Validity of my Payday UK Loan

CallyJo24

Hi All,
I would really like to know your interpretation of my contract.
The email below is dated 31 Oct 2010 stated that I was now legally bound by the terms of loan agreement number……..
My Fixed-Sum Loan Agreement was for a period of 25 days. So, my question is “ 25 days from the 31 Oct 2010 is the 24 November 2010. Legally that should have been my repayment date shouldn’t it ? Not the 26 November 2010.
Does this make my contract invalid because they collected the payment for the loan on a date where there was no ‘Forceable Contract” in place ?

> From: [EMAIL="loan.agreements@memcapital.com"]loan.agreements@memcapital.com[/EMAIL]
> To:
> Date: Sun, 31 Oct 2010 00:45:41 +0100
> Subject: Thank you for your Electronic Signature
>
> Dear >
> Many thanks for your signature. You are now legally bound by the terms of loan agreement number

---

and your loan is pending deposit. You will receive another email from us when the loan transfer is actioned.


Fixed-Sum Loan Agreement regulated by the Consumer Credit Act 1974



This Agreement ( ) is made between: - Us, MEM Consumer Finance Limited of Witan Gate House, 500-600 Witan Gate West, Milton Keynes, Buckinghamshire MK9 1SH ("the Creditor") and You, ("the Debtor")



Name

Address:
KEY FINANCIAL INFORMATION Amount of Credit: £450.00
Duration of Agreement: 25 days



Total Amount Payable: £ 562.50
APR: 2505.30% to be repaid in a single payment on 26/11/2010 (the "Payment Date")

OTHER FINANCIAL INFORMATION
Total Charge For Credit: £ 112.50(comprising interest of £ 112.50 )


Interest is charged at the rate of 365.25% per annum, pre-computed and applied to the balance outstanding on the date of this Agreement.

Peelerfart

Oh dear,and it's not even Wednesday.

I'm sure someone will be along with a well informed opinion very soon.

BackOnTrack

No it doesn't you agreed to the terms of the contract and a typo doesn't invalidate it. If they tried to reclaim the money on the 24th instead of the 26th you would have a case to have any penalties removed but it doesn't void the contract, if they tried to charge you 27 days interest instead of 25 you would perhaps have a valid claim to have 2 days interest remove but it doesn't void the contract.

I assume you have been unable to pay back the loan so I would advise you close your bank account, open a new one and have any monies paid into that account and contact a company such as CCCS to help you sort things out with the pay day loan company.

iolanthe07

Nice try. I am afraid clerical errors do not normally invalidate loan agreements - otherwise all the banks would be bust because they make them all the time. Any arbitrator would conclude that you are liable to pay back what you borrowed plus whatever interest you signed up to.

Enfieldian

Clutching at straws a bit, eh newbie?

I can put it in simple terms for you if you like:

"You borrow, you pay back"

Hax

To me, 25 days from 31st October brings you to 25th November. Otherwise, by the OPs maths, 1 day would leave you still on the 31st and therefore, borrowing money for 1 day would mean it would have to be paid back on the same day.

So, the repayment was, at best 1 day later than expected. The 31st was a Sunday which could account for the extra day - maybe allowance was made for the money to not hit the OPs bank account until the 1st November - the next banking day.

OP - when did you actually receive the money? The 25 days will relate to the amount of time you have borrowed the money over - not the time lapsed since you agreed to borrowing it.

opinions4u

CallyJo24 wrote: »

My Fixed-Sum Loan Agreement was for a period of 25 days. So, my question is “ 25 days from the 31 Oct 2010 is the 24 November 2010. Legally that should have been my repayment date shouldn’t it ? Not the 26 November 2010.

And perhaps the debit card transaction took a couple of days to get through to your account, like it normally does when you go shopping. Or perhaps it's a clerical error. Or perhaps, as suggested above, 31st October being a weekend impacted the deal.

