MoneyShop early repayment block shock!

Rob_Quest

Saturday 12th May I did what many people dowhen they have temporary finical difficulties. A trip to one of the many highstreet lenders that offer payday loans, in my case “The MoneyShop”

My situation slightly different to most, in that I hadrecently one a PPI claim, with a substantial pay-out, but was informed it couldtake up to 28 days to receive the money.

In that knowledge and after patiently waiting in the foyerof the shop for about 30 minutes I was seen to and may loan of £300 arranged onthe premise that they will take the balance of £375 at the end of the month. Ieven shared my good news on the PPI with the manager who arranged the loan, sothey knew I won’t have a problem repaying the full balance. We’ll all that waseasy.

Well for most people, they would have their pay-packet atthe end of the month and the loan would be paid off or extended, and they makea tidy sum of you each month. But what happens, if you actually read the smallprint of the contract and act on it? The small print that’s there by law, toprotect you the consumer? And that’s where things go bad, really bad for me.

That PPI pay-out I mentioned paid out into my bank accountthe following Saturday, it was 3.30pm when I realized, and I thought wow, letspay of that payday loan early and save some money on the interest, and that’swhere my problems begin. Its Monday the 21st may as I write this andI have still not despite my best efforts been able to settle the loan early andend the agreement.

I returned to the MoneyShop, Commercial Rd, Swindon thatvery day Saturday 19th May at 4:10pm with the very intention ofpaying of my loan early now I had my PPI pay-out (given it’s the most expensivetype of borrowing it was a priority).

“I would like to settle my payday loan early”, I informedthe cashier giving her my name and account number. She cheerfully informed me,no problem its £375. At which point my heart sunk, this is not going to be soeasy I thought. I explained I don’t have to pay the full £75, as if I settledearly I only had to pay the daily interest of £2 something as per my contract.

I knew this as I had done it before in the past, but t seemsthis was going to count against me.

She enquired as to why I was settling early, and I explainedabout the PPI pay-out coming through early, noting to her that the manager newabout that as I mentioned it when I took out the loan.

The cashier got the manager and I explained I want to settleearly, he advised abruptly that early repayment was still the full amount, so Ithen referred to the print in my contract that says I can settle within 14 daysand only pay the daily interest.

“ohh you mean you want to withdraw from your contractearly”, he says to me, I said “yes”, well that’s not what you said initiallyand that’s why its £375. “OK, so you’re trying to trip me up on theterminology, just because I did not use the words you wanted me to use, it saysin my contract I can settle early if I want and that’s what I want to do”.

So because I never used the correct terminology of thecontract they deemed settlement in full as opposed to early withdrawal, I wasnot going to have that and made my case, I know my rights and what I can dounder the contract.

The cashier makes the call to head office now, and proceedsto get a settlement figure for me, but comes back and informs me, I have toinform them in writing.

“No actually I don’t!” taking the contract from my pocketand referring to the specific clause.

Right of Withdrawal


You have the right towithdraw from this agreement at any time before the end of 14 days beginningwith the day after the day on which this agreement is made. You must notify usof your right to withdraw either orally (by coming into one of our stores ortelephoning us on 0844 8226133 in writing to us at The MoneyShop Head Office,Castlebridge Office, Kirtley Drive, Castle Marina, Nottingham, NG7 1LD or byemail at moneyshopinfo@dfguk.com . Once you have notified us that you wish towithdraw you must repay the amount of credit without delay and in any eventwithin 30 days after you have given us notice. You must pay us interest duringthis period (wich amounts to £2.4641 per day)

She makes a second call to head office, and eventuallyreturns with a settlement figure of about £317. Excellent I hand over my debitcard to pay and ask to settle the account.

I am advised that “the computer won’t allow me to take thecard and you have to settle in cash”, at which point I ask for the manager tobe involved. The money is in my account, all they ned to do is take thepayment.

More phone calls backwards and forwards and the manageradvised me that he can see from my account history that I have settled earlybefore. “Yes, that’s why I know I can settle by card, I did it before”.

Yes that’s liked, last time I settled early they took a cardpayment no problem!

During the conversation of trying to get this sorted themanager actually said to me “if everyone was able to settle early like this wewould be out of business”. I could not believe my ears, this made me moredetermined to just get this sorted, an end to it and out of there.

Furthermore I was informed by the manager, “We won’t beextending you any more credit after this”.

Translation “we can’t make enough money out of you becauseyou read the contract, and have exercised the rights to termination that has tobe in there by law”.

A lot of phone calls and me getting quite angry, but notabusive I just want to pay this off today, I can’t get the full amount of cashdue to a £250 limit on withdrawals and I can’t make two withdrawals and paySunday because they are closed on Sunday. I can’t come in on a weekday with thecash because I work 20 miles away. The only way I can settle is by card. Surelythat’s what card payments are for (we don’t all carry that sort of cash), andnote they take your card details during the loan application and that’s whatthey use to get the money back. Yet when you want to settle early they can’tuse the card details!

After a lot of back and forth, eventually the manger assuredme that if I wait until Monday, after they have spoken to head office (again),they will be able to take my payment by card.

Monday came, I called, the shop told me the situation wasstill the same and I can’t pay by card. Got a number for head office and gotthe same run-around.

Its Monday evening 21st May, all I want to do issettle by “right of withdrawal”, using my card, and the Moneyshop have stillnot offered me the facility to do so.

Furthermore, there is no mention in the contract, that earlysettlement invoked by “Right of Withdrawal” , has to be made by cash. So ifthey don’t offer me the facility to pay by card, I should consider forcemajeure on the contract.

At this point, I can only wait until Saturday to make a cashpayment, which by then I will be more days in with more interest to pay, orpossibly the full £375.

At this point I don’t know how it’s going to work out; I amprepared to settle (by card). I just need a phone call from them, or a numberto ring and get it paid off.

In anger after my treatment from both the local branch andthe head office I have taken this story to the local paper (who seeminterested), and advised the shop I have done so.

I have done everything I can to exercise my right towithdraw and settle up early, I can only may by card and the moneyshop arerefusing tom extend me the facility to pay by card.

How difficult can it be to settle a moneyshop payday(chequless) loan early and by card?

What else can I do?

jon1965

Keep calm, part of me agrees but part of me says !!!!!! em the law is the law and it's 50quid.
Rob, can you get into any money shop?
Give them the money you owe, £320 and tell em to go do one.
I suspect your credit rating is shot or your wouldnt go to the money shop.
Keepcalm is right, on here not many will care, too busy reading the DM and listening to jeremy Vine. If you need help go to" all about debt" lovely non judgemental people who will help. You could even cut n paste your post

tlh858

Another example of why payday loan companies should never be used by anyone.
Even when used properly, they are still loads of trouble and bother.