legalities of pay day loans court claims

[miliitant]

i am of the opinion with research that payday loan companies cannot claim interest ,fees etc after 30 days.

these payday loan contracts run for thirty days only so you pay back just the capital with one months interest as to the agreement

as these agreements terminate after 30 days there is no need for a default notice as to 87 (1) of the cca

i would value opinions to start with before i go onto the subject of claiming post and contractual interest

[berniel]

Re: legalities of pay day loans court claims

Hello
Yes I have been looking at this also
Firstly if we look at the statute, which in this case is the CCA1974 I do not see any mention of any impediment to the charging of post termination interest.
So as long as the agreement says something like, “interest will be charged at the contractual rate until all liabilities under it are paid”, I cannot see any reason why they cannot charge it contractually speaking.
This is common practice in credit card and fixed sum agreements. The problem is that the act is not designed for these short term high interest loans.
The act does say that interest cannot be increases after default however and also that any default sums can only carry simple interest.
This is not to say that a court would necessarily enforce a claim for an amount which exceeded the total amount payable on one of these loans, in fact there is a little case history of them finding for the debtor in this respect. There is the matter of section 140 and the issue of if it would be fair to extend what is supposed to be a short term charge over a longer period. Many judges seem to think that it isn’t
Bernie.

[miliitant]

Re: legalities of pay day loans court claims

on the interest side

i was under the impression that post TERMINATION contractual interest after termination would be 8 %

not the 5000 % charged by PDL companies
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also

if its written into the agreement that the agreements terminates after 30 days

how can post contractual interest be paid after termination

we would then need to go into the realms of default and termination regs then

[miliitant]

Re: legalities of pay day loans court claims

also

the OFT state that an account should be defaulted and that the given grace is three months guideline to default after missing payments

what give a PDL company to keep adding high interest month after month then without defaulting

CPUTR must come into the equation in that case

[berniel]

Re: legalities of pay day loans court claims

on the interest side

i was under the impression that post TERMINATION contractual interest after termination would be 8 %

not the 5000 % charged by PDL companies
------------------------------- merged -------------------------------
also

if its written into the agreement that the agreements terminates after 30 days

how can post contractual interest be paid after termination

we would then need to go into the realms of default and termination regs then

It depends on what it says on your contract, if it says post termination interest at contractural rate, then legally this is what they can charge, the same for post judgment interest of course.
Bernie

[miliitant]

Re: legalities of pay day loans court claims

the point i am making on this is

the agreement terminates after 30 days
termination mean end of, its written into the agreement

termination then means no default fees, interest, collection charges can apply as the agreement has been terminated

so how can post termination interest be applied when there is no agreement as it has been terminated

[berniel]

Re: legalities of pay day loans court claims

also

the OFT state that an account should be defaulted and that the given grace is three months guideline to default after missing payments

what give a PDL company to keep adding high interest month after month then without defaulting

CPUTR must come into the equation in that case

Again unfortunately this guidance is not intended for short term loans no default is neede ecause tey have gone past their term and all sums due are arrears.,

CPUTR Are not individually actionable.

Bernie

[berniel]

Re: legalities of pay day loans court claims

the point i am making on this is

the agreement terminates after 30 days
termination mean end of, its written into the agreement

termination then means no default fees, interest, collection charges can apply as the agreement has been terminated

so how can post termination interest be applied when there is no agreement as it has been terminated

I am affraid that just beacaus an aggreement is terminated the liabilities under it still accrue interest, there is no reason why they cannot, nothing in statute prohibits it, as i say it is common practice for post judgment interest to be applied at the cotractural rate, as long as it is mentioned in the agreement, at that point the agreement does not even exist the debtor is paying a judgment sum.

Thankfully courts are not allowing this up to date, tis is why we need new effective regulation.

Bernie

[miliitant]

Re: legalities of pay day loans court claims

No default is needed because they have gone past their term

thats the key

the agreement would terminate, its in the agreement, paid or not

so how can post termination interest be paid on a terminated account when its written into the agreement that it will terminate after 30 days.

in that scenario, the clause in an agreement about post termination interest would be irrelevant as the agreement has been terminated without a default notice as to 87 (1) of the cca
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Thankfully courts are not allowing this up to date, tis is why we need new effective regulation.

thats why PDL companies withdraw court claims at the last minute

what people need to remember is that we are talking of payday loan companies, bottom feeders

nor normal cca agreements with banks etc

thanks for the debate

[berniel]

Re: legalities of pay day loans court claims

How can post judgment interest be applied to a terminated account due to a term in an agreement.

Because the liabilies still exist.

Termination does not have such a narrow meaning, a term on a contract can extend beyond termination if both parties agree that it can, and statute permits.

Bernie

[miliitant]

Re: legalities of pay day loans court claims

How can post judgment interest be applied to a terminated account due to a term in an agreement.

Because the liabilies still exist.

Termination does not have such a narrow meaning, a term on a contract can extend beyond termination if both parties agree that it can, and statute permits.

Bernie

and statute permits.

with rights and obligations of that agreements


totally agree on that one

i have argued this out in court myself

the claimant withdrew due to not wanting to answer some rather embarrassing questions and i paid the 30 day loan with 1 months interest as i left the court

[burmacat]

Re: legalities of pay day loans court claims

Hello

I am new to this forum but am in need of urgent help.

I am currently fighting Cash Genie - just been through mediation and the £628 they are requesting, they say they will accept an out of court settlement of £300 to be paid in £50 installments.

How ever they have had £429 in roll over fees over 11 months plus they took an unauthorised payment of £142 from my account last year.

The loan was originally £150 plus £45 interest. So as you can see I have already paid more than this back in charges and interest.

I have just found out i am pregnant so all this worry is not doing me much good. I dont know whether to accept the offer of £300 or go to court in March?

My mediator advised that if I lose I could have to pay up to £800 in charges etc. and that if I cant pay it in one lump sum then I will have a CCJ on my name.

In a right pickle and need to give my decision today.

Help will be very very much appreciated

[berniel]

Re: legalities of pay day loans court claims

Interesting reading, the Yanks have already been here, the pdl company arguments have already been heard and dismissed it seems.

http://www.scribd.com/doc/49554657/L...h-Payday-Loans

2009

[CleverClogs]

Re: legalities of pay day loans court claims

i am of the opinion with research that payday loan companies cannot claim interest ,fees etc after 30 days.

Whilst I am of the opinion that the creatures who own such companies should be locked in a pillory to be erected for that purpose in Covent Garden, on Tyburn Hill or some other such public place, and there suffer having their ears sawn off and their nose split open by the Lord Chancellor, or by someone selected (by ballot or by lot) from the victims of that company.

For a second offence, the malefactor should have his head locked in a jig or fixture and metal supports adjusted on either side, then he should suffer having a white hot iron spit or shaft pressed into one ear opening and pressed or hammered, with such reheats as may be necessary, until it emerges from the other side and is left with an equal length of the spit on either side of his head.

[Amethyst]

Re: legalities of pay day loans court claims

Silly question here - my apologies - Can you do a CCA request on a payday loan company? (ie short term low value 30 day loans) and if you do and they don't respond within their 12+2 days they have to hold off charging interest/default fees/calling in loan until they comply ?

[quote]5 How are lenders of payday loans regulated?
Payday lenders have to comply with certain legal requirements - many of which are set out in the Consumer Credit Act 1974 (CCA 1974) and its regulations. [/quote