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Toothfairy Finance

edited 11 July 2010 at 11:55AM in Debt-Free Wannabe
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  • edited 12 July 2010 at 11:50PM
    DizzleUKDizzleUK Forumite
    569 posts
    edited 12 July 2010 at 11:50PM
    As I mentioned, if *I* were in this situation with this company I would WANT them to take me to court. Their horrendous charges and interest would be very difficult for them to explain in court.

    CCCS are one of the best companies out there.

    The BS spouted about CCCS cases being unsatisfactory to them and that most cases end up in court is total nonsense and just plain scare tactics.

    If you've made them a reasonable offer through a company like CCCS and they refuse it, this will only strenghten your case if it ever went to court (unlikely).

    Their main target is the student population who whilst intelligent, are not always the best with money, so they use these tactics to get as many to pay up through fear rather than legal enforcement.

    Stick to your guns and don't fret.

    Oh, and if you ever end up in court for any debt, it doesn't mean the bailiffs will be sent automatically. The judge tells you what you have to pay (if you lose) and you tell them how you intend to pay that amount and so long as you stick to it you'll be fine. Bailiffs only ever visit if you do not keep to the arrangement you agree to when the judgement is made.
    Remember this: nothing worth doing is easy.

  • coco1277_2coco1277_2 Forumite
    169 posts
    Hi Dizzle sorry to bother you again , I sent the letter you advised to send by email and even though in a previous email they accepted £50 month repayment this is now the email I have received from them , Is there any advice you can offer on this reply from them please as I am unsure what to do next .
    Thank you for your kind help



    Thank you for your email. We are pleased you wish to settle this amicably, which we also do.

    You need to appreciate that that we are not seeking to raise more funds from you but rather that we wish to settle as quickly as possible because that is the business of Toothfairy Finance, ‘SHORT TERM’ LOANS, repayable in 14 to 28 days.

    For your better understanding of your commitment, below are pertinent extracts of the terms and conditions double-digitally signed by you upon applying for the loan.

    1.You agree to pay us the Total Amount Payable on the Repayment Date. YOU are responsible for remembering to pay us on time. Although we endeavour to send reminders we are not obliged to do so.

    6. All sums owed under this Agreement shall become due and payable immediately upon us giving notice if:
    (a) any sum due is overdue by more than 14 days;
    (b) you have provided us with any false information when you entered into this Agreement; or
    (c) a statutory demand is served on you or any other steps are taken by you or any other person to make you bankrupt.

    Additional fees may be applied if we need to apply for a County Court Judgement or Warrant of Execution (from GBP45), engage with Solicitors (from GBP150), Debt Recovery Agents (from GBP200) or other agencies (GBP tbc) to recover your debt.

    12. We are registered at Companies House as CIM Technologies Limited trading as Toothfairy Finance. Our company number is 06144500. Our main business is consumer lending. We are regulated and authorised by the Office of Fair Trading (the "OFT") consumer credit license 615666

    Pertinent FAQs

    Q: When should I pay back the money and how much should I pay back?
    A: You have the choice of borrowing for either 14 or 28 days. Within that time, you should pay back the loan amount and cost.

    Q: What happens if I do not pay after 30 days?

    A: Not sure if you can pay back the loan, you should not apply. If you do not pay the loan within a specified time you will be charged for another loan period. If the payment still does not arrive, we will unfortunately have to send the debt to a debt collection agency which will incur additional charges.

    You will see from the above extracts that you have accepted the terms and conditions by double-digitally signing the application form, your following paragraph is factually incorrect:-

    “It has been suggested to me that the amount you are now requesting in such a short space of time is leaning towards extortion, and as I have not entered into a formal agreement to pay any amount other than the original £512 (the original loan plus the interest had I paid on time) this is the only amount I am willing to pay and will not be bullied, threatened or otherwise coerced into paying more than this.”

    We need to stress once more to you that Toothfairy Finance’s business is ‘short term’ loans and not ‘long term’. They therefore require re-payment according to their terms.

    You received your £300 loan on 29th April 2010 and this should have been repaid by 27th May 2010, according to the agreement, in the sum of £408. It was agreed on 3rd May that you could have the loan rolled over to 6 weeks, which meant that £462 was due to be paid on 10th June.

    You were reminded by email on 9th June that payment of £462 was due on the following day and if not paid, a further £54 was to be added to make it £516. We heard nothing from you and you were emailed again on 21st June to be informed that if not paid by 24th June, a further £54 was to be added and the file was to be taken on by Northern Debt Recovery which involved further costs of £350, resulting in a total sum of £920.

