Advice needed urgently

[benregis]

Hello,

I feel a real fool and am desperate. I was in a DMP with CCCS for some time, it didn't work terribly well - budget was too tight (have very high car expenses as I live in a remote area, and have a long commute to work every day). Finally decided last month that enough was enough, and am now going it alone. Have written/emailed creditors from the DMP and so far, they're being reasonable.

 

However since starting the original DMP I've run up horrendous debts with 8 payday loan companies. mainly through borrowing from one to pay off another. I've now emailed most of them to let them know that I'll be unable to make the payments which are due the middle/end of next week when my pay cheque is due to go in.

 

Payday UK have now got back to me to tell me that they have to attempt to take the payment out before they can put the account into default, but if they do this (and certainly if all the companies do this) I'll have no money left in my account for anything else in November. Any ideas what I can do? It's too late to get my company to put the BACs payment through elsewhere (even if I had an account ready opened) - would a First right of appropriation letter work? or is that too late too? and if it's ok, what's the best way of doing that?

 

I had major financial problems earlier this month through having to pay a large bill and waiting for it to be refunded hence why I wasn't able to change bank accounts earlier - although I will be moving my account asap.

[benregis]

One thought - I have a savings account - balance zero - with the same bank, would moving my pay immediately into that, stop it being raided by the PDL companies, or would the bank take it from there anyway?

[asmilecostsnothing]

Hi there

 

Urm.. saving account might work only if not connected to your debit card

has it different sort code and account number

 

The particular payday loan company you've mentioned will unfortunately try your card - they use auto point of sale on debit card details (majority do) rather then the D/D - only if they can't get payment will they arrange a monthly payment plan for £20 and over, then you'll be able to set up a S/O as they will give their bank details

 

Please concentrate on getting your money moved - the only way they listen is when they can't take an initial payment

 

Please don't fall for any roll over trick either - it will cost you more

[Jon1965]

Has anyone said, Cancel your card now. Tell the bank you have lost it. If that is the way that the loan companies are taking your payments they will not be able to. If they are taking the loans by DD then two days before you get paid call the bank and cancel the DD. This will give you a little breathing space. Then get your money moved, and open a new account

[benregis]

Thanks both for your advice - all PDL companies are now aware of the problem, several haven't responded except to offer me even more money(!). Goodness only knows what will happen on Wednesday - the day the money is due to go in and out of my account. I've got a little saved in cash, and there's some more money due to go in towards the middle of November, but it's currently looking quite grim.

 

Jon I would have cancelled my card but was advised elsewhere that this could be construed as fraud - have I got the wrong end of the stick there?

[Jon1965]

We need sillygirl for this one, but I do not think that losing your debit card can be fraud. Its a bloody pain in the backside when it happens. Are you trying to defraud these companies or are you just not able to pay the debts at the moment. Potential fraud could be taking out more loans when you know you can not pay for them.

[asmilecostsnothing]

This is great to hear Benregis ! try not to fall for the trap of any futher loaning - I fear it is for some a common trap to simply get or keep updated with your card details

 

I honestly know of Payday UK and would say once you get past default they will work with you and freeze interest if you can agree to a plan for a minimum of £20 and more on a monthly basis

 

After around 5 weeks they agreed to let me have a plan over a 12 month duration and they do give their account details for a standing order to be set up and put everything in writing which is a bonus

 

Once I defaulted with PDUK I dealt with the Customer Relations department.

[Jon1965]

Just a further thought, if you really can't "lose" your card then remember that these companies try to take the money at stupid o'clock so in order to move the money before they can get it you would need to watch your bank account like a hawk all night and the moment it is available, move the money. I assume that you bank online. As for losing your card I have lost mine a couple of times, the first time i emailed the companies and asked for bank details to make my rollover payment which I got. The second time I could not pay and have had to negotiate repayments with them. Its hard but you just have to play hard ball with them, remember to them you are just a number. I do think the best advice on here is from sillygirl1, she seems to know the procedures inside out.

