Wage Day Advance Moorcroft Debt Recovery

[JGJ]

A close family member has received a letter from Moorcroft re a loan they had with WDA.

They were suffering financial difficulty and informed WDA of this, the amount was total payable £278. Letters e-mails and financial statements were sent to WDA to make offer for re-payment, this was sent by Royal Mail signed for del, which was received and signed for by WDA in May 2014.

WDA had requested they send them Bank Statements which was refused by relative as they had sent them financial statements and step change docs.

To date no agreement has been reached, the last contact with WDA was 16th June 2014.The amount now outstanding according to Moorcroft letter is now £480. 00.

 

 

Moorcroft are threatening a home visit and also they are willing via their client WDA to offer a discount from the outstanding balance. This means that if you are able to pay an acceptable lump sum we /they will not attempt to recover the remaining balance of the debt. In addition your credit file will be marked as partially satisfied and our staff will be happy to explain what this means when you contact us.

 

 

Question 1, is what should they do next.

Question 2. Should Moorcroft be ignored and solely deal with WDA.

 

 

All information and assistance will be gratefully received.

 

 

"EXEMPLO DUCEMUS"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"EXEMPLO DUCEMUS"

[unclebulgaria67]

Depends on whether there other debts to deal with, which are more of a priority.

 

Moorcroft just act as an additional credit control function of companies, trying to gain payment or a payment arrangement. WDA will still own the debt and at this stage it is being administered by Moorcroft. A doorstep visit means nothing, as it will just be a local agent on commission simply trying to come to an arrangement.

 

Partial settlement on a credit record will make it difficult gaining any credit or some services, until this particular default record comes off after 6 years. While they don't sell on any part of the debt written off, they know it is a red flag on a credit record. It might be better coming to a payment arrangement, if there are other debts.

 

Before any settlement or payment arrangement is entered into, i would be asking for a breakdown calculation of the debt, with full details of interest and charges added.

[renegadeimp]

Bad debt. Hence the discount and being sold multiple times

[silverfox1961]

Hi

Slightly different tack here but first.

Did the relative have any other pay day loans on the go at the same time as WDA? Were they in financial difficulties prior to taking out the loan? Did WDA do a full credit check before offering the loan.

 

After they informed WDA that they were in difficulty, it would have been incumbent on WDA to offer a reasonable acceptable amount which could then have been negotiated. As they refused to accept proper documents as a statement of truth (they had no absolute right to see bank statements) and did nothing to help the situation, I feel a complaint should be initiated.

 

Going from £278 to £480 suggest that WDA have added on charges and interest whilst knowing the customer was in financial difficulties should be challenged. Moorcroft should not be adding any charges as they are paid on collection, not prior to it.

 

If you were to check on the Financial Ombudsman Decisions page (after doing a search for wage Day advance) you will see quite a few cases that have been upheld. you can check to see if any match the same criteria.

[JGJ]

Hello All,

 

 

Thank you for your as usual, advice and information.

Contact was made with Moorcroft by landline (Not by me) and a re arranged full/final settlement payment minus "most" charges/interest was agreed. Apparently WDA would have nothing to do with it, so they must (IMHO) sold it on for pennies. Relative happy with outcome, so thank you all again for info and assistance.

 

 

"EXEMPLO DUCEMUS"

[SabreSheep]

Thank you for the update.

 

Unfortunately as the deal was done over the phone there is nothing to stop the remainder being sold on to another company to collect. We advice all communication in writing and to include them agreeing in writing that the deal is full and final and that the remainder will be written off and not passed to any third party for collection.

 

I am also concerned that you have given your bank details to MOORCROFT

 

It was not sold on unless you received a letter from WDA stating they had SOLD the debt.

 

None the less, you have been given some good advice to challenge the loan, you may still be able to explore reclaiming.