Help please!!

[stunner1901]

Hi guys

Mobile money and write off

I stupidly took out a logbook loan in mar for £1540 over 18 months at 141 per month

then in sept they offered me a top up which I took of 980 but payments went to 222 over 36 months.

The apr had increased dramatically and when I spoke to their agent she said I couldn't have over 24 months as I only had a couple of quid spare each month at 241/24months so I had to have over 36 at 222

at the time my dad was seriously ill and my mum had just had a stroke so my work capability was almost zero as I am an only child. I am a self employed courier.

my wife also suffers chronic depression and anxiety and has tried to commit suicide a couple of times during this time also.

i was desperate for money and when questioned I simply said "I can take work whenever I need so don't worry about money!" They accepted and released funds

last week somebody hit me (accepted full liability) and has wrote my van off. Claims offering 1900 settlement

ive spoken to claims people and they said there is a financial interest so BOS must be registered and said to speak to mobile money to see if they can do anything for me

i spoke to MM manager and he said settlement figure is 2900 so I will be a grand short and they cannot do anything to help me and I will have to carry on at 222 a month till they are happy account is cleared

i explained if I cannot have some of settlement figure I cannot fix van or buy replacement and they said "sorry"

is is there anything I can do as I need to speak to claims people before tomorrow

please any advice gratefully taken

thanks in advance

[stunner1901]

Re: Help please!!

Sorry an addition to this

MM are requesting my insurance details to ensure money goes direct to them.

should I provide?

thanks

[PAWS]

Re: Help please!!

Just givng this a bump for you

[des8]

Re: Help please!!

[MENTION=19893]Deb[/MENTION]tcamel might have ideas on how to deal with the payday loan...

[stunner1901]

Re: Help please!!

Thanks guys how do I contact [MENTION=19893]Deb[/MENTION]tcamel?

[des8]

Re: Help please!!

This was a tag to [MENTION=48934]Debt Camel[/MENTION] who will contact you when she is next on if she can help

[stunner1901]

Re: Help please!!

Sorry for naivety

thanks for your help

[Debt Camel]

Re: Help please!!

at the time my dad was seriously ill and my mum had just had a stroke so my work capability was almost zero as I am an only child. I am a self employed courier.


my wife also suffers chronic depression and anxiety and has tried to commit suicide a couple of times during this time also.

I am very sorry to hear this - you can hardly have been in a good position to make financial decisions.

Were MM aware of any of these points before they lent you the top up?

What was your credit record like at this point, do you have a lot of other debts as well?

[stunner1901]

Re: Help please!!

hi [MENTION=19893]Deb[/MENTION]tcamel

desperation was the key

i had told them that my mum had had the stroke yes and they said just as long as we receive the docunents within a week it would be ok

my credit record is dire

main thing was they could see ny income had dropped dramatically(over £200 per fortnight) but never asked for proof of outgoings or bank statements. just wanted to see income going into bank. so they could see a reduction from 1st loan of in excess of 500 per month and allowed an increase in payments of £80 per month.

Also on the 1st loan there was a drop in income from 12-1600 down to 900 which i told them was due to fathers illness ... again they never questioned it. they just asked for the picture of the V5

i know i was stupid but i just wanted a short term fix.

[Debt Camel]

Re: Help please!!

Don't beat yourself up - yes this wasn't a good financial decision, but that is what stress does to people, it is hard to think straight when you are very worried about your family.

MM should have realised this ... from what you told them about your dad, your falling income and later your mum, they should have appreciated that you could be vulnerable (that's the term the regulator uses to describe this sort of situation) and they should therefore have been more careful to check you really could afford the loan and then the top up. by looking at your credit record and bank statements in detail.

So where are you now...

Well legally they own your wrecked car So the insurance payout will go to them

The best you can do is to put in an "affordability complaint" to MM as soon as possible. There is a template letter here https://debtcamel.co.uk/payday-loan-refunds/ for complaints about payday loans. read that whole article as it talks about the general complaint process - first to the lender and then send it to the Financial Ombudsman after 8 weeks.

