Payday loan default

dannymacca

Hi,

I've unfortunately got a default from Speed credit (Toothfairy). It's on my credit file for £2700 the loan was for £400. I've since paid the full loan and 1 months interest, as instructed by some of the posters on here.
However, they will not state the loan is settled on my credit file until I pay them a further £208. I'd rather not do this obviously, but until I do they state the default will remain unsettled and the loan value will increase by £96 each month!!

Can someone please give me some advice!!!

Many thanks!!

OneLife_OneShot

You would rather not pay the money you owe them?

Either way your credit is screwed for 6 years with that default. Paying it just make it look better but it will still be a default as you broke the agreement.

dannymacca

If you consider their adding of interest despite the principle being paid, harrassment, illegal doorstop visit threatening fair then we wont agree on anything.

The £208 is a made up figure to fleece me some more. I'm interested to see if anyone has been in this scenario, I'm well aware I shouldn't have dealt with them but moralilty doesn't come into it with these cretins.

OneLife_OneShot

I am fed up seeing people b*tch and complain about not wanting to pay back PDL's because the interest is morally wrong according to them.

You signed the agreement pertaining to these charges and interest in the small print which you probably did not read because you wanted a quick loan.

Good luck with it all.

Trajal

Be that as it may, this forum is dedicated to helping people without being judgemental. If you don't have anything helpful to say, I would recommend tutting under your breath about something which evidently offends you, and carrying on your way without further comment.

Sorry if that sounds a little snippy, but people do get themselves into silly situations (i've done it) and need help to come out of it. Having a go at them isn't the way to do that.

dannymacca

What crawled up your butt and died! I'm hardly bi*ching!!

I've asked if anyone has been in a similar position with them, you haven't, lets leave it at that!

Appreciate your comment Trajal, however my thread has been diluted by someone now!

I would like to hear from anyone with any useful advice, I'd be willing to pay the funds (probably more) to have them remove the default, given how dodgy the marketplace is does anyone have precident for this happening???

Trajal

Well to answer your initial question, I have managed to get a number of defaults removed but they took a set of different strategies. In your case you have a fairly reasonable need to be in contact - the fact that they are misreporting the debt levels. For that, you clearly need to determine why they are reporting such a high number.

So first thing to do is to write to them politely, explaining that they are misreporting the numbers and request confirmation and a breakdown of what the alleged debt is for.

Do so with recorded delivery.

If they continue to misreport, or if they have added exhorbitant fees, write to them asking them to reduce it to a reasonable amount, based on the time you have had the debt and CC the letter to the chief executive of the company, whatever industry body they belong and the OFT. Again recorded delivery to all.

Most at this point will realise that you are going to cost more for them to deal with in time and hassle than they would make by enforcing the higher fees and agree to reduce the debt. Making the assumption that at this point the debt will be below £1000 you need to write again to the CEO of the company by recorded delivery thanking him for his help in sorting out the final amounts and requesting as a goodwill gesture that he arranges for his team to remove the default marker from your credit file.

Explain that it is causing you problems in finding work, moving, etc and as it is for a lesser amount it is hardly significant. Explain how much you would appreciate it and that you have learned your lesson. Remind him that it will be six years before you are able to get a mortgage if this stays and comment that you feel it is inappropriately penalising (be sure to use that word) you for a minor mistake.

This will most likely make him consult his risk and legal teams. The moment you start talking about penalties being inappropriate or unfair is the moment that companies begin to get concerned about civil suits. Do not threaten that at this stage but make sure to start using the correct sort of language.

It doesn't always work (although it actually did for me, albeit my defaults were either wrong, hadn't been technically fulfilled correctly, or were for lesser amounts) but it's worth a try.

Possible but not simple or easy.

OneLife_OneShot

Sorry, but they will not remove it especially if you still owe them money. I owed Wonga alot of money before actually but I paid it all back because it was what I owed to them.

The best advice I can give is to ring them or e-mail and request a payment plan which you can afford to pay. The default won't be going away.

dannymacca

Thanks Trajal, good advice, I've had correspondance from them stating the balance is made up of adding £96 a month to a principle amount thats been paid off. To me that makes no sense.

If you think paying back £3200 on a £400 loan is what I owe them, you need to send Toothfairy your CV they will have you on the phones.

OneLife_OneShot

It is up to them and you to determine what you owe them in line with the agreement you defaulted on. Not saying it is £3200.

I hope you get it all sorted but your credit rating will be messed up now.

Good luck either way, just stay away from PDL's in the future.

michael1983l

conisme wrote: »

I am fed up seeing people b*tch and complain about not wanting to pay back PDL's because the interest is morally wrong according to them.

You signed the agreement pertaining to these charges and interest in the small print which you probably did not read because you wanted a quick loan.

Good luck with it all.

With all due respect, you have obviously not had much dealings with Speed Credit/Toothfairy Finance/Northern Debt Recovery/Marshal Hoares Bailiffs then. Because as soon as you are late or miss a payment, they take the original figure you owe them and trebble it over night. What they do is not legal, hence the reason they have NEVER taken anybody to court for a debt.