Lantern debt recovery

First Post

Hi last year I had a few payday loans which I’m paying off but one I had with dot dot I haven’t started paying yet. So today I had an email from lantern saying the dot dot loan has been sold to them I now owe £3000 the outstanding balance with dot dot was £321. Now I wasn’t happy with that and emailed them a few choice words unfortunately,but now I’m wondering what to do if the loan had doubled I was willing to accept that but to go to £3000 no matter what happens they won’t be having that. But I’d like to know what could happen now? Thanks

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Galloglass

Galloglass Posts: 1,286 Forumite

1,000 Posts

Not quite clear on this one. Are you saying Lantern are asking £3K for a £321 debt?

All land is owned. If you are not on yours, you are on someone else's
When on someone else's be it a road, a pavement, a right of way or a property there are rules. Don't assume there are none.
"Free parking" doesn't mean free of rules. Check the rules and if you don't like them, go elsewhere
All land is owned. If you are not on yours, you are on someone else's and their rules apply.

sourcrates

sourcrates Posts: 29,758 Ambassador

Part of the Furniture Debt-free and Proud! Post of the Month PPI Party Pooper

4 April 2020 at 12:05PM edited 4 April 2020 at 12:06PM

What does it say on your credit agreement, how much would you have repaid if the loan had gone to term ?

Having just looked at their website, their APR for existing customers is a whopping, 1255% representative .

You need to provide more details, like how much you initially borrowed, and the details from the all important credit agreement.

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ozzielpn Posts: 4 Newbie

First Post

Not quite clear on this one. Are you saying Lantern are asking £3K for a £321 debt?

I borrowed £200 and was supposed to pay back £400 I just logged into my account and lantern bought the debt for £321 I can’t find my initial agreement at the moment

sourcrates

sourcrates Posts: 29,758 Ambassador

Part of the Furniture Debt-free and Proud! Post of the Month PPI Party Pooper

I would assume then, that some kind of error has occurred, FCA rules on short term lending stipulate a borrower can never be made to repay more than twice what was originally borrowed, you may want to write to Lantern with that information and ask them to re-think what they are asking of you, while your at it, ask for proof of their claim as well.

The provit letter, slightly modified to include the above is your best course of action.

ozzielpn Posts: 4 Newbie

First Post

What does it say on your credit agreement, how much would you have repaid if the loan had gone to term ?

Having just looked at their website, their APR for existing customers is a whopping, 1255% representative .

You need to provide more details, like how much you initially borrowed, and the details from the all important credit agreement.

Fixed Sum Loan Agreement regulated by the Consumer Credit Act 1974 Agreement Number:

Shelby Finance Ltd trading as Dot Dot Loans, Kingston House, Centre 27 Business Park, Woodhead WF17 9TD (“We”, “Us”, “the ("You", "Your", "the Borrower")

Key features of the credit agreement Road, Birstall ,

We will pay the amount of credit set out below to your nominated bank account by using UK Faster Payments following the execution of this agreement by us. It may take up to 3 working days for the funds to reach your nominated bank account depending on the bank you use.

The amount of credit The duration of this Agreement

The amount of the first 2 instalments The amount of the final instalment The total charge for credit (interest) The total amount payable

3 months starting on 22/08/2019 £107.03

This is a rate capped product which means that the law prescribes that you cannot be charged more than 0.8% per day of the total amount of credit provided under the agreement and you cannot be required to repay more than double that amount.

Costs of the credit The daily rate of interest which applies to the credit agreement 0.80%

Interest at the interest rate set out above is calculated in advance on a daily basis on the amount of credit and is applied to the agreement on the date this Agreement is made.

Annual Percentage Rate of charge (APR) 1,206.98% APR

In calculating the total amount payable and the APR, we have assumed that this Agreement will remain valid for the duration set out above, that both parties will fulfil their respective obligations under this Agreement and that you will pay the instalments in full and on time in accordance with the repayments below.

Repayments You must pay 3 monthly instalments as follows: 30/09/2019 31/10/2019 29/11/2019 - £107.03 - £107.03 - £107.02

Where any instalment date falls on a non-working day, payment will be taken on the preceding working day.

Consequences of missing payments

Missing payments could have severe consequences. If you fail to pay your instalments in full and /or on time

record this with a credit reference agency, which may make it more expensive or more difficult to obtain credit in the future. You are likely to be declined by us for further borrowing and we may send your account to an external Debt Collection Agency or commence legal proceedings against you to recover the sums you owe to us under this.

thats the first part thanks for the reply.

ozzielpn Posts: 4 Newbie

First Post

The provit letter, slightly modified to include the above is your best course of action.

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Lantern debt recovery

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