TxtLoan Defaulted - Some opinions needed

[Ons]

Hello, I just need some insight into the email below txtloan have sent me. I mean I am not new to this and believe I should pay what I owe and that is that but sometimes other people can say things which open other doors.

 

I took a loan from txtloan in march/april for £300 and set up a repayment plan when I couldn't pay in april for £20 per month for 6 months which ended on 30th november 2012. So my original loan was £300 (£351 w/interest), I have paid £120 which should leave £231 but the DCA is claiming my balance to be £540. And how can they still charge me interest even when on a repayment plan?

 

The DCA txt loan has sent my balance to is Mackenzie Hall, who we all know are such awesome guys.

 

____________________________________________________

 

Thank you for your e-mail.

 

Please note that we offer short-term 15 day loans only and currently your loan is on day 288 on our credit cycle.

 

The process works as follows:

 

Day 1 - you receive a loan of £300. A repayment reminder is sent before the loan term elapses.

 

Day 16 - We collect the original amount you borrowed, £300 plus interest of £51 - £351 in total. However, if the funds are not available on Day 16, additional charges are added.

 

Day 17 - a 1st reminder is sent and a £25 administration fee is added and interest accrues at the rate of £3.40 per day until your loan is repaid in full. The loan totals £379.40.

 

Day 27 - a 2nd reminder is sent and a £25 administration fee is added and interest continues to accrue at the rate of £3.40 per day until your loan is repaid in full. The loan totals £438.40.

 

Day 61 - the loan totals £554.00 and is passed to our Collection Partner. This incurs an additional £138.50 administration fee. The loan totals £692.50.

 

We try to collect your outstanding debt on a regular basis. You may have to pay additional charges to the debt collection agency. Failure to repay a loan may damage your credit record and could result in legal action.

 

We had a repayment plan arranged for you. We confirmed that for the first 6 months we accept reduced payments of £20.00 towards your outstanding balance of £554.00 and unless we hear from you the full remaining balance is expected on 31/12/12.

 

Regrettably, no payment or correspondence was received until now, therefore, the loan followed original credit cycle as per the agreement which you have signed and was forwarded to our Debt Collection Partner on 14/01/13.

[renegadeimp]

If you have probs with mucky hall, get a complaint into their local trading standards. They have an agreement with MH where instead of waiting 8 weeks for a response to your complaints, trading standards gives them 5 DAYS.

 

Now, lets look at the charges.

 

Day 17, unlawful and reclaimable.

Day 27 Same as above.

Day 61 Same as above.

 

 

Those charges/fee's are there purely to hike the debt up to "unjustly enrich" themselves.

 

 

You say you had a repayment plan? Did you default on it? Under the terms of their credit licence, they must take into account your circumstances and not keep increasing the debt. If after the initial period that was agreed, your circumstances havent changed, then tough luck to them. The repayment plan stands and you continue at £20 a month.

 

Notice how they try and threaten you with a DCA, sayign the DCA will add charges. Umm.. yea, DCA wont add them on, as they have no legal rights to the debt. It's just like NDR when you deal with speed credit, they try to claim they can add on interest which they cannot do.

[Ons]

If you have probs with mucky hall, get a complaint into their local trading standards. They have an agreement with MH where instead of waiting 8 weeks for a response to your complaints, trading standards gives them 5 DAYS.

 

Now, lets look at the charges.

 

Day 17, unlawful and reclaimable.

Day 27 Same as above.

Day 61 Same as above.

 

 

Those charges/fee's are there purely to hike the debt up to "unjustly enrich" themselves.

 

 

You say you had a repayment plan? Did you default on it? Under the terms of their credit licence, they must take into account your circumstances and not keep increasing the debt. If after the initial period that was agreed, your circumstances havent changed, then tough luck to them. The repayment plan stands and you continue at £20 a month.

