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Money Shop - Cheque Loans


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Hi,

I have a loan with the money shop. I basically gave them 5 cheques for £100 each, undated... pay them £15 per month per cheque, and if i dont pay them, which happened once, they let the cheque go to the bank and get their money that way..

 

Great! That one time i forget the date and it was too late before I realised.

 

My bank account had already been closed ...another thread entirely :D ( http://www.consumeractiongroup.co.uk/forum/general-debt-issues/156401-hsbc-agreement-illegible-unsigned.html ) But thats fine, no comeback from the bank yet.

 

I have been given CCA from the Money Shop which I will post later...just wondering, has anyone had a similar loan, if so has anyone found a way to beat them yet?

 

They are not troublesome yet, but its getting to the stage where I wont be able to afford them for much longer, and I have heard in these situations that they just let the cheques go back to the bank....they get their money, and the bank go after you for fraud as the account is closed and you should not be writing cheques!!

 

This all took place before my bank account was closed by the way, so it certainly was not fraud....desperation at the time... but all above board at that time.

 

Any advice would be greatly appreciated:D

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  • 4 months later...
Hi,

I have a loan with the money shop. I basically gave them 5 cheques for £100 each, undated... pay them £15 per month per cheque, and if i dont pay them, which happened once, they let the cheque go to the bank and get their money that way..

 

Great! That one time i forget the date and it was too late before I realised.

 

My bank account had already been closed ...another thread entirely :D ( http://www.consumeractiongroup.co.uk/forum/general-debt-issues/156401-hsbc-agreement-illegible-unsigned.html ) But thats fine, no comeback from the bank yet.

 

I have been given CCA from the Money Shop which I will post later...just wondering, has anyone had a similar loan, if so has anyone found a way to beat them yet?

 

They are not troublesome yet, but its getting to the stage where I wont be able to afford them for much longer, and I have heard in these situations that they just let the cheques go back to the bank....they get their money, and the bank go after you for fraud as the account is closed and you should not be writing cheques!!

 

This all took place before my bank account was closed by the way, so it certainly was not fraud....desperation at the time... but all above board at that time.

 

Any advice would be greatly appreciated:D

 

Hi...been a while since I started this, at the time there were very few threads about the money shop or Pay Day Loans...That seems to have changed dramatically since then!!

 

Anyway, if anyone can advise... My Debit/Cheque guarantee card has now expired, and as I said in my first post, the bank account has been closed for approx a year now.

I am struggling to cover these cheques each month now, and my question is... If they send these cheques to the bank.... will the bank still honour them if the account has been cancelled? Presumably, no account means my old cheque facility will also be gone?

I cant afford to wake up the bank again...they have been quiet for so long lol ...so I do not want to ring them...Without an account, i cannot even get through to speak to them anyway.

 

Any thoughts or advice please? If I knew the bank would just return them unpaid I would challenge Payday loans and the money shop :)

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Cheques are usually only valid for 6 months once dated (or it might be three), either way if they present them undated that is illegal...

Thanks Sillygirl1... problem is they will date them as and when required...ie: when I dont pay them. But as there is no account with the bank at all now... will they pay out on them still?

 

Thanks :)

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I do not rearly understand what advice you are looking for here.

You have answered your own question rearly

It you have no bank account, any cheques you have written on that account will be dishonored.

 

If you cannot afford the repayments on the loan, you need to contact the creditor and ask if you can make reduced payments.

 

Have you considered sending a CCA request?

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I do not rearly understand what advice you are looking for here.

You have answered your own question rearly

It you have no bank account, any cheques you have written on that account will be dishonored.

 

If you cannot afford the repayments on the loan, you need to contact the creditor and ask if you can make reduced payments.

 

Have you considered sending a CCA request?

 

Hi AlfWithHair

I guess I am just looking for confirmation really.

Before I start taking these on, I want to be sure I am not making things worse for myself with the Bank. The account was closed not on very good terms. So even though these cheques were given to Money Shop whilst the account was in good order, it became messy after that... the account was closed and since then the cheque guarantee card expired a few das ago.

As the card expired, they have been threatening to return the cheques to the bank...I dont want that.

I just dont want trouble with the bank too ...I have a feeeling The Money shop will be annoying enough to deal with as it is!

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Hi AlfWithHair

I guess I am just looking for confirmation really.

Before I start taking these on, I want to be sure I am not making things worse for myself with the Bank. The account was closed not on very good terms. So even though these cheques were given to Money Shop whilst the account was in good order, it became messy after that... the account was closed and since then the cheque guarantee card expired a few das ago.

As the card expired, they have been threatening to return the cheques to the bank...I dont want that.

I just dont want trouble with the bank too ...I have a feeeling The Money shop will be annoying enough to deal with as it is!

 

I am actually struggling to see how this can even be considered a loan really... They gave me £500 ..I gave them £500 worth of cheques.. and each month I paid them £15 per cheque to extend them. This has been going on for nearly two years now... £60 per month for say 20 months.. that is £1200 and a lot more if the bank allow them to cash my £500 in cheques.

 

I will CCA them once I am sure that they cannot get that £500 from the bank

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Technically the bank shouldn't pay out on them but because all the 'backroom' stuff appears to be done offshore you don't know the level of training people have there who process these cheques.

 

I think that this is part of the reason the banks are abolishing cheques altogether... one lot of companies will have to find another loophole to exploit.

 

Sadly I don't think I can offer any more constructive advice on this.

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