[quackquack]

Please do as these forum people say cancel ur bank card report as stolen and ul get a new one u are doing nothing illegal just sorting your finances out if you don't cancel ur card. Thgey

may well raid ur account now u have told them ur in distress so don't take a chance with any of them and ul feel better for it after I promise

[janes]

I had a similar situation and cancelled card bank still paid as they said it was associated with my account and orginal direct debits were still honoured. I argued and said what was the point of reporting card stolen they said if it was fruad they would investigate. As it was not just money I owed and could not pay back I left it. i know pay all monies into a savings account and pay bill from there

[thorntondog]

definately cancel your card -it is not fraud- they will wipe you out if you dont cancel your card whatever they say they will defo take the money if they can

[Jon1965]

I had a similar situation and cancelled card bank still paid as they said it was associated with my account and orginal direct debits were still honoured. I argued and said what was the point of reporting card stolen they said if it was fruad they would investigate. As it was not just money I owed and could not pay back I left it. i know pay all monies into a savings account and pay bill from there

 

Card payments and direc debits are different. I should have been more forceful, you MUST cancel your card, tell them you have lost it. These companies do not give a s**t about you, all they want is your money. Do not talk to them on the phone, put everything in writing/email so you have a copy. Whatever they say continue to make the offer of what you borrowed +1 months interest. Send them your income and expenditure form. Stick to your guns.

[benregis]

Latest update :

Wages went into account.

I had posted (online banking) a first right of appropriation letter to my bank, but they appear to have ignored it, as most of the wages as of 8 am this morning have immediately disappeared.

 

Payday UK as anticipated have grabbed half the money, and another company/ies have taken most of the rest. Managed to withdraw £200, and have a little more coming to me later in the month, so that should see me through the month for food and petrol. All the other DDs including mortgage, insurance etc are going to bounce.

 

I had negotiated with one of the major creditors to start paying them this month, but it looks now as though that isn't going to be practical - I feel dreadful about this as they've been so helpful, but I don't have the money. I feel as though I've reached rock bottom....

[Jon1965]

Oh dear, what can I say....not sure about this letter but maybe you need to contact the bank. If it is valid and you do it today they should be able to reverse the transactions but make sure you do it today. I don't wish to be rude and saying if only will not help, but...you came here for advice and two people said cancel your card...what more can I say

[benregis]

No - not rude at all Jon, but as I'd been advised elsewhere that it could be construed as fraudulent, and I thought it looked doubly so as I'd already warned companies that I was going to default, and had sent in a First right of appropriation letter, I felt that I wasn't in a position where I could cancel my card. I will contact the bank, I've had no response from them at all, which seems very odd, especially as the letter was sent guaranteed next day delivery.

[asmilecostsnothing]

Hi BenregisI've sent you a PM with a contact for Payday UKTo be honest it's all a bit risky cancelling a card - the bank may use the 'continous payment authority line' not to mention being able to see you have money from the co in the past...not all banks give a toss sadly and I had one issue a new card and not block the original one before...think you can guess the rest !Go straight back to the lenders that have helped

Edited October 26, 2011 by asmilecostsnothing

[sillygirl1]

PDL companies love the word FRAUD, it is THEM who are acting fraudulently once a contract has been breached, not YOU, this is because they like to continue to add contractual interest once the contract date has finished - remember you paid a lot of interest to borrow the original sum over a short space of time so therefore their action is not going to help.

 

Changing bank accounts to either Halifax, Co-op or Post Office is a good idea as all three give you a debit card and you have online facilities for bill paying.

 

They like to huff and puff as they know their charges would not stand up in a court of law, if anyone gets court papers get onto here and I can help with a defence which will help, they won't get away with racking these low level debts up to a level where they can theoretically bankrupt you.

[Jon1965]

-- edited --

Ok everyone has the right to choose how they manage their debts and for some a paid for DMC may well be the right way. There are free ones out there or you can do it yourself. The OFT guidelines say that debt collection companies/lenders should deal with each of these 3 options in the same way. All I would caution about ANY method is that you check how they are funded, check what fees you will be charged and how these will be collected and make sure that they tackle these companies to stop interest and charges as soon as possible. I have no axe to grind as I use a paid for DMC and was very happy with the service however I think I was lucky in that the company is owned by a personal friend and I know I have been given a very good deal.

Edited November 5, 2011 by Conniff

[benregis]

Hello all,

Just to update you on the latest : still dealing with Wonga who have been helpful so far, both they and ODL want "proof" of my inabillity to pay preferably by sending them some bank statements - does anyone have any thoughts on this? I feel a bit uncomfy about it even though I can see where they're coming from.

