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

[enaid]

Re: Micro Lend Uk - Credit Licence

Thanks Enaid
I knew there were threads on cag, just hadn't had time to look for them. I am sure there are many more

Proabaly, but enough there to show his true colours x

[dion]

Re: Micro Lend Uk - Credit Licence

Hello all...this mail from OFT last night.

Dear Dion

Thank you for your email. As you are aware, the OFT suspended the licence of Micro Lend UK Limited (Micro Lend) on 3 March 2014. The suspension means it is now a criminal offence for Micro Lend to engage in any consumer credit activity using the company's credit licence. Consumer credit activity includes lending to consumers and the collection of debts, including, in the OFT’s view, the mere passive receipt of debts, the enforcement of agreements and the addition of interest.

In the OFT’s view, a business is able to sell its loan book without holding a licence. We are aware that Micro Lend’s loan book has been purchased by Wage Payment and Payday Loans Limited (WPPLL), trading as Payday Overdraft. I can confirm that WPPLL holds consumer credit licence number 633083 and is licensed to carry out the activity of consumer credit, which includes offering credit to consumers and collecting its own debts, which now includes the debts purchased from Micro Lend.

Where a loan book is sold, the purchaser is legally entitled to collect debts and charge interest as set out in the original agreement. Creditors are required to have regard to the OFT’s Irresponsible Lending Guidance (http://www.oft.gov.uk/about-the-oft/.../irresponsible) and Debt Collection Guidance (http://www.oft.gov.uk/about-the-oft/...ebt-collection).

If you have any concerns about the practices of a licensee, and you have already complained to the firm itself, you may be able to complain to the Financial Ombudsman Service (FOS). FOS can be contacted at: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; 0845 080 1800; or www.financial-ombudsman.org.uk.

You may be aware that, on 1 April 2014, responsibility for consumer credit regulation will transfer to the Financial Conduct Authority (FCA). The FCA’s Consumer Helpline offers impartial information and general guidance. You can find further details on the FCA’s website at: http://www.fca.org.uk/consumers/consumer-helpline

I hope you find this information helpful.

Regards

Laura

Laura Smith | Payday Lending Team | Consumer Credit Group | Office of Fair Trading
Fleetbank House | 2-6 Salisbury Square | London EC4Y 8JX | T: 020 7211 5870

[Buddy1968]

Re: Micro Lend Uk - Credit Licence

I emailed Andrew Hart yesterday and stated I will not be paying anything until I recieve confirmation in writing of the amount due and a legal document stating the debt has been legally transferred. Funny, his emails have now stopped!

[Amethyst]

Re: Micro Lend Uk - Credit Licence

Had same email as Dion this morning.

Thank you for your email. As you are aware, the OFT suspended the licence of Micro Lend UK Limited (Micro Lend) on 3 March 2014. The suspension means it is now a criminal offence for Micro Lend to engage in any consumer credit activity using the company's credit licence. Consumer credit activity includes lending to consumers and the collection of debts, including, in the OFT’s view, the mere passive receipt of debts, the enforcement of agreements and the addition of interest.

In the OFT’s view, a business is able to sell its loan book without holding a licence. We are aware that Micro Lend’s loan book has been purchased by Wage Payment and Payday Loans Limited (WPPLL), trading as Payday Overdraft. I can confirm that WPPLL holds consumer credit licence number 633083 and is licensed to carry out the activity of consumer credit, which includes offering credit to consumers and collecting its own debts, which now includes the debts purchased from Micro Lend.

Where a loan book is sold, the purchaser is legally entitled to collect debts and charge interest as set out in the original agreement. Creditors are required to have regard to the OFT’s Irresponsible Lending Guidance (http://www.oft.gov.uk/about-the-oft/.../irresponsible) and Debt Collection Guidance (http://www.oft.gov.uk/about-the-oft/...ebt-collection).

We advise consumers that if they have any concerns about the practices of a licensee, and have already complained to the firm itself, they may be able to complain to the Financial Ombudsman Service (FOS). FOS can be contacted at: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; 0845 080 1800; or www.financial-ombudsman.org.uk.

