Payday Mess **

[Super_Ram]

Hi All,

 

I was not sure where to post this so thought I would post it here.

 

I have been reading a few topics around sorting out payday messes and have kind of formulated a plan of what I am going to do to sort mine which doesn't involve not paying them.

 

Firstly my sitaution is I have 4 paydays(don't ask) and have got to the point where I am just paying them off and then having to get them out again to survive. On top of this the Interest is killing me and its just a vicious circle I need to get out of.

 

My Loans are

 

Company: PTPD

Borrowed: 485

Interest: 145.41

Paying back: 630.41

 

Company: WD

Borrowed: 485

Interest: 140

Paying back: 625

 

Company: Wonga

Borrowed: 550

Interest: 213.70

Paying back: 763.70

 

Company: OML

Borrowed: 300

Interest: 90

Paying back: 390

 

So in total I am paying 589.11 in interst each month to them which ultimately is down to my fault but I cant go on paying this.

 

So my plan is to

 

Step 1 - Transfer my wages to go into another bank account they cannot touch

 

Step 2 - Cancel all my DD on original bank account so Loans cannot be taken and re-setup bills on another account

 

Step 3 - Ring and advise bank not to authorise any setup of any direct debits on account for paydays.

 

Step 4 - Ring Paydays and advise I cannot afford to pay them and need to arrange a monthly payment instead.

 

So after doing this I will have saved 589.11 in interest.

 

From here my 2 options are to either split the 589.1 into 4 parts and pay what I can to paydays and then do a similar thing each month till all paid off. Or what i could do is pay off the OML of 390 to get rid of that payday and that leaves me with 199.11 which I can split 3 ways to the other paydays as the 1st payment in monthly installments.

 

Now there are a few questions I have which I am unsure of which are:

 

1. What rights do the paydays have in terms of what action to take. I mean is there next step to pass to a debt management team which I am not too fussed about as can setup monthly payments with the fine.

 

2. What sort of effect will it hav on my credit rating which is bad anyway but just wanted to know?

 

3. If I ask my bank not to set any direct debits on my account from requests by these companies am I covered from any unauthorised charges if the companies do this and try and take the money and the bank dont stop it?

 

4. Also is there anything else I should be worried about apart from harrasment form these companies which I can handle

 

5. Most imporatantly what happens with interest in terms of will they still charge me the same interest every month i dont pay or should it freeze?

 

Thanks for any help or advice

[maroondevo52]

Hello and Welcome,

 

I'll move this thread to the Payday Loan Forum.

 

Regards.

 

Scott.

[Super_Ram]

I am getting a bit worried now as have posted this issue elsewhere and straight away been told they will continue interest and charges on top which is going to put me in a much worse situation : (

[Super_Ram]

I am also wondering at what point does the Interest have to legally freeze. I presume at first the companies will try anything to get their money and charging extra interest will be one way to scare me back into paying.

 

But if I set up a payment plan or it goes to a debt collecter does the interest then stop

 

Also in terms of contacting them, I have already cancelled my DD's to them. Should I wait until the loans have defaulted and then call them or should I call them now to advise of payment difficulty

[Super_Ram]

Cheers for the replies.

 

I know this is not an ideal solution but the other alternative was to keep going until I cannot pay any of them anything which is no good to anyone.

 

So far I have changed my wages to another bank

I have cancelled all DD from my original account

I have setup my bills on another account

There will be no money in original account so not going to cancel debit card

 

Next step is to ring bank and advise I do not want any DD setup from these companies

 

I need now to contact these companies and advise of my situation and to see if can come to some sort of arrangement

[sillygirl1]

If you contact them keep everything in email, they will insist they HAVE to add default fees and charges and Wonga especially are inclined to empty your bank account at will, in their case an email to the director Errol Damelin is the best method.

 

Paying the smaller one off this month will give you a bit more to dish around next month, and depending on how many times you have rolled over the loans depends in whether the company will 'drop' the interest if you pay in two months... worth asking nicely anyway.

 

The key thing to do is keep everything in email and don't be intimidated by their threats, they cannot send bailiffs round until it has been to court and you have defaulted on the court order, and any attempt to take funds from your old bank account should be reported to the Office of Fair Trading immediately, they have already warned a couple of payday loan firms about this kind of behaviour.

 

Should you get any court paperwork get back to us and we can provide a basic defence which destroys their particulars of claim and reason for using court.

[Super_Ram]

Thanks sillygirl1

 

Im probably going to repeat myself but just want to be sure I am right now. So I am not oin to ring them but firstly send them an email to keep it documented instead. Also should I email them now with the situation or wait till the loans default. I am on the side of emailing them now as at least I am informing them which looks like I am trying to help the situation.

[Super_Ram]

Ok I have sent three of the lenders an email stating my financial difficulty to see what they say.

 

I have only had one reply form Pounds Till Payday but it was to say they have forwarded on my email to the collections department. It states this department cannot contact me by email and I should phone them. Should I ring them or wait a day or 2 to see what happens.