    Whilst pointing all this out to you, you can see that we are within our legal rights. The major point in question is that we are unable to accept payments of £50 per month because of the length of time it will take to have the money repaid and we will need to register defaults on your credit file if a satisfactory arrangement is not reached.

    The maximum period that we are able to consider is until the 30th September. We are prepared to freeze the outstanding sum at £732 split into 3 payments of £244. However, we will freeze the £516 on condition that it is totally paid by 31st July.
  • DizzleUKDizzleUK Forumite
    569 posts
    Well at least they have taken their time to spell out their terms for you.

    2 and a half months is not a reasonable amount of time to settle a non-priority debt by someone who is in financial difficulties. They are also dangling a carrot by keeping the debt to a "minimum" at £516 if you pay within 2 weeks!

    Keep the email. Reply to them with what I suggested earlier. Remind them that you are in financial difficulties (without going into sob stories) and that the timeframe they suggest is unreasonable given your circumstances. Reiterate that your offer is still open and at present you are unable to afford to increase said offer and that you are willing to settle the matter in court if need be as at least then you could apply to the court to pay any amount over a court approved- means tested period of time, which may be longer than they would like (how does £5 a month for 20 years sound? - DON'T put this bracketed bit in the email!).

    They *are" trying to negotiate with you, but their timescale is unreasonable.

    If they are still unwilling to budge on their next reply, it may be worth an appointment with your local CAB as I can't advise much beyond what I have already said.

    As I mentioned, personally I'd just say "fu*k you I'll see you in court" but that's me. I am not you and nor do I have to suffer any consequences that may befall you.
    Remember this: nothing worth doing is easy.

  • andymc29andymc29 Forumite
    462 posts
    I agree with Drizzle. It's time the government actually clamped down on these loan sharks. the whole point of pay-day loans is to lend people moneyover short terms when they have financial difficulties, so it's clearly obvious that in a lot of cases, teh applicant will not be able to repay and this is where things really brake down into damn right criminal behaviour. The fact that they can charge over £200 to pass a £300 loan onto a collection agency that's clearly part of the same company (and in the same building) is a total joke.
    These guys are only one step better than a Nigerian ebay scammer and I can't beleive they're allowed to operate in this country.

    Maybe you're best bet would be to simply pay them back the original amount agreed (borrow off a friend if you can), then say that they can claim the additional charges through a small claims court, which means they have to justify to the court why they need to charge so much.
    Bank Loans: [STRIKE]£25000[/STRIKE] £0- Barclay Card 14%: [STRIKE]£2500[/STRIKE] £0- Student Loan: [STRIKE]£12,500[/STRIKE] £0
    Current total [STRIKE]£40,000[/STRIKE] £0:j (100% PAID OFF)
  • coco1277_2coco1277_2 Forumite
    169 posts
    Thank you for all your help I have done all of what you advised above and dont know what else I can do now as this was there latest response , but thank you again for the advice given .

    You are quite right that we accepted £50 per month but it was on the basis of "You must appreciate that interest is charged at £9 per week per £100 borrowed, which with a loan of £300 means interest of £108 per month."

    This means that each month you will be paying £50 but you will be owing £58 more, due to interest.

    We also stated "Once you start making regular payments and hopefully increases your monthly amounts, we may well be in a position to offer a final figure of payment."

    We are trying to give you the opportunity to increase your monthly payments in order to come to a quick settlement.

    It is quite clear we will not accept £50 per month on an ONGOING BASIS and offer a settlement figure.

    We need settlement as soon as possible and you need to consider your options.
  • DizzleUKDizzleUK Forumite
    569 posts
    "I have considered my options and I therefore request that you refer the matter to the County Court."

    Nothing more, nothing less.
    Remember this: nothing worth doing is easy.

  • DizzleUKDizzleUK Forumite
    569 posts
    coco1277 wrote: »
    It is quite clear we will not accept £50 per month on an ONGOING BASIS and offer a settlement figure.

    We need settlement as soon as possible and you need to consider your options.

    This is your key to a successful defence in court. Any judge reading this will kick TF's backside back out the door.
    Remember this: nothing worth doing is easy.

  • coco1277_2coco1277_2 Forumite
    169 posts
    Hi been to CAB and they advised me to send this letter to them , I have also added (again ) some of the bits you advised Dizzle , see what they come back with now .

