Intrum Justicia Halts Collection Activities for Payday Loan Company

[Crispybacon]

Hi All

This in the business news on the BBC. Goes to show how thorough their lending procedures are. not to mention the little porky on the APR. I would like to see how the BBC arrived at that monstrous figure though.

Best

Crispy

[Quote from BBC:]

Payday loan company Help Loan have frozen all debt collection activity with their DCA (Intrum Justicia) after it was discovered that over 9,000 people had their identities stolen to apply for loans.

Lax security has allowed criminals to obtain thousands of £300 loans using stolen IDs. The first those people knew about it was when they received a demand for payment from Intrum Justicia.

Many are angry that despite already having contacted Help Loan and its debt collection company Intrum Justitia, they are still receiving letters demanding payment.

Money Box has also discovered that the Annual Percentage Rates quoted on the Help Loan website are highly inaccurate.

It states if someone borrowed £50 over 14 days, the APR is 1,877%.

In fact it should be 132,965,598.

The Office of Fair Trading has confirmed this and says this will be part of its wider investigation into the company.

The full story can be found here:

http://www.bbc.co.uk/news/business-11655200

[Amethyst]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

Beware - MCO Capital targeted by identity thieves - Investigations in Sept.

http://www.shropshirestar.com/news/2...pital-finance/

MCO Capital Limited | Action Fraud

ouch an idea of their rates Help pay loan company rip off

£300 for 14 days cost £213, one day late of payment increased it by a further £213 - so total to repay for a £300 loan was £726 for 15 days.

They got the loan by texting (ffs!) so cant have been too hard for the fraudsters. Hope someone stampes on MCO as well for being so damn irresponsible and charging such disgusting rates.


Good to here Intrum have suspended collections.

[Crispybacon]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

Thanks Ame

Hope you had a nice holiday! Obviously you are back fully refreshed!

Crispy

[Amethyst]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

lol, yes thank you am zipedeydoodah

[middenmess]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

Money Box has also discovered that the Annual Percentage Rates quoted on the Help Loan website are highly inaccurate.

It states if someone borrowed £50 over 14 days, the APR is 1,877%.

In fact it should be 132,965,598.

Read more at: Intrum Justicia Halts Collection Activities for Payday Loan Company - Legal Beagles Consumer Forum

Maths ain't my strong suit so does someone want to either tell me how much it costs to borrow £50 for 14 days at 133 million per cent or alternatively tell the BBC to check their figures?

[Crispybacon]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

Maths ain't my strong suit so does someone want to either tell me how much it costs to borrow £50 for 14 days at 133 million per cent or alternatively tell the BBC to check their figures?

LOL nor mine, hence why I asked the question!

[middenmess]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

LOL nor mine, hence why I asked the question!

The ''journalist'' who wrote the article was probably a Banker in a previous life:tinysmile_grin_t:

[Crispybacon]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

The ''journalist'' who wrote the article was probably a Banker in a previous life:tinysmile_grin_t:

You mean that the figure given was his bonus for this quarter?

[middenmess]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

You mean that the figure given was his bonus for this quarter?

Help Loan debt collection halted

By Bob Howard, Reporter, Money Box


Drop 'Bob' a line and ask him or see if he confirmed the figures on Saturdays broadcast-probably on iplayer or whatever now

BBC Radio 4's Money Box is broadcast on Saturdays at 1200 BST, and repeated on Sundays at 2100 BST

[Amethyst]

Re: Intrum Justicia Halts Collection Activities for Payday Loan Company

At 1,877% £50 for one month would cost an additional £78 in interest.

so lets say £35 for 14 days (just for argument)



Now these people all have £300 loans.

£300 for one month at 1,877% PA adds interest of £469

Which isnt far of the £213 for 14 days which is being reported.

But when you add the penalty charges for being late on to that (100% of the interest each time you are late seemingly) it soon adds up pretty rapidly. After three months I got to repaying nearly £8k for borrowing £300 over 3 months, and thats an APR in the millions.