You may be aware that, on 1 April 2014, responsibility for consumer credit regulation will transfer to the Financial Conduct Authority (FCA). The FCA’s Consumer Helpline offers impartial information and general guidance. You can find further details on the FCA’s website at: http://www.fca.org.uk/consumers/consumer-helpline If you have concerns about the practices of any firm, you may wish to report them to the FCA from 1 April.

[Amethyst]

Re: Micro Lend Uk - Credit Licence

With regards to customers coming to payment arrangements with the new owners of the debts, are the payment arrangements on the same terms / amounts / interest etc as your original loans ?

[enaid]

Re: Micro Lend Uk - Credit Licence

With regards to customers coming to payment arrangements with the new owners of the debts, are the payment arrangements on the same terms / amounts / interest etc as your original loans ?

Should they be entitled to receive proper written proof of this?

[Tools]

Re: Micro Lend Uk - SUSPENDED Credit Licence

I have just spoken again with the OFT, to clarify the details in the emails received.

WPPL legally acquired the loan book from Micro Lend UK Ltd, on or around the 25th March 2014.

Notice of assignment is as the email from Hilton Law, which should have been received by any existing customer of Micro Lend UK Ltd.

Despite the half baked communications from WPPL, they are legally entitled to collect on the debts.

I have made the OFT aware that we do not see WPPL as fit and proper to hold a Consumer Credit License and that we will be gathering anecdotal evidence from customers to support this for submission to the FCA when they take over 1st April 2014. Details of who will be dealing with Payday Lenders will be sent to us.

I have also asked if WPPL have applied for interim authorisation, although I do not expect that to be revealed to us and fully understand that decision. The details of firms should be published 1st April anyway, or soon after.

If you feel comfortable and satisfied to make your next payment to WPPL then do so, and we will update any information/advice in time for the next payment due. It may well be that after 1st April WPPL will no longer hold a license or may have again sold on the loan book, watch this space.

Ask WPPL for a statement of account and check that your figures add up with theirs.

[zombiefan61]

Re: Micro Lend Uk - SUSPENDED Credit Licence

I had the following email from MicroLend regarding their solicitors statement :-

It has become apparent that in recent weeks some customers have questioned the validity of their request in regards to outstanding balances owed to Micro Lend UK Ltd (MLUK Ltd) after the suspension of our licence on March 3rd 2014. Please find below an email from our solicitor acting in the assignment of the debt to WPPL.

"Following recent events, I am aware that there has been some confusion or uncertainty among customers of Micro Lend UK Limited ("MLUK") regarding the assignment of its Loan-book to Wages and Payday Loans Limited ("WPPL"), I can confirm the following, and you can pass on this confirmation to any Debtors who have raised objections to WPPL's requests for payment:-

1. Whilst I would emphasise that I act for MLUK only (and neither I nor my firm, Hilton Law, is instructed by WPPL), I confirm that MLUK's Loan-book was assigned to WPPL (by way of a Deed of Assignment) dated 26 March 2014.

2. As a result of the Assignment, all MLUK's pay-day loan agreements (under the Consumer Credit Act), together with the debts due to MLUK thereunder, were assigned to (and thus acquired by) WPPL.

3. Whilst MLUK had its Consumer Credit Licence suspended by the OFT on 3 March 2014, it was permitted to sell its Loan-book to an unconnected third party as long as that third party (in this case WPPL) was suitably and appropriately licensed to collect those debts. The OFT has confirmed "in the OFT’s view, the sale of a loan book to another party is not a licensable activity and so can be carried out without a licence". I can confirm that the Assignment of the Loan-book was with the OFT's full knowledge.

4. The OFT has also confirmed that WPPL is appropriately licensed to collect the debts due under MLUK's Loan-book - on the basis that the Loan-book is now the property of WPPL, and on the basis (of course) that (i) WPPL continues to be appropriately licensed and (ii) there is no connection between WPPL and MLUK (or its directors).

