Charges on payday loans

[gravytrain]

Re: Charges on payday loans

Hi Cazza

Why do you think you owe the so much if you only borrowed £100 and have repaid £157 ?

[FlamingParrot]

Re: Charges on payday loans

i myself are having problems with this so called minicredit, microcredit whatever they wanna call themselves i borrowed £100 but as you are probably aware they only give you £80.50 i have paid them £157 back through ukash vouchers as i was not giving them my bank card details this was after the due date though and now i probably owe them over £1000 i am just trying to find out how i can deal with this from my dmp but i have no hopes as they will not accept payments from dmp or any other 3rd party did they take you to court at all skelly1983? i am sick of worrying about it all the time

These sharks don't often go to court because they know their charges are ridiculous and they wouldn't want precedent to be set if a judge was to rule against them. In they unlikely event they took you to court, you could just show the judge how much you borrowed and how much you have paid back. It wouldn't make them look goo so I wasting the court's time for a £100 loan where they've already recovered more than they lent you so I wouldn't worry if I was you! :nono:

[jon1965]

Re: Charges on payday loans

Minicredit are a bunch of low life.....well there are ladies present.
Now supposedly the head of claims and customer bull**** is kristel.martinson@minicredit.com

They use underhand tricks , tried to say I had committed fraud because I said i was single and on benefits when in reality I was married but separated for 10 years and on ESA. So when my wife died and I said I wasn;t working they got a tad confused.
I borrowed 220 and last I hear owed over 1200. If they take me to court they will get 50p a month if that. Even at £1 a month I will be 147 before they get paid

[FlamingParrot]

Re: Charges on payday loans

Minicredit are a bunch of low life.....well there are ladies present.
Now supposedly the head of claims and customer bull**** is kristel.martinson@minicredit.com

They use underhand tricks , tried to say I had committed fraud because I said i was single and on benefits when in reality I was married but separated for 10 years and on ESA. So when my wife died and I said I wasn;t working they got a tad confused.
I borrowed 220 and last I hear owed over 1200. If they take me to court they will get 50p a month if that. Even at £1 a month I will be 147 before they get paid

Isn't ESA a benefit? If you are separated you are, for practical purposes, single, so where's the fraud in that? :confused2:

They are soooo full of bovine excrement!

[labman]

Re: Charges on payday loans

You will NEVER find one month plus one month's interest stipulated anywhere, as, as far as I know, it isn't written down anywhere.

The thing is, the terms of contract are so unfair, if you can prove you've paid more than a 'reasonable' amount of interest back, and one month with these people will be more than reasonable, they know full well they will stand almost zero chance of winning in court.

They will tell you of successful CCJ's - indeed Mini Credit have recently taken to listing people by name with a case reference, but the are almost certainly default judgments which have gone undefended.

[FlamingParrot]

Re: Charges on payday loans

You will NEVER find one month plus one month's interest stipulated anywhere, as, as far as I know, it isn't written down anywhere.

The thing is, the terms of contract are so unfair, if you can prove you've paid more than a 'reasonable' amount of interest back, and one month with these people will be more than reasonable, they know full well they will stand almost zero chance of winning in court.

They will tell you of successful CCJ's - indeed Mini Credit have recently taken to listing people by name with a case reference, but the are almost certainly default judgments which have gone undefended.

I've always wondered where this idea came from, it was repeated time and time again on one of the forums, yet no-one could come up with a source to back up this statement.

[jon1965]

Re: Charges on payday loans

I know exactly where it came from and alas it was repeated so many times and by supposedly literate and senior members of that site that it became perceived wisdom and gained a "truth" all of its own . Even after it being officially debunked by very senior members of that site it still carried on and it seemed easier to hit the ban button than answer the question of where the assertion came from.
It even became a "defence" if someone had rolled over the loan for say 4 months so they then thought they owed nothing.

However I have yet to come across anyone with quite so many payday loans as I have , it seems that I never could learn but as of yet I have not received any legal papers.
I have used both the FOS and also the BCCA and the threat of another association to fight these people, not on a debt avoidance stance but on a fair play one . Don't expect the FOS to side with you initially, I had to spell it out in Noddy language (no pun intended).

