another in a pay day loan mess

[abc1234]

i know i'll be echoing a number of posts and threads but i've been juggling 3 payday loans for over a year now and i'm so depressed and sick of it. i dread to think the thousands i've paid in interest alone and not moving the total due figure 1 penny. im due 500 + 125 interest to payday uk, 400 + 100 interest to quick quid ad 500 + 135 interest to poundstillpyday, and im in a mess because of it. 355 a month gone in interest before i even start. i've tried woring all the overtime going at work to pay off all the interest and try to reduce them by 100 each a month bu its not working, i still end up back at square one. all the extrahours and constant worry about this is making me ill. i have other unsecure debt that i feel would be perfectly managable if i didnt have this big black hole in my salary every month. paying 350 a month wouldnt bother me so much if it was reducing the over-all figures but its not.

 

since reading a lot of threads here i've become slightly more optimstic i can get out of this mess, but it seems the 3 companies i have the pleasure of having dealings with are also the 3 who seem really tough to deal with and can be quite intrusive into your life. i've also had the mis-fortune of one of my work colleagues tell me 'i received a call from a qq looking for you at work today' i almost died. this loan defaulted through no knowledge or fault of my loan and they were onto my work in a flash.

 

this is one of my biggest worries in taking my 1st steps into dealing with this.. them phoning my work. i've already changed works phone number on one of them but i dont know if this will help as they probably have a record of the other one i issued and will use it no problem to try and track me down.

 

i know in my heart if i could magically be offered a no hassle settlement period of 80 per month each to the 3 of them until they were cleared, no hassle or probing then i would feel so happy with a massive weight lifted off my shoulder. i think i would be able to start enjoying my little life again. but it doesnt appear this is going to be the case.. it seems like its gonna get a whole lot worse 1st!!

 

if they were to all agree to a monthly repayment deal with no hassle i think i would cry with sheer relief, but it looks highly unlikely considering the companies i'm dealng with. has anyone had any hassle-free negotiations with any of these lenders and if so what kind of approach did you take? any help info or ideas would be much appreciated by anyone.. in a mess and need to start working to a solution istead of throwing away good money after bad in sheer interest every month. my credit rating has obviously stooped that low, now no company will lend me a few thousand to help bail me out and help spread it all out at a better rate.... if only !

[abc1234]

i'm even contemplating a logbook loan against the value of my car to pay these guys off. hopefully help spread the cost and lose the fear of my work being contacted

[Dustyd]

whatever you do, don't do a logbook loan. If you think your life is a misery now....

 

If they won't negotiate, cancel your card and that way they will have to negotiate to get a payment.

 

Good luck

[MsWeatherwax]

i'm even contemplating a logbook loan against the value of my car to pay these guys off. hopefully help spread the cost and lose the fear of my work being contacted

 

PLEASE, PLEASE don't do it. The interest rate is just as extortionate, and it's just putting yourself out of the frying pan into the fire.

 

I'm not recommending this course of action because it's what I did without any legal knowledge (I hadn't really found this place as such, so I was making it up as I went along) and I don't know if it's legal or correct, but I am sure someone else will be able to give you better advice anyway.

 

Firstly, I opened a new account and arranged to have my salary paid in there - for my 2 cents, I'd check out your local credit union and see if they do a current account. They're much fairer than the high street banks.

 

Then (this is the possibly iffy bit), I let all my PDL's bounce to Russia and back. Apart from the fact this is a bit naughty and put me in breach of my contract with them, it also meant I got about 30 calls a day which I know you're keen to avoid. What I CAN tell you is that there are laws regarding telephone harassment and I know that there is a form letter somewhere on here to send to these companies to stop them calling you at home AND at work. I'm sure someone more knowledgable than myself can point you in the right direction.

 

If you take this course of action, you will almost certainly incurr additional fees, so PLEASE bear that in mind.

 

What will happen next is that the PDL companies will either miraculously decide that they are suddenly prepared to negotiate a payment plan, or they'll pass you to a debt collection agent who will negotiate a payment plan with you ( I had 2 of these offer me a reduction for payment in full - cold comfort after thousands of pounds in interest already paid, but after paying £400 pounds a month for what felt like forever, it got me free of 2 of them inside 8 weeks which was a blissful feeling ).

 

When you DO negotiate a plan, for the love of God DO NOT give them your new bank details! Transfer the cash into the account that you already gave them the details for - another thing I learned the hard way is that if they think you have money going into a new account, they WILL try to take the lot on the day they think you'll get paid.

 

I think that's about all I have for you, but I would strongly advise that you wait to hear from someone who is better informed than I before you make a decision on what to do...there may be a better plan.

