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Minicredit default


davyatsea
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Hi there,

 

Just wondered where I stand with Minicredit. My situation seems to be broadly similar to others on here, but I could do with some relevant advice here. My wife took out a loan of £100 with Minicredit in January. She was charged the FastAdvance TransmissionFee of £19.50 so only received £80.50 in her account. In February, she wrote to Minicredit and offered a monthly payment plan of £30 per month and enclosed a postal order for £30. She sent a 2nd letter in March along with another postal order for £30. On return home after posting the 2nd letter, she received a letter stating that Minicredit did not accept cheques, and could she cancel the cheque. As the postal order hadn't been returned, my wife and I have no idea what has happened to the postal order. Minicredit continued to debit our account under CPA even though we had asked the bank to cancel the CPA. These payments have since been refunded to out account. I complained in March on my wifes behalf, but Minicredit basically ignored my comments and wrote to my wife offering her payment plans. I wrote again in May and they ignored my letter, stating that the account was being passed to OPOS wih a balnce of £844. Since then, we have had nothing but harrasement by OPOS.

Since the period has elapsed, I escalated the complaint to FOS, but based on the information they received from Minicredit, they 'reduced' the balance from £844 down to £382. FOS accepted this despite my comments about th postal orders and the fact that the statement sent by Minicredit was inomplete. I am getting nowhere with FOS and the postal orders still have not been applied to the account.

 

I have also since discovered that a default has been placed on my wifes credit file in May, despite me raising complaints with them in March and May. The default is for £418 despite the loan amount being credited to my wifes account being only £80.50. Minicredit have not applied the postal orders to my wifes acccount or returned them to her. I just wondered where I go from here. I can post the transcript that Minicredit have sent to FOS if need be. Many thanks.

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Hi. regarding the transmission fee, you can contest this very easily as you never actually received the funds. They basically gave you 80.50 but are trying to charge you on 100. Personally i would go to the FOS over that.

 

Regarding OPOS, they are minicredit. Just a different name. Also, all the extra interest and charges can be contested as unfair.

 

I note you have been to the FOS. Did you escalate it to the ombudsman?

 

Regarding the default, you can certainly challenge this if, without the extra charges, the default would never have been levied. Regarding postal orders/cheques, they cannot refuse to accept them. It would be breaking UK law, as every creditor must accept a payment towards the debt. They dont have to acknowledge a repayment plan, but they cannot turn down a payment to the debt.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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I did escalate the complaint to the Ombudsman and the adjudicator allocated to my case applied to Minicredit for information. They told the FOS that they had reduced the balance from £844 to £382. Based on that information and everything that I sent, they did not uphold my complaint. I was not aware that I could contest the transmission fee until recently, and I was certainly not aware that a default had been applied. The FOS had closed my case, but I am looking at ways to appeal their decision. I can upload some documents tomorrow morning if need be so I can work on a case to add to my complaint.

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Just sent this to the FOS as they had closed the case thinking that this had all been resolved. We'll see what happens next..

Many thanks for ringing back earlier today and for agreeing to re-open the case. As discusseed, I feel that a number of issues are as yet unresolved. Added to this is the new issue of the default registered in May. To summarise, I will bullet all the points below.

  • The loan was issued on 4th January for £100 less a Fast Payment Transmission Fee. Until recently, I was unaware that I could contest this. Mrs has accrued interest and charges on an initial balance of £100 even though she only received £80.50 creditted into her bank account.
  • Mrs notified Minicredit formally on the 17th February about her financial situation. This was after seeking advice from the Citizens Advice Bereaux in Portsmouth. They advised Mrs to send postal orders and cancel all CCA with the bank.
  • Postal orders were sent in February and March for £30 each. She also sent a further token payment in May along with my second letter of complaint. The responce to my first letter of complaint was unnacceptable and ignored the concerns that I had raised. To purchase postal orders to send to creditors, Mrs incurred fees of 12% of the face value. This is an extra cost which we could ill afford. to be told by any creditor that they dont accept 'cheques' is a blatant breach of OFT Guidelines. I believe it may now be against the law.
  • Letters were sent by Minicredit threatening 'doorstep collections'. As far as I am aware, Minicredit are not licence to collect payments from the doorstep. Also, they have no right of entry onto my property without an appointment. I see from an internet search, there is a long history of issues with Minicredit.
  • All attempts to negotiate a paypemt plan were refused. On 31st May a default was registered on Mrs credit file. As far as I am aware, a formal default notice should have been issued. This did not happen, and attached to my fie is a narrative of all communication between us and Minicredit.
  • The default therefore was registered incorrectly and against OFT Guidelines on debt collection. If Minicredit had accepted a payment offer back in February, AND frozen the balance, the situation where charges were added to such an extent requiring a default to be issued would never have occured.
  • To clarify, the default balance consists mainly of charges and interest, most of which have been applied unfairly.
  • In June, the acount was passed to OPOS, who again refused all payment offers. Mrs offered a settlement, which was accepted. However, the only was payment method Mrs was offered was by debit card. Nothing was agreed in writing by OPOS, so the account was passed back to Minicredit.
  • Minicredit claim that they refunded all payments made to the account. This was simply card transactions which occurred AFTER a Cancellation of CCA was issued by our bank on our behalf. When postal orders were sent, they were NOT applied to the account and they have NOT been refunded.
  • We have not set up a debt managemt plan with Christians Against Poverty, who have made a payment offer to Minicredit on our behalf. As the balance is in dispute, they have withheld payments to Minicredit. As soon as we all come to a mutual agreement, payments will be made with immediate effect.
  • Considering all the above factors, along with all supportive documentation that has already been sent, I consider a finall settlement to be as follows: Principal of loan (less Fast Payment Transmission Fee), plus one months interest. Less payments already sent by postal order. I would appreciate your comments on this.

I apologise for the lengthy email, but hopefully that makes things clear. If amy issue requires a new complaint, then I would be gratefull if this could be issued on my behalf. I appreciate that the business requires time to investigate any new issues. However, the end result I am looking for is to have the default removed from Mrs credit file AND for me to be able to make a FULL AND FINAL settlement offer based on the facts above. While I appreciate this will take some time to resolve, please can you send me a quick reply to let me know you have received this email

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Minicredit dont care about the FOS. They are known to lie to them to get the FOS to 'go away'.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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That was my theory when the FOS closed the complaint so easily after Minicredit had told them certain factors. It was only when I discovered they had place a default on my wifes credit file that I needed to re-open the case - alng with the issue of the 'mislaid' postal orders. Minicredit had told FOS that they had refunded all payments, but had dodged the issue of the postal orders.

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To me, it seems the FOS is so inundated with complaints lately, they are doing anything simply to close the complaint so they can move on to the next and clear the backlog.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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  • 1 month later...

Just a positive story... I too had a loan from mini credit who passed it over to DRS debt recovery services... I have had the default removed and settled for 40% of the balance owed... They admitted via email that they do not issue default notices as it is all done online!!! So it can be done!! I luckily had a nice guy from DRS who helped and I know probably made some money as they probably bought the debt for peanuts but that default removed is a breath of fresh air!

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  • 1 year later...
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