Payday loan mess

[Dizaster]

Youve probably heard it all before.

 

I was really stupid and got a payday loan and then got more and now I'm only paying the interest but I've just defaulted on two of them and will likely defult on the rest at the end of the month.

 

I don't really know what to do, I want to pay them

But only have a certain amount each month and with interest and charges if be trapped in this for life!

 

Since I defaulted with PayDayUK they have been hounding me calling ATLEAST ten times aday all from different numbers. I don't want to talk to them, escpically if there are calling me over and over again.

 

This is what I owe out in total :-

PayDayExpress - 187

PayDayUk - 129

SpeedCredit - 129

QuickQuid - 65

Aqua - 250

 

I get £610 a month and my essential outgoings are :-

Rent ect - 175

Phone - 44 (inc insurance)

LW - 45

Bus fare ect -100

 

Is there anyway I can set up payment plans? Even though I haven't defaulted on all of them yet? I really want to get the PDL out of the way but I paid two of last month and was left with nothing so I took out another.

 

Please offer some advice and don't judge me, I put my hands up!

 

Thanks !

[Dizaster]

Anyone with any advice? Sillygirl?

Edited June 4, 2012 by Dizaster

[renegadeimp]

Looks like a spambot. Dont worry. Just flag it to a site admin.

[renegadeimp]

The spambot was deleted. I'll be home in a few, so if someone hasnt answered fully by then, i'll go over your issue for you.

[Dizaster]

I can realistically set aside £200 a month for the payday loans. If I can get these out of the way then I can finally clear the rest like my overdraft and credit card.

 

Looking forward to your reply renegade.

 

Thanks!

[renegadeimp]

I can realistically set aside £200 a month for the payday loans. If I can get these out of the way then I can finally clear the rest like my overdraft and credit card.

 

Looking forward to your reply renegade.

 

Thanks!

 

 

Wrong order of priorities.

 

Credit card/overdraft comes first. PDL's last. They are one of the lowest priority debts you can get. ( Your ISP provider has more rights to be paid before them)

[renegadeimp]

It's ok. I know exactly what you are saying. However, i'm thinking that the OP is underestimating exactly how much outgoings he/she has before they take creditors into consideration.

[Dizaster]

My overdraft is a student one, so it doesnt need to be paid of straight away, I don't get charged for it.

The credit card, ok, but I thought it'll be better to pay them off so I dot incur further charges ect.

 

What would be the best way to sort this? I'm expecting to defult on all the payday loans, or can pay one and defult on the rest. I'm pretty new to this do please enlighten me!

Thanks!

[renegadeimp]

You NEED to default on them. These rollover facilities are a pure money maker from the PDL's. They achieve nothing whatsoever apart from making you hand over cash each month for no reason at all. Give me 10 mins as i just got home and ill go through your issue.

[Dizaster]

You NEED to default on them. These rollover facilities are a pure money maker from the PDL's. They achieve nothing whatsoever apart from making you hand over cash each month for no reason at all. Give me 10 mins as i just got home and ill go through your issue.

 

 

Thank you so much.

 

Let me know if you need any more information.

[Dizaster]

I'm not that bothered about having defaults on my file. It's more about having money to last me the month. I work 5 days a week and do a lot of traveling. Recently I was "demoted" and lost about £500 a month so I've been really struggling to get by and have been paying hundreds to these people every month and doesn't help at all, then I end up taking out another loan to last

Me.

 

I just want to get rid of the PDLs and then I want to pay my CC and OD. I get really depressed over debts and money and seem to be thinking about it all the time

And I've read so many stories about these companies calling your place of work and even sending letters to your neighbours. I know they are always trying to take money from your account but my wages are paid into my mums account.

[renegadeimp]

Ok.

 

Here is what you do.

 

Default on every PDL loan you have. As i said before, the "rollover" options are nothing more than a money making racket under the guise that the creditor wont take action against you.

 

Write to each PDL and tell them that they are not permitted to debit your account from the moment they receive the letter, and you require their bank information so you can set up standing orders to pay them. If they continue to debit your account, then you must make a formal complaint to the PDL/OFT and trading standards. If they continue to debit your account, then contact the local police for a crime number due to blatant theft happening and get the bank to start chargeback proceedings.

 

Go to your bank and report your debit card as lost and cancel any Continuous Payment Authorities on your account relating to each PDL. Put this in writing and ask for a receipt. Under UK law, they must comply and block all transactions.

Open up a new account with another bank so you can have your wages sent there so you know you are in 100% control of your finances again. Use the old account to set the standing orders up and pay the PDL's

 

Go to http://www.consumeractiongroup.co.uk/forum/content.php?493-Harassment-by-telephone-response-letter and http://www.consumeractiongroup.co.uk/forum/content.php?441-If-you-do-receive-a-doorstep-visit-we-give-these-suggestions-to-Members . Send the letters to each creditor. With the Telephone one, make sure to edit it so it includes they cant call your employer at all and for any reason.

 

Also write to each PDL and get a full breakdown of each debt. Most PDL debts are full of unenforceable charges such as declined payment charges, default charges, more interest etc. Thats why later down the road, you'll probably see them offering to halve the debt as a gesture of goodwill. This is because they know the charges will never stand up in court.

 

Next, sit down and work out your EXACT incomings and outgoings. Make sure you include everything. If it takes a good hour or two to work it out, then take the hour or two. You MUST be completely thorough so you can prove to any court, or any PDL that tries to claim you are lying.

