Advice on defaulting..

[tinydancer79]

I recently lost my job and have 4 payday loans: Uncle Buck, P2P, WDA and Pounds to Pocket. I have already defaulted on P2P and have received information from Clarity who I intend to contact to set up a repayment plan. However I am unsure how much I should be offering them and what is acceptable?

 

I am actively looking for a new job and have just recently applied for JSA and am concerned the companies will attempt to 'raid' my account and take the small amount I will receive from JSA. I currently use a card cash account with Halifax andf have for 7 years.

 

I owe the following:

 

WDA - £600

Clarity - £900

UB - £520

Pounds till Pocket - I have paid back £500 and have £700 left outstanding.

 

In total the rollovers etc would be £357 (if I don't include Clarity at this point)

 

I am unsure whether to contact the companies above via email or telephone. If via email does anyone have any advice on what a standard letter should state? Ideally I want to clear this asap once I have secured a new job and want to avoid them piling on charges/late fees etc (which is what P2P did)

 

Any thoughts/advice gratefully received!

[26072004]

report your card lost, otherwise they will raid your account as and when they feel like it.

 

if you default get ready for the calls and emails to start but if your ready for them you can handle it. Stay styrong no income only benefits (legally they can not take benefits income as loan payments as this is money for you to live on) email them tell them your on benefits offer a token amount per month until you are in a better position.

 

they will default you and add charges interest etc.. but even if one of them accepts your arrangement you will save yourself some costs

[tinydancer79]

I contacted WDA and confirmed I am not working, am on JSA - they asked me to send on proof of JSA! And also bank statements etc.

 

They replied with this:

 

Thank you for your email.

Without an income and expenditure form and proof you are claiming JSA we are not obliged to set up a payment plan.

Please forward this and we can look at setting something up.

There is also a set up fee of £36 which is added to the balance.

 

Regards

 

____

 

Now what? :-/

[magickat]

I would suggest NOT sending them bank statements or they may use the details to try and set up a DD. I found Uncle Buck to be very helpful in a similar situation and they were happy to set up a repayment plan which I finished paying off a couple of months back, so probably worth talking to them. Good luck!

[kwinter81]

A number of years ago, I managed to get all of my creditors to accept £1 a month as I was on income support. I did not send any proof to any of them. All I did was contact them all individually and advised them of my circumstances. When they asked for proof, I advised I would not be sending any of my personal and confidential information through the post to a company that I knew nothing about but that they could take my word for it or take me to court. I then told them I was willing to pay £1 a month and would start payments immediately. I reminded them that taking the matter to court would only result in more costs and most likely with a lower payment enforced. In other words if they wanted to risk it and take me to court only to find out I am on benefits then to crack on. When you are on benefits you are receiving what you need to live on and therefore could get away with 1p a month and no court will force more than £1 anyway. So my advice is always call their bluff and show them you are not willing to budge and you are the boss. If you get tough with them and tell it like it is, there is nothing they can do if the debt is unsecured. Take it from someone who has had lots of experience. If they default your account and it appears on your credit file, it goes after 6 years anyway and won't effect your credit after that. Also if you manage to avoid them for 6 years and never ackowledge the debt in writing or make any payments then the debts are statute barred after 6 years and they can't chase it anyway. I ended going down that route as I knew my debts were too huge to ever clear them and I now have a clear credit history and no one legally able to chase me.