Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limited

[zombiefan61]

Hi I understand that Micro Lend has had their credit licence suspended, does anyone know what will happen when my loan is due to be taken. Does it still get taken?

[Justin888]

Re: Micro Lend Uk

Hi Zombiefan, I too am in the same situation, I have phoned the OFT, FOS and MAS but I cant get an answer to this question, I am tempted to cancel the continous payment authority with them, I would have thought that if their license has been withdrawn that they cant take payments ? I just need this to be confirmed by someone.

[Amethyst]

Re: Micro Lend Uk

What did the OFT say when you asked them about it?


Have they taken the last payment through your continuous payment authority ?

I'm not sure of the reasons for the Microlend CCL suspension but some have been due to misuse of the continuous payment authority.

[Justin888]

Re: Micro Lend Uk

Hi - they told me to ring the FOS, the FOS told me to ring the OFT. so I am in limbo really, any thoughts ?

[Amethyst]

Re: Micro Lend Uk

Suitable answers from those two then, left hand doesn't know what the right hand is doing. I'm looking into it.

Whats the position with your debt and continuous payment authority at the moment?

Micro Lend has been invited to make representations to the OFT by 24 March. If representations are made, the OFT’s adjudicator will decide whether to confirm the suspension or withdraw it.

[Justin888]

Re: Micro Lend Uk

I have a payment due on the 24th for a loan issued at the end of February, so the CPA is in place for that payment

[jon1965]

Re: Micro Lend Uk

According to the OFT website it says "minded to revoke"

http://www2.crw.gov.uk/pr/default.aspx

My understanding is that even if the licence is revoked they can still collect

They have breached OFT guidelines so often that I am amazed they are still trading .
My guess is they will collect what they can and then sell on the remainder to some nice company with a "new" owner

[Justin888]

Re: Micro Lend Uk

Hi, yes, the last payment was taken through the CLA, to be honest, I have never had any problems with Microlend , I just dont know what the position is regarding their abillity/authority to take payments when their license has been suspended ?

[jon1965]

Re: Micro Lend Uk

Oops
I was confused
I thought you were talking about microcredit aka minicredit

Regardless I think the debt is still owed and they may well still try to claim it on the due date

[Justin888]

Re: Micro Lend Uk

You might be right, but I just wanted to know if legally they can continue to collect payments when their license has been suspended, the OFT state that :
“The suspension means it is now a criminal offence for Micro Lend, or any other person, for example an employee of Micro Lend, to engage in any consumer credit or credit broking activity using the company's credit licence.”

What constitutes consumer credit activity - does this stretch to payments etc ?

[Amethyst]

Re: Micro Lend Uk

Well I can't find the actual reference for the moment but they are allowed to collect owed payments but not allowed to broker loans or lend further monies whilst suspended. They do have until the 24th March for appeal so it MAY be overturned, so I would continue with normal payments until at least 24th March and we know what the situation is. I'll find the reference for backing that up asap though.

[zombiefan61]

Re: Micro Lend Uk

Hi I have tried ringing OFT and FCA and have been going round and round in circles. Mine is due out on 21st March but was trying to talk to them as going through a DMP at the moment and wanted to put them on it. not sure what to do now though

[Justin888]

Re: Micro Lend Uk

Hi Amethyst - did you have any luck in finding any further info on this ?

many thanks

[Amethyst]

Re: Micro Lend Uk

No, weirdly, I even checked through MSE to see if they had the information on previous licence removed firms, but nothing.

This could have something but haven't found anything definitive on the collecting http://www.oft.gov.uk/shared_oft/bus...es/OFT1480.pdf

I do know from the CCL info on the OFT site that as they are collecting money to repay only debts owed to themselves you don't need a consumer credit licence to do that, so in my view you should continue with the payments at least for this months payment as their appeal date is 24th March.

However my thinking is some of these companies collecting their own debts have been suspended due to misuse of continuous payment authority so it does seem a little bit bonkers that they can continue collecting through the same method whilst under 'urgent' suspension for the protection of consumers.

I'm amazed the OFT and FOS couldn't/wouldn't give a definitive answer.

You mentioned earlier you hadn't had any issues with Microlend or their collection processes I think.

The OFT may make use of s34A powers in circumstances where it judges that it is proportionate to authorise some licensed activity to continue for a period of time after suspension in order to facilitate winding up or transferring the business. This could allow some consumer accounts to still be serviced for a period of time after suspension in order to allow the business to be wound up in an orderly fashion.

(I've emailed the OFT as well)

[Amethyst]

Re: Micro Lend Uk

lol @ auto response from OFT email
Thank you for your email to the Office of Fair Trading (OFT).
Complaint about a Credit or Debt company - If your complaint relates to a Credit or Debt company or the fitness of a consumer credit licensee, please note that we are currently receiving high volumes of contacts and although we will endeavour to respond to your email within 10 working days, there is a delay responding to these queries currently. If you require help with a complaint about a consumer credit product or service, the Financial Ombudsman Service (FOS) may be able to assist you. FOS can be contact at: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; 0845 080 1800; or www.financial-ombudsman.org.uk.

Thank you for taking the time to contact us.