Help needed

[Hgv44ton]

Could do with some advice, I’ve received a claim form from NCC in which a debt collection company are using a law firm in relation to a payday loan taken out back 2019, at the time when I took the loan it was for £500 and was supposed to be paid back over 18 months but I had no intention of paying back over that period of time.
I made 4 payments totalling over £450 and then I rang the company to ask for an settlement figure and they said I would have to pay them a figure of between £800 and £900, I realised that this was wrong due to new payday loan rules and I told them that they were having a laugh and that I wouldn’t pay another penny until they came back to me with a realistic settlement figure.
A few days later they sent an email saying it would be just over £725 to settle, again I knew this was ludicrous and refused to pay, they also sent their “formula” which is how they calculate what you owe however it is 11 pages long and you would need to be a nasa scientist or a mathematical genius to understand it, I have been in touch with the FCA and sent them this formula at their request but for obvious reasons they cannot tell me if the company are breaking the law.
After a while I received a letter from a company purporting to be solicitors yet it turns out they were debt collectors, the usual threats of court and AOE, I then started to receive more letters calls etc from another company stating that I now owe them the money and they wanted somewhere in the region of £1500, also debt collectors and also the usual harassment, intimidation etc, I then started to receive letters from a law firm saying they were now acting on behalf of these debt collectors and the figure has now risen to just over £1900, I am at a loss what to do, I did file a defence but I don’t know the law and now I have received the claim pack because this company still want to go ahead with it.
I believe the original company broke the law in asking for such a large amount for settlement especially as I had virtually paid of all of the original loan, I also believe that upon selling this debt on they have not been truthful in regards to this and so this debt collection company think they are on to a nice little payday with this claim.
I could really use some legal advice as I am just a layman and also I’m currently off work sick at the moment due to depression and this whole ordeal is making things so much worse for me so any help or advice would be greatly appreciated, thank you for taking the time to read this and if anybody has any questions I will try my best to answer them.

[MIKE770]

space paragraph if you want comments makes easier reading

[des8]

The formula used to calculate the rebate of interest due if a borrower repays a loan early is regulated by The Consumer Credit (early settlement) Regulations 2004.
The Formula is I believe generally known as the actuarial method (set out in Sec 4 of the regulations)

I assume the FCA rules to which you refer are those around the price cap on high cost short term credit.
Your loan being over 18 months would not fall within those rules as the term is limited to 12 months.

As you have stopped payment, interest will continue to accrue.

[Hgv44ton]

Thx for the reply DES8, so what your saying is that basically I’m up the proverbial creek without the paddle then

[des8]

I'm not making any statement about your position as I don't know what it is.
All I have done is point out the formula that should probably been used by the lender to work out the interest rebate for early settlement.
As you have not yet settled interest continues to accrue, and as you are now outside the 18 month period of the loan there are possibly penalties being levied.

You made contact with FCA, but did you also make a complaint to the FOS?

What are the particulars of Claim?
What exactly did you post as a defence?
What are the terms & conditions of the loan?

Your post is unclear:
You say you have already filed a defence.. was this in response to court papers or was it just a letter to the solicitors?
When you say you have received a "claim pack" do you mean a "directions questionnaire" or the "Response Pack" ?

[Hgv44ton]

I did not contact the FOS at the time, the particulars are that they want the balance due under the loan agreement with the original loan company.

The defence I submitted online was along the lines that I believe the original loan company may have broke the law with regards to what they were asking for a settlement figure and that I had passed this information on to the FCA, also I believe that the original loan company may have not been so forthcoming when selling the loan on and also that I have had 2 different debt collection firms chasing me for it at the same time.

I am unsure of what the exact terms and conditions are as I no longer have any of the correspondence as this loan was back in 2019.

The letter I received today is the notice of proposed allocation to the small claims track, this is in response to the letter I received from the solicitors who are representing the claimants (debt collection agency) saying that their client is still going ahead with the claim.

[des8]

Well I'm afraid you have done everything wrongly:

If you borrow £500 over 18 months, depending on the interest rate, you could be due to repay a total of over £2000.
The fact you asked for an early settlement figure doesn't mean the lender has to forgo all their profit
As already mentioned there is a formula which should be used.
However as you stopped payment the whole amount is now due, plus some further costs which they have incurred.

You no longer have details of the loan (!) so can't check their figures.

I'm sure their particulars of claim were more detailed that you posted.
Your defence has to be to rebut the points in their particulars, not to go off explaining what you asked for.

You will need to show the figure you were given for early settlement were not calculated as required by the terms of your loan.
This does not actually excuse you from continuing to pay, but you may then be able to argue that the lender was in breach of the contract which allowed you to stop payment.
However you will have to do the calculations and apply for permission to amend your defence (cost £275 plus perhaps the other sides wasted costs).