Payday loans advice needed! **

[teacups]

Hi,

I am new to this and was browsing as I have entered into a debt management plan and needed advice about payday loans. I have read other posts and I am worried about being harrassed by the below companies when they try to take payment from the account and it is unsuccessful.

Wonga - due 31st jan

Payday Express - due 28th jan

247Moneybox - due 28th jan

My wages go into my account on the 28th and I have cancelled my debit card so they cant take any payments, there are no direct debits or standing orders on the account but my bank cant confirm that they wont take the money. It is too late now to open a new bank account for this months wages and I dont want my bank account cleared out on payday. I have checked with the bank twice and they confirmed nothing is set up to leave the account but 1 person said they wont be able to access the funds and 2 days later the customer service advisor said they may be able to. Would it be best for me to contact the companies directly and explain that the funds wont be there?

Thanks for any advice I just dont know whats best to do!

Katie

[rebel11]

Hi teacups

 

Welcome to CAG

 

The guys will advise as soon as they are available. Thead moved.

[Jamie Kingston]

hi Katie, first mistake, debt management plan, waste of time, money and will just **** off the lenders.

 

You have 3 payday loans, its not that bad at all?

 

Wonga will wait for the account to go into default and then want to hear from you with an offer, i would say they would accept over 12 months.

 

If you can split Payday Express over 4 months they would probably accept wuite easily and lastly 24/7 money box perhaps over 6 months..

 

contact Payday express and 24/7 money box before the payment defaults, explain that you are going through a tough time and can pay them x amount direct for so many months. tell them you dont have a debit card and would like their bank details to pay them direct, first payment will be made on this payday, they will appreciate it... keep us posted.

[teacups]

Hi Jamie

Thanks for the reply. I have several other debts too well 12 different creditors in total thats why I decided to go with the debt management plan. The payday loans are just the ones coming out this month the others I have avoided for years and would like to finally pay them off. I dont know wether to advise the payday loan companies of me going into a debt mangement plan before I default or when they conact me to say I have defaulted. Any ideas??

Thanks

[Jamie Kingston]

i have to be honest, the DMP is the worst idea ever, they are a total [problem]. why dont you just tell the payday lenders that you can offer x amount per month for x months and pay them directly, tell them you are taking a DMP and if they go with your offer they will be getting alot more. Wonga will wait for the account to default, i think the best way to deal with them is to call them on the day you default and arrange a plan. with regards to PDE and MoneyBox, i would contact them prior to defaulting with your offer, they may waive any charges you would normally incur for missing payment.

[sillygirl1]

Are you doing the DMP yourself or using a paid service? As mentioned they are all as bad as each other, they cannot do anyting you can't do yourself (and save yourself a few bob in the process).

 

Have you CCA'd the other creditors to make sure they have enforceable debt, you may be prolonging your debt situation. Don't forget the debts stay on your record six years AFTER you have made the last payment (can't see the logic in that one at all... should be 1 year after payment imho).

[Cait116]

Hi Teacups, I'm in the same position as you. I default on Friday but I have managed to get one of them to agree to a payment plan. They were quite reasonable when I emailed them, they haven't rang at all and have communicated by email, sending me their bank details and freezing the interest.

 

I did open a basic bank account with the Halifax though, so I would advise you to do that. Make sure you check your account often if too late to get your salary paid into a new account as these lenders will try and take money from your account at very odd times - including during the night! Have you got internet banking? Is there any way you could transfer your wages into another account as soon as it goes in?

 

I am about to ring Payday Express and will let you know what happened.

 

Good Luck x

[Cait116]

BTW Teacups if you do decided to go down the DMP route, don't pay for it! There is some really good advice on National Debtline website, also the guys here know what they're talking about and are really helpful x

[teacups]

Hi,

 

I went with a debt management plan as I feel it is the best option for my situation. CCCS and payplan could only suggest IVA'S as my debts are less than £7000 and I am more than happy to pay a fee for somebody else to deal with all my creditors. The general opinion on here seems to be stay well clear of a debt management plans but I found it to be a viable option as I dont want to deal with creditors myself.

 

I spoke to Payday Express myself this morning and they are only going to try and take £80 which is a rollover fee I only rang to advise them that the funds may not be there when they try to take them. They were really nice and said if I call them after I have defaulted we can set up a plan but I will be leaving this to the Debt management company to deal with I just have to many creditors and not enough patience to be dealing with them myself.

 

I am worried now that if they can still access my account even though I have cancelled my debit card they will be taking rent and bill money. Also money for the debt management plan. Its D-day 2moro anyway so fingers crossed I will be visiting the cash machine at 4am which is when my wages usuallly go in but I can only withdraw £300 so then at 9am I will be visiting the branch for the rest. I applied for a Halifax account and was refused also with the co-op bank does anybody have any other suggestions for opening a new account?

 

Thanks for all the replies and advice x

[sillygirl1]

They can and will access your account as they have your account details and use that instead of the card. This is why it is imperative you get another bank account, Halifax and Co-op are good online accounts to try.

