Payday loan advice **

[insigniades]

Hi everyone

 

I'm new here so please, be gentle!

 

Basically, I got myself into a bit of trouble with Payday loan companies : Quickquid, Payday express and PaydayUK and I'm now basically in the ****.

 

I've sent an email to Payday express and PaydayUK asking if I can pay them £50 a month and them to freeze the interest, failing that seek advice from the ombudsman.

 

Have I made the correct decision or a horrible mistake? - I don't fear debt collection agencies but are they likely to get involved at this stage?

 

Thanks,

Glenn

[Tink_2010x]

Well done insigniades on taking the first step! I was in exactly the same position as you last week and now I feel much better.. I think you have made the right decision.. Think DCAs dont get involved until after about 3 months but im not an expert on that.

 

First things first have you cancelled you bank card - reported it lost/stolen? if not do this straight away because if these companies get chance they will take whatever they can out of your bank..

 

One of my loans is with Payday UK and they have accepted a plan with me for £50 a month via email (which I have saved) but I am still waiting for them to send me their bank details so I can pay them because I am not giving them my new card details. My other 2 are being pains just sending standard emails.. Payday UK will keep ringing you and leaving you voicemails but I ignore them and write them an email which they reply to soooo..

 

Hope this helps a little - like I say im not an expert on this I have only been able to get through it thanks to everyone from this site helping with their advice!

[insigniades]

Hi Tink

 

Thanks for the response, unfortunately it appears they are not so interested by my offer and they want me to phone to talk to them... Which I am unprepared for as I want any agreements in writing.

 

The response I got from PDUK was:

 

"Dear Glenn,

 

Many thanks for your email.

 

We will need to try payment as per your Loan Agreement on 19/10/2010. If this payment fails then a member of our repayment team will contact you. "

 

That will definately not go through as I have just changed bank providers and they are yet to receive the details.

 

Payday Express hasn't bothered responding yet.

 

How do you think I should proceed?

 

Thanks again, all info is very much appreciated!

 

Glenn

[Jamie Kingston]

Glenn, simple, call them, make an arrangement and get them to email you confirmation. The quickest and easiest way is to contact them but have everything in writing and never give out your sort code, accout number or card details. trust me, i'm speaking from alot of experience (unfortunately) keep us posted.

[insigniades]

Hi Jamie

 

Thanks for the advice, I will call them on Monday evening when I return from work.

 

Do they have an obligation to comply with this request?

 

Thanks again

Glenn

[sillygirl1]

If they do ring you get the persons name and email them back with confirmation of the call, that way there is a record of you trying to negoitate with them.

 

Some companies are going to court after three months, in which time they quadruple the loan (which would have been paid back had they accepted the offer from their customers...)

 

All these companies want is the default fees, charges and interest as they get paid commission on this.

[insigniades]

Time for the government to cap interest rates maybe...

 

Well if they threaten me with court that's fair enough, I have a good solicitor so that won't be an issue!

 

I will see if I get anymore responses and update you all on here, hopefully these people will back down without making threats.

 

Thanks to all for the advice.

 

Glenn

[Jamie Kingston]

they dont have an obligation but if you show realy willingness and call them or anwer their calls you might just get lucky... keep us posted.

[Tink_2010x]

hiya Glenn sorry for the late rely.. As Jamie says the quickest way would be to phone them but I dont want to speak to them on the phone so I just keep emailing them.. They have sent me that email about ringing their collection department but I just email them instead and they email me back so im just keeping it via email. I have the email stating that they accept my plan soo just waiting for them to email me their bank details.. Keep emailing them the same email until they reply stating how many emails you have already sent etc... Cant see them not accepting your offer of £50 a month..

 

As for QQ - they wont accept any plan over 3 months. They have just replied to my emails stating that. Cant really do much with them at present because cant afford £200 a month for 3 months - unfortunatly this is my biggest loan too.. grr

 

Have you cancelled your card?

[sillygirl1]

A newish 'golden rule' with payday companies is to pay only the original loan plus one monthly reloan charge if they keep piling on charges and interest, once this amount is paid back to them there is little they can do.

 

If they take you to court for the excessive charges they are going to look very silly indeed and are going to have to answer a lot of questions regarding excessive interest and excessive fees.

[sillygirl1]

Reason behind this is if they were licenced companies this is what the court would order, especially if the loan had already rolled over several times.

[insigniades]

Hi Tink

 

Yeah, I've setup a brand new bank account with NatWest - they have no idea the account no / sort code or the debit card details - my wage will be dropping into that account and not my old halifax acct. So basically, unless they accept my offer they won't be receiving any payment from me...

 

£140 a month to QQ for me isn't TOO bad, it's still a struggle but I can fight that off - but I can't afford more than £50 a month to the other 2 companies.

 

I keep getting the same robotic replies off PaydayUK "please phone us" - I actually work in I.T so I'm applying the same rules as I would when emailing clients - keep a log of everything then they cannot catch you out.