 

Notice how they try and threaten you with a DCA, sayign the DCA will add charges. Umm.. yea, DCA wont add them on, as they have no legal rights to the debt. It's just like NDR when you deal with speed credit, they try to claim they can add on interest which they cannot do.

 

 

Oh your back lol. Heard you did something naughty lol.

 

I made all my payments under the 6 month payment plan. They did send me a default notice cause I hadn't paid by midday or something. But I paid £20 every month for 6 months.

 

So what do I do now? MH have sent me an email and txtloan are telling me to deal with MH but no way I am gonna let them add £300 to my balance.

[renegadeimp]

Can you post up that default notice?

 

MH cant add anything. So dont worry about that. I would ignore them for now and deal with txtloan. You need to find out why they wont reinstate the repayment plan, instead preferring to hike the debt up, when you explicitally told them you couldnt meet the repayments. The OFT take a very dim view of things like this, as do the courts, which is probably why txtloan are trying to pass the debt elsewhere.

 

However, if the repayment plan is active, then any new owners of the debt, including dca's if you choose to deal with them, are obliged to continue with that repayment plan.

 

 

If it was me, i would start issuing formal complaints, and ignore these silly childish excuses they are giving you.

[Ons]

Can you post up that default notice?

 

MH cant add anything. So dont worry about that. I would ignore them for now and deal with txtloan. You need to find out why they wont reinstate the repayment plan, instead preferring to hike the debt up, when you explicitally told them you couldnt meet the repayments. The OFT take a very dim view of things like this, as do the courts, which is probably why txtloan are trying to pass the debt elsewhere.

 

However, if the repayment plan is active, then any new owners of the debt, including dca's if you choose to deal with them, are obliged to continue with that repayment plan.

 

 

If it was me, i would start issuing formal complaints, and ignore these silly dish excuses they are giving you.

 

We sent you a reminder on 23/04/2012 informing you that your loan was due for repayment but see that you have not been in touch with us or made a payment.

 

It is important that we hear from you without delay to discuss the situation.

 

If you can’t make the full payment immediately, we will try to sort out an arrangement to let you pay over a longer period or even let you make an offer to us to pay a part settlement. We can’t help though if we don’t hear from you.

 

If you do not repay your loan and clear the amounts shown in the default notices that we have sent to you, this can mean that the unpaid loan will be recorded in a countrywide credit score database where it will remain for up to six years.

 

The above action may result in you being refused all kinds of credit and we strongly urge you to contact us to resolve the matter. You can reach us on:

 

Web: www.txtloan.co.uk

Email: [email protected]

 

We sent you a reminder on 23/04/2012 informing you that your loan was due for repayment but see that you have not been in touch with us or made a payment.

 

It is important that we hear from you without delay to discuss the situation.

 

If you can’t make the full payment immediately, we will try to sort out an arrangement to let you pay over a longer period or even let you make an offer to us to pay a part settlement. We can’t help though if we don’t hear from you.

 

If you do not repay your loan and clear the amounts shown in the default notices that we have sent to you, this can mean that the unpaid loan will be recorded in a countrywide credit score database where it will remain for up to six years.

 

The above action may result in you being refused all kinds of credit and we strongly urge you to contact us to resolve the matter. You can reach us on:

 

Phone: 0871 705 0000 (Calls cost 10p/minute from a BT-landline, calls from mobile phones may vary. Please contact your network provider for further details)

 

If you are struggling to manage your money you might find it helpful to get independent advice from your local Citizens Advice Bureau or by calling National Debtline free on 0808 808 4000.

 

Please don’t ignore this matter – it won’t go away on its own and we will do all we can to find ways to help you.

 

I look forward to hearing from you.

 

Yours Sincerely,

Birgit Kulli

Collections Department

[email protected]

 

 

1 Cornhill

 

I got in default notice in april 2012 and one in january 2013 and actually they don't look like default notices and they both got april "as a reminder" on them.

 

The repayment plan I had with them finished in nov 12, so I guess techinically there is no current payment plan but why are they being so harsh? they sent me the above default notice on 7th jan 2013 and gave me a week before they went to a DCA? Wtf.

