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Hi,

 

I'm hoping for some help. I have a payday loan company chasing me for payment over the last couple of months and I simply havent been able to pay it back. This means a £300 loan is now up to £1000. They have constantly harassed me via email and text and phone. They have even rang my work constantly everyday speaking to the customer service department and even telling them they were calling from a payday loan company which was very embarrassing.

 

They have now just sent me a text saying they have applied for a county court judegement and that if I arrange a payment plan this week they wont need to go for a attachment of earnings order.

 

Is there anything I can do, what is the best course of action?

 

Many Thanks,

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Scare tactics that they all employ. As Bombay says post up who the loan company is and the original loan plus interest. This is all you owe them. Have you attempted to set up a payment plan that you can afford? Then get the phone harrassment letter off to them registered post.

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Just to add a bit of reassurance... I doubt very much that the PDL company would go near a court and want to justify £700 on top of a £300 loan in a couple of months.

It never rains but it pours...

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Hi Guys,

 

Thanks for the response. Its Quid Market.

 

I have not yet setup a payment plan. Should I email them with a monthly payment and then should i send off the letter.

 

Also, can they keep adding interest?

 

Thanks.

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I would contact them by email or post. Add the telephone harassment paragraphs to your letter.

 

They can add as much interest and charges as they like, it doesn't mean that you have to pay them. Regular advice here is Loan amount plus one months interest.

 

Work out what you can reasonably afford and jot that down as an offer, for example November £40 December £40 etc... Totalling only the amount of loan and interest.

It never rains but it pours...

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Hello,

You should:

1. Inform them you are having financial difficulties and will under no circumstances pay what you consider to be unfair interest and charges. (Provide a budget break down of your outgoing if you are comfortable to do this) *quote them about breaking following OFT guidlines:

· Levy charges that are disproportionate to the main debt and which do not reflect the actual, necessary cost of recovering a debt"

 

 

 

· "Pressure debtors who have defaulted on an agreement to pay unreasonably large instalments when they are unable to do so"

 

 

 

· "Make misleading representations as to the action it might take or might be taking to recover a debt"

 

 

 

2. Politely request a payment plan equating to principal loan plus one month’s interest divided into weekly/monthly payments that you can afford.

3. Send them a telephone harassment letter and stress all correspondence should be in writing.

You must absolutely stand firm and not be intimidated as these cases hardly ever if at all go to court and if they do provided you have acted responsibly the judge would likely only award them principle loan plus months interest at an affordable rate anyway.

But as these companies break many industry regulations they would never actually take you to court anyway.

Please remain calm and remember you are in control if you do not let them intimidate you.

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Payday loan companies recently agreed to a set of rules drawn up by their regulators which said along with other things they would only add interest and charges for 60 days.

 

Anything they are trying to claim above this would be very easy to dispute, given they have added more than this means they are either replying on you not contesting the CCJ or have no intention of applying for one in the 1st place.

 

However, until you make them an offer they wont go away, work out what you can afford and dont let them bullyb you into paying any more

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They have now just sent me a text saying they have applied for a county courtlink3.gif judegement and that if I arrange a payment plan this week they wont need to go for a attachment of earnings order.

 

Believe you me, this will not happen. No Payday loan company will ever take a debtor to court, simply as they would face some very serious questions as to the fairness of their interest rates.

 

I havent heard of one single payday company filing court papers against a debtor, and if this was to happen, trust me it would be a first. But let's just say, for hindsight, they did file for a CCJ.

 

You would receive papers, allowing you opportunity to defend. This would put approximately two months onto the process. They would then need to win the case in court. They would then need to give you ample opportunity to pay (say 30 days), and clearly be able to show your unwillingness to make arrangements. Then, and only then, at this point can they apply for an attachment of earnings, which again you could defend or dispute. Amazing how all that is represented in one single sentence by the PDL company huh :???:

 

What I would do personally, is contact the company, request the court claim reference. If you they cant produce one, report them to the OFT for it as this is clearly against the Office of Fair Trading debt collection guidelines.

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Believe you me, this will not happen. No Payday loan company will ever take a debtor to court, simply as they would face some very serious questions as to the fairness of their interest rates.

 

I havent heard of one single payday company filing court papers against a debtor, and if this was to happen, trust me it would be a first. But let's just say, for hindsight, they did file for a CCJ.