 

Hi Sillygirl

 

Yeah, the interest is phenomenal though, the government should cap these swindlers. Paying the interest once is fair but repeatedly just pushes you further and further into the red.

 

If I don't get a good response from the companies, they won't be receiving a penny from me - as soon as the threatening letters roll in I'll be consulting my solicitor to put a deal in directly from them. On the other hand, if they do respond and accept £50 p/m then I will obtain bank details and setup a standing order to pay them.

 

Thanks again for the advice, it's nice to know I'm not alone in this matter.

[insigniades]

Quick update, Payday Express have done the expected thing:

 

Thank you for your recent email with reference to repayment.

As this is a pay day loan we do not usually set up repayment plans however I can appreciate your situation. In order to consider setting a repayment arrangement on your account we will need you to provide a breakdown of your income and expenditure, proof of change in your financial situation and a list of creditors, along with an offer of repayment.

 

How do I handle that?

[sillygirl1]

Tell them you have XXX to divide amongst XXX creditors and that you are not sending a detailed list of i/e because it has been so unstable due to creditors taking funds from your bank account without authority....

 

They are not entitled to anything other than a basic breakdown. Tell them you have already made them the most reasonable offer availbale and no further documentation will be sent.

 

Only a court can ask for detailed information (what the DCAs like to refer to as a 'financial investigation) such as income and expenditure form and list of creditors. All they do is tell you to drop payments to other creditors (who may have greater claim on you) and make theirs the priorty... even though you should be making your basic living needs a priority, ie

 

Rent/Mortgage

Council Tax

Gas/Electricit/Water

Basic Food Needs

Basic Clothing Needs

Fares to work

Basic other needs (including internet/tv licence/mobile phone)

 

Anything left gets divided amongst the creditors.

[insigniades]

Hi!

 

I've told them it's roughly £2200 to about 8 creditors which is more than I personally calculated beforehand so my situation feels worse now.

 

With that in mind £50 p/m is definitely the most I can offer them.

 

In a court of law I haven't been unfair on offering payment, I'm not denying OR withholding funds - I'm trying to settle an offer.

 

Have I been fair or am I being ridiculous?

 

Thanks again!

[insigniades]

Thank you for your quick response.

As previously stated we are unable to set up a payment arrangement unless documentation is received, to prove the change in your financial situation.

The reason for this is that this is a pay day loan and as stated in your agreement must be paid on your pay day. If you have changes in your financial situation you must provide proof of this in order for us to be able to change your terms and conditions of your agreement.

As previously stated if documents are not received by 18/10/2010 your account will come off hold and collection action will continue.

Please feel free to consult anyone you feel the need to, to receive support in this matter but I strongly urge you to read your credit agreement before doing so.

 

That was the response.

[insigniades]

Quick update, I provided Payday Express with an income and expenditure form that proves that I have £350 a month free to spread between 8 creditors - my offer for £50 a month was not accepted on the following basis:

 

"

Thank you for your recent email, I have received and reviewed your income and expenditure.

I have also discussed this with my manager who agrees with my decision not to accept your offer. This is due to the fact that since this loan was taken out on 30/06/2010, you have not provided us with a relevant reason for change in your financial situation since that date.

Therefore collection action will still continue until the balance is cleared in full."

 

How do I now proceed?

[Tink_2010x]

Wonga sent me a similar email the other day basically saying I needed to prove how my circumstances had changed like ill health or loss of employment so I just replied saying that it is simply because I had to pay out for a few extra things and now I couldnt afford to keep rolling the loan over and I said its either the amount I was offering each month or nothing and the other creditors will get paid first.. They soon emailed back saying "please make a payment to the following bank details to show you have intentions to pay and we will freeze interest and charges and come to a plan" so I made a small payment earlier and I am now awaiting their response.. It was rather blunt on my behalf but ah well...

 

So you could try that approach, no personal experience with payday express though im afraid..

[insigniades]

I have emailed them to tell them that I will pay them £75 a month by standing order or nothing, my circumstances have changed because I moved out of my parents and into my own place... I think that is a particularly good reason for a loss of income, do you all agree??

 

This is getting ridiculous now - other companies have been fine with me - it's just Payday express.

 

Thanks

[Tink_2010x]

£75 per month is well more than enough.. if they don't accept that then just leave them and sit tight. You have tried several times to come to some form of repayment!

 

Wonga have added 150 interest within about a week, ridiculous!

 

Have you managed a plan with QQ and payday uk ?

[insigniades]

...

Edited October 11, 2010 by insigniades

[insigniades]

...

Edited October 11, 2010 by insigniades

[insigniades]

Quickquid accepted £140 a month - they are my highest creditors, Payday UK said they will sort it out when my next payment fails and Payday express are being fussy.

 

What's the chances of this going to court? Or do they sell to debt collection agencies who will hopefully accept a payment plan?

 

Thanks,

Glenn

[Jamie Kingston]

court - 0%

dca - only in the case of payday expresss which is unlikely though...

[insigniades]

So the most likely scenario they will just keep hounding me for the money should be fun.