Bonga Loans

[ktan49]

Hi guys

 

Could do with some advice!

 

My loan was due on 11/05/2014 - amount borrowed was £100 -Payback £120 for a month.

 

Due to personal reasons I did not have the cash available to pay them back, the balance is now £165.. I asked if they could freeze it until the end of the month and ill pay it off in 1! they said by this time the loan will be £300!

 

I cannot afford this..

 

Am I right in thinking that I should only have to payback the loan amount and one months interest?

 

Advice greatly appreciated as this is a stressful time.

 

Cheers!

Karl

[renegadeimp]

WHy would it increase that much? what charges are they trying to add? perhaps remind them of the guidelines on debt collection that states they MUST take the debtors circumstances into consideration. Something they clearly arent doing with you as they are trying to profit off the fact you cant afford to repay on time.

 

As a general rule, you owe the original contracted loan amount, plus original contracted interest over the loan period. After that, it depends what they try and charge and for what reason.

[ktan49]

This is a part of text on their website

 

Non-Payment and Financial Implications

 

Before taking out a loan do consider when is your next payday and whether you have the funds available to repay the loan. If you are not in a position to repay your loan or to extend it then charges from your Credit Agreement are applied. These include four £45 charges which are applied when the loan is overdue for the first, second, fourth and seventh day. We can also attempt to collect the outstanding balance automatically on daily basis. If we are unable to recover the funds then a debt collection agency will be involved.

[ktan49]

I do apologise for this long message but this is one of the replies I got.

 

Dear Karl,

 

Thank you for your email. There are three options:

 

a) to extend the loan until you can repay in full. This option allows to avoid and/or remove the overdue charge(s). The extension fee for 7 days is £15 and has to be paid on the due date or within three days after and the new due date will be 7 days from the previous due date. The balance to clear on the new due date would then be the original balance. Should you need to extend the loan on the next due date as well then £15 would be due again either on the due date or within 3 days after.

 

b) to arrange a repayment plan. Do note that a repayment would be arranged for the amount including the original balance, the overdue charges from the Credit Agreement and a £15 set up fee and has a maximum duration of 10 months. First installment should be received within 2 weeks.

 

c) if you are experiencing financial difficulties and require help to organise your finances then there are various organisations (e.g. Stepchange, Harrington Brooks) that help to come up with a debt management plan.

 

If possible then we would advise to use the option A as that is usually the cheapest as you can repay the original amount owed without overdue charges and only extra charges are the extension fees, but if you are unable to do so then we would not advise to ignore the debts, but to put in place at least some sort of arrangement.

 

These are the charges if you are late with the repayment on the due date:

* £45.00 for the first reminder letter (which will be sent to you once the advance has become 1 day overdue)

* £45.00 each for the second reminder letter (which will be sent to you once the advance has became 2 days overdue)

* £45.00 for the third reminder letter (which will be sent to you once the advance has became 4 days overdue)

* £45.00 for the fourth reminder letter (which will be sent to you once the advance has became 7 days overdue*)

* if you have taken out a loan of £100 for 7 days then the fourth charge applies once the advance has became 5 days overdue

 

Please let us know how would you like to continue or if you require any further information.

 

P.S. Please note that we do not contact the employer even should you be employed.

 

Kind regards,

Bongaloans Support

http://www.bongaloans.com

Call us on 08719860220 (calls charged at 10p/min)

[renegadeimp]

This is a part of text on their website

 

Non-Payment and Financial Implications

 

Before taking out a loan do consider when is your next payday and whether you have the funds available to repay the loan. If you are not in a position to repay your loan or to extend it then charges from your Credit Agreement are applied. These include four £45 charges which are applied when the loan is overdue for the first, second, fourth and seventh day. We can also attempt to collect the outstanding balance automatically on daily basis. If we are unable to recover the funds then a debt collection agency will be involved.

 

None of those charges are enforceable as they are upfront penalty charges.

[ktan49]

£45 seems a hell of a lot for a reminder letter lol.

[renegadeimp]

because its an unenforceable penalty charge. They use it to make a profit off you. A charge like that has to be proportionate to the cost involved. So for a letter, youre probably taking £2-3 at most.

[ktan49]

thanks for reply!

 

What would be the next step then? what could I reply to the options they have given me.. Just email them saying I'll pay the original loan amount and 1 month interest at the end of the month? Are there any "Acts" I can remind them of?

 

Cheers dude

[renegadeimp]

Just tell them to stop all charges and interest as its obvious they arent taking your circumstances into account. Provide them a simple budget summary to back up your situation. Tell them that you will NOT be paying any of the charges as they amount to unenforceable penalty charges.

[ktan49]

They replied.

 

Dear Karl,

 

Thank you for your email.

 

In order to avoid the charges until you are able to make the payment in full, we would advise you to extend your loan for £15 until you are able to settle the balance for £120 in full.

 

If the earliest that you are able to make a payment is towards the end of month, as stated in the credit agreement, the charges will be applied. We will accept a settlement figure of £255. We can also set up a repayment plan for you, should you require one.

 

Kind regards,

Bongaloans Support

 

Call us on 08719860220 (calls charged at 10p/min)

Edited May 13, 2014 by ims21

[renegadeimp]

Standard crap from them.

[ktan49]

At the end of the month then what would you suggest I say I pay as settlement? £120? or a bit more?

 

Cheers

[renegadeimp]

You pay the contracted loan amount and contracted interest. Dont pay any of their unenforceable charges. If they try to say you have to, we can write you a letter that puts the onus on them to justify the amounts they charge.

