Getting out of the pay day loan trap

[Crooked Rain]

I've now got it in writing that QQ won't telephone me again regarding my debt and they've offered me a repayment plan of six months at around £151 each month, even though I've explained I can't afford that.

 

Also the total they claim I now owe is over £900 as they've added a £24 'dishonour' fee and a second month's interest onto the total. I think they've added this because I originally defaulted on the rollover fee and last week was when they claim I officially went into arrears with the loan itself. If that makes sense?

 

I'm now getting emails that look like they've been composed by a human so they seem to be taking notice since I mentioned my rights regarding the matter. I'm going to write back and say I can't afford those payments at this time but was wondering if they are entitled to charge me two months interest seeing as it was me who originally decided to extend the loan?

 

Many thanks (again!)

[renegadeimp]

What you need before you do ANYTHING else, is a FULL breakdown of the debt. Charges/interest etc. You'll probably find out that most are unenforceable or at the very least contestable.

[Crooked Rain]

They sent me the following as a 'notice of arrears' email:

 

Funding Date: 18 May 2012

Loan Amount: £650.00

 

Payments Past Due:

 

Due Date: 18 May 2012

Amount In Default: £87.25

 

Due Date: 15 June 2012

Amount In Default: £824.50

 

The above loan from QuickQuid is overdue. Because your loan is overdue, your customer status has been changed to "In Default".

 

As a resut of your returned debits on the payment dates above, we have assessed £24.00 in Dishonour Fees. This amount is also now due. You will receive separate notices in relation to these Dishonour Fees.

 

No further fees or interest are accruing on these amounts.

 

I've just noticed on this that they claim the funding date was May 18th. I took this loan out a month before then, actually it wasn't a new loan, I added funds to an existing loan around that time. May the 18th was when I was due to pay the extension fee but didn't because I could no longer afford them.

[renegadeimp]

You need to get the breakdown still.

 

Also, one good thing is they have stopped charges and interest on it.

[Crooked Rain]

Okay, thanks. I'll email them now and ask for it.

[Crooked Rain]

Hi again everyone,

 

Just to update and ask for a bit more advice - Wonga were paid off, Speed-e-Loans are being paid off monthly, as are TxtLoans, should be clear of them early next year.

 

Quick Quid, however, were an absolute pain to deal with. Constantly bombarding me with automated emails and when I replied to them with a payment offer and a request for bank details they simply refused it, offered me one at a higher amount (knowing I couldn't afford it) and said I could only repay them by Direct Debit or bank card. They also seem to claim that I defaulted once on the roll over amount (a month's interest) and then again with the actual loan amount plus a month's interest. All in all they say I owe them £999.

 

Anyway last week they emailed me twice to say they have passed both debts to Arc Europe who have sent me a letter and phoned me a couple of times. After emailing them asking for evidence of the debt and reminding them of their obligations as debt collectors I made the big mistake of speaking to one of them and when I refused to answer security questions he got funny and I got angry - not my best moment, I should've just hung up! Anyway I have received a reply saying that the account is on hold until they obtain the credit agreement.

 

Any advice on what my next move should be once I receive the copy of the agreement would be great. I'm not ignoring the debt, I am more than happy to repay the loan amount and one month's interest at a manageable amount each month but I suspect ARC won't quite see it that way and make demands and threats.

 

Thanks again in advance.

[raydetinu]

you should only pay what you can afford!

Have you done an income/expenditure log to show what disposable income you have, if so send that to them detialing all your commitments and what you have agreed already. You need to watch that you dont favour one over another.

Have you got any assets they can go after?

CAB will help you draft it out and contact debtors detailing what you can pay and asking them to agree those terms.

[Crooked Rain]

Hi again, ARC have sent me copies of the credit agreements and also a breakdown of how they reach this total. It's original loan amount, two months interest and £24 default charges.

 

They now say they want the full amount repayed within the next ten day or they will pass the debt over to their legal department where further action will be taken.

 

I don't have £1000 to pay them so will suggest a repayment plan to them and if they don't accept it then I'm considering calling their bluff and let them take me to court over it. In the meantime should I simply set up a standing order for x amount and start repaying it, at least then any judge will see I am attempting repayment.

 

Many thanks again.

[raydetinu]

as said in 32, you have to back up your proposal with a statement of your income/xcpendature to show what you can afford to stand any chance of them accepting it.

[Crooked Rain]

I've read in the past that DCAs have no right to see an income/expenditure statement and I'm under no obligation to send them one, is that not right? Also as far as assets go they can't just go after them without it having reached court first surely?

[Jamie Kingston]

DCA's dont have a right, but if it helps them getting to agree I don't see the big deal in providing it. No one can take anything from you unless they get a CCJ from court, which I'm sure anyone will tell you is as likely as pig's flying.

[2009dg]

I found arc easy to deal with and they set up a plan for only £ten a month

[Crooked Rain]

Thanks for the replies. I spoke to someone at ARC, I know this is breaking the golden rule but nothing was agreed over the phone and when the person realised I seemed to know my rights and that he wouldn't be able to bully me he was actually okay to deal with. Anyway, they have sent me an income/expenditure form to fill in so I'll do it and take it from there.

 

One thing I was wondering about was during our conversation I mentioned that if the debt did reach court I had loads of emails from QQ refusing to give me bank details and not accepting the repayment amount I proposed so in effect they were refusing repayment and I would file a defence. The Arc employee said this wouldn't matter as in court all the judge would look at is the credit agreement which I had defaulted on so they would get the judgement regardless. Is this right? Thanks again for all your help.

[Jamie Kingston]

bull****. And I doubt they'll take you to court. It's normally the smaller lenders that do.