Payday Loans taken to Pay other Am I In Trouble?

[nate87]

Hi All,

 

Have been reading alot of the threads on here and really appreaciate the information provided. I am in a bit of bad situation, I have about 6 different loans with different paydayloan companies. The higher amounts are with QuickQuid and PaydayUK around 6-800, and smaller amounts with other companies. The first two were taken out just before and after Christmas, at which point I lost my job and had to find another. I rolled over the two loans, which bled all of my wags and wa really struggling day to day. I therefor had to take out other payday loans to both cover the cost of rolling the higher loans over and pay for food petrol etc.

 

I now have a new job but wont be paid a full months wages for another 6 weeks. I'll be recieving a small amount on my next payday but will need the money I do recieve to live and get to work over the next 6 weeks. It looks as though I'm going to default on the payments of all the loans at least until I get a full months wage, but even then I will need to ngotiate smaller payment amount sas I simply can't afford to pay them all of at on time.

 

Does the fact that I was taking out multiple loans to cover charges and live until the next payday mean that my actions were fraudulent? The reason I left my job was that my hours were being cut because I had complained about being forced to do overtime to cover for people on new yars day, after being promised time off due to working overtime to cover for people on Christmas and boxing day. I was being treated unfairly so walked out and started looking for another job immediately, but having read other posts on here I hear that some payday loan companies ask for written proof of your financial hardship ie, letters stating change in hours etc, but as I walked I wouldnt be able t provide this.

 

Also I have read that companies can threaten to take you to court for not providing a reasonable reason and proof of this for not paying the loan, stating that taking the loan without the ability to repay it is fraudulent. I am really worried about how to proceed.

 

Any advice really appreciated.

[BRIGADIER2JCS]

Hi, welcome to CAG,

 

Fraudulent no, foolhardy yes. PDL expeienced people will be along to help.

[nate87]

Well that's a relief at least, I look forward to any advice. I have already copied a template for the CPA cancelation and a template to send to my creditors regarding a repayment plan. How would I start as if I send an I&E to one creditor before speaking to another wouldnt they expect more than I could afford after speaking to the others?

[renegadeimp]

Hi nate87. I've asked for your thread to be moved to the PDL forum. If you have a good read there you'll ease your mind somewhat.

[maroondevo52]

Hi nate87. I've asked for your thread to be moved to the PDL forum. If you have a good read there you'll ease your mind somewhat.

 

Thread moved.

[renegadeimp]

Thanks Mr kitkat!

[nate87]

I'm going to th bank today to give them the letter requesting they cancel the CPA's. Can I take one letter to the bank with all of the companies names on or do I need to take seperate letters for each company?

[renegadeimp]

Just one will do. Make sure you instruct the bank to deny any and all transactions relating to them. Also, make sure you tell them that you want payments cancelled to their merchants as well.

 

get the letter photocopied, signed, stamped and dated. You keep the copy, the bank keeps the original. Don't let them try and tell you they cant follow those instructions. They are breaking the law if they dont follow them.

[nate87]

Thanks, do you know where I would find a list of who the companies are linked with? I dont want to miss someone out in the letter and not have a leg to stand on if they take the money. PDL's are with QuickQuid, PDUK, Piggbank, LendingStream, Quid.co.uk and Ferratum

[renegadeimp]

You could say something along the lines of " You are instructed upon receipt of this letter to Cancel and Deny ANY and ALL transactions made payable to: QuickQuid, PDUK, Piggbank, LendingStream, Quid.co.uk and Ferratum and their associated merchants. THis includes ANY and ALL Continuous Payment Authorities that are set up on my account".

[nate87]

I have just got back from the bank after an hour aguing with the cashier and the more senior cashier at the bank. They agrued that cancelling the CPA was impossible and wouldnt take the letter, saying that I had to speak to the companies. I advised that they were obliged by FSA regulations to cancel the CPA and that I absolutely did not have to go through the companies. She phoned a few ppl and came back with a telephone number to ring if any payments are taken by PDL's and they would refund the money and charges, Natwest Visa Debit ChargeBacks 08453660452, stating that this is a new system coming in tomorrow (very convenient), but still refused to sign the letter. I asked why and she abruptly said "Because I'm not". I said that I wanted aknowledgement of the reciept of the letter, which she agreed to, I mentioned that I would be making a complaint about her. She came back with a stamped piece of paper stating that a letter had been given in regarding my account, although while doing so she had removed her name badge, which annoyed me slightly I remeber her name tho . I am now to phone this number tomorrow and they will start monitoring my account and refund any moneys taken by PDL's.

 

Now I need to contact them regarding a payment plan, which will be fun. I have been thinking about going through one of the free Debt management companies like CCS or PayPlan, any advice much appreciated

[renegadeimp]

You need to get a full and formal complaint to the head office of the bank and the FSA/OFT and FOS. Your branch has broken the law. Can i ask if you spoke to the bank manager? As the front desk idiots rarely know the law.

[nate87]

I didn't speak to the manager, I did ask if they were available to sign but the front desk said they would be in tomorrow if I wanted to speak to them or them to sign the letter.

[renegadeimp]

ok. Did they take the letter, copy sign stamp and date it? It doesnt matter if the cashiers refuse to accept it. What matters is that letter gets copied, signed stamped and dated.

Edited June 30, 2013 by citizenB

[nate87]

No she refused to do that. She kept the letter and gave me a slip from the bank saying "Letter Recieved from ___________ regarding account number _______________" Stamped and signed. I asked what would happen to the letter and she said that it would be "sent off". I asked if it would be entered into the system and she said yes.

[renegadeimp]

Hmm. I think that might suffice as proof, but you must speak to the bank manager tomorrow. Make sure to take another copy of the letter to them tomorrow. Also flag up the cashiers attitude and that they openly and willingly broke the law.

[nate87]

I will definately do that. The next step is to contact the PDL's and arrange a payment plan, do you suggest I do this myself or go through on eof the free Debt Management companies?

[renegadeimp]

You can do it yourself, but free DMP companies are good too. Just check out the company you are going to be using first. Also remember that some of these DMP companies will not contest any unlawful charges on the account. They will simply negotiate to stop interest and arrange payment on whatever amount the creditor tells them you owe.

[nate87]

OK, if i was to go with one of the DMP's would the PDL be able to add charges once the agreement was in place or would this only be able to be done before telling the DMP of the final amount?

[renegadeimp]

They can try, but pretty much every single charge they add would be unlawful and unenforceable.

[nate87]

OK thanks alot for your help, I'll phone National debt line first of all tomorrow and then do some research on the fre DMP and go from there. Thanks alot for all your help renegade, very very much appreciated, will up your rep for this mate cheers

[renegadeimp]

I would suggest stepchange as a good dmp. But if you are unsure and want clarification, then National debtline are a great help and have a ton of resources you can use.

[nate87]

Just been to the bank and spoke to the manager after 3 payments were taken by 2 loan companies on Friday. He said that all CPA''s have now been stoppped and apologised for the misinformation I was given. However as the payments that were taken on Friday had been authorised before the CPA cancellation was requested I had no chance of getting my money back. Is this Correct? He's saying that as the companies had previously called for the money and authorised the payments, then the cancellation of the CPA on Thursday was already too late and nothing could be done regarding those payments. Seems a bit of a cop out considering all payments were techinically authorised at some point?

[nate87]

Any1?

[renegadeimp]

Demand a chargeback. They cannot refuse as it was their mistake. Otherwise the cpa would have already been cancelled.