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    • blueberry5
    • By blueberry5 18th Jun 17, 11:32 AM
    • 22Posts
    • 0Thanks
    blueberry5
    Payday Loan
    • #1
    • 18th Jun 17, 11:32 AM
    Payday Loan 18th Jun 17 at 11:32 AM
    I was wondering if anyone could tell me where I stand please?

    In 2013 I took out a payday loan, now controlled by Kapama Ltd. The loan amount was £200. I had several other payday loans at that point as I was awaiting benefits for mental health reasons and they took months to come through. I was even using a food bank at this time. When I applied I put the payment date in wrong by mistake. I didn't notice until after they had paid me the money. When I tried to change the date, they wanted the initial money back plus £35 on top to change the date. I didn't have this. So I defaulted. This within 2 months brought the debt up to £860 where it has remained.

    Do I have any rights to be able to get this amount down to closer to the amount I borrowed or do I not have a leg to stand on? I was under a psychiatrist at this point too.

    Thank you
Page 1
    • sourcrates
    • By sourcrates 18th Jun 17, 7:09 PM
    • 11,973 Posts
    • 11,458 Thanks
    sourcrates
    • #2
    • 18th Jun 17, 7:09 PM
    • #2
    • 18th Jun 17, 7:09 PM
    Hi,

    Are you currently been chased for this debt, if so who by ?

    After 4 years I assume a debt collector has written to you ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • blueberry5
    • By blueberry5 18th Jun 17, 10:14 PM
    • 22 Posts
    • 0 Thanks
    blueberry5
    • #3
    • 18th Jun 17, 10:14 PM
    • #3
    • 18th Jun 17, 10:14 PM
    Yes. The original loan was Toothfairy finance but now it is Kapama Ltd. They never write to me though, only email me and previously phoning me endlessly (multiple times a day) I would like to clear the debt but £680 on top for a £200 loan seems a bit excessive, and I am still only on ESA so can't afford £860
    • BrassicWoman
    • By BrassicWoman 18th Jun 17, 11:18 PM
    • 1,305 Posts
    • 5,420 Thanks
    BrassicWoman
    • #4
    • 18th Jun 17, 11:18 PM
    • #4
    • 18th Jun 17, 11:18 PM
    Mental health would be very tough to apply unless you were actually sectioned at the time of the loan (in which case, probably could not have applied)

    Have you spoken to one of the debt charities?
    Downsized and mortgage free
    September 17 grocery challenge £64.28/£100
    • blueberry5
    • By blueberry5 19th Jun 17, 12:58 AM
    • 22 Posts
    • 0 Thanks
    blueberry5
    • #5
    • 19th Jun 17, 12:58 AM
    • #5
    • 19th Jun 17, 12:58 AM
    It wasn't so much my health, more the fact, that they gave a payday loan to someone on benefits and yet it is just to add 340%(ish) on top when they can't afford to pay
    • fwor
    • By fwor 19th Jun 17, 1:52 AM
    • 5,860 Posts
    • 3,918 Thanks
    fwor
    • #6
    • 19th Jun 17, 1:52 AM
    • #6
    • 19th Jun 17, 1:52 AM
    It seems that Toothfairy were under investigation by the FCA at roughly the time that your loan was taken out, and there was some concern about the fact that some of their charges were unfair and/or illegal.

    I would expect that one of the debt charities would know about this and be able to advise on the latest status. Unfortunately the FCA work was mainly looking at late payment charges after default - which may only partly cover your situation. And as I understand it they went into administration before the FCA report could be completed - so I'm not sure what that means for people in your situation.
    • blueberry5
    • By blueberry5 19th Jun 17, 10:07 AM
    • 22 Posts
    • 0 Thanks
    blueberry5
    • #7
    • 19th Jun 17, 10:07 AM
    • #7
    • 19th Jun 17, 10:07 AM
    Actually, I just googled it. It wasn't toothfairy finance it was mini credit which no longer exists. Sorry for the confusion
    • Clive Woody
    • By Clive Woody 19th Jun 17, 10:45 AM
    • 4,380 Posts
    • 5,000 Thanks
    Clive Woody
    • #8
    • 19th Jun 17, 10:45 AM
    • #8
    • 19th Jun 17, 10:45 AM
    Give one of the free debt charities a call and they can help you deal with this. Step Change is the charity I have heard of and should be able to help

    https://www.stepchange.org/Howwecanhelpyou.aspx
    Rugby Union - The Greatest Game
    • blueberry5
    • By blueberry5 19th Jun 17, 10:59 AM
    • 22 Posts
    • 0 Thanks
    blueberry5
    • #9
    • 19th Jun 17, 10:59 AM
    • #9
    • 19th Jun 17, 10:59 AM
    Give one of the free debt charities a call and they can help you deal with this. Step Change is the charity I have heard of and should be able to help
    Originally posted by Clive Woody
    But surely, they will just help me make an arrangement to pay the £860 back. I have just been through the historic transactions on my account and saw that on the 30th September 2013 I received £120.50 from Minicredit. They were closed down on the 1st April 2014 for illegal/unjust charges. How can it be just to charge someone £760 in charges for a £120 loan???
    • blueberry5
    • By blueberry5 19th Jun 17, 11:38 AM
    • 22 Posts
    • 0 Thanks
    blueberry5
    I just looked up how much that is, and that is 570% increase of fees and charges on a loan of £120.50. That is ridiculous. How can they enforce those kinds of charges???
    • IAmWales
    • By IAmWales 19th Jun 17, 12:03 PM
    • 1,259 Posts
    • 2,668 Thanks
    IAmWales
    I just looked up how much that is, and that is 570% increase of fees and charges on a loan of £120.50. That is ridiculous. How can they enforce those kinds of charges???
    Originally posted by blueberry5
    Your calculation is wrong. Compounding over four years it is approx 37%. The reason it appears so high is because you've ignored it for so long.

