Payday loan advice please - my advice to others - STAY AWAY

[magictorch1976]

Hi All

 

I have finally taken stock of my finances after realising that I just can't go on with the pressure of being in so much debt.

 

I have 4 loans with various payday loan companies which I have been rolling over month after month. Please, if anyone is reading this, don't do it, no matter how bad it is. I will clear one with JustCashNow this month. They have actually been really good, freezing interest charges for 3 months whilst I have paid it off but that does not mean I am condoning it !

My outstanding loans after paying off JustCashNow are as follows:

PoundsTillPayday

Capital - £100

Interest - £29.98

QuickQuid

Capital - £300

Interest - £60

1 Month Loan (Oasis)

Capital - £75

Interest - £22

MEM

Capital - £50

Interest - £12.50

I have, yesterday sent the following letter together with a repayment plan which will clear the balance to all providers by December, if they agree to not add any further interest. I can afford £180 per month to do so, dividing it up between them and 3 out of the 4 will have the balances cleared by November.

To:_______________________

Customer Reference Number:_________________________

Dear Sir/Madam

With regards to the balance outstanding under the above customer reference number, due personal circumstances beyond my control, I am now not in a financial position to be able to afford the full repayment on the due date.

I enclose, for your information, a statement of the debt I owe to various payday loan providers which shows a plan to reduce all outstanding balances to £0.00 by December 2008.

For the purpose of clarity:

1. The payments have been calculated on all interest due under the agreements being frozen and no further charges added. You will therefore see that I only have shown the capital amount to be repaid. I therefore respectfully request that you allow further payments to be made with no interest accruing. This is so I am able to clear the actual monies borrowed much faster and gives you back what I have actually had on loan from you.

2. Payments are to commence on 28th October 2008, with the month 2 payment on the 28th November 2008. This will clear the debt to 3 out of the 4 providers I owe money to. The final payment to Quickquid to clear that outstanding balance in its entirety will be the 24th December 2008.

3. I have now cancelled all direct debits on my account in respect of these loans and I have also requested a new debit card to ensure that any information held by each company is now invalid. The reason for this is that this plan has been carefully and diligently worked out and if any one provider chooses to debit additional funds from my bank account, this will obviously pose an issue to the other providers. I want to ensure that you are all paid as fairly and quickly as possible.

4. In order to allow me to pay you, I need either an address where I can send a personal cheque, which will be posted 3 days before the 28th of the month or your bank sort code and account number together with a reference that I can quote in order to transmit the funds to you electronically. This is my preferred method as they will hit your account within hours, as opposed to days.

I apologise in advance for any inconvenience that this may cause but I trust that you will take my situation seriously and sympathetically, which I again state has been caused by personal issues and again, please ensure that all further interest charges are cancelled.

I am grateful in advance for you accepting this repayment plan and look forward to hearing from you shortly, in writing.

Love and Kisses etc.

Now, I have cancelled all Direct Debits and my card with the bank to ensure that they don't dip into funds I don't want them to have and muck up my life even more and also prevent me sticking to my proposals with the other providers. The only response I have had so far is from PoundsTillPayday, where they have emailed back and said that I must call "Payment Services" and they are not available by email. I have responded stating I will only speak to them via email for the purposes of traceability.

 

You will see I have asked them for a postal address, (to send a cheque) or their account details so I can transfer the funds electronically to them. Now, I am wondering how many will come back and agree to this !! I know PTPD are based in Malta or something…..do they even have a UK account ?!

I have been nice and polite to start with so hopefully that will go in my favour. The thing is, I don’t want to pay them by debit card - I really don't want them having my new details and just helping themselves. What do you suggest ? I have another current account that is not used with a Solo card, (my usual current account has a VISA Debit card,) so I suppose I could pay them from there.

Just wondered what your views were on these nightmare companies and my chances, and how I should approach this if they start going on like some of the horror stories I have read here. I am all ready to quote "extorionate credit bargain" and "take me to court and I will counter-claim," etc.

I will be making no payment to them until the end of October. Should I make maybe a £1 or £5 payment to appease them ? Also, what if they add on charges for late/default etc. How do I deal with that ?

 

Thanks all in advance.

J.

[Guest dvdriley]

You should divide your £180 by 4 and not give preference to any one lender. Ignore whatever the payday companies say and just make sure you pay promptly each month. If they take you to court they will never win given the extortionate interest rates and your prompt payments.

[adamski]

Something must be done to stop this happening.

I am in debt to pounds til payday, quick quid and MEM or payday Uk to the tune of nearly £2000 I am able to pay them off but only because I have had a PPi refund of £4000.

 

I think the forum needs to have a a place for payday companies they need to be stopped now please !!!

[magictorch1976]

I completely agree.

 

Well, it appears my letters have been received. I am being bombarded with telephone calls at work, home and on my mobile. Some have emailed me back to advise I have to telephone their "collections" department and that "my situation has been noted" etc. I have advised I will not deal in anything other than writing. Surely there is no need for me to call them ? All I need is their bank details ! I am no way giving them my debit card details - I know they will just help themselves !!

