something done about them operating using these sub companies too.

[Jamie Kingston]

makes me laugh - bloody nonsense fees!

[renegadeimp]

Yep jamie, i love how they all actually admit it in the letter, but word it so it seems as if they are legit.

 

Look closely:

 

2 default fee's of different amounts (you can only default once)

Missed payment fee's (Penalty fee's which are reclaimable)

Unlawful charge to pass it to NDR

Unlawful charge for sending the debt to non existent solicitors

 

Extreme debit charges. By their own admission, they have tried to debit your account a minimum 28 times so far.

 

Regarding wageday advance, ignore their silly interest charges. They add it purely to hike up the debt to stupid numbers.

[fletch70]

You have to laugh at stopping£200 for making a paper plane and checking it across the office.

[Derfell]

Just wondering, but is there anyway to defer these amounts at all? I can't really make any significant monthly payments at the moment but I did see one solution on another website was to hold the payments for 12 months until I'm in a better financial situation.

[renegadeimp]

You have a right to asl certainly. But TOothfairy/NDR will say no or add on tons of charges. We see them do it all the time.

[fletch70]

You can ask them to hold payments for 6 months. It can work.

[Derfell]

Hi, just a quick update.

 

WageDayAdvance have agreed to paying £50 a month off for the next 6 months, we'll then review the account then. The total owed is £470

 

PayDayExpress have agreed to paying £50 a month for the next 6 months, the total is £513

 

PayDayUK have agreed to £50 a month for the next 6 months, the total is £450

 

Minicredit are refusing to budge and keep hassling me, the original loan was £120 and they have added £75 in interest, £80 in penalty fees and £150 in debt collection attempts through my card

 

Toothfairyfinance have refused monthly amounts or freezing the account and said they've sent it off to CCJ, the loan was for 400 and as the total payment which has now turned into £1720 including interest, fees, solicitor costs and bailiff charges.

 

Wonga I'm currently dealing with as they want evidence of unemployment.

 

 

Is there anything I can do to sort Minicredit and ToothFairyFinance out?

[Jamie Kingston]

Mini credit and toothfairy are probably on the way out from the OFT investigation. There are some template letters but I doubt it'll work. If they even try and take you to court we have enough ammunition on here to send them back to the stone age. Keep repeating the offer and wait it out - come rain or shine in the end they will accept.

[fletch70]

How much have discredit taken from you in total.

Oops minicredit but that'd predictive text for you.

[Derfell]

How much have discredit taken from you in total.

Oops minicredit but that'd predictive text for you.

 

They took £25 from me before I could cancel my card and since then haven't taken anything. None of them have my new card details so none of them have taken any money yet and the direct debit payments I have set up are from an empty account where only the agreed amounts will be placed

[fletch70]

Thanks,how much have you paid them in total,i assume it is just the homophobic£25

[fletch70]

sorry predictive text. that homophobic word had no place here

[Derfell]

Just wanted to check, but how do I apply for the 6 month account hold thing?

[fletch70]

I think there is a letter in the library but just something along the lines of " would you please consider holding my account for 6months and suspending all charges and interest until i can get back on my feet. If this happens sooner I will of course be in touch." You might want to add some income details such as I am in receipt of JSA and maybe send a copy of your award letter. Only send stuff that will be beneficial to you.

[renegadeimp]

http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

[fletch70]

Personally i wouldn't send a budget planner unless it was very basic and benefits you.

[renegadeimp]

Its not a planner. Its a link to the library templates

[fletch70]

Indeed however some of the templates say i enclose an income and expenditure form.

Another suggestion is to read,read and reread any letter to make sure you haven't left blanks such as {put company name here }

[Derfell]

Would it be ok then to send a letter/e-mail to all of them requesting to accept £1 a month for 6 months? Seems I can't afford the £50 a month on 4 of them

[renegadeimp]

If you can only afford the £1 a month, then by all means tell them. Make sure that you add the clause that you want all interest and charges stopped until the debt is revaluated in 6 months. COntinuing to charge those sums would defeat the purpose of repayment, and also would hike the debt up to an unrepayable amount. This contravenes their responsibilities under OFT guidance on debt collection as a responsible lender.

[Derfell]

Is there anything I can quote from the OFT that will make them stop adding interest and get rid of ridiculous charges? I don't see why a £120 loan has turned into close to £500 with only £80 of it being interest

[renegadeimp]

You can remind them of their obligations under OFT guidance on debt collection. Just realise that PDL's ignore this. There is no strict wording that says they must stop, but continuing to charge the unlawful fees when the debtor has shown they cant repay the debt is against the majority of guidance.

[fletch70]

Yikes. We agree.

Definitely worth sending a letter / email.