Urgent Help please - Payday loan

[burmacat]

Re: Urgent Help please - Payday loan

And I hope reading this hasnt put anyone else off for fighting any payday loan companies.

Just me being an idiot and not keeping hold of important documents and leaving it until the last min.

Dont want to lose the opportunity to settle at a lower amount.

I WILL EMAIL THE SOLICITORS TOO FIRST THING TOMORROW - SO I MAY BE BACK

[Lord_Alcohol]

Re: Urgent Help please - Payday loan

Thanks Burmacat, but I don't think I was any help.

I'll be thinking about this too. I did wonder if you could ask the court for a postponement - being in the family way could be the perfect reason! - and it would give you time to think and perhaps prepare a defence if that's what you decided.

Watsons will be as helpful as possible - I have not used them, but they are solicitors of choice when the need arises given their record.

Anyway, your reasons for not wanting to go to court are completely understandable. I would do the same if I was pregnant, which I'm not (it just looks like I am!).

Good luck!

LA

[berniel]

Re: Urgent Help please - Payday loan

Yes i think this is the the best course of action for you, good luck

Bernie

[burmacat]

Re: Urgent Help please - Payday loan

Thank you again to you both, this website has to be one of the best forums they have around.

Take care all

[labman]

Re: Urgent Help please - Payday loan

I am genuinely sympathetic to your plight, and believe me, you are far from alone. These companies are terrible and I really wish you luck. If you use the solicitors previously mentioned, you'd find it very hard to find a better firm in the UK - they are excellent.

I would be interested to know more of the mediation. Was this done through a debt charity? If so which one? If not, what exactly did the mediation involve?

It seems to me they have left you in a really invidious position. If they were genuinely mediators, then they may have done their best, but if they were supposed to be representing your best interests, I would seriously question whether they have done so.

[Celestine]

Re: Urgent Help please - Payday loan

Yes, I echo that point. How can a mediation advisor advise someone that they would be hit with legal costs in the small claims track of the County Court???

Good luck :beagle:

[berniel]

Re: Urgent Help please - Payday loan

I am genuinely sympathetic to your plight, and believe me, you are far from alone. These companies are terrible and I really wish you luck. If you use the solicitors previously mentioned, you'd find it very hard to find a better firm in the UK - they are excellent.

I would be interested to know more of the mediation. Was this done through a debt charity? If so which one? If not, what exactly did the mediation involve?

It seems to me they have left you in a really invidious position. If they were genuinely mediators, then they may have done their best, but if they were supposed to be representing your best interests, I would seriously question whether they have done so.

As i say i know nothing about the process, but i presumed it would be conducted by one of the court staff, if so you would expect them to understand costs issues.

It is what led me to think that perhaps none compliance with the mediation services recommendations may have a negative effect should the debtor loose.

The judge does have some discretion regarcding costs i believe even in small claims track

Bernie

[Lord_Alcohol]

Re: Urgent Help please - Payday loan

I think there is something fundamentally awry here. There is no doubt whatsoever in my mind that Cash Genie and their ilk are nothing other than predatory thieving disgusting chancers and I wish they would be shut down. However, what in fact can be done in these situations?

If it is the case that Burmacat signed a 19-day agreement at 25,403% APR but the mass of the balance comes from interest accrued from the rollover period, then it is that period that I think should be looked at.

For example, there may be no enforceable agreement (or signed agreement) at all, immediately bringing S61 into play (signing of agreement containing all prescribed terms). It looks like Burmacat merely opted for an 'extension' using an online facility, but does this actually extend the original agreement or does it create a new one? I would think that either would require a signed document containing all terms, because an extension removes the original fixed-term feature of the loan while a new agreement is...well, a new agreement.

Is it a defence in these cases to say that there is no agreement, other than the original, which allows for 19 days of interest at Cash Genie's ridiculous rate?

The OC has already indicated that there must be some form of agreement, because it sent to Burmacat a notice under S86E (sums in arrears).

It would be really useful to find flaws in the loan itself, which may allow a court to dismiss any claim other than for the original amount (already repaid 4 times over).

As for costs, I think a court would only allow those if one party was being deliberately obstructive/vexatious, which is not the case with Burmacat.

