Mr Lender Unlawful Charges

[dan2406]

Hi All,

I been on this forum a few times but never registered anyway I am trying to do my best at paying my debt off and a couple of months of go went to a Debt Management company which is one of the best things I had done.

However one Company refused my DMP offers Mr Lender, now at first I thought I will not worry I am making payments so they cannot do anything but I recently looked at my credit report and found there been no reduction in the amount that I borrowed.

I originally borrowed £350 from them over the year ago. I asked them for the amount the total amount of payments I have made to them and found out I have made payments of around£780! they still state I owe £300 and had a recent settlement offer of £200. The statement I sent even states two default letter which I never received and have now reported them. If I continued my payments total I would of paid back would be nearly 1k which I think is totally outrageous. I am at a point where I think I might take Mr Lender to court to claim some of the money paid back.

This is the statement I have received from them


Any advice on this would be grateful, Thanks

13-Mar-13 11:58	InitialLoan	Capital		£350.00		£350.00
13-Mar-13 11:58	InitialFee	Same Day Fee			£0.00	£350.00
14-Mar-13 13:44	InitialFee	Admin Fee			£7.00	£343.00
14-Mar-13 15:04	InitialFee	Total Fees		£7.00		£350.00
14-Mar-13 15:04	Interest	Interest		£122.50		£472.50
27-Mar-13 00:35	Payment	Rollover	128635923		£122.50	£350.00
27-Mar-13 00:35	Interest	Rollover		£122.50		£472.50
26-Apr-13 00:54	Payment	Rollover	132823601		£122.50	£350.00
26-Apr-13 00:54	Payment	RO Fee Payment	132823601		£7.00	£350.00
26-Apr-13 00:54	Interest	Rollover		£122.50		£472.50
24-May-13 00:53	Payment	Rollover	136437114		£122.50	£350.00
24-May-13 00:53	Payment	RO Fee Payment	136437114		£7.00	£350.00
24-May-13 00:53	Interest	Rollover		£122.50		£472.50
28-Jun-13 09:08	Fee	Failed Card Fee		£20.00		£492.50
01-Jul-13 09:17	Fee	Letter Fee		£20.00		£512.50
04-Jul-13 09:28	Fee	Letter Fee		£20.00		£532.50
26-Jul-13 10:12	Payment	Interest Pay	BT-		£40.96	£491.54
27-Aug-13 14:05	Payment	Interest Pay	BT-		£40.96	£450.58
27-Sep-13 11:50	Payment	Interest Pay	BT-		£40.58	£410.00
27-Sep-13 11:50	Payment	Fees Payment	BT-		£5.42	£404.58
25-Oct-13 08:57	Payment	Fees Payment	BT-		£46.00	£358.58
27-Nov-13 11:01	Payment	Fees Payment	BT-		£8.58	£350.00
27-Nov-13 11:01	Payment	Capital Payment	BT-		£37.42	£312.58
27-Jan-14 09:54	Payment	Capital Payment	BT-DMA JAN		£9.36	£303.22

[Tools]

Re: Mr Lender Unlawful Charges

Do you have a copy of the original contract and terms?

Have you fallen into payment arrears with this at any time?

[dan2406]

Re: Mr Lender Unlawful Charges

well I set up a payment plan then decided to go with DMP but to get on a Payment plan they kept stating I needed to pay their interest which I refused to pay and managed to get them to accept it but I think the amount of money I paid is ridiculous

[Tools]

Re: Mr Lender Unlawful Charges

At 4948% apr it will be.

Have they now frozen all interest and charges?

[FlamingParrot]

Re: Mr Lender Unlawful Charges

Reading the statement above almost gives me a seizure! :target:

For a loan of just £350, rollover fees of £122 every month? :scared: :scared: :scared:

That's over a third of the capital, and the 4 rollovers amount to more than the original loan! So you pay a third of the debt each time and the debt stays the same? :jaw:

HOW CAN THIS BE ALLOWED? :smash::rant::rant::rant:

[dan2406]

Re: Mr Lender Unlawful Charges

they did freeze the charges at first but as soon as I went to a DMP they started to charge me interest.

[Tools]

Re: Mr Lender Unlawful Charges

In that case Dan I suggest you read their Good Practice Customer Carter, page 3 item 2 in particular and remind them of their obligations. http://www.ccta.co.uk/admindocs/code...ter_member.pdf

Also have a good read of the OFT publication on Debt Collection guidance, again remind Mr Lender of their obligations. Debt collection - Office of Fair Trading


Contact Mr Lender and insist that all interest and charges applied to the loan after you entered into a DMP be removed otherwise you will contact the OFT to raise a complaint.

[CleverClogs]

Re: Mr Lender Unlawful Charges

At 4948% apr it will be.

I'd like to apply the ancient penalty for usury to them...

Nail them by the ears to the public pillory, then slit their noses open using red-hot pincers.

[CleverClogs]

Re: Mr Lender Unlawful Charges

In that case Dan I suggest you read their Good Practice Customer Carter, page 3 item 2 in particular and remind them of their obligations. http://www.ccta.co.uk/admindocs/code...ter_member.pdf

My printer won't print properly on Andrex. :grin:

[FlamingParrot]

Re: Mr Lender Unlawful Charges

This may be slightly off-topic but, looking at the rollover fees above, makes me wonder whether it wouldn't be better just to default on payday loans rather than roll them over if you are unable to pay them back on the agreed date. :noidea:

I have no experience with PDLs, HMRC is my favoured short-term lender, since I only pay taxes once a year. :tinysmile_twink_t2: From where I'm standing, if a borrower just said: "Sorry, can't pay in full today, however, can pay you, say, £100 today (which is less than the rollover fee above), the rest in equal monthly instalments" the payments would go towards the actual debt rather than rollover fees. Unless there's something I'm missing :confused2: that would be a better way of dealing with the loans, wouldn't it? :noidea:

[CleverClogs]

Re: Mr Lender Unlawful Charges

I have no experience with PDLs, HMRC is my favoured short-term lender, since I only pay taxes once a year. :tinysmile_twink_t2: From where I'm standing, if a borrower just said: "Sorry, can't pay in full today, however, can pay you, say, £100 today (which is less than the rollover fee above), the rest in equal monthly instalments" the payments would go towards the actual debt rather than rollover fees. Unless there's something I'm missing :confused2: that would be a better way of dealing with the loans, wouldn't it? :noidea:

What you've missed is that payday lenders are arrogant, money-grubbing usurers - they'd just roll the loan over, add the roll over fees to the debt and accept the payment as a part payment towards the debt.

The debtor would also need to countermand the Continuous Payment Authority, or the lender would try repeatedly to take the payments from the debtor's bank account.

[dan2406]

Re: Mr Lender Unlawful Charges

Thanks guys, I have now have reported them to the financial ombudsman regarding the situation.

[CleverClogs]

Re: Mr Lender Unlawful Charges

What do you suppose the Fobbing Off Service will do?

[dan2406]

Re: Mr Lender Unlawful Charges

have the debt cancelled since I paid so much to them and if nothing happens I will just take them to court for unfair charging

[CleverClogs]

Re: Mr Lender Unlawful Charges

have the debt cancelled since I paid so much to them and if nothing happens I will just take them to court for unfair charging

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