Mini Credit ....Please advise?

loonysuz

I have been stupid before anyone says it, but need some help.

I have two payday loans myjar and mini credit. I was constantly borrowing to pay back and finally pulled my head out and asked them for repayment plan then I can get financially straight.

My jar agreed to my payment offer and freezing interest.
Mini credit have stuck on lots of charges basically doubling my debt, I am not even due to repay till the 5th April so been in plenty of time to sort an arrangement out.


this is the offer I received from Mini credit The following e-mail is sent according to the Formal Hardship Procedure.



Our hardship team has tried to contact You over the past few days, unfortunately we were unable to reach You by the registered mobile number. After assessing Your account details we are able to propose two payment options.



The first option is a settlement plan for £683.20. You would need to make at least one payment a month towards the balance and clear the debt by the 30th of July 2014. Choosing this option means that no default will be marked on Your credit reference file. The settlement plan balance consists of:

1. Original due date balance £409.20

2. Overdue charges £40.00

3. Interest for 60 days £234.00



The second option is a long term payment plan for £733.20. Choosing this option means that a default will be marked on Your credit reference file, but You will be able to make payments during a longer period of time. Depending on the monthly payment that You can afford the plan will be administrated either by us directly or by our debt recovery partners. The payment plan balance consists of:

1. Original due date balance £409.20

2. Overdue charges £40.00

3. Interest for 60 days £234.00

4. Debt recovery fee £50.00

The contractual interest rate is 1.3% of the principal per day from the date of issuing until the 60th day after the chosen due date. The above described overdue charges and interest are in accordance with the Loan Agreement.



Please let us know what You decide considering the above latest by the 1st of April 2014. If no response is received by then we will forward Your account to our debt collection partners with default balance.



can anyone advise me..I have rung them and they say it is legal but I can not find these terms in my contract.

FireWyrm

Yes. Basically, they can add any additional charges that they see fit. My guess is that those charges are there in the Ts&Cs, and you are simply misunderstanding. They are charging you interest for the time you will be paying them back. You have no contractual right to an interest rate freeze and no way to force them to do so. It is simply by their grace and favor that any interest is waived, but in this case, it doesnt appear that they are so inclined unfortunately.

I suggest you get the money together and pay them on time as scheduled even if you have to go without something else, or default on something else.