Remove Minicredit/OPOS unenforceable charges?

[RosePetalBeauty]

I'm writing on behalf of my partner who took out a loan with Minicredit 2012/2013.

 

After receiving all the usual threatening letters and the ridiculous charges that was added by Minicredit/OPOS, he set up a DMP with Step Change giving the outstanding balance of the debt at approx £700+.

 

Now, having read these forums it is very clear that the charges added are unenforceable.

 

He emailed OPOS asking for an up to date balance and a full break down of the debt.

 

The reply..

 

Balance : £240.33

 

Principal : £100

Interest : £85.00

Penalty 1 : £25.00

Penalty 2 : £55.00

Attempt Fee : £380.00

Debt Collection Fee : £100

 

I believe I am correct in stating that only the principal loan, the one months interest and a single penalty fee is what is actually owed which would equal £210.

 

He has already paid to date £58.87 through his DMP so therefore he owes £151.13 now.

 

I have no idea where the £240.33 has come from, probably Derek falling on his calculator?

 

Am I correct? How on earth do I go about getting OPOS to remove the unenforceable charges? An email template would be perfect.

Edited December 1, 2014 by RosePetalBeauty

[renegadeimp]

The only enforceable amounts there are :

 

Principal : £100

interest: £85.00

[RosePetalBeauty]

I was sure they could charge a penalty/late fee for missing the original date when the loan should have been paid back.

 

How do I go about getting the unenforceable charges removed?

 

Can anyone help please?

 

Thanks in advance!

[renegadeimp]

They cant chargeable of those as they are penalty charges and must reflect the costs of actions incurred

[RosePetalBeauty]

Do you know of a template letter that I could use to have those charges removed?

 

I have looked on the library and cannot find one for this sort of thing.

[RosePetalBeauty]

Can anyone help me out with a template email/letter or the wording as to prove the charges are unlawful?

 

My partner really wants to resolve this issue and judging by the view count on this thread so far, many others need this advice too.

 

Thanks in advance!

[RosePetalBeauty]

My partner has been in contact with OPOS who agreed that the charges were extremely high but they said they could not adjust the balance without the authorisation from Mini Credit, as they themselves do no add charges/interest, just collect the debt.

 

After contacting Mini Credit we found out the account had been recently sold to OPOS so they are now the legal owners so Mini Credit cannot adjust the balance. However, OPOS can because they have taken over the same rights and responsibilities of the original owners.

 

We provided this information to OPOS and the dispute in balance is being investigated by the Financial Manager and Derek's manager.

 

The FCA handbook has been very useful, although somewhat tricky to navigate, to find out what rights my partner and OPOS have.

 

It would be really helpful if anyone can give us some advice on what next steps to take? And are we correct in the way we are going?

[ba85]

I also had a payday loan with Minicredit, also sold on to Opos. Reading other threads I believe they are all part of the same company. My original loan was £100, but the balance shown on my credit file was £831 I emailed Minicredit stating this:

 

 

I believe this loan should never have been issued due to affordability checks not being undertaken. As such, I would like to make a formal complaint. The resolution I would like to take place is as follows:

 

1. All outstanding debts cleared from the account.
   
2. The default removed from my credit file.
   

I note that you are regulated by the Financial Conduct Authority and, in result of a deadlock letter being issued, I am able to refer this complaint to the Financial Ombudsman. I would appreciate it if you could send me full details of your complaints procedure.

 

I got a reply stating that "As a goodwill gesture we are willing to write off the outstanding balance however the default will remain on Your credit file and will be marked "satisfied". " After further correspondence they agreed to completely remove the loan from my credit file including the default. I have checked and this has been done.

[RosePetalBeauty]

That is great! Well done for getting them to wipe the outstanding balance and remove the loan from your credit file.

 

Can I ask, did you repay any of the loan? Without knowing, I am thinking that you could have already paid the principal loan and agreed interest off? Therefore their goodwill gesture was actually writing off the unenforceable and unlawful penalty charges.

 

What grounds did you believe the loan to be unaffordable? When my partner was took out this loan, he already had a Wonga loan where he was failing to meet a repayment plan, probably other payday loans and a mobile phone contract that had been defaulted on which was being passed from one DCA to the next. His take home pay was approx £900 per month. Is this enough reason for them to be considered irresponsible lenders?

 

We will wait from a reply from OPOS, hopefully by the end of the week, then may very well take this route if Mini Credit have irresponsibly given out a loan they know would not be repaid back on time, knowing they could exploit charges etc.

[ba85]

I had not repaid anything on this loan. I had loans for 3 or 4 months from them, repaying each and taking another. I also was doing the same with multiple payday loan companies.

I think it was unaffordable on the basis I was repeatedly taking loans from them and the other lenders. I don't believe they could have carried out any form of credit check and they have not provided any proof that they did.

