Help needed to pay back PD loans.. **

[C&D]

Hello

 

I have 3 active payday loans that I am struggling to repay and I would like some advice as to how is best to try and pay them back.

 

I have worked out that I only have about £60-£80 spare each month to use to pay them back and dont know how to split it between them. I have seen some comments saying about prorata payments and others (which I think I prefer) which is paying a lump sum to one and then smaller to others and then increasing as one is paid off but I dont know how / where to start..

 

Also, am I going to tell my bank I have lost my card and keep an eye on any DD's being set up but is this likely to be enough? I really dont want to have to get a new account as I would have to change mine and boyf wages, tax credits, child benefit and all DD's!!

 

Here are the active loan amounts:

 

Txtloan - £117 (£100 loan + £17 interest)

Payday express - £200 (£160 loan and £40 interest)

Cash Genie - £229 (I think £179 loan and £50 interest)

 

I also have a QQ loan which is now with Motormile Finance for approx £600 (they sent a debt collector today but I agreed to nothing and said I would email) & one for Wonga which I cant remember any of the details of! (I havent paid either of these for months)

 

Any help REALLY gratefully received

 

C

[asmilecostsnothing]

Hi there,

 

I would maybe trying talking to the three before you do default - send an email/letter so you can get a papertrail and evidence going - as someone already put it they will probably huff and puff at first then start being reasonable and help you come to an arrangement that's what I found! - don't worry if this doesn't happen straight away it can take some weeks to set up repayment plans as I found out !

 

I had roughly the same figure as you to go round all my creditors (there was 5 and I really dreaded default day but come to the point where I could no longer endure the worry each month or extension fees!) well all have now agreed a small repayment figure with reviews in 3/6 months, there's one I'm paying of in a bigger chunk each month after deciding because as soon as their gone this Nov this will then allow the others who have given me more breathing space at this time to then get a bigger fraction with one debt less!, I don't really know much about the practices myself and all the PDL seem to have their own ways of dealing with defaults, some would say best pay the ones more who shout the loudest or are unwilling to reduce or freeze interest and charges etc as would only serve to make the debt worse, I guess it is whatever you decide whether to do the pro-rate payments or snowballing

Some also say eventally your offered a discount to settle after a while or that it's easier if the account is passed to a DCA but I'm not totally sure and not wanted to find out so just got persistant with my creditors (2 of which we share!)

For the ones that were being a little difficult I just harped on that the other creditors had already excepted and the 'look this is what they done for me to assist fact, can't you to'

 

With debt collectors just follow the same route as you would do when dealing with the payday loan companies - put the same offer to them as you would of to the PDL collections department

 

New bank account is recommended again at least you would get full control back as some loan companies esp when you're in the 1st stages of trying to set up a repayment plan - there is no guantee initally what they could try to do

 

Hope one of the pro's will be along soon to as I'm only another debtor!

Edited September 20, 2011 by asmilecostsnothing
.

[C&D]

Hiya.

Thanks for the reply. As my payday is only next week and I wont have time to set up a new account / change where my wages are paid etc, do you think I should pay the interest only this month and extend the loans and default next month or should I report card as lost and hope for the best?!

C

[asmilecostsnothing]

Hi again

 

Personally I'd continue with defaulting as there isn't much other option - your making the first step,

at least you'd be ending the trap

Communicate with your creditors ASAP and be very persistant (I'd email them in the timeframe you have) and don't approach anyone else for a loan as it's been known that your details could be passed on

 

It can be done but I've never 'lost' a card as formally closed my bank account (thanks to another problem) done just in time and went elsewhere (basic accounts are easy to obtain - Halifax Easycash can be applied for online, the Co-op Cashminder account can be opened over the telephone (both offer online banking facilities) but in all honesty I've never had my account raided/cleared by the actual PDL companies but some on here have suffered due to this happening, nowadays I'm sometimes up in the early hours just to check everythings as it should be kinda watching like a hawk! - I'm now so conscious of something happening

Think I remember again seeing on here that you can put a written letter into your bank revoking permission of payments, not 100% if this only applies to direct debit payments tho?

[quackquack]

please read the daily mirror today on tooth fairy finance , they are catching up with these payday loan sharks now:-)

[C&D]

Thanks smile, I will look into that letter and I'm

Goin to pop in the bank today and ask about setting up new account then il happen to lose my card next week!

