The Money Shop

[mercury]

Hello there, Has anyone ever heard of/used The Money Shop before to cash cheques, get cash til payday? Basically you write them a cheque dated in a months time and they give you cash. Recently I did not have enough money in my account to cover a cheque I informed them of this but the cheque had already been took out. Therefore I now owe them some money. They now say that if i dont pay them before Feb they will issue me with a Default. I just want to know whether this is actually legal? I know that was longwinded but any help is greatly appreciated.

[dzug]

Yes it's legal, assuming I've understood you correctly.

You didn't pay them the money at the time it was due. They can sue you for it. The fact that you informed them is irrelevant.

If they paid the cheque in early then that would be different.

Maybe you could have cashed another cheque with them and paid it into your account to avoid this happening.

[itsallyellow]

I think they have to be regiestered credit agency or something to be recognised by law to give a default. Did they do a credit check on you before you wrote them a cheque? Also does the company appear on your credit file, if not they can issue you with all the defaults they like they won't appear on your credit file if they aren't a recogised credit agency. Though they may give you a bit of hassle for a bit, similar to Provident.

[noxlumos]

Well the problem is with the money shop is that they are inflexible and what is happening a lot is that people are ending up oweing them up to �600 (you can cash up to that amount if you have a cheque guarantee card) and then surprise surprise the people's banks are refusing to honour the cheques if it will take them overdrawn leaving them oweing the Money shops money. They will also attempt to charge you about �40 I beleieve "handling charge" for each cheque that was returned.A lady borrowed some money off me to clear what she owed with them, but in chatting about them to other people they seem to suggest that they send a lot of very hassly letters and not a lot else, however this is not my own first hand experience so be careful.They could in theory take you to the county court, but if you already have CCJ's then that's fairly academic to the effect on your credit rating.They really are just shop fronted loan sharks, but the CAB will doubtless be able to advise you better because know you really are not alone in this situation so they must have encountered the Money shop before.

[beanbag]

Hi there , Ijust wanted to let you know that the money shop do not process credit checks against their customers thats why a cheque gaurentee card is needed before you can be registered for the service.Whats called an extension service is also offered just encase the correct funds are not available in your account when the cheque is due to be presented to your bank, and also you can actually go into the stores and buy back your cheques over the counter if you don,t want them to go through your account. Interms of the charges for returned cheques the company are charged by the bank everytime a cheque is retuned thats why in return the customer is then charged. In the case of a cheque being returned this does not go against your credit rating and if you can pay the out standing balance within 10days of the bank notifying the company of the returned cheque then the charges will be dropped, and if you so desire you can start using the service again it is not held against you.