BW Legal / The Money Shop Online - Letter of Claim help

[BlueBellx3]

Hi there. sorry if its in the wrong place. I've tried posting in other sections but have had no reply.

Last May I stupidly took out a payday loan with The Money Shop Online for £500. I had £500 being paid to myself for but I needed it for a certain date and was going to repay. However, circumstances changed and I never repaid the loan.

Soon after I received a letter from BW Legals saying I owed them the money as they had bought the debt. I ignored it as I was behind on my rent as tax credits etc... were stopped. I still can't afford the full amount they are asking for as I'm now a single parent, on Income Support with a child on DLA. I also claim Carers Allowance.

BW Legal are now asking for £748.53 by 31st July 2017, otherwise they will issue a claim against myself in the County Court without further notice. My circumstances at the time was I was living with the childs father who was working. He is no longer on the scene. My credit score was very poor at the time and I was surprised I was able to get a payday loan when I did. They have not sent me a letter this time, just an email.

I have no idea how to respond to them. I've read various things online and been advised to post on here as you guys are the experts.

Any advice would be greatly appreciated.

Many thanks

[MIKE770]

Re: BW Legal / The Money Shop Online - Letter of Claim help

BW Legal do not buy debts they are on debt collectors on commission for creditors? who are they acting for?

[BlueBellx3]

Re: BW Legal / The Money Shop Online - Letter of Claim help

According to the email the company are Instant Cash Loans Ltd

[MIKE770]

Re: BW Legal / The Money Shop Online - Letter of Claim help

acting for Instant Cash Loans Ltd, they are debt collectors, limited powers

[charitynjw]

Re: BW Legal / The Money Shop Online - Letter of Claim help

If it were me I'd read that as a letter before claim/action & respond to it.

From what you've posted it seems like there could be responsible lending/affordability issues with this.
[MENTION=48934]Debt Camel[/MENTION] might be the best person to give an opinion?

[Debt Camel]

Re: BW Legal / The Money Shop Online - Letter of Claim help

Instant Cash Loans is the lender, trading as the Money Shop. As this debt is quite recent, it is unlikely it has been sold, it is more likely that BW Legal are just trying to collect the debt for the Money Shop.

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I suggest you read https://debtcamel.co.uk/payday-loan-refunds/ and put in an immediate affordability complaint to the Money Shop. Don't delay. Go straight to the step two complaint in that link, you don't have time to go the leisurely route and ask them to send you a list of your loans first.


In that step 2 letter, add a bit which says you have been told by BW Legal that they are now trying to collect this debt. Ask the Money Shop to send you a complete history of your account. This is important unless this is the only loan you have ever had from them.


If the Money Shop reject your complaint, send it to the Financial Ombudsman the same day. No delays.


If the Money shop tell you to talk to BW LEgal about the debt repeat that you want the Money Shop to look at your complaint about irresponsible lending and, if they refuse, send it to the Ombudsman.


Tell BW LEgal that you are disputing the debt with the Money Shop as the loan was unaffordable. Tell them you have sent the Money Shop a complaint about irresponsible lending and ask BW Legal to hold off on any enforcement action until the dispute about the debt has been resolved.


If the complaint goes to the Ombudsman, tell BW Legal in writing the same day that you have done this and you are still disputing the debt.


BW Legal should not start court action whilst there is a dispute underway. It is going to be a LOT easier to win this case with the ombudsman than in the courts.

One loan complaints are hard to win, but it may be possible to get the interest removed from the outstanding balance.


(You could also look at putting in affordability complaints to any other payday lenders you have used - with any luck you may be able to get enough money back to pay off this Money Shop claim! )

[Elihearts]

Re: BW Legal / The Money Shop Online - Letter of Claim help

In response to DC - The loan has been sold - To PRAC financial - One director of PRAC Financial is the COO of BW Legal...
They work like Merligen do with Moriarty Law