 

My loan to txtloan is due back next week!

 

Quackquack.. Will check that article out, sounds intereting!

[C&D]

Hi all

I have just been looking at finances and although not ideal.. i am wondering whether to use our tax credits each month and struggle and within 3 months we could pay the three current loans as I would use the £250pm to:

 

Month 1: Pay txt loan and interest on other two costing us £209

Month 2: Pay PD express and interest on Cash genie, costing us £252

Month 3: Pay cash genie off at £229.

 

Whilst this looks easy to do, it really wont be as we owe family and friends money left, right and centre and, we are meant to be trying to save to move house but I cant bear the thought of ruining my credit rating further when it has just started to look more promising! Also, I dont want to be scared every time the door rings as its my dads house and he would go mad!

 

My other option would be to maybe offer £100pm between them and use the remainder to pay family and friends and hope this way that the PDL co's will reduce the interest or offer reduced payment deals at a later date (Motormile have just offered me 50% off my loan if i can pay them back now - which i cant!).. the trouble with this is the fact that i would have to change bank details, hope they dont knock the door, deal with their rubbish emails etc... BUT.. it means I am paying another two / three months interest on the cash genie loan and its £52.50pm!!

 

ohhhhh I dont know what to do

 

What do you think?

 

Thanks. x

[sillygirl1]

What you must not do is leave yourself short on other loans, tell the companies you are in temporary financial trouble and want to repay the original loan and interest over a 3 month period, that is a better option all round and would leave you a bit of leeway, keep all communication short and simple and do not threaten them, make them believe it is in their best interests.

 

Keep everything in email form and if they don't comply then you can complain to the OFT and Trading Standards, if any of them say they will continue to add interest and charges until the loan is paid remind them of the OFT Guidelines on Debt Collecting and report them.

 

If any loan company is offering you a 50% reduction ask them for a further 20% reduction, especially if there are charges on the amount they are claiming.

 

Remember unsecured lending goes to the bottom of your financial pot in times of hardship, if any of them try court you can prove you tried to come to a reasonable arrangement and they are being unreasonable. It doesn't cost anything to file a defence (I can help with that).

 

You are now in the driving seat.

 

Have you changed your bank account yet to protect your income from raids, the Co-op or the Post Office all have good basic accounts, the Halifax have changed terms and conditions lately and their customer service is less than desirable so I no longer will recommend them, unless in a dire emergency.

[sillygirl1]

They should not send anyone round, you can tell them that in your email, and most of the PDL companies tend not to do this anyway, if anyone comes they can be told to get lost, they should NOT turn up uninvited. Do not be fooled into signing on the doorstep that you have seen them either as this is used as a ruse by some people to say you admit the debt.

[C&D]

Thanks soo much for the reply sillygirl. I appreciate you looking and I will definitely email them all offering original loan and interest over a three month period.

I really like my natwest account so was hoping to just report my card as lost and check no direct debits are set up - would this be ok?

Failing that, I could possibly ask Natwest for a new account saying I want one to pay bills from and one for general use then, once all set up, I would close my current account!

It's the first time in years I was allowed to have a 'current account' rather than a 'step account' and that was a major achievement for me

[C&D]

They should not send anyone round, you can tell them that in your email, and most of the PDL companies tend not to do this anyway, if anyone comes they can be told to get lost, they should NOT turn up uninvited. Do not be fooled into signing on the doorstep that you have seen them either as this is used as a ruse by some people to say you admit the debt.

 

I have worked out that over 3 months my repayments will be:

 

Txt loan: £39

PD express: £66.66

Cash Genie: £76.33

Total: £181.99

 

Does this email sound ok or should I add anything else / mention no home visits - trying to keep it friendly in hope they accept my offer!?

 

To whom it may concern

 

I am writing with regards to my current loan of £100 and the repayment of £117 which is due to be taken from my account tomorrow (25th September). Unfortunately I am experiencing temporary financial difficulties at present and am unable to repay the loan in full as I hoped. I would therefore like to request that I be able to pay this loan over a period of three months. This will be 3 equal payments of £39 which I will pay on the last working day of September, October and November. I would appreciate it if no further charges / interest are added to the account so that I can ensure the debt is paid back in a timely manner.