Does this make my contract invalid because they collected the payment for the loan on a date where there was no ‘Forceable Contract” in place ?

No. To be honest, your question is sickening. You agreed to borrow the money and you agreed to pay it back. To look for some slimy excuse to wriggle out of the commitment is, frankly, wrong. You should look yourself in the mirror this morning and ask what sort of human being you want to be. An honest one or a dishonest one. After all, if the agreement was a problem you should have flagged it immediately and returned the money straight away.

Total Amount Payable: £ 562.50
APR: 2505.30% to be repaid in a single payment on 26/11/2010 (the "Payment Date")

In black and white. The date repayable.

OTHER FINANCIAL INFORMATION
Total Charge For Credit: £ 112.50 comprising interest of £ 112.50

I cannot be bothered doing the maths. But my guess is that it's 25 days interest charged. The collection date then becomes irrelevant.

If they've collected late, perhaps you should send them £4.50 in additional interest.

There is a more important issue. Why are you borrowing money at such a stupid rate of interest? What's wrong with your budgeting? What other debts do you have?

I'd suggest visiting the Debt-Free Wannabe part of the forum to get ideas on how to reduce your outgoing instead of looking pathetic for trying to wriggle out of an agreement that you willingly signed up for.

~Brock~

opinions4u wrote: »

I'd suggest visiting the Debt-Free Wannabe part of the forum to get ideas on how to reduce your outgoing instead of looking pathetic for trying to wriggle out of an agreement that you willingly signed up for.

The OP has missed the bandwagon by over a year.

I remember when there was a sizeable herd on here bowing at the feet of self appointed debt avoidance 'experts' such as Never-in-Doubt. There was certainly no shame back then - more like a rather sickening arrogance about the whole subject.

Thank god times have changed for the better and all the old scams and dodges have been exposed for exactly what they are and always were.

CallyJo24

No. To be honest, your question is sickening. You agreed to borrow the money and you agreed to pay it back. To look for some slimy excuse to wriggle out of the commitment is, frankly, wrong. You should look yourself in the mirror this morning and ask what sort of human being you want to be. An honest one or a dishonest one. After all, if the agreement was a problem you should have flagged it immediately and returned the money straight away.

Tad Harsh isn't it Opinions4uku ?

I took the loan out as a relation was very ill and the definate possibility that I may have had to travel to the other side of the world at a drop of a hat. The agreement was that I paid the loan on my next pay day (last friday of the month). Because of the situation I didn't pay as much attention to the agreement as I should have.

The email that had the agreement attached was sent on the 30th October and it stated the I was now bound by the T&C's and the loan was for a duration of 25 days (24/11/2010 ? )

On the 25th Nov I decided to defer paying the full amount until my next payday ( last friday of the month ).

On the 17 Dec Payday UK tried to withdraw funds then sent default letters, again on the 24th December Payday UK tried to withdraw funds then sent default letters ( I got paid on the 31st Dec ) There was no attempt by PaydayUK to withdraw funds on that date. Payday UK started getting rather 'nasty' and basically said I should have paid them back on the 24th ( but the repayment option I chose was the last friday of the month). So, since then I have been trying to sort it out as the money was in the bank on the 31st Dec... as per the contractual terms I had chosen at sign up.

On the 14 Jan 2011 Payday Uk accessed my bank account without notification and made two withdrawals £281.25 and £70.31, which basically left me OD.

Im not an expert so I was just asking a question because I do not think PayDay Uk have followed correct procedures

So...with regards to .... You should look yourself in the mirror this morning and ask what sort of human being you want to be <- Mmmmmm.... One that would ask what the reasons are for asking that question rather than assuming immediately that I'm
looking for a slimy excuse




" Small minded people should use small font sizes"

themull1

If you chose to defer the payments, they can take charges out of your acco!!!!.

Hax

Surely as 14th Jan is after your December pay day, you had the repayment hanging around waiting to be collected?