Mini credit Loan Sharks

CHR15

Good luck, you are going about things the right way.

They will never acceot you for another loan in the future but I hope you find a way never to go to this type of lender again.

wholesome

its time the Government did something to get rid of these loan sharks

CHR15

wholesome wrote: »

its time the Government did something to get rid of these loan sharks

Thats a much bigger issue.
At least they are a money lender as opposed to a broker.

If they were strictly regulated, interest rates capped at a sensible amount and charges strictly limited, they would simply collapse as a business.
Far too many of their customes fail to repay.

the knock on would lead to all the other high risk lenders collapsing so where would people then go for money?

The demand will always be there so it would move more toward doorstep lenders. Would you really want some thug standing in the doorway demanding money every night?

If they are used correctly (as you have done twice), they do provide a suitable service but as is mentioned over and over, they sould only be used as a last resort, and ONLY if you are 100% certain you can repay.

If your question was posed toward brokers who charge fees in advance.. then I am right with you.

wholesome

BELOW FINA A RESPONSE FROM MINICREDIT AND MY RESPONSE TO THEIR EMAIL RECEIVED TODAY,LET ME KNOW WHAT YOU THINK
The Following Final Response is being sent to You according to the Formal Complaints Proceedure described in the Pre-Contract.

The following information has been taken from the Loan Agreement:

KEY INFORMATION
If you break this Agreement, we will charge you if we unsuccessfully attempt to obtain repayment on the due date for repayment. A fee of £25 will be charged on the day that your missed payment was due. If we unsuccessfully attempt to obtain repayment on the due date, we will attempt to obtain repayment a second time 2 days later, and if we unsuccessfully attempt to obtain repayment on this second occasion we will charge you a further amount of £55. If we unsuccessfully attempt to obtain repayment we may charge up to £5.

Interest on any sum in arrears will be charged at the contractual rate, both before and after judgment, until payment. Also, you must pay us all other reasonable costs and expenses we incur (including any legal costs on a full indemnity basis) in tracing you, or enforcing, or attempting to enforce, our rights under this Agreement.

Repayment, Default and Recovery
8. You agree to make all payments to us under this Agreement at the proper time. We will collect payments by debiting your bank account using the debit card details you have registered with us up to three times per day. You authorise us to debit your bank account to collect payments due under this Agreement. If we are unsuccessful in collecting payment, we may try to debit your bank account again at a later stage until we have successfully collected payment. If you have provided us with details of a second debit card and we are unsuccessful in collecting payment from the first debit card, you authorise us to seek payment via the second debit card in the same way as you authorise us to seek payment via the first debit card. You must give us new valid debit card details when you cancel, lose or your debit card(s) registered with us become(s) invalid when you have unpaid loan with us.

The current outstanding balance is £1635 today on the 7th of September 2011. The partly payments we received in total for the amount of £90 on the 20th and 21st of June 2011 decreased the total outstanding balance £1725 which consists of the following:

1. Loan principal £600
2. Interest in total £660 (1% of the Principal per day)
3. Overdue penalty £25 (was added on the 1st day overdue)
4. Overdue penalty £55 (was added on the 3rd day overdue)
5. Debt Recovery fee £100 (was added on the 30th day overdue)
6. Debit Attempt fees in total £285 (every unsuccessfull attempt to recieve the repayment costs £3)

When the loan is not repaid on the due date, the Customer receives TEXT messages and voicemails to the registered mobile phone number, e-mail notifications to the registered e-mail address and letters to the registered postal address. Our indoor Debt Recovery department is manually dealing with the debt and the fee of £100 was added on the 30th day overdue to cover the cost of the debt collection.

As the doorstep collector has not yet had a visit to Your address the charge for the visit has not been added.

Microcredit Ltd considers that all the overdue charges and interest have been rightfully added to the outstanding balance according to the Loan Agreement You accepted. We are willing to consider the possiblity of a settlement figure if it is reasonable and paid in full latest by the 30th of September 2011 to avoid the beginning of further action.


Kind regards
Minicredit Claims Department

Dear MiniCreditThankyou for your email and statement as below. I am prepared to pay £800 in full settlement of this account by 30th September or before, this includes the amount borrowed plus £200 in interest. I do not agree which your charges as I have three letters in front of me charging £100 to my account for non existent door step collections and it is against FOS regulations to charge for door step collections. I have two course of action open to me, obviously due to the serious nature of my mental health I would like to resolve this matter as soon as possible. If you are not prepared to accept this payment of £800 which my family will lend me which covers the initial loan plus over one months interest then I have two course of action open to me, I can let the Financial Ombudsman deal with this and make a ruling on how much I need to pay back, or I can issue form N1 to you so the matter can be brought to a County Court Judge in Mansfield to allow him or her to make a judgement on how much I owe you and let him/her make a judgement on what my monthly repayments will be, at this point the court will freeze the interest. Please note if it goes to court you are laible to get very little due to my financial position and of course . I hope as mature adults we can resolve this matter quickly. Please contact me by letter of email as mental health problems make dealing with people over the phone a serious problem and one of which I have little or no control.

I look forward to hearing from you

wholesome

when they replied to me yesterday they included details of another person at the bottom of theri email, i realised this after replying and forwarding the email om, you will not beleive the cheek of their reply
To whom it may concern,

Thank You for the information and helping us to locate an error made by the e-mail service provider. This will be seriously looked into.

We apologize for the inconviniences regarding the attached e-mail. As the e-mail did not have more information regarding the personal details of the other Customer regarding the address, date of birth and etc. It is not understandable that You as a third party sent the e-mail over to a debt management agency, Financial-Ombudsman and to media, it is also possible to have You accused of providing the details of the e-mail You received by a system error against the Data Protection Act.