 

Paying somebody for a DMP is NOT a good idea, I am willing to bet you will end up with a CCJ 'through default' and not do anything about it....

[crm84]

Teacups what ever you do dont give them any money with your new debit card or wth drect debit, as they have been known in the past,well some companes have anyway to clear out the account.

[teacups]

Like I said before I feel like the debt management plan is a good option for me and I am more than happy to pay a fee for them to deal with my creditors. I dont understand why you are so against the idea of a debt management plan I have a friend who is a year or so into hers and no creditors are hassling her and she gets a statement showing who the money is going to and how long she has left to pay. Also my mum has been on a debt management plan for many years and has had no problems. I get that you can save money by doing it yourself but other than that is there any other reason why people on here are so against debt management plans when the that is the only option available to me other than contacted them all myself.

 

Also I have applied with Halifax and Co-op bank and been declined by both for a basic account so is there anone else who I could try with. I currently bank with nationwide and I have a loads account from many yrs ago which is overdrawn so I cant try them either.

 

Many thanks x

[teacups]

Also I'm sure I have many CCJ's against my name already as most of my debts have been completely ignored for over 3 years.

[teacups]

Hi Glo,

 

I bank with Nationwide so is there a way I can transfer my money to another nationwide account as soon as the funds enter? M y mum banks whith them to so am thinking maybe I could transfer them to her account when they go in which is about 4am.

 

Thanks

[Cait116]

Hi Teacups

 

Yes, as soon as your money hits the bank can you do an instant transfer online? At least that way there will be nothing left in your account. Me and hubby opened a new halifax bank account for my salary but it's in his name and I'm getting my salary paid into it. Use your Mum's - safer! Good Luck

[Cait116]

p.s. if you're gonna stay up until 4 a.m. keep checking your account for new DD's and cancel them straight away. Paydays have a habit of raiding bank accounts at silly hours!

[teacups]

Thanks Glo Ive read a few posts about them raiding accouts, Im working nights so I'll be awake anyway but someone has said previously on here its like fastest finger first on who gets the funds so I just hope I'm fast enough when transferring. No direct debits have been set up on the account but they were only taking the payment via a debit card previously so is it still likely they will set up a direct debit? Can they do this?

[teacups]

p.s there is a facility to set up a standing order on the account online could I do this so my wages get transferred to my mums account as soon as they enter? would they then be held only for the standing order set up for my mums account thanks again

[Jamie Kingston]

teacups - you are going to **** of a bunch of vultures, again, passing it onto the DMP doesnt mean they'll stop hounding you. to be honest and quite brutal you are wasting more money that you obviously cannot afford and in my experience will realise you will need to deal with this yourself directly with most of the lenders. eitherway i wish you good luck and truly hope it sorts itself out.

[Cait116]

Hi teacups - check if you can do a direct transfer as I imagine that that would be quicker than a Standing Order - maybe I'm wrong, but I have done direct transfers before and the money has gone out within seconds. I think a standing order doesn't have the facility to do it immediately.

 

I'm defaulting tomorrow as well and tbh I have approached of couple of them and they have been quite reasonable but another couple haven't answered my emails. I know you don't like the thoughts of having to deal with them but the guys on here are really knowledgeable and will help you along. Anyway whatever you do keep us informed and good luck x

[callumsgran]

I know from experience Wonga take their payment @ 5 am if that helps?

Have you transferred funds to your mums account before, otherwise it can take a few days to go through the first time?

Hope you sort things soon

[Cait116]

Teacups - how's it going hun?

[AMTI]

Best thing is to contact the lenders and explain that funds will not be there. Otherwise they will just take what they can and hassle you for the rest.

[StartingOutSlowly]

Most of the PD companies use automated systems that can be set up to collect payments at any time during the day. 4 or 5Am is a popular choice. Continues tries is also an option, where the system might try every 2 hours or so.

 

I think the reason for people advising against signing up for a DMP, is that a lot of these companies will charge you a setup fee and then a monthly management fee (15% is common), making your repayments take longer and could end up costing you more. There are some free ones that you could try, if you think that doing it yourself is to stressful. Just remember that they can't physically do more then what you can. My advise if you decide to tackle this by yourself is to:

 

Get organised, keep a spreadsheet detailing debts, proposed and accepted payments. when and how payments are made and any notes taken from phone conversations. Insist on getting agreements in writing. Setup a dedicated mailbox for emails between you and creditors. And finally, and this is important: only make realistic offers that you can keep.

 

Btw, one thing that I have done is to make payments using prepaid cards if the PDL doesn't accept standing orders. There are quite a few out there, and most of them can be loaded from your bank account online. That way you only load what's needed and if they try to take more, tough sh*t. I'm currently paying back 4 PDL's and 2 of them won't accept standing orders.

[sillygirl1]

The prepaid cards are also a good idea to an alternative bank account as some let you have your salary paid onto them.

 

You need to protect your income from 'raids' (they call it 'arrestment' and without a court order it is ILLEGAL, even with a court order (which will cost them a fortune to do properly) they can only take a certain amount (this is called "attachment of earnings".