Confused about huge loan debt!

Milestone

Hi everyone,

Im a student and before i started i took out quite a few payday loans and short term loans, i did have the means to pay them off which i have done, i did however miss one payment to Mr Lender, who even after I rung and explained my student status they sold my loan to MotorMile Finance? I emailed the company and rung but had no response the debt was for 550 at the time.

I have now gone on a credit checker website to find my credit score is 631 and i have an outstanding loan of 1780.00! I have finally got a response from this company but i am completely stuck on what my options are to do now?

Candyapple

Milestone wrote: »

I have now gone on a credit checker website to find my credit score is 631 and i have an outstanding loan of 1780.00! I have finally got a response from this company but i am completely stuck on what my options are to do now?

Pay them?

As you missed a payment to the original lender, your debt was then sold on to a debt collector (MotorMile Finance) who in turn have added on their charges for collecting the debt. As it now stands at £1780, you could call MMF and try to negotiate a settlement figure to clear the debt.

What did you expect would happen if you missed a payment and haven't made any attempt to pay it back after such a long time?

forgotmyname

How old is the debt?

Your score of 631 is the same as my free credit score. I rate you as one digestive biscuit.
Only you and the people that want to sell you the score know that number and none of the people that will ever lend you money will see it.

If their figures are correct and you owe it then maybe a payment plan?

If you dispute it then let them know and get them to prove you owe it.

financial_ombudsman_representative

Milestone wrote: »

Hi everyone,

Im a student and before i started i took out quite a few payday loans and short term loans, i did have the means to pay them off which i have done, i did however miss one payment to Mr Lender, who even after I rung and explained my student status they sold my loan to MotorMile Finance? I emailed the company and rung but had no response the debt was for 550 at the time.

I have now gone on a credit checker website to find my credit score is 631 and i have an outstanding loan of 1780.00! I have finally got a response from this company but i am completely stuck on what my options are to do now?

Hi Milestone,

It sounds strange that your balance has increased so much and the debt was sold on so quickly.

It is likely that the balance would have increased before it was sold as it’s unusual for a debt collector to add more charges. We can’t really comment on your credit file without seeing it but a missed payment on any credit agreement would have an impact on your score.

If you’ve spoken to Mr Lender and haven’t been able to get anywhere you can come to us and we can have a look at what’s happened.

You can call us on 0300 123 9 123 or email us at [EMAIL="paydaylending@financial-ombudsman.org.uk"]paydaylending@financial-ombudsman.org.uk[/EMAIL]


Kind regards
Amy

DCFC79

forgotmyname wrote: »

How old is the debt?

Your score of 631 is the same as my free credit score. I rate you as one digestive biscuit.

I trump you with 2 Custard Creams and 1 Bourbon.

Apples2

Milestone wrote: »

even after I rung and explained my student status they sold my loan to MotorMile Finance?

What were you expecting to happen?
It was a Payday Loan after all.

Clive_Woody

Apples2 wrote: »

What were you expecting to happen?
It was a Payday Loan after all.

Sounds like it was miss-sold.

forgotmyname

DCFC79 wrote: »

I trump you with 2 Custard Creams and 1 Bourbon.

Are you using the same system as the credit agencies? That score seems a bit optimistic

Milestone

Hmm this is all very helpful! Thank you everyone! yeah they sold it within 3 days of the missed payment even through i had rung up to explain my situation, they asked to see copys of my bank statements and student loan acceptance which i sent in the net day and i was sent an automated message saying it had been passed on to Motormile finance.

But then nobody would get back to me either, i was just really confused and a bit scared actually. I will wait for them to responde and maybe get in contact with the financial ombudsman.

Thank you!