 

Things to include (the following is just a rough guide. There may be more) are:

 

• Incomings per week/month ( depending on when you get paid)
  
• Rent/Mortgage
  
• High Prioirty repayments such as Secured Loans, car payments etc
  
• Food
  
• Water
  
• Clothes
  
• Socializing
  
• Childcare/Child needs etc ( if you have children)
  
• Emergency funds ( should anything unforseen arise)
  
• Council Tax
  
• Tv license
  
• Travel Costs ( bus fare to work, car fuel etc)
  

 

(note. For some reason, electricity is not considered a High priority repayment)

 

Add them up to get your total outgoings. Work out what you have left, and get the total amount of creditors you have.

 

Take the total amount left and split it between the PDL's. This is how much they will get each month. Make sure to tell them that it will be what you are paying and it is NON NEGOTIABLE.

 

 

That is the best way to deal with PDL's. You may feel like paying them off in full, but thats what they want you to do when they harass you and threaten you with all sorts of things. The key is to tell them to jump off a cliff and for you to know your rights.

 

If you are still adamant that you want to pay them off in full with whatever amount they ask for, then it leaves me wondering why you are here. Your High priority creditors such as your bank overdraft and CC owner will certainly wonder why you are favouring repaying the low priority debts over their higher priority ones.

 

If you need any more help just ask.

Edited June 4, 2012 by renegadeimp

[sillygirl1]

The other option is snowballing, paying off the smallest loan completely this month, then the next one the next month, and so on.

 

Whatever you choose do not underestimate your own expenses as these could cause further long term problems, and have an effect on your health.

 

These loans, as said, are low priority and come after everything else.

 

Don't forget to get an alternative bank account as some of these companies could raid your bank account.

 

Just remember to work out your income and expenditure WITHOUT any commission or bonus payments as these may not be regular or 100% guaranteed.

[renegadeimp]

Like i said in the post. If the OP wants to pay them off like that, then thats fine. It just leaves us wondering why they are here. It is normally a bad idea to let low priority debts take precedence over high priority ones, simply because the creditor is harassing you. Youa re giving them exactly what they want, and after theyve finished with you, they will do the same to the next person and so on.

 

We see it every day here on almost every forum.

[Dizaster]

Hi, I came here looking for a bit advice and you have provided loads, thank you!

As for the wage not matching the £610, I work from 8.30-2.00 I was on 9-4.30 before.

 

Once I get home I will read the thread properly an thanks once again.

 

Also, as I mentioned before that my wage are paid into my mums account so I dictate the amount that's paid in.

[sillygirl1]

They cannot charge contractual interest if you have defaulted, basic contract law kicks in now, they can charge statutory interest of 8% PER ANNUM but not their manic interest rates.

[sillygirl1]

The main thing to do with payday loans is to remember these are low priority loans, they are not allowed to charge what they like (just because it is in their terms and conditions does not make it fair, legal or morally right) and at the end of the day they are also sub-prime lenders.

 

You are now in control, not them, and you need to sort out what you can pay them, and the method you choose to use. Remember that if you snowball the chances are the others will become threatening, then back down and start offering 'discounts'... and you will be out of debt shorter than if you pro rata the repayments.

Edited June 5, 2012 by MARTIN3030

[renegadeimp]

8% interest a year and a small default charge. Thats pretty much it. Proper loan companies can charge multiple things. These idiots cant, although they like to try to. Thats why everytime they are confronted, they remove the charges and interest "as a gesture of goodwill".

[sequenci]

8% interest a year and a small default charge. Thats pretty much it. Proper loan companies can charge multiple things. These idiots cant, although they like to try to. Thats why everytime they are confronted, they remove the charges and interest "as a gesture of goodwill".

 

I don't believe that to be right. I'm pretty sure they'll be able to claim contractual interest right up to a point when performance of the contract has been completed. It would be vital to consider either a Time Order or an unfair relationships argument to prevent exhorbitant interest being added.

 

This area is, however, being currently researched so any REAL legal arguments would be graciously received. I have asked a few people for proof of some of the points they've raised within these forums, all welcome to get in touch!

[renegadeimp]

Hmm. Interesting. However, wouldnt the contract technically be up after the initial 2-4 weeks or whatever was agreed? Or is it allowed to continue indefinitley. If it is the latter, then theyre pretty much getting away with anything they like :/

[sequenci]

Hmm. Interesting. However, wouldnt the contract technically be up after the initial 2-4 weeks or whatever was agreed? Or is it allowed to continue indefinitley. If it is the latter, then theyre pretty much getting away with anything they like :/

 

A contract usually finishes once performance of the contract has been completed. Bear in mind that is just your bog-standard common law rule of contract. What we need to consider with PDL's is what protection is, or should be, afforded to them via the CCA. I firmly believe the whole 'you're only liable to pay the loan + one month's interest' thing as utter nonsense however it is interesting to me that many of these lenders ARE frightened of proceedings. I've a bit of time on my hands over the summer so I'm going to spend it undertaking a little bit of research. I wanted to do it sooner but have other things that were taking up my time. I firmly believe that most payday loan companies a breaching the CCA but for different reasons as to what most people are suggesting on here. I need to try and figure it out further, though!

[renegadeimp]

The interesting thing is that even if the loan + month interest rule is nonsense for whatever reason, it has and still works, with many PDL's backing down after a while and agreeing to that as a full settlement.

[sequenci]

The interesting thing is that even if the loan + month interest rule is nonsense for whatever reason, it has and still works, with many PDL's backing down after a while and agreeing to that as a full settlement.

 

I think that's more to do with luck and common sense on part of the PDL firms than anything. What everyone should remember is that these loans are usually for very small sums (in the grand scheme of things) and taking time to litigate is probably not commercially viable for these firms.

[sequenci]

Post default and in fact post judgment contractual interest is more than possible for regulated debts.

[renegadeimp]

PDL debts arent regulated tho are they?