opos mini credit

tonydw

please help i took a loan of £100 well it turned out to be £80 for some reason anyway i got my self into a mess with 4 payday company's i called them all to ask for a little longer to pay all but 1 did mini credit the other stopped the interest.when i called mini credit to explain my problems they just said i will be charged interest daily for 30 days after i got a little better off i payed them a total of £250 and they still want £776.20 from me. ok i took the loan from them but over £1000 for £80 its to much is this legal

gb12345

tonydw wrote: »

ok i took the loan from them but over £1000 for £80 its to much is this legal

Unfortunately, it is totally legal (assuming it was all explained in their T&Cs).

Payday loans are designed to be taken out for a short agreed period of time and if you don't pay back as agreed then they hammer you for as much as they can.

It is all part of the business model - lend to people who are likely to have difficulty paying back, so that they can maximise their profits.

Apples2

Not illegal but when looking at borrowing take note of the APR

Representative APR 4382.5%

Figures like this would send people running, it's incredible anyone would look at that and think this is a great offer.

We are committed to responsible lending. We urge you to consider carefully before applying for a loan with Minicredit.co.uk. Please read the Minicredit.co.uk Terms and Conditions carefully. If you think you cannot repay please do not apply in the first place. Minicredit.co.uk loans should be used for short-term financial needs only, not as a long-term financial solution. Customers with credit difficulties should seek credit counselling.

How do these charges stack up?

The following charges will be added to your account if you do not repay or if we are unable to take payment from your debit card on the Payment Due Date: If you do not pay or we are unable to collect full payment from your debit card on the Payment Due Date £25. If you do not pay or we are unable to collect full payment from your debit card on a second attempt two days after the Payment Due Date £55. Charge for each subsequent attempt to collect payment from your debit card after the first attempt £5. You will also be liable to pay us any reasonable expenses and costs that we may incur in tracing you, or enforcing, or attempting to enforce, our rights under this Agreement.

Have they offered anything like their own statement suggests?

Collection Policy
MiniCredit fully complies to OFT debt collection guidance. MiniCredit allows installment repayment based on each individual customers situation which will be assessed by a MiniCredit accounts specialist who will work with OFT guidelines to help each customer on a case by case basis.

Read some of the signature stories on here, you are not alone!!
http://www.ipetitions.com/petition/closureofminicredit/signatures

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DCFC79

What was the need for the loans from the 4 lenders ?

[Deleted User]

Apples2 wrote: »

Figures like this would send people running, it's incredible anyone would look at that and think this is a great offer.

The clue is in the name, ANNUAL Percentage Rate. If you're taking out a loan for 14 days or 28 days the annual percentage rate is absolutely meaningless. The only people it matters to are people that are not going to be able to repay, people that shouldn't be going near those sort of loans.

The people labelling short term loans as scams or a terrible deal because of the APR are almost as silly as the people that are taking out short term loans they cannot afford.

Apples2

I'm completely aware of the relationship an APR has with a Payday Loan.

The point is that if the loan isn't repaid, that meaningless figure WILL become all too real, as it has done for the OP.

citricsquid wrote: »

The only people it matters to are people that are not going to be able to repay, people that shouldn't be going near those sort of loans.

Hardly makes it a moot point then or this post wouldn't exist at all. Sad as it is, this forum is littered with posts from people who have already done as you deem unlikely.

citricsquid wrote: »

The people labelling short term loans as scams or a terrible deal because of the APR are almost as silly as the people that are taking out short term loans they cannot afford.

This advice is only valid for people thinking of taking one out, not relevant for those who have tripped over.

ampafc

When I was in a bit of a mess with PDL companies, I unfortunately took a loan from MiniCredit.

You got 80.50 because they charge 19.50 to send you the money. Amazingly, they don't give you the option to get the money for free after 3-4 days like other companies do. Instead, they tell you that you have to write to them in advance by snail mail to ask for this. For a company that deals with loans online, this is a joke.

Anyway, they will threaten to send doorstep collectors, which they never send. They charge 100 for this. They also charge GBP 5 for every failed debit card attempt. They will do this several times per day. For me, these two things combined were going to cost about GBP 500 - only a month and a half after I took out the loan! They agreed to remove these fees as "a gesture of good will". Obviosuly, they had made plenty fropm me in interest and other fines.

I wrote to them constantly, offering to pay back a fair amount. So the GBP 100 loan I took out I settled for about GBP 350.

Lesson learned. It was my mistake for not paying the loan back immediately, and although the charges they add on are a disgrace, my advice would be to try and settle this AS SOON AS POSSIBLE. Work extra, spend less, borrow from a friend. Do what it takes to payu this off ASAP, without taking out another PDL.

Good luck.