Hello All

Here's my story, any help or advice given will be appreciated.

Basically, I took out some payday loans at the end of December 06,

6 cheques x £100 each, a total of £600. These were due to be banked between 17th and 29th January 07, but unfortunately they bounced.

The company sent me some letters (last one dated 02/02/07) informing me that the cheques had been returned unpaid and that I had incurred a fee of £10 per returned cheque. They asked me to pay the outstanding amount within 7 days or they would pass the debt, plus additional costs (amounting to 35% of the debt) on to a collection agency.

This they have done to a firm called Chantry Collections in Wakefield.

They sent me a letter, dated 05/02/07, saying the usual stuff and with a balance of £635 owing.

I had no contact with this firm until last Wednesday, when one of their employees rang me at work. He started doing the security check routine until I told him I'd ring him from home on my dinner break.

During this conversation, I was told the balance was now £785.

I explained I was expecting a loan to be paid out that week but the payment had been delayed but i should receive it by Monday 19 Feb. The guy told me that if I paid the debt by Monday he would stop the balance rising to £850.

The good news is, the loan was paid into my bank account on Monday, which means I am in a position to pay the debt off. As I wanted some advice regarding this matter, I rang the company on Monday and told them I was sending them a cheque.

The question is then, where do I stand in relation to this agency. Do I have to pay them anything? It seems quite a big increase in the balance considering it's a relatively short amount of time that the debt has been owed.

I have thought about:-

1) sending a cheque to the original firm I placed the cheques with and missing out the agency. This could be an amount for £600 or £660 if I include the fee of £10 per returned cheque, or

2) sending a cheque for one of the above amounts to the collection agency, politely hinting it's a 'take it or leave it' offer.

I don't mind paying the debt back, but having read on here about the way banks etc rip people off, I don't want to pay any more than I have to.

So, any suggestions or advice? Also, what can I do if this company keep ringing me up at work.

thanks in advance

Steve

Hi,

If I were in your position, I think I would take option 1.

Go back to the creditor and pay the original debt - plus the 60 quid charge (which is probably fair enough) and cut out Chantry altogether.

It would be very important to get something in writing from the original creditor to say the debt is satisfied, but once that's done there's nothing Chantry can do, and all these mysterious and probably unlawful charges can take a hike.

Just an opinion.

All the best.

Hi Steve

Just read your post. I was in the same situation as you just over a year ago. If only i knew then what I know now!

Pay back the £600 as and when you can afford it you can make an arragement (if you haven't cleared it already?!). The rest; ask them for a breakdown showing exactly what it is for, if they can't do this then follow the same steps as you would with bank charges i.e a letter before action with the total amount of charges to be claim back (even if you haven't payed them off yet they can be voided from the account)

Don't let them intemidate you!! If you don't feel comfortable talking to them on the phone then ask them to only right to you. Don't stabds for anything!!!

Read some of the other posts!!!

Good luck

Hi

Thanks to both of you for your replies.

Basically, I sent a cheque (21/02/07) for £660 to the original lender which they have cashed (01/03/07). I also sent a simple letter to Chantry Collections (21/02/07) telling them what I was doing. I asked the original lender to send confirmation that the debt was now settled but haven't received any letter as yet.

I have received a letter from Chantry Collections, dated 28/02/07, claiming an outstanding balance of £150 and if not paid within 7 days of this letter, they will advise their client that court proceedings are required ....

I'm going to write to Chantry again but was wondering what I could say in the letter. Anyone got any tips etc

thanks in advance

Steven

There may be a letter amongst the standard replies that you could adapt to your own situation.

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

I would think it's very important to get something in writing from the original creditor that the debt is satisfied; the situation appears to be Chantry are now chasing their own charges they added, which are probably not legal anyway.

It's highly unlikely they will take the matter any further if you make perfectly clear to them you have paid your debt (+Charges) to the people you had an agreement with, and you have no intention of paying Chantry money they are not entitled to. They may threaten you with court, in which case you can challenge them to justify the extra 150 they have added, and tell them you would certainly contest any court action.

Bearing in mind it costs them money to take you to court, and they would most probably be unable to justify adding charges to debt which already settled anyway, I think they will let it drop. I really don't see how they could win this one.

A receipt of some kind is important....at the very least hang on to your cheque stubs and bank statements until this is over.

All the best.

Hi

Thanks for the reply dannyboy660, it's given me a good idea of what to write to Chantry. I will also include something about not ringing me as they have rang me at work and left messages on my home phone.

If I quote a few 'Acts', this should be enough to scare them off.

cheers

Steve

Did you send the cheque in full and final settlement?

When I sent the cheque (£660) it was for what I considereded full payment for the money I owed, which was £600 + £60 fee for the cheques being returned. I didn't use the words 'full and final settlement' in the letter but I did ask them to write and confirm that the debt was now satisfied.

Hi Steve

Thats good to hear!! I see no need to pay any other money to Chanry, they add about £35 per cheque for nothing!

Good luck

Hi

Thanks Alison, I have sent a letter to Chantry today, will be interesting to see what happens.

Steven

Hi, Just recieved a call from them as they have now read and understood my second letter.