You need to change that template by removing the word payday loans and the references to repeat borrowing. Add a paragraph at the top of the letter summarising the loans and what you had told them. Then add another paragraph saying "You were aware that my dad was very ill and my income had fallen before you gave me the first loan. This was a warning that I was in a vulnerable position, but you didn't ask for my bank statements to verify that the first loan was affordable. You later offered me a top up, and at that point I informed you that my mum had had a stroke. You knew my finances were difficult as you insisted on extending the term of the loan, but again you failed to properly check that the larger loan was affordable, despite knowing that I was likely to still be in a vulnerable position."

(Obviously check those words and change them so they are accurate!)

You should ask for a refund of all the interest you have paid and also ask for the top up to be written off completely as they should never have given you this loan given what they knew about your situation.

It is possible that the ombudsman will decide that you should not have that much compensation, perhaps just the interest removed from the balance. But given they were aware of 2 events making you vulnerable, one before each loan, I think it is worth asking for the second to be written off.

You should also inform the insurance company that you are disputing the loan with the lender. I think they may well still pay the money to MM but it's worth a try.

Realistically you may need to look for a different type of job

[stunner1901]

Re: Help please!!

Thanks [MENTION=19893]Deb[/MENTION]tcamel

does this email read ok?

thank you so much for this help

Good afternoon




Please read the following


I have had*2*loans from you 1st one in*March 17 and*then a top up 2nd loan end September 17. At the time of the 1st loan I told you that my dad was ill and showed a significant reduction in my income. At the point of the top up/new loan i showed you payments showing that my fortnightly money had reduced by in excess of £200*


As stated above you were aware that my dad was very ill and my income had fallen before you gave me the first loan. This was a warning that I was in a vulnerable position, but you didn't ask for my bank statements to verify that the first loan was affordable. You later offered me a top up, and at that point I informed you that my mum had had a stroke. You knew my finances were difficult as you insisted on extending the term of the loan, but again you failed to properly check that the larger loan was affordable, despite knowing that I was likely to still be in a vulnerable position.

My credit reports would have shown my other debt repayments and problems including late payments/defaults / CCJs,etc.

You should never have given me these unaffordable loans.*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

Therefore i would like to request*a refund of all the interest I have paid and also ask for the top up to be written off completely as you should never have given me this loan given what you knew about my situation


I would like all correspondence in relation to this to be via email with no phone communication.


I look forward to your response

[stunner1901]

Re: Help please!!

[MENTION=19893]Deb[/MENTION]tcamel

Sorry to add more but i've just checked my noddle credit rating and it is as bad as i thought (probably worse tbh). There are at least 7 defaults on the account from the time of both loans.Including 2 or 3 payday loans.

Surely this adds credence to my case?

kind regards

[Debt Camel]

Re: Help please!!

Yes that looks fine. It is very likely that this complaint will be to be rejected, if it is, send it straight to the Finanical Ombudsman. And yes, your poor credit record backs up what you are saying.

[stunner1901]

Re: Help please!!

Thanks [MENTION=19893]Deb[/MENTION]tcamel

I may look into some of my payday loans that are still being chased.

Can i contact you if i need advice please?

- - - Updated - - -

Just out of interest. why do you think it is very likely that they will dismiss automatically? is that the norm?

[stunner1901]

Re: Help please!!

Yes that looks fine. It is very likely that this complaint will be to be rejected, if it is, send it straight to the Finanical Ombudsman. And yes, your poor credit record backs up what you are saying.

Hi [MENTION=48934]Debt Camel[/MENTION]
Can I check a term of the contract please

MM are governed by the CCTA and there factsheet states that action cannot be taken until the account is 2 months in arrears and then they must issue a default notice giving 14 days to bring account back up to date before any action can be 5aken

Am I reading/understanding this correctly?

i am really struggling at present and was going to make smaller payments than the actual amount due but they are saying they’ve helped once they don’t need to again

if I pay 2/3s of actual amount due does that mean it would take 3 months to be 1 month behind? Or does it mean any shortfall counts as a month behind?

hope you understand my logic

regards