LA

[Celestine]

Re: Urgent Help please - Payday loan

One MP is at least trying:


Stella asks ‘how much worse does legal loan sharking have to get before Government acts’ as new data shows 3.5 Million Brits at risk | Working for Walthamstow

I've written to her because I'd really like LB to get behind her campaign.

[Lord_Alcohol]

Re: Urgent Help please - Payday loan

One MP is at least trying:


Stella asks ‘how much worse does legal loan sharking have to get before Government acts’ as new data shows 3.5 Million Brits at risk | Working for Walthamstow

I've written to her because I'd really like LB to get behind her campaign.

Excellent. I'd support that (sadly, I'm not actually in the Lords).

I notice that Frederickson even has concerns...

http://www.debtwizard.com/news/consu...ll-more-follow

It's only a matter of time surely, but in the meantime these sods will be stiffing as many as possible before they're brought to book.

[berniel]

Re: Urgent Help please - Payday loan

I think there is something fundamentally awry here. There is no doubt whatsoever in my mind that Cash Genie and their ilk are nothing other than predatory thieving disgusting chancers and I wish they would be shut down. However, what in fact can be done in these situations?

If it is the case that Burmacat signed a 19-day agreement at 25,403% APR but the mass of the balance comes from interest accrued from the rollover period, then it is that period that I think should be looked at.

For example, there may be no enforceable agreement (or signed agreement) at all, immediately bringing S61 into play (signing of agreement containing all prescribed terms). It looks like Burmacat merely opted for an 'extension' using an online facility, but does this actually extend the original agreement or does it create a new one? I would think that either would require a signed document containing all terms, because an extension removes the original fixed-term feature of the loan while a new agreement is...well, a new agreement.

Is it a defence in these cases to say that there is no agreement, other than the original, which allows for 19 days of interest at Cash Genie's ridiculous rate?

The OC has already indicated that there must be some form of agreement, because it sent to Burmacat a notice under S86E (sums in arrears).

It would be really useful to find flaws in the loan itself, which may allow a court to dismiss any claim other than for the original amount (already repaid 4 times over).

As for costs, I think a court would only allow those if one party was being deliberately obstructive/vexatious, which is not the case with Burmacat.

LA

The ability to modify or vary an agreement is covered under section 82 of the act.
Having said that I cannot believe that it was meant to extend the term on a loan with such high APR.
In theory the APR could be infinite because nothing would be paid off the principle just the interest.
Bernie

[Lord_Alcohol]

Re: Urgent Help please - Payday loan

S82 requires that a modified agreement be notified to the debtor under Schedule 8 of the 1983 Consumer Credit (Agreements) Regulations.

S82 also states that a modifying agreement is regulated where the modified agreement is also regulated, which is the case here.

If S82 and Schedule 8 of the 1983 Regs require a modifying agreement for these situations, then presumably S61 also applies to the modified agreement (eg, a signed document containing all prescribed terms is required).

If there is no modifying agreement then is a 'rollover' actually enforceable? That was my question.

[berniel]

Re: Urgent Help please - Payday loan

S82 requires that a modified agreement be notified to the debtor under Schedule 8 of the 1983 Consumer Credit (Agreements) Regulations.

S82 also states that a modifying agreement is regulated where the modified agreement is also regulated, which is the case here.

If S82 and Schedule 8 of the 1983 Regs require a modifying agreement for these situations, then presumably S61 also applies to the modified agreement (eg, a signed document containing all prescribed terms is required).

If there is no modifying agreement then is a 'rollover' actually enforceable? That was my question.

Well it certainly is arguable, but i am sure that they would say that since all the relavant information was gathered electronically, the process of creating a new agreement would be just one of getting the permission of both parties, which is accomplixhed when the debtor requested the rolover.

The section mentions something about liabilities being carried oner to the new combined contract i think.

As for the signatue the distance marketing and electronic signatue regulations enabel the agreement to be concluded remotely of course.

Not that i do not think that roll overs are not challengable, but i think we must be sure of our ground.

I think the problem is more likely to be in the information aspects of the modified loan and the effect on the APR of rolling over.


Bernie

[berniel]

Re: Urgent Help please - Payday loan

Maybe one of us should start a new thread.

"Are Rollover agreements legal or enforceable under the CCA" or something.

Bernie