Need help with Payday Lender please.

[Gary1981]

I got a loan from Mr Lender last February for £350, and I couldn't afford to clear it off at the end of the month, so I rolled it over, paying £105. Same again, the month after, and then the month after that, so I've paid most of what I was loaned.


I lost my job not too long after and obviously couldn't afford to pay the rollover, so I missed the payments. This went on for months. Things aren't so tight now and I've been trying to sort out the financial mess I've found myself in, trying to tidy up my credit etc.


It turns out Mr Lender passed my details onto a company called Motor Mile Finance and they want me to pay £1369.53...on a £350 loan, most of which I've paid back anyways.

I conversed with Motor Mile Finance last week and sent them screenshots of my bank statements, showing the payments leaving my account and me paying back most of the loan. The guy said he'd talk to Mr Lender about it and get back to me. They just came back with the same. They want me to pay £1369.53


What's the situation with the OFT cracking down on these people? No way can I afford to pay that, and even if I could, I wouldn't want to, because it's taking the absolute piss.


What are my options?

[Never-In-Doubt]

Re: Need help with Payday Lender please.

Hi mate

As I said on Facebook to you it's probably best to ignore them. They won't try and enforce, however see what others think. SaltnVinegar is your best bet. He kicks PDL arse as course of habit.

[Gary1981]

Re: Need help with Payday Lender please.

How long will it take to drop off my credit if I ignore it?

[Never-In-Doubt]

Re: Need help with Payday Lender please.

It'll stay 6 years now no matter (assuming they defaulted you)...

So pay or don't pay - the default will stay. If however its only showing a delinquent marker, ie a status [6] say; then you could settle the debt to get it put back to a green [0].

Make sense?

[Gary1981]

Re: Need help with Payday Lender please.

Perfect sense. Thanks, mate.

[SaltnVinegar]

Re: Need help with Payday Lender please.

Hi Gary

Didn't want to read and run so just a quick post and will pop back this evening.

Motormile Finance are a bottom feeder DCA who seem to specialize in purchasing payday loan debt. They have 'relationships' with Quickquid, Wageday Advance, Mr Lender to name a few.

For now if they call again tell them that you will no longer discuss this matter on the telephone and you require all communication in writing.

Discuss nothing further with MM Finance - they have been subject to OFT scrutiny in the past, and are the subject of many complaints in relation to their 'collection' tactics.

In short though, it is unlikely that they will take you to court for a £1300 balance on a £300 loan. It is similar to a court case where Provident Finance lost on the basis that the interest and charges were unfair and unreasonable and had the balance slashed. There is also the issue regarding irresponsible lending which is another conversation!

Back later

SnV

[Gary1981]

Re: Need help with Payday Lender please.

Did you have any other info for me, pal?

[Never-In-Doubt]

Re: Need help with Payday Lender please.

for the minute mate, just sit tight - it'll be fine. No rush.... SnV will post back when he's online

[SaltnVinegar]

Re: Need help with Payday Lender please.

Hi Gary

Sorry didn't post last night, had some issues with work

So what would be a good start would be a history of the account. You took out the loan in Feb 2012 and then made some rollover payments.......

1) How many payments did you make and when?

2) Have you had a breakdown of the charges to explain how the alleged debt has increased to £1300?

3) When you signed the credit agreement (if you did), did you receive a copy of the agreement?

4) Have you received a default notice?

5) Have you received a notice of assignment that the debt has been transferred to Motormile Finance?

6) How was the loan repaid? Do you pay by debit card/direct debit?

If the answer to 6) is yes have you done anything to protect your money from continuous payment authority like changing bank accounts?

Depending on the answers to above (which I think I could already guess as to what they will be!) I think we can kick this rabble into touch.

Best
SnV

[Gary1981]

Re: Need help with Payday Lender please.

Sorry for the late reply, I just saw this. I've been up to my eyes in it the last couple of days. I'm not sure about some of the details to be honest, because I was working 70 hour weeks when I took out the loan and I was exhausted, so some details are patchy.

1) How many payments did you make and when? I made 3 payments. First one the 27th of February, then the 26th of March, then the 26th of April.

2) Have you had a breakdown of the charges to explain how the alleged debt has increased to £1300? I've received absolutely no explanation whatsoever as to how they justify this sum.

3) When you signed the credit agreement (if you did), did you receive a copy of the agreement? I don't believe so. It was all set up over the phone as I remember.

4) Have you received a default notice? I believe so.

5) Have you received a notice of assignment that the debt has been transferred to Motormile Finance? No, they just started sending me letters, emails and calling me.

6) How was the loan repaid? Do you pay by debit card/direct debit? I paid by direct debt.

If the answer to 6) is yes have you done anything to protect your money from continuous payment authority like changing bank accounts? I lost my bank card a while ago, so the card they'd have used won't be active anymore.

[SaltnVinegar]

Re: Need help with Payday Lender please.

Hi Gary

Ok, well as you've not had any breakdown of charges, nor if you can remember signing a credit agreement, I'd consider sending MMF a CCA request.

Have a look on the templates section here on where to start:

http://all-about-debt.co.uk/template...y/section1.php

This will put them on the back foot for now. Remember - do not speak to them on the telephone - everything in writing from now on.

I'd be tempted, if possible, to consider changing your bank to one that is not related to your current bank, or any of your other creditors.

If you do change banks, then do not take up the DD swapping service!

The danger you have is the payday loan company abusing the continuous payment authority they may have for your card, or to continually try to take the money via DD.

Regards the default notice - you believe so or know so? Important point!

It should have been sent to you in the post. If you still have it have you also got the envelope it came in?

Best
SnV

[Gary1981]

Re: Need help with Payday Lender please.

I just looked and a default has been served. I don't remember getting anything in writing though.

Lender
Mr Lender



Account Type
Advance Against Income



Account Opened 8 February 2012



Last Updated
1 September 2012


Account Number
******7093



Account Terms
£350 Monthly for 1m


Payments Started
Not Recorded


Opening Balance
£350


Lump Payment
Not Recorded


Current Balance
£350


Credit Limit
Not Reported


Lifetime Change
£0



Monthly Change
£0


Worst Status
D





A notice of default has been served - this usually arises from non-payment.


Default Balance
£400



Default Date
8 February 2012


Default Satisfied Date
Not Satisfied



Account Holder Status
Normal


Account Status
Default


Reported Until
February 2018


Lender Contacts
Mr Lender
Suite 105W
Sterling House
Langston Road
Loughton
Essex
IG10 3TS
Visit website
0208 502 1288
Email via website

Who Can See This?
Limited to around 200 credit providers who share your account data to enable them to make more responsible decisions when lending.

The Lender's View™
You will experience significant difficulty obtaining any further credit whilst this defaulted account remains on your credit report. It is therefore essential that you maintain all of your other existing accounts on time so that when the default drops off you will have built up a sustained period of well-maintained accounts, which should then be reflected in your credit score.

[SaltnVinegar]

Re: Need help with Payday Lender please.

I just looked and a default has been served. I don't remember getting anything in writing though.

Hi Gary

A default registered with a credit reference agency (CRA) is a different thing to a default notice required under the Consumer Credit Act:

Consumer Credit Act 1974

Chances are, like many payday lenders, they won't have issued you with one, but you need to be sure. It would/should have been sent to you in the post.

However if they do not have a signed credit agreement, then they are on dodgy territory to be honest.

First thing to do is get the CCA request off I mentioned earlier. If they have no CCA, they have no chance. The CCA should also mention then the charges/interest they can apply to the account after default. This would be your reason to see the CCA you would argue.

Best
SnV