[renegadeimp]

There are no default notices there. SImply a reminder to pay the debt.

 

 

http://www.legislation.gov.uk/ukpga/1974/39/section/88

 

Have a read of that. The lender is lying to you or misrepresenting the debt, and you need to get a complaint in.

[Ons]

There are no default notices there. SImply a reminder to pay the debt.

 

Yeah it says in the email that I have been sent defaults but I have searched my inbox and theres nothing there. Strange. So what is my plan of attack?

[Ons]

I have sent this email;

 

Hello, there are still many issues I have because non of this is making sense.

 

1) Where are the default notices you sent me? I have checked my whole inbox for the previous 1 year and there is nothing stating the amount I have defaulted on. Only that I have defaulted and that you are willing to be come to an arrangement for a payment plan.

 

2) You sent me an email on 7th january 2013 to tell me I have defaulted, I replied on 14th january to tell you I am still having financial problems and that I wish to resume the payment plan which ended on 30th nov 2012 however it seems you have only given me 6 days to reply to your email amount my current balance and seems like you are unwilling to even be reasonable or give me a reasonable time frame to reply.

 

3) The email on 7th jan 2013 states that you are willing to come to an arrangement with me. I have emailed you 6 days after for you to tell me everything has been sent to a DCA, how is that fair?

 

4) My original loan was £351 w/interest. You are now telling me even after paying £120 over 6 months and being told you will FREEZE my interest you are now claiming I owe £692.50???? I refute this balance. You are mis-representing the debt I owe txtloan under the CCA 1974 act. You are meant to give me 14 days even if you default me, which you have not done to get in touch.

 

Regards.

[renegadeimp]

Yeah it says in the email that I have been sent defaults but I have searched my inbox and theres nothing there. Strange. So what is my plan of attack?

 

Call their bluff. Write to them and tell them you want full copies of each default notice ( why would they even say they sent multiple when you can only default once) in written format via royal mail.

 

To be honest, i think they are either misrepresenting the status of the debt, or more likely theyre choosing the wrong words to use. Instead of late or missed payment, theyre using the word default.

[Ons]

Call their bluff. Write to them and tell them you want full copies of each default notice ( why would they even say they sent multiple when you can only default once) in written format via royal mail.

 

To be honest, i think they are either misrepresenting the status of the debt, or more likely theyre choosing the wrong words to use. Instead of late or missed payment, theyre using the word default.

 

I am not sure. We will see what there reply is.

[Ons]

Rene, just a quick question regarding minicredit. Is it worth making official complaints to OFT and FOS or should I just wait till it gets to court?

 

Also, if it gets to court. You don't defend in court do you? It's all submitted before hand right and verdict it said in court?

[renegadeimp]

Get those complaints going. It can only serve to back up your defence.

 

As for court, you hand your defence in first, and normally its transferred to your local court. There, a court official sits in a room with you and the lenders rep ( if they even bother to turn up) and its discussed. Both sides get to put their evidence forward.

 

Normally minicredit either dont turn up, or they send some very young rep there who has no clue what to do. The only cases theyve actually won are the ones that they gained judgement by default, or the debtor didnt have a clue what to do for their defence and what documents to get. Thats why we have legal forums on this site for just such an occasion. The people who advise on that forum will tell you exactly how to go about things, contest parts of the case and what evidence to put forward.

[Ons]

Get those complaints going. It can only serve to back up your defence.

 

As for court, you hand your defence in first, and normally its transferred to your local court. There, a court official sits in a room with you and the lenders rep ( if they even bother to turn up) and its discussed. Both sides get to put their evidence forward.

 

Normally minicredit either dont turn up, or they send some very young rep there who has no clue what to do. The only cases theyve actually won are the ones that they gained judgement by default, or the debtor didnt have a clue what to do for their defence and what documents to get. Thats why we have legal forums on this site for just such an occasion. The people who advise on that forum will tell you exactly how to go about things, contest parts of the case and what evidence to put forward.

