can never pay this off

[MANSHEZ]

Sorry if this is in the wrong place. My daughter has got herself in trouble with the local jewellers. Apparently you can write a cheque for the value of £100 payable to them and they give you about £86 cash. You then go in every 28 days and you renew them which costs £14 per cheque. She had just told me she has SEVEN !!!!! of these. If you dont renew them the jewellers produce them to the bank which of course would put her into more debt because the funds are not there.

She has paid over £2000 to this jewellery shop and cannot see any way out.

One of the girls who work in the shop did say to my daughter ,cancel the cheques in the bank, and sort out a repayment plan ,but the bank says the cheques will be paid because she signed the back.

 

Can anyone give any advice. :-|

 

Thanks so much

[the winkler 72]

Close bank account, simple.

[littletinypieces]

If your daugher has a cheque guarantee card then the cheques will probably be presented. However it may be worth trying to cancel the cheques (a fee may be charged for this by the bank).

 

I would advise contacting the company at their head office to arrange a payment plan before they present the cheques but make sure they fully explain any interest/fees that will be applied as some of these companies charge up to 1000% APR. It may be worth requesting a copy of the original credit claim. Also, make sure that they will not apply defaults to your daughters credit file.

 

In my experience, payday loan companies are not as well regulated as other credit providers so keep all contact in writing and make sure you are aware of their fees.

[MANSHEZ]

Thank you for your advice. Greatly appreciated. Today my daughter cancelled these cheques. The bank has charged her £60 and also offered her a £700 overdraft to sort it out.

 

Thanks again.

[Guest Alison82]

Don't take the O/D it will make it worse in the long run!! I was in this same postion about 4 years ago. Arrange a payment plan with the company, a realistic one that she can afford not one that they want, also tell them before hand that you expect no charges otherwise you will reclaim them, also get a copy of your credit agreement and check it out.

 

Good luck

[MANSHEZ]

Thanks. She is just waiting for the info to come from the shop. I just hope others read this and think before doing what my daughter did.