Advice : Repayment of Payday Loan Via DM Plan

beautifullyhuman

I have signed up with a Debt management plan to spend the next 18 months paying off my creditors and getting myself back on track.

In the midst of organising payments to the companies one particular payday loan company, minicredit, claims they do not work with debt management companies.

I have spoken to them today to organise a payment plan aqnd/or to see if they will accept payment via my debt management company and without taking anything into consideration they will only do the repayment on thier terms which A) is more than what you can afford as they have already asked what you can afford at the begining of the conversation b) includes further hiked interest and they wont freeze the interest c) is only a short period of time to pay rather than something manageable.

Can anyone advise, (I dont need a lecture or some cocky comment as that is not helpful) if this is legal?
Are these companies allowed to keep adding interest and determine the length of payment terms?

Im at a loss as to what to do, I do want to pay off the loan but need to do it at a more affordable rate.

Apples2

A dmp is not a legally binding agreement so no, they do not have to agree.

Who're you going through with the dmp with?
Is it cccs /payplan or are you pouring money at some fee charging bottom feeders (they are no better than your creditors)

[Deleted User]

How much is the minicredit loan?

Any chance someone (family/friend) could loan you the money, to pay it off?

fermi

While creditors do not have to accept reduced offers freeze interest and deal with debt management companies, the OFT states that refusal to do so without an objectively justifiable reason could amount to an unfair practice under their guidelines. The OFT expects creditors to follow the letter and spirit of their guidelines if they wish to retain their licence to lend.

PDL lenders refusing to deal with debt advisors/companies was also one of the main complaint areas the OFT is now looking into after vtheir interim report a few days ago. So if they are refusing outright to deal with the DMP company it would be worth letting them know.

Also they state that:

http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft366rev.pdf

Where reasonable payments are tendered by the consumer, or by someone acting on his behalf, it is a principle of law that creditors should not refuse to accept those payments.

So if minicredit continue to be unreasonable, then you have grounds to raise a complaint via the FOS and report their practices to the OFT.

Write a formal complaint, and state that you require minicreit to provide a final response that you can take to the FOS and forward with your complaint to the OFT.

fermi

I would also point out the DMP & Mutual Support Thread here on DFW.

eyeopener2

Minicredit can go and take a running jump.

Fermi is right,as always, and you need to be proactive with this. They are trying it on so fight back and tell them that they will deal with your DMP or you will have no hesitation in reporting them as Fermi describes.

With all the bad press on Payday scum recently im sure they will suddenly change their bullying ways.

Good luck.

E2