 

Is there anything from minicredit I actually need? I think I deleted most their emails cause it was just pre written stuff. At the end of the day, once MC give you a breakdown of charges that alone would show what's unenforceable right? Or do I need emails from MC saying they don't do payment plans?

[renegadeimp]

Yep. If you have a detailed breakdown of charges ( which you should get before anyone pays any money out to these muppets), the unfair/unlawful charges will stand out pretty well.

 

If you have an email from MC that states they dont do repayment plans, that will stand in your favour, as it directly contravenes OFT guidance on debt collection and the terms of their credit licence. However, you would need to make a complaint to the OFT to show a court.

[Ons]

Yep. If you have a detailed breakdown of charges ( which you should get before anyone pays any money out to these muppets), the unfair/unlawful charges will stand out pretty well.

 

If you have an email from MC that states they dont do repayment plans, that will stand in your favour, as it directly contravenes OFT guidance on debt collection and the terms of their credit licence. However, you would need to make a complaint to the OFT to show a court.

 

Okay, I will send MC an email now and get it confirmed again. LoL.

[Ons]

Quick thing, should I contact OFT and FOS now or wait for break down in charges?

[renegadeimp]

Contact the OFt and get that complaint in. With the FOS, they will not do anything until you get a final response from the lender, and even then their stance is they wont comment on charges. Which is strange as they refer to the court case regarding bank charges, yet these charges arent covered by that court ruling. I always found it strange, yet theres been no explanation why they have done that.

[Ons]

Contact the OFt and get that complaint in. With the FOS, they will not do anything until you get a final response from the lender, and even then their stance is they wont comment on charges. Which is strange as they refer to the court case regarding bank charges, yet these charges arent covered by that court ruling. I always found it strange, yet theres been no explanation why they have done that.

 

So now I need to go through all that **** with MC again that I did 9 months ago to get the emails? Oh my daze.

[renegadeimp]

Thats how they operate unfortunatley Ons. They do things liek this so you just think " screw it, i cant be bothered". Then they issue a court claim. You are unprepared, and dont have the correct evidence, and they get judgement by default. Once they have this, they then demand full payment along with costs, and if they dont get this they can ask for enfocement options. Which can include bankruptcy if the debts over £750 ( The government really need to add a zero on to the end of that. Making someone bankrupt over a £750 debt is the stupidest thing ever).

 

However, bankruptcy and indeed bailiffs are usually an absolute last resort. The court normally orders an attachment of earnings, and only proceeds further if that doesnt work out. The worst part, is that you will be paying for all these extra court hearings and enforcement options.

 

Now do you see why we always advise people to keep full written records from start to finish and follow everything up that breaches guidance and regulation with full complaints?

[Ons]

Just an update, after some very aggresive emails to txtloan, txtloan have backed down and taken the loan back from the DCA and taken any added charges off.

 

This is why you should always fight when your not in the wrong.

[renegadeimp]

Good job. Make sure they are keeping everything in writing so they cant backtrack.

[Ons]

So another update, txtloan are refusing to stop interest while on a new repayment plan. What options I got?

[manontheweb]

Could you paste up the aggressive email you sent please?

[renegadeimp]

Hi ONS. Highlight OFT guidance on debt collection to them and tell them that unless they stop interest and charges, you will report them to the OFT.

 

 

There is technically no legal obligation for a creditor to stop Interest and charges on an account. HOWEVER, if informed by a debtor that they are having financial difficulties and are struggling, or cant afford to repay the debt, then they have to take that into serious consideration. Should they continue to pile charges and fees on once they have been informed, then they are in violation of a lot of the guidance as a responsible lender. They then head into the realm of borderline criminal activity where they are hiking up the debt for self gain while ignoring the debtors circumstances.

[Tigerlily2786]

Hi, i was just wondering what email address you use for minicredit? Ive had no response from the one ive been using.