Hi all,

This is my first full post here and I wanted to ask for some advice from the knowledgable folk that are always around here! Essentially, without going into too much detail, I have an impending problem. I have, in the past, used the Moneyshop to obtain 'cash 'til payday' advances on my wages. Essentially you write them a cheque for a hundred pounds and they give you £87 back. They then cash it the next month unless you pay another £14 on each cheque to extend it by a month. I have currently got £500 of debt with them and have been extending the cheques. The problem is that I am soon to be out of work and have no income until the benefits start. I am then going to be unable to extend the cheques as I can't afford it! My bank won't give me an overdraft to cover this as I have a bad credit history. So I am facing a load of cheques going out and nothing there to cover them.

I want to ask if anyone can suggest the best course of action. Do you think writing to Moneyshop and explaining the situation will lead to them allowing a repayment plan? Obviously this would be better than bouncing the cheques and ending up with a large, unauthorised overdraft and all the charges that go with it.

I'm getting really stressed out by this and any advice would be gratefully received. Thanks in advance! J

Your idea of speakling to Moneyshop and explaining your situation to them would seem the best course ofmaction at this monent in time.

At least by doing this you will be proactive and up front about your situation and as such they will, hopefully, be able to offer advice and help.

If they get snotty then maybe a visit to your local Citizens Advice Bureau may be needed.

Good luck

It might be an idea to cancel the cheques if they don't want to listen as there may be an issue of you writing the cheques knowing there's no funds to cover them. Will also save a lot of charges. Get in before they do if need be.

Good luck, Dave.

I used to use them all the time, it apears a good idea when you need money but like you say you end up delaying them and one day they have to be paid. Well i would speak to them and see if they can do anything, if they cant they could bank them as they will be "Gaurenteed cheques" using your cheque guarentee card, this will result in you going over your overdraft and getting charges from the bank which you will then want to reclaim.

If none of this works maybe take out a small £500 loan? my credit record was seriously bad but there are some lenders although the interest rate will not be good!

Hi there - I too thought they were a good idea until things spun out of control for me.

I was in the same situation and spoke to them - all they could offer was a 12 month loan for the value of the outstanding cheques plus interest - I'm not sure if it is an agreement under the CCA - no credit cheques were required - but you have to pay it by direct debit - this may give you some breathing space.

Best thign to do is speak to them as I am sure you don't want to increase your debt!

All the best!

I know it's a slightly different issue givingitago, but you say that you don't have a very good credit history. Are there any charges from your bank account or previously loans you can claim back?

I know this doesn't help your immediate problem but it may get you a little more money in the next 2 or 3 months.

Hi there,

I've just got off the phone to 1st credit who have been passed the account from the money shop. Originally the debt was around £400. Now it's £800. They told me that £428 of interest has been added (defualts etc), which I'm clearly annoyed about. What shall I do? Shall I pay the full debt or shall I argue that £428 worth of charges is totally unfair?

If someone can help, then I would be very grateful. 1st Credit are now saying that it will be passed over for court action!

Thanks

This will be the same as when a DCA sends out a letter claiming they now own the debt? You have already acknowleged the debt by telephoning them. So I don't think you would get away with denying any knowlege of it.

Send a letter and £1 postal order asking for the original agreement and a breakdown in charges. Remember not to talk to DCAs on the phone deal in writing and don't use your normal signature.

See what they come back with.

Thanks - I take it I need to ask the DCA for the breakdown of charges or do I need to contact the moneyshop? Also, is there a template letter for this?

Thanks

Sorry guys. Can anyone help with this?

Thanks - I take it I need to ask the DCA for the breakdown of charges or do I need to contact the moneyshop? Also, is there a template letter for this?

 

Thanks

Hi Gary There is a template letter I'll try and find it and post the link here for you. You send it to the DCA. They will then have to prove to you that the debt is enforcable.

http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/20758-creditors-dcas-letter-templates.html

These are the template letters you will need to send letter N.

I got a letter from a DCA asking for money or they will take me to court. I sent this letter and they wrote back saying they are not going to persue it further. Give it a go and see what 1st Credit come up with

Ok - Thanks. However, I already wrote to 1st credit saying this:

I would like to inform you that the balance of these accounts are in dispute with the original creditor due to unlawful charges. Therefore, I consider these accounts to be in dispute and no further action shall be taken until this matter is resolved pursuant to OFT guidelines Section 2.8 k. "not ceasing collection activity whilst investigating a reasonably queried or disputed debt."

I also reserve the right to pursue the legal owner for any and all unlawful charges that have been levied on these accounts.

I am prepared to take all legal action necessary to recover these unlawful charges.

Shall I now follow it up with Letter N? I'm worried now I've sent the wrong letter!

Many thanks!

I wouldn't bother with letter N now. Have you disputed the charges in writing to Moneyshop?

I'll check in tomorrow got to go now and get Tea on

Yes, I sent them a letter today asking for a full breakdown of charges and payments.

Hi gary

Again just wait until Moneyshop respond then take it from there.

Ok thanks. I'll post further details when I get a response.

This may be a silly question but are the moneyshop bound my the banking code

No - they arent a bank so therefore no.

I complained to the moneyshop about the 25.00 charge per cheque - as i informed them that i have no funds available due to my unemployment situation. - Anyway they ignored this. I made another complaint.

The Moneyshop 'investigation' - standard response its a 30 day loan and you will have to pay all charges and extra interest.... I asked for a statement of account and breakdown of charges which they have not supplied.

They say i have to complain to British Cheque Cashers Association first before i can complain to the Financial Ombudsman servie. It it worth complaining the BCCA?

In the credit agreement it states

"Complaint we cannot settle via our complaint procedure may be referred to the Financial Ombudsman Service."

Theres no mention of the BCCA.

I would also like to know if the £25.00 charge per a cheque worth under £50.00 is fair.

The moneyshop said thats what the bank charges them? Is this true?. (I did inform them of my financial difficulties)

ive just sent them a SAR regarding my daughters account there. Dont know whats going to happen now though, have no idea how these people operate.

my partner had a payday loan with moneyshop and recently we changed bank accounts but didnt inform them and this morning i woke to find they had taken 3 payments from my new account of 25 pounds.

is this legal? as the checks were with an old account at a different bank account.

i was very shocked to find they had drained my account of my household bill money. is there anything we can do??????????

my partner had a payday loan with moneyshop and recently we changed bank accounts but didnt inform them and this morning i woke to find they had taken 3 payments from my new account of 25 pounds.

is this legal? as the checks were with an old account at a different bank account.

i was very shocked to find they had drained my account of my household bill money. is there anything we can do??????????

How on earth did they manage that? How did they get your new details if you have not told them?

I would be straight on to the bank to see what they are playing at.

I called my partner and he said he had extended the cheques a month ago and used his debit card for the new account.

called my bank and they said theres nothing they can do and that he would have to call moneyshop to see if they will refund the payments (very unlikely) and that even if we cancell the card they could still manage to take the money from our account! this is daylight robbery how can this be justified. im highly annoyed right now and can see my partners dinner being in the dog tonight!

They probably snuck that agreement in under a poorly worded terms and conditions page.