 

 

I completely understand how horrible you feel - I was there myself and it really does feel like its never going to end, but you can and will sort it out. I'm begging you though - PLEASE don't consider any more loans because it honestly won't help...I and many others here are the voice of painful experience to that folly. If you really feel compelled to go down that route, again I would suggest talking to your local credit union - they may not help if it's megabucks you need to pay these off, but they give good advice and they're not judgemental at all in my experience.

 

Good luck!

 

EDIT: Have you tried negotiating with them yet? You never know, although as you say there are horror stories about the companies you mention, there have also been successful negotiations also!

Edited August 3, 2009 by alimcg1976
Sudden afterthought!

[mjc007.5]

Hiya,

 

 

Have been exactly where you are and much worse besides so know exactly how you feel. Broadly agree with alimcg1976 (excellent post) and certainly no better qualified but perhaps slight variation in some details:

• Firstly if at all possible avoid any further payday loans and certainly not log book loans. This may seem hard, but the only way you will go if you continue to borrow to service the previous loan is a very, very dark place. I have been there, it is not nice . If you are thinking in terms of consolidation (which can work for some) then as alimcg rightly says try talking to your local credit union
  
• You will need a parachute account for your salary. We are not advocating debt avoidance in any way simply that you must be allowed to maintain control of your monthly income. If you stay with the account you have they will try every which way to drain it of what they believe you owe when you default
  
• Once you have the parachute account, cancel any and all payment authorities on your old account. Advise the bank (by phone and in writing) that you revoke any and all previous, current and future authority to each company
  
• If any of this lending is backed by guaranteed cheques then you must cancel them. Preferably with cheque numbers (your old bank will charge you for the privelidge)
  
• Continue to watch your old account like a hawk - they will try and reinstate payment authorities, they will present cheques and the banking system may still allow some or all of this through (some folk have faired better with the old bank stopping things properly but you must presume some loss is likely to your old account)
  
• You can let things bounce (Russia is good ) or you can contact them all to advise - I tried the latter and to be honest initially it was horrible but I figure demonstrated absolute intent to pay back what was borrowed (note the difference between this and what they are attempting to charge in fees and interest)
  
• As has been said, there will be lots of phone calls and gnashing of teeth. Various template letters on here for this, reporting them to various authorities (FSA, FLA, OFT, Trading standards). This bit is way hard, they are attempting by any means to make you pay what you cannot afford at a rate you cannot afford. Do not let them intimidate you.
  
• Practical steps for this include a second number at home (internet, skype etc), setting a group up on your mobile with a distinctive ring for all of the firms that are chasing so you can ignore (I have the imperial war march from star wars, amend to suit!), if you have the cash purchase a truecall from here (looks awesome, I cannot afford at present). As a last resort you can change numbers. There are many more on here (and some will cheer you up along the way! )
  
• Keep everything in writing (email is okay to). Make them a monthly payment offer you can afford and stick to it - this is often more than they would get in the unlikely event they went to a court and although they will try to bluff you they know this.
  
• As has been said, some will agree straight away, some will eventually, some will not and some will even go away! (not many for the last one!)
  
• Crucially, as has been said DO NOT let any of them have your new account details. They will help themselves!
  

Think that is all I can add/agree with for now - hope to have helped a little.

 

Best of luck

[MsWeatherwax]

Thanks mjc007.5, and all of the above whole heartedly seconded! There's some very important details in there, especially about keeping everything in writing.

 

The bit about monitoring your old bank account and making sure that they are aware not to take any new instructions is hugely important though. I got bitten VERY badly by not doing this...most people will tell you that these companies can't set up new direct debits without your permission but I can tell you from experience this is not the case. They just put a new reference on the old DD instruction and resubmit it - you wouldn't believe the amount of bank changes I ran up before I cottoned on to what they were doing.

 

Also, however much you want to pay them off, don't promise more than you can pay. It's all very well sorting this out, but if you don't keep it realistic you'll fall right out of the gate and end up feeling bad about it all again - and feeling bad about it is how they keep you right where they want you, i.e. completely beholden to them and making promises you can't keep.

 

Quite honestly, I just want to re-iterate that although it all feels very bleak at the minute, it will get better. I can assure you from personal experience, the first month you check your balance 2 days after you get paid and it doesn't stand at 0.04p you will feel very rich indeed, and the feeling that you're back in control is worth every second of the difficult phone calls and faffing around opening a new account. Keep in there, you'll be fine. I'll be keeping my fingers crossed for you, let us know how you get on.