 

Should you wish to contact me regarding this matter, I would be grateful if this could be done via email and would ask that no phone calls / home visits are made. If you can send me confirmation of the bank details so that I can make the payment via standing order or, provide me with details so I can make the payment online, I will get this set up ready for my payment of £39 on 30th September.

[sillygirl1]

Sounds okay to me. Well done.

[C&D]

Sounds okay to me. Well done.

 

Thanks! I have received a reply from Txtloan already (within about 5 hours!) but they are saying my loan of £117 will increase to £199.99 before interest / charges are frozen - are they allowed to do this?

 

Cx

 

Email received:

 

Thank you for contacting us.

 

As you require a repayment plan for a longer period of time during

which the Credit Cycle period will be exceeded, the full overdue

balance needs to be cleared - £199.99(at which point the charges are

frozen).

 

We are prepared to accept £39 monthly payments.

Please be so kind as to provide the exact dates we can debit your card.

[C&D]

Hello

Has anyone had a chance to look at the email I received from Txt loan and them saying my loan will increase to £199.99 before they will stop adding interest & charges? I really dont know what to respond back to them with and would appreciate some help.

Thanks

 

On the plus side, I wrote to Motormile finance regarding the £605 debt from QQ that they want and they have accepted £5pm for two months while I sort out some finances and make a payment plan - wahoo!

 

C x

[C&D]

I received two emails from Payday express today:

I basically saying that they wont accept a payment plan and the second saying my card was declined, they assume I want to extend and will try my card again! Anyone know how to respond to make them accept the plan?

 

Also, I still dont know what to write to Txtloan regarding them saying the loan will increase to £199.99 - any ideas?

 

FIRST EMAIL:

Thank you for your recent email and your request for a repayment plan.

 

Our accepted criteria for a repayment plan is as follows:

 

Severe Disability or illness (not excluding close family members)

Terminal illness or Mental illness (not excluding close family members)

Deceased (not excluding close family members)

Redundancy or Reduced hours (contractual hours reduced by company)

 

If your financial circumstances have changed due to one of the above, we would be able to consider a repayment plan.

 

We will require you to send in bank statements covering the last 2 months to show that you are now in receipt of either financial support or a reduced wage. If you are now unemployed we will also need to see proof of unemployment or redundancy. Alternatively if your circumstances have changed due to personal illness we will require evidence in the form of a doctor’s note or hospital letter, as well as the bank statements.

 

Please be advised that if you do not fit the above criteria or you are unable to provide documentation, a repayment plan cannot be considered.

Should you wish to discuss these options or your account please call our office on 0208 461 6705 and one of our advisers will be able to assist you.

 

Please do not hesitate to contact us should you require any further information.

 

SECOND EMAIL:

We have applied for your loan repayment of £200.00 by debit card. However, the payment was not authorised and is therefore overdue.

 

As we have not received any communication to the contrary, our assumption is that you require the loan to be extended and so we will attempt to do this for you over the next 7 days by your debit card at our discretion.

 

Should we fail to be successful in extending the loan then as per the terms and conditions of your agreement with Payday Express, we will apply a default fee and an interest charge calculated against your overdue account balance.

 

If you do not require your loan to be extended, you must contact our offices on 0800 0126 860 between 08.00 and 19.00, Monday to Friday or 09.00 and 13.00 on Saturday, and repay the full amount overdue.

 

If you have already contacted us regarding this matter please disregard this communication.

 

Thanks!

[asmilecostsnothing]

Hi hun, just keep repeating your offer to PDE

I found they didn't work by email conversation - well woudn't reply except send their standard/generated/auto emails

I had to speak to them on the phone in the end to get a plan setup... just let them call you

[LindaSmallman]

Have they called you?

[C&D]

Have they called you?

 

Hello

I do keep getting missed calls from a number I dont know and I guess that could be them. I am going to email them again as I actually think I might need to pay them over a longer period anyway and as they are the only one not playing ball, they can have the reduced payment!

C x

[OhMyGod-TheyAreAllZombies]

Hey dude, just keep email 'n 'em. I sent them one email for each text message (9 or so each day) eventually you will receive an reply saying that you only qualify for a repayment plan if you are (un)dead or whatever. Keep it up and then tell the CFA that you're having a bad time with them. Ask for the official complaints procedure. It'll get 'em talking at the very least!