They tried to tell me that the £35 consits of £10 from the previous company that the banks charge them and they pass this on to the customer and £25 they charge for paperwork!!! What kind of paper do they use!! I love some of that paper!!

Anyway I had a right go at him, he didn't have much to say for himself and is going to get a more senior manager to speak to me tomorrow!!

LOL (I don't care if they can see this by the way!!)

So Steve keep going I don't think this company is used to customers fighting back, just make sure you follow the procedure and don't agree to anything over the phone, if you get stumped just say "we'll I can see this is going nowhere therefore you shall revieve yet another letter from me in the post" and come back here!!

Oooh by the way I got £150 back from a similar company last week!! she caved in after the second letter , cheque in the post, now i can send out all those SAR's I've been waiting to send!!

Hi Alison

Well done on the £150. I'm in the process of waiting for my claim with A+L to run it's course. That'll be a good day

The above breakdown would suggest that they are charging me £25 per cheque for their own fees, even though they make it read that they are trying to get it for their client. Told them in the letter that I would be sending no more payments.

In all fairness I feel that the debt has been satisfied; the original lender has had their money paid back plus the bank fees covered. They've suffered no loss. Given the fact that the delay in repayment was less than 2 months, it makes me mad that their charges can be nearly as much as the original debt. These types of companies are just chancers and parasites, using peoples debts as some kind of cash cow. What a relief to find this web-site.

thanks

Steven

I've just recieved a call from the manager Paul Marshall and he has agreed to write off the debt!! (considering I owed them £5 rather than £350 like they tried to say!!)

And this was only after 2 letters and 2 phone calls, 2 down 1 to go!!!!

Their number is

01924 201 683

Excellent news

I'll probably get something back off them in the next few days. I'll let you know.

Steven

what i would like to confirm is clarity an in house dca for pounds till payday, you get no sense out of them, they just shout at you and you end up putting the phone down.

you ask for notice/deed of assignment, cca request etc

they just say dont need to give out that info

i know its total *(*^&%*

BUT THERE IS NO COMMUNICATION WITH THESE PEOPLE

what i would like to confirm is clarity an in house dca for pounds till payday, you get no sense out of them, they just shout at you and you end up putting the phone down.

you ask for notice/deed of assignment, cca request etc

they just say dont need to give out that info

i know its total *(*^&%*

BUT THERE IS NO COMMUNICATION WITH THESE PEOPLE

Unless you're a masochist you should never talk to these people. Just write to them with all your queries. Politely, courteously but firmly.

As for not having to give out that information : they are telling lies.

Hello my husband has a loan with poundstillpayday, which is due out of our account tomorrow, i can cancel the direct debit online, and NEED to cancel it as i will not have enough money for the mortgage if i pay this tomorrow, i had a loan for £400 but with the interest this will be £520 taken out in the morning, i am so scared of cancelling the direct debit though because of the phone calls and letters he is going to get, (i have changed the phone number today on their website to our old one which i know is not in use! but they prob still got the correct number stored somewhere!!) i am too late to try to ask them to accept reduced payments until cleared before it is due but what do you think i should do and what is the worst that can happen? any info most welcome PLEASE

Hello my husband has a loan with poundstillpayday, which is due out of our account tomorrow, i can cancel the direct debit online, and NEED to cancel it as i will not have enough money for the mortgage if i pay this tomorrow, i had a loan for £400 but with the interest this will be £520 taken out in the morning, i am so scared of cancelling the direct debit though because of the phone calls and letters he is going to get, (i have changed the phone number today on their website to our old one which i know is not in use! but they prob still got the correct number stored somewhere!!) i am too late to try to ask them to accept reduced payments until cleared before it is due but what do you think i should do and what is the worst that can happen? any info most welcome PLEASE

Hai i came up with nice webiste which is delaing with payday loans especially there we can browse different topics and infomration on payday loans and also they helps oin getting payday loans very quickly according to our needs

Interesting first post - not a Wonga employee I hope?

I have had similar problems with a payday loan company. I lost my job back in september which meant I could not pay my loan back. I actually contacted the company as soon as I knew. I have regularly updated them as to my financial position. On tuesday, my daughter had her money paid into my account because she did not have one, as soon as the money hit my account, payday UK took it. I immediately phoned up to let them know this was not my money they had taken but my daughters money. I told them they had to pay this back. I provided several documents of proof, prooving it was my daughters money. On friday morning, they phoned and agreed the repayment, 2 hours later, the manager phoned to let me know they will not return my daughters money. I contact consumer direct who were very useful, and told me the loan company is in breach, and to demand the repayment. I have done so, but its still no. They are aware its not my money, and I have told them, taking someone elses money, is theft.

Please advise on any rights i may have here.

Thx

I'd go with option 1, send a cheque to the original firm that you placed the cheques with and avoid the agency. But i would also call the original firm once the cheques are in the post, telling them they will receive the money in a few days.

Hopefully then they will cancel the agency's action and you won't have to deal with the horrible collection agency at all.

Whilst this is good advice well until it comes to writing cheques, lets not be resurrecting old threads !