    Thank you for your recent communication , I am quite disappointed by your reply , As I have stated in previous emails peoples circumstances can rapidly change which mine have an advised you I am in financial difficulties and have not ignored you nor am I refusing to pay I have offered £50 per month on the original loan including the interest which would of took the balance to £516 , however I am refusing to pay the extortionate extra interest and fees when you are obviously part of Toothfairy Finance and are located in the same building as the address on your letter is the same as theres.
    I have been in contact with the OFT and they have advised me to remind you of the debt collection guidelines :
    f. pressurising debtors to pay in full, in unreasonably large instalments,
    or to increase payments when they are unable to do so
    2.9 Charges should not be levied unfairly
    d. applying unreasonable charges, for example, charges not based on actual costs
    g. failing to refer on to the creditor reasonable offers to pay by instalments
    e. applying charges which are disproportionate to the main debt
    and necessary costs
    I shall not be making any payment until we have come to an amicable payment arrangement to clear the debt, BEFORE I pay you any money at all, I would like confirmation of a final balance that needs to be repaid. I need this in writing (by email is fine) that the repayment agreement I am entering into what the amount is that should be repaid, what timescale we both expect it to conclude by and that the balance will not increase further so long as I stick to the arrangement .
    My original offer of £50 per month on the debt of £516 still remains open for your consideration.
  • My daughter has had some rather unpleasant dealings with Toothfairy and I wonder if with all their threats if they would ever resort to physical violence to get their money back?
  • I have just received the below email from TF, they have basically completley written off/ignored any offer I have been advised to make by CCCS before i have even made it. Not entirely sure what to do now. As you can see from the below, on a £100 loan that would only have been £136 had i paid on time, they have added charges so the total is now £558 despite TF not actually doing anything despite the odd stroppy email. I had told them previously that I would be sending them a letter explaining that CCCS were organising a debt management plan and a copy of my financial statement which they sent me, together with a £5 token payment, and also advising them to not hassle the residents of my previous address as I had not lived there for 2 and a half years.
    'We are in receipt of your email but we are disappointed in your approach to this problem.

    During the telephone conversation that you had, an attempt was made to give you a realistic and economic solution.

    The position now is that you received a £100 'SHORT TERM' loan on 13th May 2010 which was repayable within 14-28 days.

    For full understanding of your commitment, below are pertinent extracts of the terms and conditions double-digitally signed by you upon applying for the loan.

    1.You agree to pay us the Total Amount Payable on the Repayment Date. YOU are responsible for remembering to pay us on time. Although we endeavour to send reminders we are not obliged to do so.

    6. All sums owed under this Agreement shall become due and payable immediately upon us giving notice if:
    (a) any sum due is overdue by more than 14 days;
    (b) you have provided us with any false information when you entered into this Agreement; or
    (c) a statutory demand is served on you or any other steps are taken by you or any other person to make you bankrupt. Additional fees may be applied if we need to apply for a County Court Judgement or Warrant of Execution (from GBP45), engage with Solicitors (from GBP150), Debt Recovery Agents (from GBP200) or other agencies (GBP tbc) to recover your debt. 12.

    We are registered at Companies House as CIM Technologies Limited trading as Toothfairy Finance. Our company number is 06144500. Our main business is consumer lending. We are regulated and authorised by the Office of Fair Trading (the "OFT") consumer credit license 615666

    Pertinent FAQs from the Toothfairy website:-

    Q: When should I pay back the money and how much should I pay back?

    A: You have the choice of borrowing for either 14 or 28 days. Within that time, you should pay back the loan amount and cost.

    Q: What happens if I do not pay after 30 days?

    A: Not sure if you can pay back the loan, you should not apply. If you do not pay the loan within a specified time you will be charged for another loan period. If the payment still does not arrive, we will unfortunately have to send the debt to a debt collection agency which will incur additional charges.

    We need to stress that Toothfairy Finance’s business is ‘short term’ loans and not ‘long term’. They therefore require re-payment according to their terms. You received your £100 loan on 13th May 2010 and this should have been repaid by 27th May 2010, according to the agreement, in the sum of £118.

    As a result of the delay in payment, balance on your account is now £540 taking all charges and interest into account and also that no payment whatsoever has been made. On Thursday 22nd July a further £18 interest is to be added as the rate is £9 per week per £100 borrowed, bringing the total to £558.

    This sum will continue to accrue at the rate of £9 per week and therefore, £5 is far too low a figure for us to accept.

    We highly recommend that you come to a more substantial agreement with us to avoid these ever increasing charges and the inevitable legal action that we will be forced to take.
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