Pay Day Loan and debt management plan

[chesil12]

Hi All, I'm new on here and I am really pleased I have found the site...I have got into problems with payday loans and other debts and I am in the process of doing the right thing and setting up a debt management plan with the consumer credit counselling service, however one of the payday lenders - 1st stop pay day - are saying I signed up saying I would not enter a debt management plan. I just wondered where I stood with this, can the enforce this? I could understand if it was with one of the shark like debt management companies but this is a charity and they don't take fees so they will get all the money I can afford to pay?

 

Just wondered if anyone had come across this any help would be really really appreciated!

[Crocdoc]

I take it that they made this statement over the phone, if so ask them to produce the agreement that contains this condition. Do this in writing by recorded delivery. If this clause does exist I would suggest that you take it up with the OFT who are currently investigating the working practices of payday lenders. The only problem I can see with a DMP is that they may refuse to freeze the interest in which case the process will not work as your debt will increase.

[chesil12]

Ok, thanks, can the keeping adding interest, month in month out even if we are making payments through the plan? There has to be a limit doesn't there to how long they can keep doing that if I'm making payments, if they took it down the CCJ route wouldn't a court view that as unfair? Don't know if anyone has come across this particular firm but they are quite agressive

[26072004]

They are unlikely to take it down the CCJ route if you are in debt management plan, as you can prove to the Court you are attempting to repay the debt. and they have refused payment.

 

There was an article in a national paper today about PDL companies ignoring debt management companies maybe in an attempt to rack up more interest and charges.

 

As for agreeing not enter a DMP, anyone can subsequently have their circumstance change so whatever they have in their terms and conditions I would ignore, just supply the CCCS with the balance and they can send them a chq every month to prove payment (I do believe they can not refuse payment from a DMP and have to cash the chq). The only time I could see them still pursuing you through the court is if you took the loan out after you signed for the DMP.

[chesil12]

No the debt plan was started after the loan, I made a token payment of £15 to them, but they would not set up a payment plan unless I paid a greater amount than this, so it's not like I wasn't trying to pay the debt down...The loan was for £150 which was due end of Jan, I was wrong to take out the loan in that it clearly made a bad situation worse, but they keep asking for larger payments than I can afford - last one being over £100 to start a repayment plan....part of me thinks lets them take it to court and see what happens, so long as I am making payments?

 

Thanks for your help btw

[26072004]

It would appear from this forum that more and more PDL companies are prepared to use the courts to try and get their money, compared to say 12-18 months ago.

 

I think they use it as a scare tactic more than anything it costs less than £100 and that is added to the loan, as long as you have tried to set up a repayment plan and can prove it (emails letters etc...) and make sure you defend the action I would hope the PDL would lose any action. Cant see how they can justify their charges if challanged.

[ohdear11]

court, haha... they wont go to court....it'll just be sent to a dca...im in the proces of defaulting...had enough of roll overs. ok, so its gonna cost me more but il repay what i can and they will have no choice to accept. and hay if it went to court so what, its unsecured, you'll get some little fat bloke come visit, tell him no mate, you can have this a month or f**k all:) dont worry youselves. your not gonna go to prison for it, they wont take your home, they cant take your stuff(say its not yours) Aoe, pfft if they want....

[chesil12]

Well an update....the reason the payday loan company did not want to accept a debt management plan from the consumer credit counselling service is they offer their own debt management plans - for a fee! So they wanted to sell their debt management service to me get me signed up to them and pay all my debts off using their plan!....The CCCS is a charity and is FREE and therefore ALL my creditors will get more money back if I use them....Now I know what their game was I'm not in the least bit bothered about any threats they may make....I am putting all my debts into a debt plan with CCCS and will get clear as soon as I can....I cannot recommend the CCCS high enough they have been brilliant! Anyone with debt problems should call them (and no I'm not on commission!)....

[ohdear11]

genrally, these companies decline the invite of a payment plan because, we all signed the agreemant saying we will pay back in a month or so.

 

i dont mind if they chose not to accept it, they dont have to, but they also know, after so long it becomes more expensive for them to chase me ,and pass it over to a dca... ok, its going to look bad on my file, but then again if i had a good file i wouldnt need a payday loan.. il keep you posted on my outcomes hopefull il get a nice arrogant dca who i can wind up with minimal payments per month.

[chesil12]

Well good luck, but I recommend you contact the CCCS, most of my creditors listened to them and have frozen the interest, so eventually the debts will be gone, and sure as hell won't be making the same mistake again!