[abc1234]

well a really big thanks to everyone who's takn time out to get back to me, its really quite heatening, thanks v much. cant believe ive never stumbled across this forum before

 

it's all stil a bit much to take in just now but i'm willing to wait a week or so before i take a deep breath and start acting on my decisions. my paydays are all end of the month, but want to have the ball rolling a few weeks before that, 2 weeks before then is when i'll have to start acting. its all a bit scary but i know the long term benefits are there and there are success stories all over this forum as well as some of the bad stuff but there is hope i suppose, this forums proof. i know i have the wage to sort this out but it just seems to beat me every month.

 

i will try to take in as much as i can from this forum then i'll at least know the basic facts on the law and what to do in certain circumstances for when and if they arise. in the meantime i have a little bit soulsearching to do before 'd' day... or should that be 'p' day

 

the thing that worries me about changing bank (eventhough i know this is an absolute must from my limited and new found knowledge) is my situation with them too. 2 seperate overdrafts on 2 seperate accounts from when i was younger.. totalling 2k or there abouts. and my personal loan.. i think i'll just start getting grief from them now although the money to pay these is perfectly managable, MINUS the PayDays! they are whats crippling me, so i need to deal with them 1st before i start to see any light. then i can get working on paying off all the other stuff and get on with a stress free life again

 

thanks again for everyones comments much appreciated

 

p.s i've been checking out the logbook loan section here over the last few hours and i'm pretty sure i won't be going down that route any time soon, it sounds brutal and like a living nightmare. thats why this forum here is proving to be a true life line

Edited August 3, 2009 by abc1234

[mjc007.5]

Hiya,

 

Glad to be able to contribute to any level of help or support - this place is a marvel and their are many more experienced members here who have seen pretty much every scenario you can think of!

 

They (the payday lending sector) want you to think that paying them comes above all else (I had one suggest to me that a clear priority debt should be ignored to pay them in full!) and if you follow this path other debts start to be compromised in favour of trying to sustain this, further extortionate short term loans follow and so the downward spiral continues..... good for you stopping before you follow those of us that went into freefall like this!

 

The ideal situation in changing to a parachute account will be to find one with a bank that you do not owe anything to - this gives you absolute control and the loans etc you refer to can still be serviced appropriately as just another debt. There are many perfectly serviceable basic accounts out there (both mainstream and increasingly now even credit unions) and this is where I would recommend going for a new account.

 

I have found for me that focusing on these loans led to despair so have attacked everything together - it is complex and difficult but slowly working for me. Combine as you say the excellent advice from the folk here with free advice for from the likes of CCCS, payplan or nationaldebtline.

 

Stick to your guns, you will get there, they will all get what is legally owed to them (the dispute may come with how much is legally owed and how quickly). Keep posting, folks will do their best to help.

[MsWeatherwax]

No problem, I hope it all helps you.

 

Just one quick note though: Obviously, I don't know how big the organisation you work for is, but if you're planning on going down this route, I would open the new account sooner rather than later. I know one of the issues I had early on with my cunning plan was the discovery that the cut-off for changing payroll details in my very large organisation was the middle of the month - which of course meant another month of paying extortionate interest. Either way, the sooner you do it, the sooner you loose the millstone, right?

 

You can find a list of credit unions at the site below - find your local one, then ask about current accounts.

 

ABCUL

 

Again, very best wishes, I hope it all pans out for you.

[Jay...]

How will not making these payments effect my credit report? I have loans with PDU, Wonga & Quick Quid. will either of these companies log a default on my credit report?

[mjc007.5]

Hello Jay,

 

No guarantee I'm afraid and theoretically they certainly can impact on your credit report but to date experience suggests this appears to be rare. I have been in trouble with a number of this type of "provider" and so far (fingers crossed) nothing on any credit file.

 

Cheers

[abc1234]

hey all.

 

i'm back

 

so my situation is pretty much the exact same. continuing to pay interest at extorsionate rates and getting more depressed and distant from the world by the day / month. the one place i find some normalitly and enjoy being is actually my work, which i never thought i would ever say. this month was particularly hard, monthly salary gone by the 7th and my partner supporting the both of us for over 3 weeks on not a great wage. it's been hard, although at least now they know the mess i'm in. plenty over-time worked this month to help pay excessive bank charges etc etc which are crippling me also.. NEED to get out of this vicious cycle too!! so i have some money to play with in dealing with these companies this month, unless they get there 1st of course!! no it can't happen, it can't.

 

...plus . and ashamed to say one more pay day loan to my name, 195 in total. 150 + 45 interest.

 

but as from late last week, now i AM acting though to get myself out of the myre which started with beginning to open a new bank acc for my wages

 

 

short term plans and actions to date..

 

 

- new bank account all but opened up at a new bank. just need to sign the paperwork and send it away. this is where my october salary and everyone there after will be going. bank card on my actual account reported 'lost' today.

