TxtLoan & Myjar nightmare

souch13 · 26 September 2013 at 6:44PM

Good Evening folks, i could use some guidance.

I am currently emailing all of my creditors (various payday loan companies) to arrange settlement with each before it gets out of hand.

one company in particular i used was TxtLoan when i borrowed £100 for 18 days, due to pay back something like £140.

I admit i defaulted on this loan and it has now been passed to mckenzie hall debt collectors, the balance due is now at £362!

this is their breakdown of fees.

Admin fee £54.50
Daily interest £51.00
Chargeback £189.67
2nd Reminder Charge £25
1st Reminder Charge £25
Interest Charge £17
Total £362.17

this is absolutely absurd! i believe interest has been added to this on a daily basis of roughly £1.20 a day . if it goes to a debt collector, don't the daily interest fees have to stop?

I also signed my agreement with TxtLoan, who are now Myjar. where do i stand if i say my loan agreement is with the creditor txtloan ltd and not myjar. i am happy to pay my original loan amount and the original loan fees but all these unnecessary amounts being added is just pure robbery. what can you advise?

chalkie99 · 26 September 2013 at 7:06PM

souch13 wrote: »

I am currently emailing all of my creditors Don't email them - write proper good old fashioned letters and post them, keeping copies(various payday loan companies) to arrange settlement with each before it gets out of hand. If you owe "various payday loan companies" it is already out of hand.

one company in particular i used was TxtLoan when i borrowed £100 for 18 days, due to pay back something like £140. Their rates are clearly stated on the website £20 - so it sounds like you extended it

I admit i defaulted on this loan and it has now been passed to mckenzie hall debt collectors, the balance due is now at £362!

this is their breakdown of fees.

Admin fee £54.50
Daily interest £51.00
Chargeback £189.67
2nd Reminder Charge £25
1st Reminder Charge £25
Interest Charge £17
Total £362.17

this is absolutely absurd! i believe interest has been added to this on a daily basis of roughly £1.20 a day . if it goes to a debt collector, don't the daily interest fees have to stop?

I also signed my agreement with TxtLoan, who are now Myjar. where do i stand if i say my loan agreement is with the creditor txtloan ltd and not myjar. Nowhere - this is from their website:MYJAR.com is the trading name of TxtLoan Limited - so it is the same company, no change i am happy to pay my original loan amount and the original loan fees but all these unnecessary amounts being added is just pure robbery. what can you advise?

It seems to be a new trend where borrowers sign up to anything to get the money and then think they can tell the lender what they are prepared to pay back.

Speak to Stepchange as plastered all over their website who can give you free advice on how to sort out your finances,

EmmaHerts · 26 September 2013 at 7:07PM

You should offer to pay back what you owe and one month's interest, no more than that.

Tixy · 26 September 2013 at 7:33PM

The interest charges on debts don't generally have to stop when a debt is passed to debt collectors.
But this company has agreed to stop adding additional charges and interest after day 60.

This is similar to the new good practice charter for payday lenders, although I can't see txtloan/myjar have actually signed up to that charter.

Of the items listed

Admin fee £54.50
Chargeback £189.67

Daily interest £51.00
2nd Reminder Charge £25
1st Reminder Charge £25
Interest Charge £17
Total £362.17

The chargeback must include the original capital borrowed, but its not clear what else is included in that.
The admin fee I can't see listed on their website - is it mentioned in your loan agreement?

I would certainly challenge MH to provide more detail as to what those 2 items are.

The good news is

If we need to use debt collectors to obtain repayment of our loan we’ll make sure they act sensitively and fairly with you. They will never try to push borrowers to pay more than they can afford.

If they don't do that then I would complain to both MH and myjar reminding them of the statement on the myjar website.

poundingpounds · 1 December 2013 at 8:55PM

actually Myjar display their charges clearly in their T&C's

If you are late in repaying an advance the following charges apply (variable - see condition 1.11)
• 1st reminder (sent 1 day after repayment date) - £25
• 2nd reminder (sent 11 days after repayment date) - £25
If you have still not paid 43 days after repayment date the account will be transferred to a debt collection agency and an administration fee of up to 25% of the outstanding balance will be applied to the account.

now it is confusing why they still add interest up to day 60 if according to them, they pass the debt to collection after day 43

anyone know why they do that?

Nice_Weather_For_Ducks · 1 December 2013 at 11:43PM

Funny that the borrower is happy to accept the t&cs of the loan, but when defaults thinks they are outrageous!!

Note to OP, in future read and understand what you are agreeing to. It will save another pointless and futile thread on MSE!!

Fruit_and_Nut_Case · 10 January 2014 at 9:37AM

mortondavid26 :spam:

longtermplanner · 10 January 2014 at 10:54AM

souch13 wrote: »

I also signed my agreement with TxtLoan, who are now Myjar. where do i stand if i say my loan agreement is with the creditor txtloan ltd and not myjar.

To answer this specific point - you will get nowhere with this argument. The original agreement you signed will have had a standard clause in the small print allowing the lender to sell or assign their rights to any other party. This is perfectly normal - not a payday loan nasty.

gb12345 · 10 January 2014 at 11:05AM

Fruit_and_Nut_Case wrote: »

mortondavid26 :spam:

And spamming for an Indian Advanced Fee Fraud scammer by the look of it.

michael1983l · 10 January 2014 at 12:59PM

Nice_Weather_For_Ducks wrote: »

Funny that the borrower is happy to accept the t&cs of the loan, but when defaults thinks they are outrageous!!

Note to OP, in future read and understand what you are agreeing to. It will save another pointless and futile thread on MSE!!

I think the reminder charges of £25 could both be disputed as unfair and disproportionate charges. It does not cost them £25 to send a text and email to say you are overdue.

Also the admin fee's, I'd also dispute that too on similar grounds. What exactly have they done to your account that has given their company a true cost reflection of £54.50. I'd ask for a further breakdown of this charge.

TxtLoan & Myjar nightmare

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