[Guest forgottenone]

Weren't some of these 'payday' companies exposed on the news recently? Some were raided following intensive police investigation ...

[adamski]

The OFT are investigating them they need to be stopped the problem is that you can borrow of several of them and it is nigh on impossible to pay them back irresponsible lending at its worst

[magictorch1976]

These people are horrendous. I have received countless missed calls on my mobile. They have called me at work and a woman with a brash american accent advised a member of my staff by shouting at her that I need to call her immediately !

 

Oasis I actually spoke to and was advised that they accepted my arrangement but had no understanding of the fact I was talking about the capital balance only being paid and not their extortionate interest.

 

Quickquid are something else. They keep replying to my emails advising that they can only process payments by direct debit and "collections procedures will continue until an acceptable arrangement has been made." They even had the cheek to enter the full amount on the form they emailed me instead of my payment arrangement. I am starting to get angry......

[adamski]

Hi

Have you seen this thread?

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/157111-stay-away-payday.html

[magictorch1976]

This gets more interesting……

 

I had a telephone conversation last night with "Cynthia" in QuickQuid Collections. She was the rudest, foulest, most sarcastic and nasty person I had ever spoken to in my life. She was a loud and brash American, (no disrespect to American's - just highlighting the fact that she was not based in the UK.)

 

Firstly, she advised me the call was being recorded. Now if this was the case, and I was managing this woman, I would fire her for complete and utter unprofessionalism and rudeness.

 

She just talked at me, the whole way though. Interuppting, being nasty. I quoted some of the UK law at her - CCA 1976/2006 etc. She asked me if I was an "attorny." I said I had the luxury of working for a law firm yes and she told me to go and ask my employer for help !!! I asked her for a copy of QQ's official complaints procedure and she didn't know what that was !! She said she would pass it onto a manager !!

 

She then demanded I pay the £72 extension fee now and then £375 at the end of the month and just kept saying this over and over and said she was marking my file as a "refusal to pay." She also said I had purposely set out to defraud the company and "did I think they just set up business in the UK without knowledge of the law there?" I said yes and believed that they were under investigation by the OFT for not carrying out appropriate checks on me, my financial situation or my ablity to repay the loan they were offering, which I believe is a requirement of the Consumer Credit Act, which she kept telling me I was legally bound by !!!

 

I came off the phone really frustrated. I wished nasty thoughts about "Cynthia" too !! I cannot believe I was spoken to like that !!

 

They won't deal with me in writing. I have sent them a repayment proposal. They say it is not acceptable. Every email I send I keep getting told I "must phone collections to set up an acceptable payment arrangement." and that "collections activities will continue."

 

I have lied and said I will pay up on the 12th September just to stop them calling me !! They are phoning about 12 times a day.

 

PoundsTillPayday have said I MUST phone them. I have refused and said I wil deal only in writing. MEM have just ignored me !!

 

Any assistance appreciated, short of sending "Cynthia" a small present from my cat's litter tray as a small token of appreciation in regard to her customer service skills……..

[Guest dvdriley]

put the phone down when they call.... send a harrassment letter and only deal with them in writing ... they will eventually learn. However I would suggest sending a postal order of £5.00 as a token payment

[magictorch1976]

I have emailed a harrassment letter. I hope Cynthia is the one that gets to read it. I told her I would pay back all the capital but not their extortionate charges and she kept quoting "my contract."

 

How dare she accuse me of fraud ! She has no idea what has gone on and it's not like I am not offering to pay back their money. I am so angry.

[IdaInFife]

I haven't used any of these types of companies but a couple of my collegues have and still do. They have been in tears on payday when these companies have taken the money a day early and not waiting for them to go in the day before to roll it over.

 

Not much I can add to your plight I'm afraid but I hope this will let others know how 'bad' it can be to go down this route. I know when your strapped for cash and need it desperatley these seem good but hopefully after reading your and others threads on them then if it helps at least 1 person to thik of another way then it does help.

 

The less people that use their services the wuicker they will go away so the temptation ain't there

 

 

Idax

[geministar2007]

Hello.

 

These are big no no companies to lend money from. But when one is desperate one will turn to whatever they can. The companies should be stopped.

 

I owe money to MEM around £96 and also paydayuk £300 odd (mainly due to their charges), who transfered my debt almost instantly once i didn't pay to chequespread a DCA, they were very helpful and held further action until i had sorted my DMP out, They accepted the reduced offer. However MEM have not even responded to my DMP provider. I have not heard from them in ages, the last was bout 2 months ago reminding me i owe them blah blah and to call and pay them. But it would seem that there was no further charges added.

 

In my opinion stay away!

[74656]

You may laugh at me for saying this, but at the end of the day they are just like any other loan. I had 7 accounts at one stage, along with 19 other creditors. I treated them exactly the same, requested a CCA just like all the others. They are expensive, and they do add absolutely rediculous charges, but in the longrun I will claim these back.

 

I recently had an interview for BBC Radio Five Live regarding my situation. At the moment it is scheduled to be broadcast on the Donal McKintyre Show on BBC Radio Five Live, Sunday 5th October at 8pm.

