MR Lender Loan Advice

kylekd

Please be gentle as this is my first post.

I am trying to get some advice on a loan my brother took out about 6 days ago with mr lender.He borrowed £250 and i think the repayment was £335 or around that figure.After he agreed to the loan the dozy twonk lost his job and is now unemployed. He gave them his card details and bank details obviously so they are going to try and take the money on the date they agreed to. I have read through the agreement and there is a section on the right to cancellation:
3. Right of cancellation
If we accept your application, you will have 14 days from the date of our acceptance to cancel the Agreement. The date of acceptance will be the date you receive a copy of the Agreement. If you wish to cancel the Agreement, please write to us at the address overleaf or by email to :enquiries@mrlender.co.uk. If you cancel, you will have to repay any money lent to you. You must do this as soon as possible and in any event not later than 30 calendar days after giving us notice of your wish to cancel. We may charge you for the service provided. If you do not wish to cancel, you will be bound by the terms of the Agreement which will continue unless terminated.

What are his best options? What will happen if he cancels the agreement ? Can they still try and take the money if he cancels the agreement? In effect what does cancelling the agreement do as i see it says "in any event not later than 30 days"

Any help and advice would be really appreciated

Apples2

giving us notice of your wish to cancel. We may charge you for the service provided.

If it were that simple, nobody would be paying any interest on payday loans. Take a guess how much they are likely to charge you for cancelling...

They will try to take the money of course, it will bounce of course, it will incur a whole load of additional charges.
If there is money they will swoop in and take it all (this is the best option by the way).

To avoid it, he would have to opan a brand new bank account with a completely different bank and shift his money into. It won't stop the extra charges, but will leave him with money to live on.

Vikipollard

Has he already spent the £250? If not, he needs to pay it back now, not hold on to it for 30 days. If he pays it back, I'm assuming they will still take whatever their service charge is, but it surely shouldnt be the ridiculous £85 he agreed to when he took the loan.

What about his severance (sp?) payment from work? Could he not use that to repay the £250? Being shy of money will be a pain, but he'll benefit in the longer term.

Other than that, if he doesnt still have the money as Apples says, opening an account with a completely unrelated bank before they try to take the money is the only way to stop them taking the money ~ but that wont make the debt go away which he needs to agree a way to pay.

Cancelling his card wont stop them taking the money by the way if the account is still live.

kylekd

He has spent the money, so by cancelling the agreement they can still try to take the money from his account?Surely the agreement is the agreed part for them to take the money from the account?

iolanthe07

kylekd wrote: »

He has spent the money, so by cancelling the agreement they can still try to take the money from his account?Surely the agreement is the agreed part for them to take the money from the account?

If debt is owing and overdue, sub prime lenders will raid bank accounts ruthlessly. Just read some of many posts on here about this .

Apples2

kylekd wrote: »

He has spent the money, so by cancelling the agreement they can still try to take the money from his account?Surely the agreement is the agreed part for them to take the money from the account?

Im not sure I understand your position.

Are you thinking you can cancel the agreement within the 14 days, keep the money, not give anything back and wander off happy (and £250 up)?

Could you clarify what you are hoping to happen?

kylekd

Apples2 wrote: »

Im not sure I understand your position.

Are you thinking you can cancel the agreement within the 14 days, keep the money, not give anything back and wander off happy (and £250 up)?

Could you clarify what you are hoping to happen?

If he cancels the agreement obviously the money is still owing , he just wont beable to pay until he finds another job , he`s not refusing to pay the money back he just cant keep to the agreed date?

Apples2

Then he will incur many penalty charges. They will also raid his account cleaning it out if necessary to get their money back.

There is no way to simply avoid it.

KingElvis

LOL I love how people squander this money and then try and skulk out of it.....if there were even a hint of my job being at risk, the last thing I'd do is rush out and get a high interest loan and waste it on tat, nights out etc.

These companies are EXPERTS at getting their cash back so expect pain if you mess them around.

[Deleted User]

kylekd wrote: »

If he cancels the agreement obviously the money is still owing , he just wont beable to pay until he finds another job , he`s not refusing to pay the money back he just cant keep to the agreed date?

Could try asking for a repayment plan and account freeze on the basis of unemployment which may have to be proved - but I really wouldn't hold my breath more likely to be accusations from this type of lender for fraudulent activity if the loan has only very recently been taken out and spent so quick. Can you help him with the amount - just to get it paid up.

Sorry appreciate it is not what you want to hear and the only other option maybe to accept a roll on charge if that is available/allowed come repayment date, whilst sorting out benefits-looking for another job.

x

fozmcfc

Two real options.

1/ Best way out, is to get the money together, sell phones, laptops, cameras, dvds, cd etc...live on beans on toast for a month or two if neccessary. Possibly even some help from some family members on the understanding the money will be paid back.

2/ Failing that, then a completely new bank account and all monies transferred to it. Allow no money to go into the account that the payday lender has details of and make sure there is no overdraft facility either. They will try and try again and as soon as any money hits the account they will nab it.

Once they are unable to get the money, contact them, explain about the job loss and try to come to some sort of agreement to pay it back, but DO NOT give them the new bank details. Get it in writing the total amount now owed and how much the agreement each month is to pay back. There will be an initial unable to collect charge added no doubt.

If they won't come to an agreement, well they can't have money he hasn't got, but he can expect hassle after hassle for months, maybe even years on end and a trashed credit record for a minimum of 6 years.

To be honest all attempts need to be made to do option one, otherwise it is a ridiculous amount of hassle for a reletively small amount of money.