[RosePetalBeauty]

Thanks for your response.

 

Do you think my partner has grounds to state the loan was unaffordable? If they had carried out credit checks his file would have flagged up with the info I previously said. This was the first loan with Mini Credit he ever took out.

 

He isn't trying to diminish his responsibility at taking out the loan, he did and he was stupidly desperate but had Mini Credit been responsible lenders they should have refused his application.

[ba85]

I can only suggest he tries. I was in a situation where I defaulted on several debts in 2009 and all were recorded on my credit file. I did nothing to help myself and resolve the situation and made it worse by taking out multiple payday loans in 2011. If they had carried out any form of affordability or credit check, I should have been refused further credit.

 

 

I am now taking control and sorting out all my debts. I was not expecting them to just write off the debt and was prepared to negotiate, but there was no way I was going to accept over £700 in charges for a £100 loan.

[RosePetalBeauty]

I couldn't agree with you more, it is far too easy to get yourself into a situation that spirals and often people bury their head in the sand because it seems so out of your control. But having found forums like CAG, you regain some control and can tackle the debts you've got into. It is definitely a lesson learned.

 

Like you, we are prepared to negotiate and are willing to repay what we borrowed.

[fletch70]

Sorry I have been off the radar for a while (although some might think that's a good thing)

 

TBH i would stop paying them at all , if you do want a full and final that is the only way you will get them to talk. I have refused to pay a bean because they have added extortionate charges and in 2 years have heard nothing

Please remember that only a court can say a charge in unenforceable although I would say that any defence should be quite easy

 

It does seem that many PDL's are now writing off old debts, especially for those that would be classed as vulnerable

[RosePetalBeauty]

This is my partners debt, he is repaying them (and other lenders) through his DMP with Step Change. He cannot afford to do make a full and final settlement, hence the DMP. He just wants to pay back what he actually owes and to not get cash cowed.

[fletch70]

The problem with step change (and other DM companies is that they do not challenge charges and personally I have to wonder why?

 

I wasn't talking about immediate payments and it all depends how much he is paying a month, however whatever works for him.

[RosePetalBeauty]

I've never really thought about that, I suppose they just act as the middle man and make things that little bit easier for the debtor. I know myself and my partner are really grateful of their help. They are a charity so we don't pay them a fee, our bank accounts are secure, we see our money being distributed and the numbers coming down, we aren't hounded by any creditor/DCA either.

 

For a full and final settlement, it would take an awful lot of missed payments - approx a year - for him to save the money for that. Also, I'm not sure how Step Change and other creditors would feel about that.

 

we require OPOS Ltd to remove the ulawful charges and penalties from the outstanding balance. I'm certain I read in the FCA handbook that they cannot add penalties on when a debtor is in financial hardship. Since OPOS are now the legal owners of the debt, they have the same rights and responsibilities as Mini Credit did.

[renegadeimp]

If a DCA holds the debt, as long as its not a overdraft or current account, CCA them. If they cannot provide a compliant CCA within the statutory timeframe, tell your DMP to withold payments until such a time they produce one. Sadly some DMP's dont check the validity of the debt. They just go by what you or the Creditor says.

 

Meanwhile, pay them as per your agreement, so they cannot say you defaulted on a repayment plan.

[fletch70]

As I said. My view is whatever works for you. I was in a dmp for a few years and it was worth its weight in hold. My understanding is that whatever your circumstances they can add fees however enforcing them is a different matter. I fear that while uou continue to pay you will get little help. Sorry

[RosePetalBeauty]

Isn't that just so ridiculous and sad. I'm not getting at you here but just that point in general. I'll keep in mind your views about withholding payments whilst the account is in dispute.

 

After Monday OPOS will have had 5 business days to reply with an update or outcome of their 'investigation'. Depending on their reply, and if they actually do reply then we will be making a formal complaint.

[fletch70]

I always like formal complaints because after 56 days you can go to the fos. All i will suggest is be specific about what is wrong and what you want doing. If for example it is irresponsible lending then say so. Discredit clearly did not do any affordability checks on me. I said i was single and on disability benefits then they accused me of fraud when i said i wasn't working and my wife had died. We had been separated for 10 years but not divorced. I wasn't working because i was on disability benefits

[Kellylou32]

Apologies for asking a potentially daft question but what on earth is the attempt fee? my breakdown was:

 

Loan Sum : £250

Interest : £394.50

Penalty : £80

Attempt Fee : £640

Debt Expenses : £100

Balance : £1445

[fletch70]

It is the charge they add each time they attempt a debit from your card. Do not pay that.

Was it irresponsible lending on their part. Lots of tjings to challenge on that

[Kellylou32]

Thank you Fletch70

 

Apologies RosePetalBeauty I'm not trying to piggyback on your thread I was just genuinely intrigued as to what the attempt charge was