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Can I contest loans whilst under a DMP?

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  • Can I contest loans whilst under a DMP?

    Hi,

    I have a debt managemant plan in place through StepChange, I have been trying to complete my review since January but with some of my debts I have hit brick walls.

    They either refuse to send any statements of account so i am unable to provide my DMP with up to date figures.

    or

    They cant tell me who owns my debt.

    The second is the one i am most in need of help with.

    I had a payday load with PayDay UK and also one with their sister company PayDay Express, I have been trying to get information regarding these two loans and have failed. Initially i received letters from Red Castle stating that the debts were with them but when i have tried to get information about how much is outstanding etc i got told they no longer have the debts and they were sent back to the original creditors. Both creditiors keep fobbing me off saying the loans are with Red Castle.

    These loans have been getting paid under my DMP to PD Express and Red Castle yet neither wants to own up to owning the debts or provide requested information.

    I am unable to cancel the payments through my DMP as they have said they are unable to once it has been set up.

    Can someone please advise where i stand on these loans if no one wants to acknowledge ownership and how i can proceed?

    I also have a minicredit/microcredit payday loan that is now with OPOS who refuse to even give me an account number let alone any information on the outstanding balance, which after reading some threads I am currently trying to locate any letters from them to see if i can dispute this with the date of assignment. (If i can disput at all with it being attached to me DMP)


    Thanks
    Tags: None

  • #2
    Re: Can I contest loans whilst under a DMP?

    Hiya Looks like you're in the right place I'll have a read - tho [MENTION=19893]Debtcamel[/MENTION]might be best placed to help on the payday loan front - and the dmp front actually .. bloody stepchange! Lol
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

    Comment


    • #3
      Re: Can I contest loans whilst under a DMP?

      Initially i received letters from Red Castle stating that the debts were with them but when i have tried to get information about how much is outstanding etc i got told they no longer have the debts and they were sent back to the original creditors. Both creditiors keep fobbing me off saying the loans are with Red Castle.
      That sounds as though Red Castle are just collecting the debts, they haven't purchased them. Have you looked at your credit records to see what they say?

      Did you have more loans from PD UK and PD Express before these defaulted loans?

      Comment


      • #4
        Re: Can I contest loans whilst under a DMP?

        Thanks for your reply

        Red Castle had no records of these debts on there system and referred me back to PDUK and PDExpress. But they just keep telling me the debts are with Red Castle. Red Castle are accepting payments for the PDUK debt but Express are in receipt of their own payments.

        Not Sure if i had any previous debts with them it was a long time ago and i had several payday loans plus other debts at the time.

        I am trying to obtain my Experian report at the moment but according to noddle the only one showing is PDExpress.

        Thanks

        Comment


        • #5
          Re: Can I contest loans whilst under a DMP?

          OK, well I suggest you put in "affordability" complaints to both PD UK and PD Express. See https://debtcamel.co.uk/payday-loan-refunds/ for details.

          At the least this should flush out what has actually happened to these debts!

          Also tell StepChange you are disputing these debts and want them removed from your DMP until your complaint is resolved.

          Comment


          • #6
            Re: Can I contest loans whilst under a DMP?

            Originally posted by Debt Camel View Post

            Also tell StepChange you are disputing these debts and want them removed from your DMP until your complaint is resolved.
            I have asked for them to be removed while i try and get answers but they refused stating that once they are listed on a DMP they have to stay until they are paid.

            - - - Updated - - -

            Originally posted by Debt Camel View Post
            OK, well I suggest you put in "affordability" complaints to both PD UK and PD Express. See https://debtcamel.co.uk/payday-loan-refunds/ for details.
            Would this work with the other Payday loans that i am still paying on the same DMP?

            Comment


            • #7
              Re: Can I contest loans whilst under a DMP?

              I have asked for them to be removed while i try and get answers but they refused stating that once they are listed on a DMP they have to stay until they are paid.
              Well it's up to you hopw you want to handle this. Try to resolve with the lenders is a practical way forward. You could however put in a written complaint to StepChange that they are not helping you with this matter.

              Would this work with the other Payday loans that i am still paying on the same DMP?
              Very possibly - well worth a try! A complaint is stronger the more loans you had from a lender, but with 1 or 2 loan cases, the lender will sometimes offer to remove the interest from the outstanding debt.

              You can't assume you will win, but these cases are worth a try. Read the link for details and then questions are best asked in the comments below that article.

              Comment


              • #8
                Re: Can I contest loans whilst under a DMP?

                Originally posted by Debt Camel View Post
                Well it's up to you how you want to handle this. Try to resolve with the lenders is a practical way forward. You could however put in a written complaint to StepChange that they are not helping you with this matter.