[ktan49]

Reply.

 

Dear Karl,

 

Thank you for your email.

 

Unfortunately, the balance as it stands at present is the balance that will need to be settled. You had agreed to the terms and conditions when you applied for the loan. The terms and conditions included the charges on an overdue account.

 

We can freeze your account at £255 and create a repayment plan for you. This will incur a 315 fee and will therefore make the total balance to be settled £270.

 

Kind regards,

Bongaloans Support

http://www.bongaloans.com

Call us on 08719860220 (calls charged at 10p/min)

[renegadeimp]

Doesnt matter what their terms and conditions say when the terms are unfair terms.

[ktan49]

Ok. Well looks like I'll be needing that letter if you wouldn't mind thanks!

[renegadeimp]

Ill write you one up in the morning if i get time before work. If not, ill do it when i get back Ive bookmarked the thread, as i have a habit of losing track otherwise.

[ktan49]

Ill write you one up in the morning if i get time before work. If not, ill do it when i get back Ive bookmarked the thread, as i have a habit of losing track otherwise.

 

Ahh you're a lifesaver, much appreciated

[ktan49]

Final warning before we contact employer. Your loan balance is 300gbp. Repay online or contact us today for payment options. [email protected]

[ktan49]

What do I do now? Bit worried

[renegadeimp]

Dont worry. If they contact your employer when youve told them in writing only, they will be in serious trouble. Ill do that letter when I get home at 4.30. Its time we made sure that they follow the rules.

[renegadeimp]

Also can you confirm you have told them everything in writing only.

 

Also if you have, have they tried calling you after the letter? If so im thinking a complaint is in order citing robertson vs bos or harrison vs link

[ktan49]

I have only communicated with them via email. They may have tried to ring me but I do not answer numbers I don't know. Thanks for your help!

[renegadeimp]

Ok, reading back through the thread now. Sorry for the delay. Gimme a few and ill see what i can come up with.

[renegadeimp]

Ok. its fairly long, so make sure you read it and modify it to your own liking. Make sure to address it to the compliance director of Bongo loans, and mark it private and confidentail. Do NOT use a PO box to send it. Send it direct to their registered address. If you can, use recorded delivery.

 

NOTICE OF FORMAL COMPLAINT

 

reference : Xxxxxxxxx

 

Dear Muppets,

 

With reference to the above account, i write regarding the extortionate and unlawful penalty charges you have added to my account as well as your overall conduct regaring the account.

 

I have written to you before advising you of my financial circumstances and to consider a repayment plan, of which you are obliged to take into consideration regarding the account.

 

You seem somewhat adamant that your charges are lawful, despite various regulator rulings regarding them. You also state that because they were in your terms and conditions, that it makes them just and lawful. You are not correct. Any charge levied upon the account must be proprotionate to the costs involved with what the charge was placed for.

 

Since you have CLEARLY stated in your own terms and conditions, that the charges are levied PURELY because the loan is overdue, then the amounts are most certainly UNLAWFUL PENALTY CHARGES, and i will not be paying them.

 

You also try and state that Your "option A" is the most cheapest way, even though it increases my overall debt to you and you profit off it. How on earth you think option A is cheaper than using a free Debt management provider is beyond comprehension.

 

You also state that your repayment plan has a £15 fee attached. Yet again, this can be considered an unlawful penalty charge, as it does not cost £15 to set up a repayment plan. All other Loan companies do this for free, as well as stopping all accruing interest ( which you refuse to do), as well as any charges.

 

I will quote your exact words now.

 

£45.00 for the first reminder letter (which will be sent to you once the advance has become 1 day overdue)

* £45.00 each for the second reminder letter (which will be sent to you once the advance has became 2 days overdue)

* £45.00 for the third reminder letter (which will be sent to you once the advance has became 4 days overdue)

* £45.00 for the fourth reminder letter (which will be sent to you once the advance has became 7 days overdue*)

* if you have taken out a loan of £100 for 7 days then the fourth charge applies once the advance has became 5 days overdue"

 

These are very very VERY clearly Unlawful penalty charges, and as such, i am making an official complaint to the FCA regarding your overall conduct As well as considering further action.

 

You also state:

 

"in order to avoid the charges until you are able to make the payment in full, we would advise you to extend your loan for £15 until you are able to settle the balance for £120 in full.

 

If the earliest that you are able to make a payment is towards the end of month, as stated in the credit agreement, the charges will be applied. We will accept a settlement figure of £255. We can also set up a repayment planicon for you, should you require one."

 

So, even though i have notified you that i cannot afford to repay the loan, you STILL try and levy more charges on it, and if i do not follow your laughable demands, you will then levy even more charges on top, despite my circusmtances, and PURELY to profit off my misfortune.

 

 

Now, i am more than willing to pay you what i LEGITIMATELY owe, and as such, my repayment plan is as follows:

 

Enter your proposed plan here

 

I include a copy of my budget summary from national debtline which you are obliged to take into account.

 

Should you refuse to agree to my proposal, or take further action, i will have no alternative, but to pay you £1 for the life of the account until such as time as you agree, as your actions will do nothing to help me lower the debt.

 

Should you consider legal action, i will not hesitate to forward all correspondence so far from myself and yourselves as part of an evidence package, to which the judge will still agree to my proposals, and possibly lower it even further.

 

 

I therefore request you take this as a formal complaint upon which under OFT/FCA guidance, you will cease collection activities until the complaint is resolved. Therefore it is in both our interests to resolve this dispute amicably.

 

 

A copy of this complaint is being forwarded to the FCA and FOS.