[sillygirl1]

Dont ring them, they are lying that they can only be contacted by phone, why have they forwarded the message by email to them then.... PTP are outsourced workers on commission only salaries and will tell you all sorts of porkies.

 

When I dealt with them they were either Canadian or Irish claiming to be phoning from my area, when asked about the weather they refused to answer.

 

Its good you are getting another bank account sorted out, some people think it is 'extreme' to do that but I can prove that the companies dip in 'at will' even though you try to resolve the issue beforehand.

 

Sit back and wait - whenever you get a phone call email the company on whatever email you use and confirm what was said and by whom, that way you have a record and proof that they have received details of the conversation.

[Super_Ram]

Thanks again Sillygirl,

 

I am going to play the waiting game now. I reckon there 1st step will be to try and get this money back out of my account by any means but as there is no money in there now then they can try all they want. I am also making the bank aware not to let any money leave this acoount form these lenders as if they try and take a DD and no money in there I will get charged which I dont want.

 

Also acouple of the companies take the payment via Debit card so I am not worried about that as if there is not enough money in the account it will jusy decline I presume and I wont get charged

[sillygirl1]

You assume wrong, the bank will gladly let you go overdrawn just to add to your misery, so you now need to write to the bank telling them that you revoke any authority for these companies to take money from your account.

 

Once you get them to agree to a new repayment schedule you must also send that to your bank, take it into a local branch and ask for it to be sent to the relevant department.

 

Should any of them breach this go straight to the Office of Fair Trading and ask for a case number... that way the bank HAVE to pay you back or they can be reported to the banking ombudsman.

[Super_Ram]

Okay so to stop the debit card payments should I cancel the card then even though there is going to be no money in the acoount at all from today

[sillygirl1]

Yes, cancelling the card is a good idea. Back it up with the letters saying the companies have no further claim with you.

[needhelpmm]

Sorry to hijack what do you do if they will only communicate by phone

[sillygirl1]

Tell them you will email their head office with confirmation of the phone call...

[Super_Ram]

Ok so I have had a reply of someone form Wage Day Advance advising me before they can consider a payment plan they need me to fill out my income/Expenditure on a for they have sent me.

 

Do I fill this out and send it back beofre doing anything else?

 

Also I have not made any of the Loan companies aware of each others debt so do I keep it like that or let them know I am going to be paying other payday debts as well

 

Also is there ant tips on filling these out so I dont trip up and they try and fleece me for more than I can afford as I have noticed the form doesnt include basic things like food etc

[Jamie Kingston]

you can send them and I and E, normally once WDA recieve it as long as it makes enough sense they agree to a plan. let them know you have other payday loans as well (what harm does it do?) if anything it strengthens your case. the good thing is that you are in a discussion with the lender and they are willing to consider your plan - move forward from there... if you have to negotiate so be it... keep us posted. and cancel the card doesnt matter about the money.

[Super_Ram]

Ok so I have slightly adjusted my SOA and added a few in they did not have included which are essentials.

 

This has gone to Wage Day Advance so will wait and see what they say.

 

I have included my 2 other paydays on there to show how the debt payment money is being divided

[Super_Ram]

A few questions I actually have that are concerning me are

 

My Original Bank account know has no money and Bank card was reported as lost in public so need to block as could be used by someone else. I have also cancelled all Direct Debits and will monitor any that are setup again. I have also informed my bank I do not want Direct Debits setup for any of these companies.

 

1. However if they now try and put a debit through on my card details is there anychance it will try and take the money even though I have cancelled those card details. And if it does try and debit the account will it get declined like a normal debit transaction where no charges are applied to account or will my bank let it go through and go overdrawn causing charges.

 

2. If I do miss a direct debit being setup and they try and debit the account, even though I have informed the bank not to let these companies take the payment will I go overdrawn and again be responsible for the charges.

 

The reason I am asking is I am wondering I am better off to actually close the whole account down and oay off the £100 Overdraft even though cant really afford it but will gaurantee I cant get charged.

[Jamie Kingston]

1) no chance and 2) slight chance but unlikely, just keep on top of it or close the account...

[Super_Ram]

Okay so some progress today

 

I forwarded my email onto Wage Day Advance with I/E again

 

I have had a reply now saying they are willing to accept my offer of a repayment plan for the next 3 months and then being reveiwed after that.

 

They said do they want me to take the payment directly using the card details they had(sneaky people) and I said no and can they forward me their bank details and I will send the payment via Standing order.

 

So hopefully success numer 1, so 2 to go

[Super_Ram]

Just to add is there anything i should make sure before starting this payment arrangement as in is interest frozen etc

[Jamie Kingston]

confirm bank details and frozen interest... all in writing although it is pretty much standard...

[Super_Ram]

Ok so they have replied with the bank details but I have replied saying can I confirm by setting up this Payment plan that any further Interest is frozen and no payments will be taken from my original account by Direct debit or Debit card.

 

I have already reported card as lost in public and blocked and cleared my account of any money just incase they get sneaky

[Super_Ram]

I have now got a reply from then saying all Interest and fees will be froze and no payments taken aslong as the Payment arrangement is kept up

 

One down, Two to go