Payday loan court claim but also a letter?

[getsomehelp]

Hi everyone,

I received a court claim (which i have acknowledged) for a payday loan with MotorMile Finance. Loan was approx £850 then plus fees etc total claim is £1040.

BUT at the same time I have a letter from Moriarty Law saying its NOT TOO LATE too settle the matter amicably and to call them.

Does the letter indicate their claim is on shaky ground? Or that I could still offer a partial settlement and prevent a CCJ?

Thanks for any thoughts

[warwick65]

Re: Payday loan court claim but also a letter?

Hi
It doesn't necessarily mean anything

Courts do like it when claims do not get that far, they are rather keen on the claimants trying to settle before court- it saves a lot of time and money. Of course if you do defend the claim it will also cost motormile money that they can not get back because it is a small claims court.

Just a thought and I don't want to frighten you , but it may be that when the case comes to court they are hoping they win and they can then say to the Judge you acted unreasonably by not settling.

Anyway there is a long way to go and many opportunities to settle if that is what feels right for you but also opportunities to potentially defeat the claim.


Can you give us a few more details

Date of the claim

have you done anything else such as send off a CCA request ?

Another question, was this loan something you had rolled over time after time? If that was the case maybe you could make an affordability complaint to the original creditor
@Debt Camel maight be able to help

[Debt Camel]

Re: Payday loan court claim but also a letter?

Just a thought and I don't want to frighten you , but it may be that when the case comes to court they are hoping they win and they can then say to the Judge you acted unreasonably by not settling.

not sure this makes a difference in a small claim with no possibility of costs does it?

[warwick65]

Re: Payday loan court claim but also a letter?

not sure this makes a difference in a small claim with no possibility of costs does it?

There is always the possibility of costs even in a small claims court if one side has acted unreasonably , I am sure PT or Joanna would back me up on that

[Debt Camel]

Re: Payday loan court claim but also a letter?

If this wasn't the first loan you had from this lender, I suggest in addition to defending the claim (have you asked them to produce the CCA agreement?) you should also complain to the original lender about all the loans you had from them - any money you get back could help you to settle this claim.

See https://debtcamel.co.uk/payday-loan-refunds/

Also if you had loans from other lender complain to them to. Especially if there was a balance outstanding - complaining can prevent any court action until the complaint is resolved.

[Debt Camel]

Re: Payday loan court claim but also a letter?

There is always the possibility of costs even in a small claims court if one side has acted unreasonably , I am sure PT or Joanna would back me up on that

I don't think not replying to that sort of invitation to get in touch could be seen as unreasonable, especially if you are defending the case! It's not a Part 36 offer. I don't see any point in worrying the poster about this.

[thedirtyhound]

Re: Payday loan court claim but also a letter?

I think the fundamental point you need to address is whether you have some valid argument for not paying it.

Has there been any kind of misrepresentation, ie did things not turn out as promised? Given that the amount you say you borrowed was £850 and the claim is only for £1,040, it doesn't look as though things are out of control.

Sometimes on this site you see matters that were only £300/£400 to start with ending up in claims for over £1,000 due to things like default fees, bank charges and interest. Often the principal debt may only be 30%/40% of the total claim.

When something is this small, bluntly it isn't worth f***ing about too much because it is manageable.

If you allow it to go to court, you need to be able to put forward some kind of arguable defence. Indeed, if you do not you also risk that the court will strike out your defence and give judgment to the claimant without a hearing. I have seen that happen.

It is not a valid defence to a claim to say that you can't afford to pay it.

You only hope legally would be if there was some sort of defect in the agreement that you signed, in which case you might get off the matter on a technicality that renders the agreement unenforceable.

If they have issued and are still offering you a way out, it really is worth considering. You may be able to settle for a lower figure.

Others may disagree, but I think the issue is too small to fight. So far the costs are only £190. If you lose, you will also have to pay the additional costs of the hearing fee and the other side's travel costs. That could easily be another £190.

[warwick65]

Re: Payday loan court claim but also a letter?

I don't think not replying to that sort of invitation to get in touch could be seen as unreasonable, especially if you are defending the case! It's not a Part 36 offer. I don't see any point in worrying the poster about this.

With all due respect I did not exicitly raise the issue of costs, that was you. However and I agree one letter is unlikely to end that way, who knows how the minds of debt purchasers and their solicitors work, particularly MMF who do have something of a track record.

I suspect irresponsible lending is a complaint well worth looking at, hence I tagged you. It might also mean unfair relationship however I am not versed into how to plead that.

[warwick65]

Re: Payday loan court claim but also a letter?

Dirty hound
If £1000 is not worth the hassle for you I am happy for you. For many people it is a serious sum and possibly if it was so insignificant there would never have been a claim.

Maybe it started life as £100 then reloaned again and again.

For someone who reads Pt's blog and refers to him by name I would have thought you would understand the agreement is just one of many many avenues that can defeat a claim.

What about assignment
What about DNs
What about annual statements
What about sums in areers
What about unfair relationships
[MENTION=6]Amethyst[/MENTION], any ideas

[warwick65]

Re: Payday loan court claim but also a letter?

Hi everyone,

I received a court claim (which i have acknowledged) for a payday loan with MotorMile Finance. Loan was approx £850 then plus fees etc total claim is £1040.

BUT at the same time I have a letter from Moriarty Law saying its NOT TOO LATE too settle the matter amicably and to call them.

Does the letter indicate their claim is on shaky ground? Or that I could still offer a partial settlement and prevent a CCJ?

Thanks for any thoughts

Sorry to take you off track

Have you sent a cca request off?

Have you sent a cpr request off

What is the history of the loan, had you reloaned, possibly each month or was this the first loan. If the total amount was 850 I guess you borrowed between 600and 700?