MCO Capital loan

grahamqat

Hi Geomacl, I used :

[EMAIL="enquiries@oft.gsi.gov.uk"]enquiries@oft.gsi.gov.uk[/EMAIL]

Which I got from their web-site. Suppose it can't do any harm for more people to e-mail, but my expectancy is low. Remember to note down all the time this takes for your compensation claim!

GomerPyle

As the debt collection agency is no longer sending out claims, it's possible then that there are many more wrongly recorded adverse credit agency reports submitted by MCO Capital that victims will never know about.

The obvious solution is for the credit agency involved to expunge all reports submitted by MCO Capital. The current advice appears more designed for the benefit of MCO Capital whose credibilty is zero and the credit report company.

Personally if I were refused credit due to this - I'd suggest they use another agency for credit reports.and go to another retailer.

It's the very essence of equitable law that the victim isn't responsible for clearing up other people's messes.

geomacl

Thanks grahamqat - my email to OFT has been sent. Now for the waiting game and then the dismissive email response.;)

I even got an acknowledgement within half an hour - usual guff about what we important OFT people do and don't do but promising to get back to me within 10 days - YAWN!!!

grahamqat

So it's been more than 10 days and they haven't got back to me. I suppose if the Home Office isn't interested, why should any other Government Qango be? I'll contact the MCO web-site "modifiers" shortly and see if they have anything to cheer me up!

GomerPyle

As Robie said, there's a whole lot more to this that we've been told.

Considering that other UK payday loan companies have a very simple method to avoid fraud, the pertinent question to ask is why didn't they do the same ?

The other matter is the absolutely ludicrous level of borrowing they accepted without question.

I presume that if victims hadn't complained they'd have carried on regardless.

grahamqat

Yes but Gomer, they are carrying on as we speak. There is an income stream here, still working. Not sure what but the moment it stops working for them, we won't need to try close their web-sites, they'll do it themselves. I'm tempted to apply for a loan myself. Another name/address and a new account, but in the spirit of research? It's 1.75 offsettable against coorp tax!

GomerPyle

An interesting and elightening article here

http://www.loanscalculators.com/

As soon as the fraud became apparent in August, MCO Capital took steps to review its procedures and is fully co-operating with the police and trading standards.”
The firm sought external help to try to check the identity of customers, using a system offered by the credit reference agency Experian.
Experian confirmed that one of its products had been used, saying: “MCO used one part of Experian’s verification service that cross-references an applicant’s name with their address to provide an indication as to whether they live at that address.
“In terms of other measures the company uses, MCO is best placed to comment on its processes.”

My previous comment is even more relevant. Experian ought to expunge MCO Capital's faulty entries on people's records without requiring action from victims. MCO Capital are clearly clueless and have been taken seriously by institutions who should have known better.

The website can not generate anything any longer grahamqat. Their process remains faulty and they've lost credibility with the companies they require to function The website's continued existence, in it's unaltered form, merely advertises what happened, but perhaps MCO Capital have lost interest (excuse the pun).

Prudence2_2

GomerPyle wrote: »

Considering that other UK payday loan companies have a very simple method to avoid fraud, the pertinent question to ask is why didn't they do the same ?

Thanks for your input Gomer - I have been a victim of this fraud and I'd be interested to know what it is that the other companies do that MCO Capital failed to do?

Prudence

Eaglemar

Finally got hold of my credit report from Experian which unsurprisingly has the 2 entries from MCO on it. What intrigued me however was the explanations at the beginning of the report that said all entries would be from companies who had sought consent from myself to check my report. Well of course I hadnt given MCO consent and the fact that their website requires very little information to apply for the loan, suggests there are serious failings between CRA's and loans companies like MCO.
The other worrying thing is my DoB is all over the flaming report in pretty much every entry on it!
I am wondering in this ongoing process whether authorities should look into the practices of these CRA's as well, considering how much data they hold on us.

GomerPyle

I'll answerPrudence2's question later but I have to agree with Eaglemar and I'd add that the debt recovery industry is not without fault either.

As for CRA's it's a glorious industry where you can make money out of holding unconfirmed and potentially libellous and damaging information on people with little legal redress for those who are harmed when this information is disseminated. That's why I resent the police acting as their agents in this matter. Their advice isn't faulty, it's just not legally specific.

Allowing MCO Capital access to people's credit records at all was a mistake, but to allow them to make entries on them defies belief. It is alleged in the link I gave earlier that Experian also provided a service to verify names and addresses, which clearly didn't solve MCO Capital's problem at all. I also speculate whether MCO Capital had credit risk insurance, something that might be possible, even for this high risk lending, if they used a debt recovery agent and operated some verification system.

In such a situation they could virtually guarantee profit from every phone call. The only problem being to generate phone calls.

To answer Prudence2 the simple solution is to take a client's debit card number. Of course, there are several problems with that. Perhaps many people who want a payday loan don't have a card and it would be very risky to give card details to an outfit like this. You can imagine what happens after you hand over such information to a loan shark. However, it virtually nails down the verification problem.

MCO Capital have abused the system recklessly for the sole purpose of generating profit, and made a huge loss which doesn't lessen their fault. The attitude of CRA's and debt recovery agents appears to be that they'll accept business from anyone. If that's the case then MCO Capital's fate is sealed.

In spite of my background I have been a very stern critic of the activities of banks which led to the crash. This is not of the same magnitude but has close similarities with the trading of worthless loans within the financial sector.

http://www.oft.gov.uk/news-and-updates/press/2010/116-10

This doesn't relate to CMO Capital but it's interesting to note nonetheless

The OFT has taken action to address unsatisfactory business practices of payday lender