 

- phone my bank tomorrow and instruct / ask them to cancel and not allow any transactions / direct debits on my account on all of these companies.

 

- my pay day and impending loans are set to leave my account on the 28th. constant check of any direct debits being set up on my account daily tomorrow, the next day, the day after that, and for the foreseeable future.

 

- em@il sent to qq tonight...

 

Dear Sir/Madam,

 

 

I am writing to inform you that I will not have the funds to pay my payday loan off on 28th September (£100.00 to roll over). The total loan is for £500.00 (Inc interest), unfortunately due to debts spiralling out of control with several creditors it will be literally impossible for me to pay this in one go. I apologise for this wholeheartedly and propose that you freeze the interest on my account and let me pay you back at a rate of £60 per month (starting this month) until all debt is paid in full. I can confirm I can realistically pay this amount every month.

 

I would greatly appreciate it if you could send me an e-mail by return to inform me if you agree with my proposal. Unfortunately even if you don’t, I don't think I can possibly afford anymore than this. I have stopped my debit card so no transactions can go through and I would appreciate it if you could give me your bank details and a reference to quote when sending payment through to you.

 

I pray that you will take into consideration that being a loyal customer to yourselves over several months, with no track history of non-payments, and paying over £1000.00 in interest alone will hold me in good standing with all future correspondance.

 

Again, I sincerely apologise for any inconvenience this may cause and I request that all contact from you be made through e-mail or post in writing and not by telephone.

 

Thanks in anticipation,

 

this was pretty much copy and pasted from another payday mess thread.thanks very much and hope you don't mind if you are reading this and recognise the letter

 

turns out i have already defaulted on the interest rollover from and haven't even realised because there is so much going on in my bank account.

 

already recieved a reply..

 

Dear xxxxx,

Customer # xxxxx

 

We received your email regarding your loan balance and your situation has been noted. Collection procedures will continue until an acceptable payment arrangement is made on the default balance of £ 112,00. Collections can not make arrangements for debt not yet past due. Therefore QQ must advise you that the balance will be deducted on 28/09/2009.

 

QQ recommends you contact a professional, licensed debt manager if you are feeling overwhelmed by debt.

 

QuickQuid Collections Department

 

so does this mean i have to wait and default on the whole sum this month then the fun will begin? all i have recieved is a few em@ils from them this month to the effect of..

 

 

Notice of Payment Past Due

 

Dear xxxxxx,

 

Customer ID#: xxxxxxxx

Total Amount Due: GBP 612,00

 

You currently have one or more payday loans from QuickQuid which are past due. Because of these overdue payments, your customer status has been changed to "In Default".

 

Below is the list of loans which are past due:

 

ID: xxxxxxx

FUNDING DATE: 28/07/2009 AMOUNT: GBP 400,00 DUE DATE: 28/08/2009

 

 

At QuickQuid, we value your business and ask you to contact us immediately to resolve this matter.

In order to keep your customer status in good standing, and avoid further costs, it is essential to repay these loans in full within 15 days from the receipt of this notice.

 

If we do not receive a response, we will take that as a refusal to pay and will take appropriate collections measures which include, but are not limited to, the use of a third party collections agency.

 

If you have already made payment arrangements for the entire balance, please disregard this email.

 

If you have any queries, our Collections Department is here to help.

 

 

seems qq might be reasonable with me come default day, or is this just wishful thinking??

 

also em@iled pretty much same letter to P2P but offered £70 per month. and was replied..

 

Dear xxxxxx,

 

Thank you for your email.

 

We acknowledge receipt of your e-mail which we have forwarded to our Payment

Services Department for their attention.

 

Kindly note that Payment Services are only available via phone and would not be

able to answer queries via email therefore we encourage a call to them at your

earliest convenience on their freephone number 08000 32 76 53, their hours of

operation are 8am to 8pm Monday to Friday.

 

Thank you for choosing PoundsTillPayday.co.uk

 

Kind regards

 

 

well this is no good to me at all. no useful info for me plus i don't want phone calls on the advcie of my previous replies on this thread?? any ideas on best route here? it was customercare i em@iled. i couldnt find an alternative em@il address to sent it to.

 

- thats all so far i think

 

- most likely rolling over the new pay day loan, it's 'only' £45 and will free up some much needed cash this coming month. makes sense for this month i think. hopefully this one can be paid off in one go in a few months time.

 

 

 

anyone have any advice / critisism on my actions and pro activeness so far? all welcome, good or bad. i'm ready to take it all on starting on monday, screw the potential phone calls at work, sh1t happens and it's something i'll have to deal with if / when it comes h

Edited September 22, 2009 by abc1234