Doorstep Lenders

[Wafta]

Hi folks, I'm new here and completely ignorant to all this terminoligy I've been reading tonight so please be gentle with me!

I am in desperate need of advice regarding my options with doorstep lenders and reducing payments and stopping collectors calling.

I have several smallish loans with 6 different companies, two of which are small independent companies that have been doing business with my mother for donkey's years. Obviously, I don't want to cause any embarrassment for my family but I am seriously out of my depth, paying in excess of £100 per week at the door to these people.

I have an Autistic son who is registered disabled and I am currently living on benefits as his carer and finding it very difficult to make ends meet with this massive weekly outgoing.

I don't know exactly how much is owed but its probably in the region of 4-5K.

If anybody has any advice as to how to stop the agents from knocking my door and also the procedures to significantly reduce my payments, I'd very much appreciate it.

Many thanks

[PriorityOne]

Who are the agents collecting for ?.... how much was the original loan ?.... and how much is still alleged to be outstanding ? Are these people debt collectors or agents from the original lending company ?

[Wafta]

The companies involved are CLC Finance, Provident, Morses Club, Wilson Tupholme, AA Finance and Roy Ling Ltd. The last two are the local private lending companies with family connections that I mentioned earlier.

The loans were all small amounts of £100-300, but I, like many others, have been dragged into this thing where they offer you another loan to pay off the last one to bring payments down, thereby extending the payment term.

I don't know exact figures for amounts outstanding, but the total is probably now in the region of £4,000. Unfortunately, I've made the mistake of not keeping a record of payments and relying on them to keep records on my behalf.

Apart from Roy Ling Ltd, where the caller is the manager, the others are all agents for the lending companies as far as I'm aware.

I apologise that I don't have more specific information at this time, but at the time of borrowing these things didn't enter my mind as I didn't foresee it becoming such a problem.

[PriorityOne]

More questions.... sorry...

Have you always had an arrangement for them to call round for the money as opposed to you paying them by cheque through the post/at a bank, etc ?

When were the loans taken out ?.... (which year, approx.) Have you ever fallen behind ?.... and do you have any CCJs (County Court Judgements) connected to any of them ?

The problem with companies like these (some I've heard of), is that they will probably immediately harrass you for more money if you fall behind, reduce payments, etc.... because they are so used to calling around your house to collect it in the first place. Although it's against OFT guidelines to harrass you, that doesn't mean they'll respect those guidelines.... not yet anyway. So if we can get them off your doorstep while we're finding out some answers, that would be a good place to start.... as this should reduce the pressure for you.

As you have continually filled out fresh documentation to get extra loans over the years, I'm assuming that all their paperwork will be in order. However, it does no harm to find out.... if you can answer the above questions first though, it would help.... as several letters will probably need to go off at once.

[Wafta]

Don't worry about the questions, I appreciate your help and am prepared to answer anything thrown at me !

The loans have all been taken out in the past 2 years, I've defaulted a couple of times due to other more pressing commitments and I am currently paying slightly less than I should to a couple of them, but its still proving difficult.

They've always been doorstep collectors and I think that's what makes it so difficult. You can request that you pay less, explain the situation, but they have a way of making you feel really bad about it/guilty and backing down. The problem with this is that when they've gone, you realise you have to struggle the rest of the week with basic living necessities.

In an ideal world (which I know it isn't most of the time!) I'd like to stop them calling so I don't have that issue to deal with, as well as reducing the payments as much as I possibly can.

My weekly payment between the six companies right now should be a total of £147, but I actually pay (with agreed temporary reductions) £100 in total. I would like to reduce this even further if possible.

Thanks again for your help

[PriorityOne]

Originally Posted by Wafta

They've always been doorstep collectors and I think that's what makes it so difficult. Companies like this will intimidate the heck out of you in order to secure the payments they want... and while they're continuing to call round for this money, it will continue making life very uncomfortable for you. You can request that you pay less, explain the situation, but they have a way of making you feel really bad about it/guilty and backing down. Then you need to stop "requesting".... and it needs to be done in writing. Can you dig out a contact address for each of these companies ?... and I will help you to draft up letters. The problem with this is that when they've gone, you realise you have to struggle the rest of the week with basic living necessities. You're on Benefits and despite any cr&p they may tell you about going to court, no court would force you to pay more than you could realistically afford to each month.... so you have nothing to fear from these threats. Many people on Benefits pay as little as £1 a month towards debts.... the companies don't like it, but there's nothing they can do about it.