 

Quick Quid - had a very strange phone conversation with them in which I was told that they couldn't set up a payment plan for anything less than £197 a month - which I can't do, she then said that they were willing to take anything, but it would have to be as a one off payment - I took this to mean that it would have to be a phone transaction off a card, which understandably I'm reluctant to do (can't do anyway this month as I have nothing). Not sure where to go with this, as I would like to give them a token payment (or if possible even a bit more) next month, but don't want to give them my new card details (have gone for a pre-paid card arrangement)

 

Swift Sterling - conversation would have been funny if it wasn't so serious.

"I can't pay this month - I have sent you an email offering token payment, and then larger payments from next month onwards etc. etc."

SS "Well, we'll have to take action and will send out bailiffs immediately"

Me "Well, you can, but I still haven't got anything"

SS "Oh, bye"

 

Which still leaves me no better off knowing how to pay them, and they're adding charges on as fast as they can. As are the worst of the group Mini Credit - I'm having no luck contacting them via email, I can find no postal address, and emails keep re-directing back to website to phone or skype them. Does anyone have an email/snailmail address for them?

 

Thanks everyone for your advice

[Jon1965]

Hi

Well I am sure I don't need to tell you that they can not send out baliffs at this point. There would be a huge amount of water to go under the bridge before then. When I lost my job, a couple of them did want proof which I did send. If you do send copies of your bank account please make sure you blank out any info that could give them access to your account, e.g. sort code etc. I think other people on here might tell you not to send them. Good luck

[Kev222]

Hi

You are asking for an address to mini credit well here it is.

30 Borough High Street, London SE1 1XU. If you google this address you will find that it is an address to a pizza restaurant called ALMA'S

 

The only email address I know of that does not return an automated reply is [email protected] I am not sure if they will respond.

I sent them an email today I have heard nothing back.

 

Mini credit are not an easy company to negotiate with, there are so may complaints about them and their charges.

SO I am thinking about setting up a petition to shut them down once and for all if anyone has anysuggestions what to put on the petetion I will be most greatful. Once I have finished with them the only thing they can lend to customers is a pizza takeaway.

[ivansmagic.]

I know its too late now, but for others, a simple resolution to not being able to redirect your wages in time is to open another account with the same bank and set up a standing order for the rough amount of your wages to the new account. I would suggest an instant access savings account.

 

So, say your pay varies between £1250 and £1300 per month. Set up a standing order for £ 1250 on your pay day

 

This will ensure the funds are transferred as soon as you wages go in and any debit card attempts will decline due to lack of funds.

 

This should all be able to be done online if you use your bank's online banking.

 

However, I would point out that for this to work, your bank must be enabled for "faster payments" for this to work. Most major banks are but its easy to check if they are or not ( I dont think Santander are .)

 

All of this can usually be done online and instantly as you are an existing customer.

 

Sorry I didny see this thread earlier as it may have helped - might help others though.

[Kev222]

Santander do faster payments I know I use to be with them the only information they have is your card number you dont even need to open up a new account just report your card

lost by doing this the card details that they have wil be blocked and ou will receive a new card with different card numbers expiry dates. Its never to late to get incontact with

mini credit through email or post. Dont just give up like that they want the money you owe you have that power they dont, offer them what you can afford, also they can not make you pay what you cant afford. If they refuse just send them some postal orders but copy them to prove that you have made payments and if they take you to court which I doubt it due to their high rates and their collection recovery costs beeing £100 they would not stand a chance. KEEP STRONG DONT LET THEM MAKE YOU FEEL THAT WAY if you do then they will beat you.

[hammyhound]

I also had a similar problem and "reported my card lost". I also told the PDL companies that my future salary payments were to be moved to a different date (ie 2 days after payday). They all agreed to change the date. As soon as my salary went in I moved it to a different account giving them no chance of receiving any money. Maybe I was lucky. I have sat up previously and watched my internet banking. These companies will take small amounts at 12.01 a.m. 12.02 a.m. and so on until they try for bigger amounts.

 

Maybe people should ring up these companies and do what I did and say my salary has been moved to a different date giving people time to move their own money.

[Kev222]

Thats not a bad idea at least that way your money is safe, that might only work if others have not paid their loan off, or that can work if a payment plain has been arranged.

 

But as you said they do try taking small amounts first and then larger amounts which could leave your account empty I dont think they can do that I will need to do some research because that would leave you pennyless, ill have to get back to you on that.