    How much can you afford to pay each month, have you made an offer to pay by instalments? They may ask you to complete a statement of income and outgoings to assess what you can afford.
    • blueberry5
    • By blueberry5 19th Jun 17, 1:17 PM
    • 22 Posts
    • 0 Thanks
    blueberry5
    Your calculation is wrong. Compounding over four years it is approx 37%. The reason it appears so high is because you've ignored it for so long.

    How much can you afford to pay each month, have you made an offer to pay by instalments? They may ask you to complete a statement of income and outgoings to assess what you can afford.
    Originally posted by IAmWales
    It's not because I ignored it so long. It was this amount within six months of me defaulting and hasn't gone up since. The company ceased to exist from April 2014
    • blueberry5
    • By blueberry5 19th Jun 17, 1:18 PM
    • 22 Posts
    • 0 Thanks
    blueberry5
    It was shut down by the FCA
    Last edited by blueberry5; 19-06-2017 at 1:19 PM. Reason: Used an I instead of a U
    • blueberry5
    • By blueberry5 19th Jun 17, 1:22 PM
    • 22 Posts
    • 0 Thanks
    blueberry5
    https://www.fca.org.uk/publication/requirement-notices/microcredit-vreq.pdf
    • IAmWales
    • By IAmWales 19th Jun 17, 1:50 PM
    • 1,259 Posts
    • 2,668 Thanks
    IAmWales
    It's not because I ignored it so long. It was this amount within six months of me defaulting and hasn't gone up since. The company ceased to exist from April 2014
    Originally posted by blueberry5
    Then you're very lucky that they've not added further costs.

    So have you contacted the creditor to discuss a payment arrangement? This is not going to go away by ignoring it.
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 19th Jun 17, 1:51 PM
    • 2,838 Posts
    • 1,484 Thanks
    keepcalmandstayoutofdebt
    What is you are wanting? Even today a payday lender is entitled to charge daily interest up to as long as they don't charge completely charge say double of the loan amount.

    I've had your problem more recently and found no one really wanted to know, quite shocked at 'the counsel' provided by these types of companies that I vowed never to use their service if I can help it. Not worth the stress. Especially in this case now these particular mentioned lenders have ceased to exist.

    Go for irresponsible lending, by all means make your complaint now against Kapama - again you can read all the success stories to high heaven but no body actually regulates what gets put out here on the net. You also have to have complained about something in the first 3 years you knew of a problem from what I make of it all.

    It wouldn't surprise me if this post gets deleted so hope it reaches you.
    Again as a recent payday borrower who's payday fell one month on the 31st rather then 30th - credit report marked and shall be for the next 6 years, charged daily interest for late payment. Her way of paying cancelled with no advice given on alternative way to pay. Her only saving grace was she paid the lender in full as soon as this situation came about so they couldn't issue a full on default, which I'm sure they would have, along with not charging her card at the time they stated.
    "If you are caught in a rainstorm, once you accept that you'll receive a soaking, the only thing left to do is enjoy the walk"
    • blueberry5
    • By blueberry5 19th Jun 17, 2:10 PM
    • 22 Posts
    • 0 Thanks
    blueberry5
    What is you are wanting? Even today a payday lender is entitled to charge daily interest up to as long as they don't charge completely charge say double of the loan amount.
    Originally posted by keepcalmandstayoutofdebt
    I don't have an issue with paying the loan or even twice the amount, but to pay £748 for a £120.50 loan is ridiculous and all because I had input the repayment date wrongly. Then the addition of charges of several hundreds, made it completely unaffordable.
    • sourcrates
    • By sourcrates 19th Jun 17, 3:02 PM
    • 11,973 Posts
    • 11,458 Thanks
    sourcrates
    Usually DCA`s will take settlement offers.

    You can still go down the complaints route, even if the original lender went out of business, you can escalate to the FOS as well, but it all takes time.

    My advice, try sending a CCA request first, there is a very good chance they wont be able to provide it, and that would make the debt unenforceable.

    Info and template letter here :

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx
    Last edited by sourcrates; 19-06-2017 at 4:03 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • AndyPix
    • By AndyPix 19th Jun 17, 3:27 PM
    • 2,698 Posts
    • 1,833 Thanks
    AndyPix
    more the fact, that they gave a payday loan to someone on benefits
    Originally posted by blueberry5




    Someone, on benefits, who no doubt convinced the company they could pay back the loan ?
    Running with scissors since 1978
    • takman
    • By takman 19th Jun 17, 5:14 PM
    • 2,628 Posts
    • 2,186 Thanks
    takman
    I don't have an issue with paying the loan or even twice the amount, but to pay £748 for a £120.50 loan is ridiculous and all because I had input the repayment date wrongly. Then the addition of charges of several hundreds, made it completely unaffordable.
    Originally posted by blueberry5
    You need to remember that your the one that agreed to such a high rate of interest and borrowed the £120.50 when you were on benefits. You then decided to not pay it back and ignore the debt for four years.
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