In an ideal world (which I know it isn't most of the time!) I'd like to stop them calling so I don't have that issue to deal with, as well as reducing the payments as much as I possibly can. We will deal with this one... I need to know if you have the addresses first because if not, I'll have to try and find them for you.

My weekly payment between the six companies right now should be a total of £147, far too high but I actually pay (with agreed temporary reductions) £100 in total still far too high for someone on Benefits. I would like to reduce this even further if possible.

As these accounts are so fresh (2-3 years old), your best course of action would be to send a S.A.R - (Subject Access Request) to each company in order to re-claim any unlawful charges that may have been applied over the years. Don't worry about this for now... because the most pressing issue is to get them off your doorstep and have those payments reduced to an affordable level. The Subject Access Request comes later.....

Thanks again for your help

[Wafta]

I have managed to find the addresses for all 6 companies, some more difficult than others (not listed conveniently!) but got them all now.

Thank you so much for your help on this, I feel more positive already. If there's anything else you need to know, I'll try to provide it, but as I said, I don't keep records/payment books etc to my detriment unfortunately.

Would I be right to assume I need to get account/customer numbers from the agents when they call over the next couple of days?

[PriorityOne]

Hi again Wafta...

If these guys are due to call within the next few days, then please get the account numbers and/or any reference number that each of them has for you. Ask for the outstanding balance on each account as well....

Do you get 6 separate visits from different people ?.... and do they visit on a weekly or monthly basis ?

[Wafta]

Thanks again for your help, I'll get account numbers and balances (hopefully) when they call this week.

Yes, I have six different people calling from six different companies and this is a bit of a pain to say the least, which is why I'd rather pay them a different way. They all call weekly unless I pay them in advance and ask them not to call the following week.

[PriorityOne]

Suggested letter is below.... Please don't send it to anyone yet though.... I would like some input from other CAGGERS first. This one's going to be complicated due to the high interest that you've been charged over the years. In theory, the token payments you're about to offer on each account will not see a reduction in the debt at all... and assuming they do have all the necessary paperwork (CCAs), I don't want you to be saddled with this for the rest of your life. However, you need to be able to have a life !... and you're not having a very nice one with things as they are right now.... so something needs to be done.

So..., we need to a)... stop them from calling and b)... get the token payments on the go, so that you can make a start on getting your life back from these parasites.

Here goes....

Dear xxxxx

Account Ref xxxxx

I regret to inform you that I am no longer able to maintain minimum payments on the above account. As Benefits are my only source of income, the continuing struggle to try and pay you from these funds has not only taken its toll on my own health, but the ongoing stress is now beginning to affect my son.

I am therefore left with no alternative but to offer you a monthly payment in accordance with the amount I receive in Benefits, which for the foreseeable future can only be £5 per month. However, this means that all interest and/or charges will need to be suspended to prevent the balance from escalating further.

I would also like to state that I am no longer willing to entertain any callers and/or agents in connection with your company, but will nevertheless ensure that my payment reaches you by post within the timescales you currently use. If you would prefer these payments to be made direct to a bank account of your choice, then I would be grateful for a payment book to be posted to me by return. I would also be grateful for a full Statement of Account.

I would like to re-iterate however, that in future, I will only communicate with you/your agents in writing. Should it be your intention to arrange any more “doorstep calls” in connection with your company, then please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with any representative from your company.

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore, please take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

I can only apologise for not being able to maintain the minimum payments and hope that you will see this letter as a sincere attempt to deal with my situation in a responsible way.

Yours faithfully,

Comments from other CAGGERS please ?

[PriorityOne]

Wafta, I've just asked for this thread to be moved to the Debt forums, where it will attract more input.

[pt2537]

Thread moved as requested

im sorry but i cant look over the thread now, but i will take a look tomorrow during the day when i have some more time, im really sorry but im out on my feet here at the mo

[Wafta]

Thanks for that PriorityOne, looks good to me, but I won't do anything until we have other opinions.

As a first timer here, I have to say that I am seriously impressed with the advice I've been given and can't thank you enough.

[Hopeful1]

Hi Wafta - you're in good hands here

P1- assuming high interest rates are probably being added, i wondered if it may be useful at a later date to use extortionate credit bargaining (now known as unfair relatioships) as an argument at a later point.

This link shows how i used it with a payday loan company:

Payday Loans

This link is from OFT:

The Office of Fair Trading: Unfair relationships