                Very possibly - well worth a try! A complaint is stronger the more loans you had from a lender, but with 1 or 2 loan cases, the lender will sometimes offer to remove the interest from the outstanding debt.

                You can't assume you will win, but these cases are worth a try. Read the link for details and then questions are best asked in the comments below that article.
                [MENTION=19893]Deb[/MENTION]tcamel Thank you for the advice, I have been on the site you suggested and have received some really usefull advice. I am currently in the process of completing the affordability complaints. I have also sent one to provident as well after i found information on that site for them also.

                I have a question regarding one of my other payday loan debts. I had a loan from Minicredit for £80.50 which subsequently ended up defaulting and is now with Opos on behalf of Kapama. I don't think i can put in an affordaability complaint for this as i only had the 1 loan as far as i can tell from bank statements and credit file at the time. But i would like to know if there is anything i can do about the highly inflated costs that are now present on this debt. (will paste copy of statement i received a while ago)

                I have been unable to locate any NOA for this account so cant be sure whether it would come under the write off clause to do with 29th Dec 2014. Although they state it was purchased prior to Dec 2014 on the email that came with this statement.

                There is no confirmed correspondance address for this account

                Statement of Your Account

                Dear Customer,

                Kapama Limited is a Limited company regulated by the Financial Conduct Authority, Registration number: 672065. Kapama Limited has purchased your outstanding account in relation to: Kapama Limited-Mini Credit (www.minicredit.co.uk)
                For more information on Kapama Limited please visit www.kapamacredit.com.

                In order to legally enforce this agreement in the future, we are obliged to provide this statement to you in accordance with Section 77a of the Consumer Credit Act 1974 (As Amended 2006).

                Kapama Limited Refs: ************** ****************
                Statement Date: 31/05/2017 Current Balance:£1,177.91
                Period Covered: 31/05/2016 to 31/05/2017
                Your Account Summary
                Loan Amount £100.00
                Interest Charges £119.00
                Debt Collection Charges £100.00
                Default Charge 1 £25.00
                Default Charge 2 £50.00
                Attempt Charges £900.00
                Paid £116.09
                Adjusted £0.00
                Outstanding Balance £1,177.91

                Please note that this statement may include payments which are yet to clear and may be removed should they fail to do so.

                Your account is being managed by our sister company Opos Limited. You can contact them on 0141 428 3990 or you can manage you account online by logging in to their secure website at www.oposlimited.com using
                Ref: ***************************

                See overleaf for a breakdown of payments and adjustments made to your account whilst under Opos Limited's management...

                If you are experiencing financial difficulties Opos Limited has trained advisors within their dedicated Financial Difficulties Unit who would welcome the opportunity to speak with you. They can set up a payment arrangement over a longer period of time and in line with your affordability. If you contact one of their advisors on 0141 428 3991 they will be happy to talk through your situation. Alternatively please see Opos Limited’s help and advice section on their aforementioned website for details of non-profit organisations you can contact for free advice.

                Kapama Limited
                Company Number SC433404.

                Comment


                • #9
                  Re: Can I contest loans whilst under a DMP?

                  Yes, send a standard affordability to complaint to Kapama about this loan. Even 1 loan can be unaffordable! The usual award if it is is to remove interest and charges.

                  Comment


                  • #10
                    Re: Can I contest loans whilst under a DMP?

                    You've now got a good strategy in place for dealing with your PDLs.

                    What are the other debts in your DMP because they may need questioning too? Some DMP providers take the view that they are simply there to distribute your money without question.

                    Generally speaking I would send a s. 77-79 CCA Request to each of your debts in the DMP (except utility or mobile phone accounts) to get some understanding of which ones are unenforceable in court. This forum has a template letter to help you get started here > http://legalbeagles.info/forums/show...=7670#post7670

                    Once you've established that you will be in a better position to decide whether your DMP is working for you and/or which debts could or should be on the receiving end of complaints. Never be afraid to complain

                    Do you have any mortgage or rent arrears which should take priority?

                    Did you have PPI on any of the credit card or loan accounts?

                    Di

                    Comment


                    • #11
                      Re: Can I contest loans whilst under a DMP?

                      Originally posted by Diana M View Post
                      You've now got a good strategy in place for dealing with your PDLs.

                      What are the other debts in your DMP because they may need questioning too? Some DMP providers take the view that they are simply there to distribute your money without question.

                      Generally speaking I would send a s. 77-79 CCA Request to each of your debts in the DMP (except utility or mobile phone accounts) to get some understanding of which ones are unenforceable in court. This forum has a template letter to help you get started here > http://legalbeagles.info/forums/show...=7670#post7670

                      Once you've established that you will be in a better position to decide whether your DMP is working for you and/or which debts could or should be on the receiving end of complaints. Never be afraid to complain

                      Do you have any mortgage or rent arrears which should take priority?

                      Did you have PPI on any of the credit card or loan accounts?

                      Di
                      Yes i beleive i have a good strategy now, i have written a letters for single PDL's as well as those that were rolled/renewed.

                      The other loans on my DMP are a bt debt, catalogue debt, argos store card and a credit card. I will be sending something for the catalogue, credit and store cards as i have found some information on the Debt Camel website. At the end of the day i have nothing to lose and maybe something to gain, even if it is only a reduction in charges and interest.

                      My DMP is now currently suspended for 2 months while i contact the PDL's and others. I dont beleive any to be unenforceable except maybe the Kapama one mentioned above.

                      To my knowledge the only thing i had PPI on was a bank loan but that was wiped when they took me to court and lost, with the help of this site.

                      Comment


                      • #12
                        Re: Can I contest loans whilst under a DMP?

                        Originally posted by Debt Camel View Post
                        Yes, send a standard affordability to complaint to Kapama about this loan. Even 1 loan can be unaffordable! The usual award if it is is to remove interest and charges.
                        This is the letter i plan on sending to the payday lenders where i only had 1 loan from them. Would this be sufficient for Kapama too?

                        To Whom It May Concern,

                        I wish to place an affordability complaint against your company for irresponsible lending. My most recent accounts are currently with Stepchange under a DMP, this has been suspended while this complaint is investigated by yourselves. The account numbers is: ********.

                        I may have only taken out 1 loan from you between May 2011 and Jan 2013, there were however numerous other payday loans with up to 9 different companies. I no longer have full account information for this loan, but it would have been taken out at my current address under my name.

                        Your loan helped trap me into a debt spiral, with the repayment taking so much of my wages that I had to borrow again from other sources to cover my next month’s living costs. If your loan had been affordable I doubt that I would still be paying for it 4 years later.



                        For this initial period, my income averaged about £800 a month.



                        I was a single parent when taking out this loan and had child benefit and credits which averaged about £200 a month.



                        My living expenses were roughly: rent/mortgage £300. Council tax £60. Utilities and bills £250. Transport costs £40. Clothes £30. Food, toiletries £200. Child expenses £10, Other debt repayments £200. Total £1090 per month. This shows that there was no way I could afford these loans. I was not asked about other debts or payday loans that I had, neither was I asked to provide authorisation for a credit check to be undertaken. I believe if a credit check had been carried out I would never have been granted this loan and wouldn’t have entered a debt spiral that became uncontrollable.

                        When applying for my loan with yourselves, I wasn’t asked to supply forms for income/expenditure I was simply asked for an estimate as to how much came in and went out.



                        My credit reports would have shown my other debt repayments and problems including late payments and defaults the largest of which was a bank loan for over £10,000.



                        You should never have given me this unaffordable loan. I would like to ask you to refund the interest and extra charges I paid. The Financial Ombudsman suggests that statutory interest is added to this sort of refund. I would also ask that you apply compensation for the way you mishandled my situation when I notified you I could no longer pay my loan. I would also ask that you remove the information currently on my Credit File.



                        I only found out I could make this sort of irresponsible lending complaint around a week ago. Even when I took out my Debt Management Plan with Stepchange I wasn’t made aware that I could undertake a complaint for affordability on any of my loans. I understand the Financial Ombudsman will consider all my loans, including those that are more than 6 years old.

                        Comment


                        • #13
                          Re: Can I contest loans whilst under a DMP?

                          Well you didn't take the loan out from the, so I suggest you say MiniCredit. And "that loan trapped" not "your loan trapped" etc. Most of the references to "you" need to be changed to make it clear that Minicredit that made the unaffordable lending.

                          Did you make any repayments? If not, change references to a refund to "remove the interest and charges that has been added,"

                          Also

                          Comment


                          • #14
                            Re: Can I contest loans whilst under a DMP?

                            Originally posted by Debt Camel View Post
                            Well you didn't take the loan out from the, so I suggest you say MiniCredit. And "that loan trapped" not "your loan trapped" etc. Most of the references to "you" need to be changed to make it clear that Minicredit that made the unaffordable lending.

                            Did you make any repayments? If not, change references to a refund to "remove the interest and charges that has been added,"

                            Also
                            I have currently paid around £150 back through my DMP which is almost double the original debt.

                            I will change the references to refer to minicredit, i thought they were all the same company though?

                            I am hoping this claim may flush out the relevant account information as i dont believe i ever received an NOA, also the email i received stated it contained the original credit aggreement but the letter i posted above was all that was attached. So it is bit of a fishing trip as well.

                            Comment


                            • #15
                              Re: Can I contest loans whilst under a DMP?

                              No Minicredit went bust ... so you can't complain to them.

                              Comment

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