Flaming Parrot you are of course right ESA is a benefit , to show the level of intelligence of these people in one of my letters I said "my wife has just died and I am not working so I can not pay you". The reply was "but you said you were on benefits and that you were single so you lied".
I must admit I got some great help in the form of a killer letter from Never in Doubt, which they have never replied to.
Morning rant over

[FlamingParrot]

Re: Charges on payday loans

Payday loans are set to become the biggest debt problem for people in the UK. They are so easy to obtain in just a few minutes and the amounts are usually small, so people don't even give them a second thought. It would be good if it could be established that all you have to pay is one month's interest, unfortunately, there's not only no legal basis for that assertion, there is no clear way to assess what could be regarded as a reasonable level of repayment. There was a case where a loan of £500 or thereabouts had turned into an alleged debt of £27k after interest and charges over charges. :scared::scared::scared:

The reason they haven't taken you to court is probably just a practical one: they would be wasting their time, they know you are on benefits and would only get £1/month even if they won, so why bother.:grin:

[gravytrain]

Re: Charges on payday loans

Personally I don't think the idea of staring that only the sums due under the original contract are due, is not a bad one. Most of these loans are so out of hand when they become contested it is difficult to know where to start, at lest this gives the debtor an initial starting position and puts the creditor on the back foot.

Legally the position is unclear because as stated there is precious little case law, it can be argued that the default charges are unfair under common law and UTCCs, certainly the supreme court ruling on bank charges does not apply here and It seems the companies are unwilling to test the argument.

I believe that measure to cap interest rates will be introduced in 2014, so I can see theses companies making hay whilst the sun shines, and predict a lot of high density advertising over the next twelve months. Stella Creasy(MP) has a campaign going at the moment to try and stem the tide if anyone is interested it is on her web page

http://www.workingforwalthamstow.org.uk
Stella Creasy: Labour and Co-operative MP for Walthamstow

http://t.ymlp284.net/meueagahqusafaeeeadajhsw/click.php

[gravytrain]

Re: Charges on payday loans

Here is the complaint form should you wish to report the PDL to the OFT

http://www.oft.gov.uk/shared_oft/Cre...laint_Form.pdf

[jon1965]

Re: Charges on payday loans

Apparently the alleged bit of legislation that covers the loan+1months interest is the CCA S87 . Now I am not a lawyer, very far from it but I can not for the life of me find anything in there that mentions anything other than default notices

[gravytrain]

Re: Charges on payday loans

Apparently the alleged bit of legislation that covers the loan+1months interest is the CCA S87 . Now I am not a lawyer, very far from it but I can not for the life of me find anything in there that mentions anything other than default notices

Me either :confused2:

[gravytrain]

Re: Charges on payday loans

In any case thinking about it, a default notice on a fixed sum loan that has exceeded its term is just a letter before action isn't it ?

The creditor is not asking for accelerated payments everything is arrears. If the DN was remedied there would be no agreement to reserect because it would be paid off.

[jon1965]

Re: Charges on payday loans

I think the problem may be that some of the agreements are actually a credit limit that you can take payments on repay and then take on again, so just like a credit card.
I suppose what is needed is legal opinion as to if a fixed term 1 or 2 month agreement that specifies interest can be added after the repayment date (if payment not made) is allowed. Lets not think about interest rates and charges at this time, just if the basic proposition is valid.
Where's a lawyer when you need one :-)

[FlamingParrot]

Re: Charges on payday loans

I think the problem may be that some of the agreements are actually a credit limit that you can take payments on repay and then take on again, so just like a credit card.

I wasn't aware of this sort of arrangement, I always thought PDLs were a fixed sum due on a certain date, where a given amount would become payable. Are there any PDLs out there that offer a revolving credit facility?

I suppose what is needed is legal opinion as to if a fixed term 1 or 2 month agreement that specifies interest can be added after the repayment date (if payment not made) is allowed. Lets not think about interest rates and charges at this time, just if the basic proposition is valid.
Where's a lawyer when you need one :-)

Not sure I understand this, what would be the difference between this and a rollover?