What do you do if a company refuses to accept your offer of repayment?

DebtAdvicePlease1993

Hi everyone. I'm back again since writing my previous post about tackling my debts.

I have an unsecured loan with a company called Loans2Go. This company have been nothing but trouble to deal with. 6 months ago I took out a loan of £500 with them (Personal, not secured on anything, I know L2G have a reputation for being logbook loans) The repayment was agreed to be £100 a month for a year (Crazy interest rate on top, I can only imagine)

About 2 months ago I began defaulting on payments as my circumstances changed and I was claiming disability benefits. They sent me a series of threatening letters, saying they were going to send a door step collector round to my home address (Which I share with my parents and their two young children)
I called them up about these threats and told them they wouldn't be permitted access into my property and I wanted to set up a repayment plan.
I sent the income and expenditure forms back, along with a copy of my bank statement that they wanted AND proof of my disability benefits. They got back to me Thursday via email, claiming that they wouldn't accept my offer of repayment (£30) because they had calculated from my bank account that I have £80 left over at the end of every month so can use this to pay them. I told them that I definitely do not have £80 left at the end of the month and they weren't taking into account emergency costs and the fact my bills are never set in stone. I mentioned even £30 was a push for me.
They told me they'd rejected my repayment proposal and wanted £100 a month or they'd continue with enforcement action (Whatever that means)
I cannot pay these crooks £80-100 a month, nor am I going to.
I sought some brief advice about this on another forum and was told to pay them £30 a month regardless as to what they say and not to give into their demands. I'm sat worrying now though that they'll slap me with a CCJ. I'm trying my best here.
Any advice is wonderful, as always.
Thanks!

sourcrates

Hi,


Usual course of action is to pass the account to a debt collector, or sell the debt on to a 3rd party purchasor, the advice to pay what you can was good, puts the ball in their court.

They can`t take legal action on every debt, mostly they just pass accounts to collectors, whom you would pay the same amount.

Just stick to your guns and roll with it, is the best advice i can give you.

John_G_Jones

DebtAdvicePlease1993 wrote: »

Hi everyone. I'm back again since writing my previous post about tackling my debts.

I have an unsecured loan with a company called Loans2Go.

The repayment was agreed to be £100 a month for a year (Crazy interest rate on top, I can only imagine)

About 2 months ago I began defaulting on payments

I called them up about these threats and told them they wouldn't be permitted access into my property

I cannot pay these crooks £80-100 a month, nor am I going to.

For a start I’d suggest reading back the edited highlights above, and dropping the silly language. The company are not the bad guys here, you asked them to lend you money, agreed to their terms, seem not have bothered understanding them, and then you broke the deal. Viewing it in these terms is not going to help your mental health, you are not being persecuted.

Now, have you anything you can sell, any emergency savings, any route to finding the money? If so, find it and clear the debt.

If not then please post up a full statement of affairs on the debt-Free wannabee board and people can start giving you some proper advice.

WhenIam64

For a start I’d suggest reading back the edited highlights above, and dropping the silly language. The company are not the bad guys here, you asked them to lend you money, agreed to their terms, seem not have bothered understanding them, and then you broke the deal.

I have to say I agree with John - to the extent that you should understand they already know a lot about you. They are not crooks but people with a sophisticated software system that can measure your financial capability. It's a pity they don't use these systems when they lend, but that is another matter.

You should check if they have the paperwork first of all (CCA).

Then do a SOA. You do not say if the other site's estimate of £30 was based on an assessment of an SOA but the creditor has done one on you and come up with £100. If you show your figures we might be able to help you achieve a better figure.

The purpose of SOAs (which are usually backed by Codes of Practice) is to make sure the debtor is not forced into paying amounts they cannot maintain. Not good for the creditor or the debtor.

They can`t take legal action on every debt,

There is enough risk though that you might be one of them if they think you have money, and you have not disproved it with a SOA.

sourcrates

DebtAdvicePlease1993 wrote: »

They told me they'd rejected my repayment proposal and wanted £100 a month or they'd continue with enforcement action (Whatever that means)

Its language like this i object to, "enforcement action" suggests that legal action has been taken, which it hasnt, so they are implying they can further enforce the agreement without a court order, which they can`t.

What they are refering to is "collection activity" a totally different thing altogether, a few letters and phone calls, demanding money from you.

The FCA does not like debt collectors/creditors exagerating their powers in this way, the OP has made a reasonable offer based on her available budget, continuing to demand an unreasonable level of payment is concidered bad practice, and very counter productive.

Windbag66

DebtAdvicePlease1993 wrote: »

They got back to me Thursday via email, claiming that they wouldn't accept my offer of repayment (£30) because they had calculated from my bank account that I have £80 left over at the end of every month so can use this to pay them.

How do they know whats in your bank account ?


Please tell me its not one of those loans where you volunteer your bank log in details to the lender, as a condition of obtaining the loan ?


If it is, get them changed now.

DebtAdvicePlease1993

Hi, thank you all for your responses. How do I fill out a statement of affairs? I'd like to post one up here.

In response to a previous question on this thread - the creditors don't know what is in my bank account from day to day, they asked for a copy of my bank statement and therefore came to the conclusion I had more money left than what I do every month.
I am not usually this irresponsible and got myself into debt due to being laid off of work after being diagnosed with a brain tumour. I never intended to not pay loans to go back and only realised how high the interest rate was when I was reading through my paperwork (hence why I made a remark about the ridiculously high interest rate) I've done many desperate things in this past year and am now suffering the consequences.

Willing2Learn

DebtAdvicePlease1993 wrote: »

Hi, thank you all for your responses. How do I fill out a statement of affairs? I'd like to post one up here.

Follow the link below:
http://www.stoozing.com/calculator/soa.php

Please remember to click on the 'format for MSE button at the bottom of the form. Then copy and paste the completed form up here.

DebtAdvicePlease1993

I would also like to add (Forgot to add in the previous post)
Back in January when I began defaulting on this loan, I got a letter from a solicitor who claimed he was working on behalf of loans to go. He didn't really threaten me with legal action (As in, he didn't say they were commencing with it) but instead asked me to get in touch with loans to go. I'm pretty sure it was sent to me to scare me, because the letter contained literally nothing aside from 'I'm a solicitor and you need to contact loans to go to discuss your loan or they will tell me to commence legal action.' I couldn't reply to this letter as I had no contact details for this solicitor, that's when I got in touch with loans to go and they asked me for proof of my income and outgoings. This wasn't good enough and they are still demanding higher payments than what I can afford. I don't want to end up with a CCJ, I'm showing willing and I mean all of this in good will. I'm an honest person. I'm just in a mess.

DebtAdvicePlease1993

SOA-

Household Information[/b]
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 0

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 800
Other income............................ 0
Total monthly income.................... 800

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 35
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 750


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Satsuma Loans..................2000......10........0
Amigo Loans....................11000.....100.......0
Store Card.....................2000......40........0
Bank Overdraft ................2000......20........0
Total unsecured debts..........17000.....170.......-


Monthly Budget Summary
Total monthly income.................... 800
Expenses (including HP & secured debts). 760
Available for debt repayments........... 40
Monthly UNsecured debt repayments....... 170
Amount short for making debt repayments. -120

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,000
Net Assets.............................. -17,000

DebtAdvicePlease1993

To add here - I don't have a car personally, but pay my partner for petrol every month because he is the one to take me to and from medical appointments. I live with my parents and two small siblings.
I hope this clears up any potential confusion.