minicredit

[santa claus]

Please note the following is NOT legal advice. I am just a bloke on the internet.

I suggest you write snailmail to Minicredit.co.uk with the details of your loan and predicament. If Court action is to ensue, and it is possible, you need evidence to show you want to re-pay the loan but that you cannot just yet. You also need to be able to show the action you took before this spirals further. Telephone calls and emails tend to disappear into the ether. Get a letter written and fast.

The address to write to is shown in the ABOUT US section of their website and peterb mentioned it earlier:

Microcredit Limited
30 Borough High Street
London SE1 1XU.

Explain your circumstances in the letter and make it clear you want to repay the loan. Ask them to please acknowledge receipt of your letter whilst they consider how you can pay your debt.

Minicredit are a member of the CCTA (Consumer Credit Trade Association). I have no idea if it will help but you might contact someone there if Minicredit don't agree to give you time to repay but don't do that just yet.

You have got yourself into a little bit of financial difficulty but you will work it out so stay calm and don't worry. You will have to repay the loan but just never again go this route for money unless you are 100% confident of being able to repay.

I think Minicredit will help you if you act responsibly and that means making it clear you know you owe them money, you just need time.

Good luck.

[peterb]

To add to the above - the National debt helpline (link in my previous post) has sample letters you can send under various circumstances. And send them recorded delivery (or whatever the equivalent is now) then you have proof of receipt.

[santa claus]

To add to the above - the National debt helpline (link in my previous post) has sample letters you can send under various circumstances. And send them recorded delivery (or whatever the equivalent is now) then you have proof of receipt.

Yep, something like the following for starters:

"Dear Sir/Madam

Account No/Reference No:- ***************

I have recently lost my job and I am in financial difficulty. I have entered into an Agreement with you that I am unable to honour at the present time.

I deeply regret this but have no option but to ask that you accept a payment of £** per month until my debt is repaid. My present and sole income is that of Job Seekers Allowance. My outgoings each month amount to £**. I would ask you to accept the £** per month towards the settlement of my loan.

If interest or other charges are being added to my account I would ask you to freeze these so that all payments made will reduce what I owe you.

Should my circumstances improve I will contact you again. I sincerely apologise for any inconvenience caused.

Thank you.

Yours faithfully,"

[petercook7]

From the DirectGov website



So - just looking at the finacial side, and ignoring the potential after effects...

Pay £700 to clear a £250 debt... Hmm - doesn't stack up to me

The court will dispose of assets to pay creditors - so if there are assets to pay the amount, the debtor would be better realising them himself.

Emergency loan if you can get it might be worthwhile - did you (the OP) - get to the CAB?

Its is 250 now but the way the operate it'll be a 2 or grand plus the court costs you be looking at 4 grand plus, for 100 pounds.

[petercook7]

been to CAB all they said was to get in contact with them finally got hold of them on the phones after trying to 2 days to be told

i have to pay the loan in full
i explained it is impossible at this current time as im on jsa
balance as it stands is 275 they have taken 70 from me already which wiped out most of my money from job seekers going bank on tuesday to change all my details.
i said i wont be able to pay anythign for 2 weeks as im on job seekers and asked how much it would be they said in 2 weeks i will owe them 580 .... which is a bit of a jump and means i have no chance of paying it back. they say that they dont accept payment plans and that there are no managers around for me to talk to ¬,¬ so wasted a load of my credit callin them for nothing

going CAB again and explaining that they are giving me no option and that i have no way to pay it back the way they want to

they threatened me with legal action if i dont pay in the next month but is that even possible to do it that quick or is it just a scare tactic

gotta call them monday when a manager "should" be there and talk to them to try and sort something out

worse part is ive come to an agreement with wonga to pay 25 a month to them a month and ive had to send the money to another account because i couldnt risk minicredit taking it

is there any legal stuff i can quote to get them to budge

original loan was 100 quid
total repayment today is 350 ish ( including the 70 taken already)
total reppayment in 2 weeks 650 ( including the 70 already taken)
im getting 108 quid every 2 weeks and the charges go up by 300 every 2 weeks ... there is no way i can pay this there has to be a legal way to get out of this and force a repayment scheme or something

beeen trying to sell my stuff to get some money currently got xbox360 and ps3 on ebay and all my old computer parts to but still i dont think im going to be able to raise that kind of money in 2 weeks

I did tell you to open a new account asap, and close your old one and you could have paid them via a bank transfer, if they DD your new account you could get the money back as you didnt give permission for that account.

[peterb]

I did tell you to open a new account asap, and close your old one and you could have paid them via a bank transfer, if they DD your new account you could get the money back as you didnt give permission for that account.

More bad advice.

The OP is in a contractural arrangement with the lender. That contract will only end if

a. The amount owing is paid
b. Both parties agree to end it
c. A court sets it aside

There may be circumstances when stopping payment may be the right course (to force court action) but until that deliberate action is taken, stopping payment will only increase the ultimate debt.

TiMeZeRo - look at http://www.nationaldebtline.co.uk/ - that is the best advice you will get from a website.

[Zak33]

Presuming you CAN pay something per month. . . What is that amount? Long and short of it is that you need a plan . . . Some plan. . . Some amount that is definately payable. Then it'll come naturally when you're questioned about it. So what's the affordable amount?