5. All Debtors contacted by WPPL regarding the payments due under loan agreements entered into between MLUK and the Debtors should therefore pay the sums claimed by WPPL to WPPL (assuming the calculation of those sums is of course correct), just as if they were still dealing with MLUK. In other words, WPPL simply takes MLUK's place in relation to the collection of monies properly due under the loan agreements originally entered into between MLUK and the Debtors.

Whilst it is not appropriate (because of the potential conflict of interest) for me or my firm to be dealing with the Debtors directly on WPPL's behalf, I have no objection to you forwarding on this email to those Debtors who may have raised concerns (whether genuine or otherwise) about paying sums to WPPL which those Debtors believe are actually due to MLUK.

To summarise: there is a valid assignment of MLUK's Loan-book to WPPL and all sums properly due from Debtors to MLUK under their respective MLUK pay-day loan agreements should be paid instead to WPPL. And, for the avoidance of doubt, Debtors should not make any payments to MLUK.

I hope and trust this clarifies the position. "

All future correspondence, dealings, deliveries and payments in respect of the Assigned Documents or the Debt should be made to the Assignee whose details are as follows:
Wage Payment and Payday Loans Limited trading as Payday Overdraft Cambridge House
27 Cambridge Park
Wanstead
London
E11 2PU

[Amethyst]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

Thanks ZombieFan.

So as I understand things now;

If you pay the amount that was owing to Microlend after their suspension as soon as you have contact from WPPL it should be the same payment. ie. If repayment of the PDL was due on 18th March, and you have contact from WPPL about the assignment on 26th March, then you should be able to make exactly the same payment to WPPL as you were due to pay MicroLend without any extra interest / charges.

If you don't make the full payment that was due then the rights under the original contracts have been assigned to WPPL and they can continue (from the 26th March) charging the 1% per day interest plus the £15 late payment charges and so on.


We still don't know until tmw that WPPL have interim authorisation in the changeover to the FCA so will confirm that tmw (or as soon as the FCA tell us)

[jon1965]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

Hi
This still does not answer the question as to is email an appropriate form of delivery for such documents as a NOA. Obviously the LPA never envisaged email but it has not been updated , in fact as far as I am aware the criteria are still either by hand or by some form of signed for post .
Maybe some clarity on this would be good because we know what a lovely person Andrew Hart is and he would never do anything that didn't fully comply with the law:rofl::rofl::rofl:


Btw , not that I am paranoid but I believe , like RLP, they read posts on forums

[Amethyst]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

I believe Notice of Assignment is valid via email if that is the method of contact usually used between parties.

On your WageDay advance issue did you ever get the the bottom of the legality of the assignment?

Oh, and of course they read posts on forums about themselves, be nuts not to.

[jon1965]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

No on my WDA issue that was an answer they always managed to overlook. As it was WDA took the account back from MMF after getting the CSA (or was it BCCA I can't remember) involved. Not heard from them since

[jon1965]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

Oh when I said reading posts I believe they have used the contents to try to intimidate debtors (how I hate that word)

[Misbegotten]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

Hello everyone I received two more emails today regarding this matter and WWPL advised they received an email from HL purporting to be from WWPL's solicitor - Hilton law but HL is not acting for WWPL .

The email is long along the lines of the emails previously rec'd from WWPL with a caveat that although HL is not instructed by WWPL it has no objection to payment being made to WWPL. It was not signed off by HL but by Micro Loan. Whilst I have the money ready to pay I am slightly dubious at the moment and will await further clarification tmrw.

[Amethyst]

Re: Micro Lend Uk - Credit Licence Suspended - Wage Payment and Payday Loans Limit

Wage payment and Payday Loans Limited

633083

IP Provisionally Issued

2 Holders Hill Gardens LONDON Hendon NW4 1NP

2 Holders Hill Gardens London London NW4 1NP

0208815119

andrew hart andrew@paydayoverdraft.com