Hi,

I currently have outstanding loans with all 3 companies, and am in a position to finally pay them. I think I have previously given each company the right to attempt to take the outstanding amount out of my current bank account, but have not had the funds available, which I now will have in a few days or so. I was just wondering what I should be looking to repay (I have had these loans for about a year now so expect the interest to be high), I was just wondering what are the next steps that I should take before paying off the loans.

Any help will be appreciated.

Hi. Sorry you were missed.

DO NOT give them any banking details. You want theirs as if you give them yours, they may try and take more than you owe.

As it is, I would write to them and offer a substantially less amount than what they want. I suggest the loan amount plus 1 months interest. See what they say.

If they refuse, you can challenge the charges and related interest added to the account. Remind them that they are under the FCA spotlight and it is their own interest to deal with you fairly.

PRA(Mackenzie Hall) rung today talking about a loan they had bought from QuickQuid, the amount was £854.55, but after some arguing they said they could settle for a lump sum of £700, the original loan was £750 and I think I made one payment of £100, I said I could pay this by next Wednesday. They said they would send out a letter confirming the revised amount. Seem to good to be true?

Muck hall will be jumping with joy if they get £700. If they have bought this debt, they will have paid pennies in the pound for it.

If you are content with the offer, OK.

I offered to pay that, what do you think that a reasonable offer would have been?

Start with 15% not including any silly charges theyve added. Put your foot down and start negotiating. Mucky hall will be glad to get anything but they will push their luck.

So the loan with QuickQuid was originally £750 and the finance charge was £187.50 totalling £937.50 and Mackenzie Hall think that I made a £200 payment which would leave £737.50. You are saying that I should offer to pay 15% which is £110.63, what do you think that I should go up to? Thanks for your help

Thats up to you. But if theyve paid peanuts for the debt ( which they most likely have) then start lower. If you can prove you cant afford to pay off the debt soon-ish, then theyll be more likely to accept a F&F.

HOWEVER. If you decide to do this, then the F&F needs to be specifically worded so they cannot try and sell any remainder on or chase it up in the future.

Ok, I told them my brother was going to lend me some money, I'll just say that he's unable to lend me it now. What is an F&F? Once again thanks for all of your help, it's has been a massive relief knowing that I do not have to pay back the extortionate prices that they are demanding. Also went to the bank today and cancelled the CPA's from Mackenzie Hall, PRA, Payday UK, Payday Express, DMR capital and Wage Day advance, are there other names that these trade under and I should look to cancel?

F&F means full and final. But as i said, if you choose that route, it must be specifically worded and it is advisable you provide proof you cannot pay anymore.

If it was me, i would make an offer for a repayment plan for now, then re-evaluate your circumstances in say, 3 months time. Then if you genuinely cannot meet the repayments, or it will take a long time to pay, offer them the F&F and show them a simple budget summary.

But I can make the repayment now, I was just wondering what the maximum I should consider paying is?

That is entirely up to you. You pay whatever you can afford. If it is a full repayment in one go, then you pay the original loan, and original contracted interest. If they want anything else, then they have to prove the amount is fair and actually legit. Things like their default/late payment charges are UE and can be challenged.

But people are saying I should only look to be paying back 15% when I agreed £700, surely it seems as if I'm being ripped off, then again if I can afford to pay it, and it is the terms of the original loan I took out.

If it's being dealt with via the PDL and you can afford to pay off what is legitimate, then pay it. If you cannot, then discuss a repayment plan. if you wont be able to meet repayments for a while, then offer a settlement figure.

If you have yet to talk to them, my first advice would be to secure your finances, then send them a letter stating that you are in difficulty and want a repayment plan. If they say no, then DEMAND one. Just make sure they stop/remove all UE extra interest and charges.

Ok thank you for all your help, I will let you know how I get on with this and my other loans.

Paid off the loans, I was just wondering whether I can get the defaults removed from my credit file?

If the defaults were recorded correctly then they will stay for the remainder of 6 years. You could have negotiated their removal as part of a F&F payment though.