Payday loans help needed to get the ball rolling

[jacktheladuk]

Hello everyone

 

I have managed to accumulate 9 payday loans over a 6 month period trying to rollover one on the other bit like robbing peter to pay paul but I am now in a position where its taking its toll and I can no longer service these payments. But whats worst is I'm no longer employed and am classed as self employed and I have recently sent off my application pack to become a taxi driver which is going to take around 6-8 weeks before I get my badge and start earning again.

 

I have every intention to pay of these loans but not the ridicilous charges which I am going to be hit with starting tomorrow when one of the loans is due to be collected but no funds will be in my account with nationwide (I have cancelled card and got new one)

 

Could someone please help draft an initial letter I could send out to all the payday lenders describing my current position, asking for repayment plan with minimal payments until i start earning again and also to stop any further charges being applied to these accounts.

 

I am beginning to panic a little as the payments are due to ALL these lenders within the next week!

 

Any help would be most apprecaited and thank you in advance

[renegadeimp]

First thing to do is to inform the PDL's of your new financial circumstance. Don't tell them you have another job yet. Just tell them that you are currently unemployed.

 

Then Grab a pen and paper and fill the following:

 

Total income per month: xxx

Total outgoings for PRIMARY debts( food, rent. electric, secured loans, overdraft, socializing etc)

 

Now deduct outgoings from total income.

 

Whatever is left, split it between each PDL. This is the repayment that each will get for the foreseeable future. If they dont like it, tough luck to them. You havent got any more to give.

 

Doing this covers your back, and also shows a court ( if it ever gets to one), that you are willing to repay, you just need more time. So if the PDL's try to slam on any unfair charges, a judge can easily see it.

 

Also note, that they are only obliged to see the above. Under no circumstances should you give them specific details, including bank statements, wage slips etc, and make sure ALL correspondence with them is done by email from your inbox and cc'd to yourself, or by recorded delivery through the normal post.

[jacktheladuk]

Thanks for your reply, renegadeimp

 

Would you be kind enough (or anybody else here) and help put together a short letter to these PDL's explaining my situation as above as I am terrified in case I get the wording all wrong! Also as my wife works and I have not paid enough NI contributions over the years due to on/off self emplyed work in the past, I am not entitled to any unemployment benefits just child tax credits only.

 

Also, as I have cancelled my old card where 4 of these PDL's were taking payments out from and have received a new one, do I still need to inform nationwide to cancel the CPA's? I have further 5 Payday loans coming out from cooperative starting this Friday so I'm beginning to really dread whats in store!!

 

Thanks in advance

[renegadeimp]

You dont need legal wording really. In fact, it could come back to bite you.

 

A simple letter stating that you lost your job and will have to reduce payments for the time being is enough.

 

When you cancel a Debit card, it is advisable to report it as lost/stolen. This is because some banks still leave the debit cards running for a week or two, and in this time anyone who has the details can easily debit from your account.

 

Also, dont worry about them. Follow the advice in my above post and youll be fine. Split the remainder of your income over all your PDL's. It's advisable to have a few bank accounts really. 1 for bills, 1 for your day to day money that only you have access to, and a savings one if you need it. That way, you are in COMPLETE control of your money.

[jacktheladuk]

Thanks again renegadeimp for your sound advice. I shall put together a letter as you stated and will keep you all informed.

 

I have tried to open basic accounts with natwest and lloyds but both have turned me down so I shall keep trying with other banks/BS's

[steve00117]

I just opened a basic account with Barclays with no problems.

[jacktheladuk]

I had a right nightmare trying to open one with barclays. They interogated me as if i was a right crook! They wanted to know why i was moving banks if i already have an ac eleswhere, wanted 3 months bank statements, my income details etc and that I had to book an appointment which will take a few days, the branch was virtually empty at the time with advisors sitting around twiddling their thumbs, what a joke!

 

Anyway managed to appeal against lloyds turning me down and going to see them again this week as they had processed my app as normal ac not just a basic one

[renegadeimp]

Dont say you want to switch. Just say you want to open a basic account to help you get your finances in order.

[jacktheladuk]

I remember saying things along those lines but they insisted on the questioning front etc etc

[renegadeimp]

They dont need to question you like that if you want to open a basic account to sort your finances out. Especially for a minimal account that really doesnt need a credit check etc. It's obvious youre not attempting fraud, so you prob got a snot nosed min wage front desk rep.

[jacktheladuk]

Seriously, its not as easy to open accounts these days even the most basic ones. I had the same aggro from all the banks I tried, RBS, Yorkshire plus the ones I mentioned earlier

[renegadeimp]

Sounds like its getting a bit too ridiculous now.

