advice needed please

[stressedx]

Hi, i took out 3 payday loans when we were struggling, i know i shouldn't have. I didn't tell my partner and i need to. I owe

 

payday express £400

QQ £750

Wonga £700

 

I have rolled all 3 over this week so i have a month to sort it out. I can pay payday express off in May. I can then offer QQ and Wonga £150 each per month to clear the debt. I have changed my card with Wonga to my old account but how do i do this with QQ do i just cancel my bank card.

 

Any advice in what i do next as i have no idea

 

thank you

[vjohn82]

Cancel all bank cards and wait for new ones to be sent out.

 

Forget rolling over the accounts, it just adds more interest and charges to the account.

 

Write to each of the lenders offering what you can afford. If £150 per month is affordable then offer that. If £20 per month is practical for the long term then offer that.

 

They are difficult companies to cope with at times but stay strong. Log every call/letter/email.

 

Eventually they accept monthly payments.

[stressedx]

Thank you, do i email them now or once i default on payments. I just want them paid off so can afford £150 a month to each and pay payday express off in May.

[vjohn82]

Thank you, do i email them now or once i default on payments. I just want them paid off so can afford £150 a month to each and pay payday express off in May.

 

Well that's what you write to them then. Ask them to remove all default charges first and use the term "full and final settlement". Ensure that you receive acknowledgement of the terms in writing and then just pay them in time.

[stressedx]

Well that's what you write to them then. Ask them to remove all default charges first and use the term "full and final settlement". Ensure that you receive acknowledgement of the terms in writing and then just pay them in time.

 

thanks, i have cancelled my bank card so waiting on a new one to arrive but i have changed card details with QQ and Wonga to a seperate account i have so will use that to pay them

[thorntondog]

Its better if you pay them by standing order otherwise they can help themselves to your money at any time if they have card details for different account and they WILL. Dont give anyt card details to anyone, Get their bank details and set up standing order to be safe.

[IN-Trouble]

DO NOT OFFER 150 POUNDS A MONTH REPAYMENT !!!!!!!

 

that is less than the differ roll over amount , they will make you roll over.

 

Offer 50, no more, then they know you cant afford the roll over charge. Never offer the roll over charge as monthly repayment, they wont accept it, and make you differ. If you were really struggling how come you can pay more than the differ charge is how they see it, bad move.

 

Offer 50, 50 a month, 12 months =700, thats wonga. worked for me . And it leaves you with a bit more to live.

 

2 main rules

 

1- Dont struggle just to pay them

2- Dont stress, its only money.

[stressedx]

thank you both

 

i will get there standing order details and offer them £50 a month upto £100. Good idea about the roll over charge guessing they would get me to roll over.

[stressedx]

Does anyone know if because i have cancelled my old card payday express can get the money in May or would it be declined.

[thorntondog]

They may try and get it by direct debit. I dont think they can get it from your card now.

 

When I cancelled my card, Wage day advance set up a direct debit on my bank account without my permission but when queried they argued I gave them permission when I signed agreement- (small print)

 

Just watch your account and check no direct debits are set up- you can do this online and cancel it straight away

[stressedx]

ok thank you, i was going to pay it off in May, but i have paid 2 x £80 defer fees. Should i email asking for a final settlement taking the 2 x £80 off then just pay them off in May

[vjohn82]

Might be a plan.

 

Make sure you write a letter removing permission to access your bank account. No amount of small print makes up for a refusal to process that information for their own end.

 

Even if they do try and set up a D/D, just keep an eye on your account and ask your bank to return it in error. They'll soon get fed up.

 

But to answer earlier, no they cannot take money from a cancelled card.

[stressedx]

thank you, i will do this now

[stressedx]

Payday express have said if no payment they will add on a charge of £85 to the balance of £400 and interest. If then no payment by middle of may they will pass on to a debt collector. So i re sent my email stating i will repay the loan in May minus the extra interest and charges and the 2 x £80 defer amounts and asked for the bank details again. I can pay them off in May but minus the charges etc, would think they would accept the £240 to clear it.Do i need to do anything else.

 

Thanks

[stressedx]

Morning. They have given me the bank details but have said the £240 does not cover the loan amount and they will continue collections for the remainder amount plus the charges.

[vjohn82]

Morning. They have given me the bank details but have said the £240 does not cover the loan amount and they will continue collections for the remainder amount plus the charges.

 

Well the charges are not recoverable. So they can kiss goodbye to those.

 

At this stage I would be writing an "in dispute" letter meaning that they have to suspend collections activity and get a full balance sheet of all transactions since the inception of the account. You can then post here the full history of the account and get advice on payment terms consummate with decency and fairness.

 

You're being ripped off my friend and I think you already know that. I've PM'ed an experienced CAGGER to have a look in.

[stressedx]

Thank you very much. I will do that now.

 

In total the loan amount would be £645, and i will not pay that. Just want it paid off in May but without all these charges

[vjohn82]

Are you aware of the penalty charges situation?

[stressedx]

I don't really. The £400 is due on the 21st April but i was going to pay it off in May but without what i have paid already. Then the email i got said charges and interest will continue to be added

[vjohn82]

This was used in a recent defence I have seen. Essentially where a default charge is applied it tends to be a penalty rather than genuine compensation for time spent.

 

9. Numerous cases throughout the 20th century have upheld and reinforced the principles set down by Lord Dunedin defining contractual penalty clauses and the unenforceability thereof. For example, in Murray v Leisureplay [2005] EWCA Civ 963, it was held that a contractual party can only recover damages for an actual loss or liquidated losses.

 

10. In addition, Lord Dunedin in the case of Dunlop Pneumatic Tyre Co v New Garage & Motor Co [1915] AC 79 set down a number of principles in definition of a penalty clause and how such clause may be ascertained from a liquidated damages clause. These principles include –

 

“It will be held to be a penalty if the sum stipulated for is extravagant and unconscionable in amount in comparison with the greater loss that could conceivably be proved to have followed from the breach and;

 

The essence of a penalty is a payment of money stipulated as in-terrorem of the offending part; the essence of liquidated damages is a genuine covenanted pre-estimate of damage”

[sillygirl1]

Okay what you need to do is get another bank account to stop them raiding your funds, they will do this continually until they get what they think they are owed. Legally this is a grey area and the OFT have reminded various payday loan companies NOT to dip into accounts. A complaint to the OFT on their website and to Trading Standards via Consumer Direct is in order.

 

The Halifax online Easycash account is a good option, so is the Co-op. Once you have this done you can get your income transferred into it and start to take back control of your finances.

 

The golden rule for these loans is the original sum plus one months interest - mostly due to the high interest rates they charge - the interest rate would be questioned in court, as would the default fees, additional interest and the fact that they do not want to do an arrangement which is acceptable to both parties. Under the OFT rules they are obliged to listen to their customers when they are in difficulties.

[sillygirl1]

Whilst they cannot take money from a cancelled card they will have your account details and can do a transfer.... you MUST get an alternative account asap...

[stressedx]

I see, thanks. So the charge is just added because the payment is late.

 

I've given them plenty of notice and said i will pay in May but they want all charges paid. I also need to tell my husband and i am scared. My own fault really.

[vjohn82]

Thanks for looking in SG

[vjohn82]

I see, thanks. So the charge is just added because the payment is late.

 

I've given them plenty of notice and said i will pay in May but they want all charges paid. I also need to tell my husband and i am scared. My own fault really.

 

Just be honest about why you took out the loan, he might be more understanding than you think. But do not struggle to pay this back. It can be arranged over the long term. I have recently negotiated a £300 payday loan to be paid back for a client over 3 years. So it can be done.

 

You've made a mistake, you'll pay it back but you do not have to suffer. It's just money.

 

The charges situation; you have it right. They charge you £12 (or whatever it is) simply for paying late. Does it cost them £12 for when you pay late? Does it cost £12 to send an automatically generated letter to you? Of course it doesn't. That's why it is a penalty.