 

Safeloans do courts summons, only one I know of.

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A lot of PDL companies use court, just because we do not hear of them on this forum does not mean it does not happen.

 

I personally have drafted defences for five separate PDL companies over the last couple of years - don't do it now as its been 4 years since I last had a PDL.

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Have they actually issued a Court claim against you ? Until they do and win, then all the things they have threatened are just part of their wish list.

 

They should NOT be telephoning your work the way you advise and IMHO, you should have someone from the department send a stiff letter confirming that their actions are out of order and in breach of the DPA if the PDL is advising the company who they are and the reason for their call ! - You should be contacting the OFT in respect of that.

 

You should send a letter to the PDL Head/Registered office - explain that you have a financial hiccup and request a payment plan. Your letter should be sent by recorded delivery.

 

PDLs do take people to court - they mostly win by default as the defendants do not defend. If they do issue a claim, then you should be able to advise the court of your circumstances, provide and Income & Expenditure form, and the Judge is likely to set the payments you are to make.

 

The PDL might want to think about the actions they have taken which are not permitted and the way in which they lent the money. Because the Courts do take this type of thing into consideration.

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  • 2 weeks later...

Hi Guys,

 

I have now received a county court claim from the pdl company. The original loan repayment due with interest was £380 and they are now claiming £680 with interest that they have added each day.

 

Please could somebody advise my best course of action as I have two weeks from the 5th of november to reply or defend the claim.

 

Thanks guys.

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Go online and acknowledge the claim, you won't need to pay any money to do this and it will give them a fright. Don't leave it to chance here as some companies are very good at manipulating the court system in their favour.

 

I can help with a factual defence, you don't need much more in order to make this lot look very silly. They cannot add daily interest at the rate they think they can. You will also need to post up the Particulars of Claim as they are often enough to get the company to discontinue... and the legal firm handling the case.

 

You also have to name the PDL company - I notice you have not done so to date - this is vitally important information as to how the defence is formulated.

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Quid market are only lenders since 2011 (when Vaughan took over and set it up on behalf of the US parent company), they were brokers before. I am assuming they will actually go through court.

24/7 Moneybox: 195.00 - Oustanding: 0.00

British Pearl/Spondoolies: 752.10 - Oustanding: 0.00

Cash on go/Peachy: 206.30 - Oustanding: 0.00

EarlyPayday: 325.00 - Oustanding: 0.00

Lending Stream: 1398.46 - Oustanding: 0.00

MicroLend: 780.00 - Oustanding: 0.00

Minicredit: 520.00 - Oustanding: 0.00

MonthEndMoney/PaydayUK: 937.50 - Oustanding: 0.00

MrLender: 715.00 - Oustanding: 0.00

Pounds2Pocket: 2328.00 - Oustanding: 0.00

QuickQuid: 1800.00 - Oustanding: 0.00

SafeLoans: 450.50 - Oustanding: 0.00

Speed-E-Loans: 516.00 - Oustanding: 0.00

SwiftSterling: 1295.00 - Oustanding: 0.00

Toothfairy Finance: 544.00 - Oustanding: 0.00

TxtLoan: 450.00 - Oustanding: 0.00

WageDayAdvance: 670.80 - Oustanding: 0.00

Wonga: 1336.86 - Oustanding: 0.00

Total: 15220.52 - Oustanding: 0.00

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Hi Guys,

 

I've now done the Acknowledgement of Service.

 

What will be the next best step.

 

The particulars of claim are -

 

Repayment of short term loan paid direct into the defendants bank account on 25/01/12. repayment due on 28/02/2012, loan not repaid on due date by defendant as per loan areement.

Proactive written and telephone attempts to communicate with Defendant as per loan agreement has failed to achieve resolution, repayment or acceptable repayment plan. As per our loan agreement a daily rate of interest has been charged since default.

 

That's all it says.

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Get it in as soon as possible. You do not need to CCA, SAR or ask for any other information, this is a straightforward case of the company trying to exploit your lack of knowledge.

 

The draft defence I have already done should be okay.

 

If you leave it to the last minute you could end up in the logjam that is the court paperwork system, whereby because they process 'electronic' stuff first the company could get judgement by default.

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