[peterb]

Presuming you CAN pay something per month. . . What is that amount? Long and short of it is that you need a plan . . . Some plan. . . Some amount that is definately payable. Then it'll come naturally when you're questioned about it. So what's the affordable amount?

Thats true, but the real problem is that the punitive inrterest is clocking up faster than the OP can afford to pay it off - he has to get the interest frozen - either voluntarily by the company, or enforced by the court. Or he needs to find an alternative loan at a more reasonable rate of interest and pay off the whole lot. And at the rate of interest this lot are charging, it needs to be done quickly.

But just not paying as petercook7 suggests is just not an option at this stage. If it does go to court, he needs to be able to demonstr good faith in that he has tried - just stopping does not do that.

But, good though HEXUS is - this isn't really the place to get qualified advice - he needs specialist help from the sources that have been suggested.

[petercook7]

Thats true, but the real problem is that the punitive inrterest is clocking up faster than the OP can afford to pay it off - he has to get the interest frozen - either voluntarily by the company, or enforced by the court. Or he needs to find an alternative loan at a more reasonable rate of interest and pay off the whole lot. And at the rate of interest this lot are charging, it needs to be done quickly.

But just not paying as petercook7 suggests is just not an option at this stage. If it does go to court, he needs to be able to demonstr good faith in that he has tried - just stopping does not do that.

But, good though HEXUS is - this isn't really the place to get qualified advice - he needs specialist help from the sources that have been suggested.

I told him who to contact about this.

The problem is he is on JSA he needs to eat, if they take out most of his Jsa how does he eat?
I guess the company has a DD with him what happens when they DD him and there is no cash, he gets charged by the bank now he has 2 companies on his back.

You might see it as well he is breaking the contract but from a humanitarian side its the best thing he can do.
He'll still rack up debt at a slower pace but will have no money to feed himself, when you get to that point you have two option pay or dont pay. If your a sucker you'll pay and keep paying and you will suffer, if you change account and seek help you suffer less and be able to eat.

You dont understand about this, he is in a very good position getting JSA, all he has to do is create a financial account of what he needs to spend on, anything left over can be used to pay the debt with might be £2 a week.
He needs to send them a financial statement of his in/out goings, debt management plan.

Then make a payment to their account from a new account but dont let them have your account details with the amount you can afford.

Then later on send a letter Full and Final settlement, borrow the money from the job center and pay them. Full and Final settlement is the original money borrowed plus 50% or less from the amount added on.
If they agree, you have to pay them it, so you might as well see how much you can get from the social fund at the job center.

it is a basic principle that creditors cannot refuse to accept payments from a debtor. If we receive evidence of a creditor operating a deliberate policy of refusing to accept debtor created repayments plans to the point where it is causing more detriment we may view this as an unfair business practice.

[petercook7]

Yep, something like the following for starters:

"Dear Sir/Madam

Account No/Reference No:- ***************

I have recently lost my job and I am in financial difficulty. I have entered into an Agreement with you that I am unable to honour at the present time.

I deeply regret this but have no option but to ask that you accept a payment of £** per month until my debt is repaid. My present and sole income is that of Job Seekers Allowance. My outgoings each month amount to £**. I would ask you to accept the £** per month towards the settlement of my loan.

If interest or other charges are being added to my account I would ask you to freeze these so that all payments made will reduce what I owe you.

Should my circumstances improve I will contact you again. I sincerely apologise for any inconvenience caused.

Thank you.

Yours faithfully,"

They will not give a toss, they'll just keep racking up the debt.

http://www.stooze.co.uk/loans/Mini-Credit

[jim]

They will not give a toss, they'll just keep racking up the debt.

I don't think anybody suggested the sole point of the letter was to see if they turned around and said "Okay, we'll let it go".

[petercook7]

I don't think anybody suggested the sole point of the letter was to see if they turned around and said "Okay, we'll let it go".

They will not, but to protect his health he needs to open a new account for his jsa money to go in and close the old.
They do a ccj that will last 6 years and longer, it'll hang around for life almost.
People in Britain are conditioned put up and shut up, that's why in the long run they lose and then wonder why the country has gone down the tubes.

[santa claus]

They will not give a toss, they'll just keep racking up the debt.

http://www.stooze.co.uk/loans/Mini-Credit

I was just trying to help . At the end of the day, I suspect the debt will have to be repaid and it seems sensible to face it rather than leg it.

Oh well, I tried.

[Behemoth]

They will not, but to protect his health he needs to open a new account for his jsa money to go in and close the old.
They do a ccj that will last 6 years and longer, it'll hang around for life almost.
People in Britain are conditioned put up and shut up, that's why in the long run they lose and then wonder why the country has gone down the tubes.

Which makes the OP's breach of contract with Mini credit even bigger and appears then that he's avoiding payment, not a smart move either.

The trouble with a direct debit is that the amount can change, where as a standing order can't.

[Raz316]

to explain my situation but i cant contact them the only way i can is a 10p a minute line which i really cant afford

Did you actually speak to someone in the end? Could you not call them and asked to be called back?

[petercook7]

Did you actually speak to someone in the end? Could you not call them and asked to be called back?

From what i know about them they dont.