[Fountainhead]

I have 5 payday loan lenders and I am defaulting on them this month because I just can't afford to pay them back! I have made a website about it here if you want a look Payday Loan Trap

 

The payments were due to come out yesterday so I had a few phonecalls on my mobile which of course I didn't pick up and a few emails.

 

I am going to work out how much I can afford to pay them back each month and email them all on Monday. Just a question though - I owe various amounts to all the companies - should I pay them all the same amount or should I pay the ones I owe more to more?

[Guest dvdriley]

I have 5 payday loan lenders and I am defaulting on them this month because I just can't afford to pay them back! I have made a website about it here if you want a look Payday Loan Trap

 

The payments were due to come out yesterday so I had a few phonecalls on my mobile which of course I didn't pick up and a few emails.

 

I am going to work out how much I can afford to pay them back each month and email them all on Monday. Just a question though - I owe various amounts to all the companies - should I pay them all the same amount or should I pay the ones I owe more to more?

 

 

thats all well and good but why are there links from your site advertising PAYDAY LOANS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Fountainhead]

Because Google Adsense doesn't let you control the content of adverts on the site.

[adamski]

Hi Fountain Head

 

I have sent you an email, I liked your site.

 

Would be good to have a chat sometime

[tabba012345]

i keep reading these horror stories. My friend has gotten herself in sdame situation. i have put up a thread on here and hopefully some people can help. i want to go too one of those consumer programs. these companies pray on people in diffcult circumstances and then circle like vultures when the can't pay. If anyone wants to contact one of those comsumer prgrams let me know. i also saw a journalist on here. if you put 'quick quid journalist' into google it comes up first. i have just emailed it and hopefully i will get something back. id advise others too. all these companies lsiten to is bad publicity.

[ALI85]

HI i have been reading all the comments re payday loands as I have found myself in similar situations with these payday loan companies I was dreading calling them to tell them that I was finding it very difficult to pay the interest payment let aloan paying any of the remainding balance. I have five active loans, i am not proud of it though I fell in to the trap of applying for one to pay off another with the amounts increasing each time to where i am now...

I have one with cash genie of 350 which I am hoping to afford this Friday. I will be leaving mysellf extreamly short though I do not want to roll over this one and pay in full. The other is with 24/7 Money Box which I got to tide me over as I left myself short last time with paying interest etc on others...

The big ones which I was most concerned about where £625 to Quick Quid

£545.92 to Pounds Till Payday

£500 Payday Express

From the comments I have read I thought I would not have a hope in hell's change at negotiating with them etc as before when I was having difficulty with a previous loan from Pounds Till Payday they nearly left me crying as to how the guy spoke to me on the phone.

I am with a debt management company, they are really good at these things though when I called for advice last month they said not all Payday loan companies accept debt management companies calling etc so that would leave me try and trying each month to pay interest and not paying these companies any money to clear my debt.

Today I thought I would call them all and tell them that my circumstances had changed, i said I was finding it extreamly difficult to pay amd wanted to nip it in the bud now and be honest than let things slide, miss payments and incurr charges etc. I did not give them a story, they did not ask personal question as to why I couldn't pay etc which I was amazed at. This is what they said....

Payday Express...

I asked them for my reference number with them as I could not afford paying interest each month, I had a debt management company in place who could contact them or I could try and sort something out with them today. The lady gave me the details that I asked for to pass on to DMC I asked if I would have to keep up interest payments and the response was to contact my DMC to forward my permission and they will negotiate! What a relief! I am awaiting a call from my DMC so will keep you updated if the calls stop.

PoundsTil Payday...

I was dreading this one, I went through to payments and spoke to Christinr Quinn, i said the same to her and she asked me to get my DNC ref number and call her back with it. I called again and asked for her, another lady said that my DMC was on the other line speaking to her already, (good work, thanks Debt Stop Direct! - they obviously followed it up straight away) they put my ref number on their system. She said all interest etc is now frozen and I am to ignore all future dates I should have paid them all calls and correspondence will stop and I am to contact my DMC for updates!! What a result!

Quick Quid...

This call was before I had the idea of trying to put them on debt management. I explained the same situation, didnt mention DMC but said I want to pay it off asap though cant afford interest repayments etc. I was due to either pay full amount or £125 this Fri. She put me on a pre-default programme which means after three months it is paid off in full, they have split the amout to £208.33 starting November 10th so I do not have to pay anything at all this Fri just repay £208.33 for 3 months starting November! No extra charges, no extra interest. I have to keep strictly to the programme and not be late or miss but means in Jan it will be gone, I would have still been paying interest only on this for god knows how long! I could have maybe put it on debt management though I don't want to jinx my string of good luck today.

I just wanted to post this to tell everyone that there is hope and now you know it can be done, if they are saying they 'can't do that' you know now that they just don't want to do it.

Wishing everyone Good Luck with this and this is a valuble lesson to me never to touch these companies again I have wasted sooo much in interest. I have not cancelled my cards yet as hopefully now as this is all logged on the system they can see I have set this up if they do or if I have any further trouble I will let you guys know, though fingers crossed after today this can be the end of constantly re0jigging my pay, worrying about my normal outgoings and start using my money wisely to my advantage.

Thanks

A.J