[jacktheladuk]

Absolutely!!

[jacktheladuk]

Right, I've managed to put together that first "dreaded" letter/email I'll be sending out to all the PDL's. I took a few valuable snippetts from this excellent forum.

 

Dear Sirs,

 

I am writing to make you aware of change in my circumstances.

 

 

I am suffering financial difficulties

 

 

The amount I can pay you and all my other creditors is £xx per month.

 

 

I withdraw my permission for you to debit my bank account with any amount via any form of payment request. I have advised my bank of this instruction.

 

 

Upon receipt of this email I require ALL communication from either yourselves or your representatives to be in the form of email or letter. It is my legal right to have all correspondence in written format should I be required to form a defence in a court of law.Any communication that is not in writing will be ignored and discarded.

 

 

I would also respectively request that you stop all charges and interest on my account.

 

 

 

What do you think? Good to go the way it is or does it requrie any tweaking?

Edited April 26, 2012 by jacktheladuk

[jacktheladuk]

I'll be back later, parents evening to attend!!

[renegadeimp]

Looks like a good letter. Just for your own piece of mind, move all your money to an account that they cant access, just in case.

 

Also write a simple leter to your bank, telling them to cancel the CPA's on your account relating to this PDL. Under FSA regulation ( law) they MUST comply. If they dont, and money is allowed to be debited from your account, you can complain to the bank, FSA and also inform the police as the bank are now complicit in theft.

 

Also, where you said:

 

The amount I can realistically pay you and all my other creditors is £5 per month.

 

Add the following to it:

 

This is a FINAL amount and is NON NEGOTIABLE.

 

Be aware that they will try and ask for wage slips, bank info, letter from employer etc. They are NOT allowed any of that, and just asking for it is a breach of the Data Protection Act.#

 

The only person who can see that is a judge in a court, and even then, the PDL will never get to see it. The judge will simply make a judgement.

[jacktheladuk]

Thanks rene. Everything you suggested/advised has been taken on board. I've sent CPA letter to nationwide and card's been cancelled and all monies taken out. Going to see lloyds tomorrow to open new basic account.

 

Without sounding paranoid, have I done the right thing by posting my indended letter to the PDL's here in case their "spies" are watching and traceing it back to me?

[renegadeimp]

Yep. Thats a very good thing to do Infact we had a "solicitor" for a well known PDL manager posting here yesterday. We say "solicitor" because it really sounded like it was one of the managers themselves, since the attitude of posting was very childish and the post had a lot of spelling/grammatical errors.

 

It's also why the admins of this site always say to link to the CAG library and not to repost the letters in a thread.

[jacktheladuk]

Oh right, how do i go about deleting the above intended letter? What does and how does link to the CAG mean? Sorry for the questioning but it's all new for me:???:

[renegadeimp]

Go to the post with the letter and click edit post in the bottom right corner. Then delete what you want, then click save or post. CAG is the name for this site. It's a shorter way of saying/typing it.

[jacktheladuk]

Good news, got accepted by lloyds tsb for a basic account with debit card facility so will be using this as my main account from now on.

 

I have sent off 3 emails to the PDL's, the 4th one from my nationwide account is not due till the 2nd week of May. The 5 payday loans which are on my cooperative account, I have with the help of my wife have extended for a further month, this is to buy me a bit of time. I know I should not have done but the idea of 9 PDL's chasing me at the same time scared the crap out of me so have decided to do it in stages. Hopefully the 4 on my nationwide account, I am preying that I would have repayment plans put into place by the time other 5 are due at the end of May.

 

Also, not sure wheather to ask this question on this thread but I am being bombarded with phone calls (not answering any of them of course) from Vanquis with whom I am now 2 months behind on credit card. Should I send the same letter to them as I have been sending to the PDL companies?

 

Thanks in advance

[renegadeimp]

Yep. Send the exact same letter to them as you would a PDL or any other creditor.

 

On a side note, well done on starting to get yoru finances in order. Make sure that you dont pay ANY bills from your new account. Once your details get in circulation, the account is unsafe. PDL's are known to share account details with each other to speed up tracking a person who didnt pay on time.

[jacktheladuk]

Thanks Rene. I'm a bit confused when you say dont pay ANY bills from the new account. Do you mean not to pay by debit card to PDL's only on new card by way of a repayment plan? I will only be paying by standing order anyway

[sillygirl1]

If you pay the PDL companies from your new account they can (and it has been reported here) clear yonur account out.

 

This is why you need to pay them from a different account. You must protect your income.

[jacktheladuk]

Can they clear my account even though they have none of my debit card details? Will paying them by standing order be ok? I have just about managed to obtain this new basic account:roll: