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Negotiating with Payday loan companies advice please


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Hi all, looking for a bit of advice please.

 

Like a lot of other people on here I'm in a lot of debt (especially for someone with no mortgage) but I do have some reasons and excuses as well as my own stupidity, so it's not all reckless spending!

 

I negotiated reduced payment plans about 2 years ago with Tesco (loan) & Barclaycard which I've stuck to and made all the payments (a long way to go yet before it's all paid off). I've got a few other debs / cards etc which I'm managing but now unfortunately I've got myself into a mess with payday loans. I really do regret this big time. I currently owe money to QuickQuid, PayDayUK, Swift Sterling & Wonga.

 

Now I can't pay them without not paying all my priority debts so I've changed my bank account, changed where my salary is paid into, cancelled the CPA for each loan with my old bank and e-mailed each company to tell them I've cancelled the CAP and that I'm in financial difficulty. So now the fun begins.... Having gone through the 'I can't afford to pay you' process with Tesco and Barclaycard (by the way I have found Barclaycard and Barclays bank the most reasonable people on the planet) and had a very traumatic 6 month battle with Tesco, I want to know if the same rules apply with the payday loan companies.

 

Essentially I want to know:

1. Am I obliged to send them an income expenditure breakdown to support my reduced payment plan offer? I read somewhere that I should not do this for payday loan companies

2. How much interest / charges can they legally whack onto my account? As these are 30 day loans are there any rules on what they can actually make me pay back?

 

I know they are going to play hard ball but having been through the process with Tesco, I am more confident in playing hard ball back! I'm not looking to avoid paying; I owe the money and it's my responsibility to pay it all back BUT none of these companies did a proper affordability assessment on me and I don’t believe they properly credit checked me otherwise I would have been refused.... not that that’s an excuse negating me of my responsibilities, but I couldn’t afford these loans in the 1st place.

 

I stumbled across this forum (probably like most people) whilst trawling the internet for debt advice on how to get yourself out of a massive hole... the expert and non judgmental advice I have seen so far is invaluable. Please would you be so kind as to do the same for me! Many thanks :-)

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Hi Moonbag 34

Welcometo the CAG

 

Quote Moonbag 34

Essentially I want to know:

1. Am I obliged to send them an income expenditure breakdown to support my reduced payment plan offer? I read somewhere that I should not do this for payday loan companies

2. How much interestlink3.gif / charges can they legally whack onto my account? As these are 30 day loans are there any rules on what they can actually make me pay back?

End Quote

 

I feel this would be the best thing to do.Send IE Breakdown.

I suppose if you do not offer something,yes they will add plenty to your debt or try to.But you can i suppose then challenge them.

As you have now cancelled CPAs you are now back in control.

So offer something,see if they accept and then stop interest,fees,charges etc.

If nothing i suppose sooner or later a DCA will be involved.Then you will be offering payments to them.

Even if only a token payment.If this finally ends up in court,well as you say priority debts come first.

Credit file already trashed as you know.

May as well sort this out too.

Seems you have done well so far.

 

 

Quote Moonbag34

I know they are going to play hard ball but having been through the process with Tesco, I am more confident in playing hard ball back! I'm not looking to avoid paying; I owe the money and it's my responsibility to pay it all back BUT none of these companies did a proper affordability assessment on me and I don’t believe they properly credit checked me otherwise I would have been refused.... not that that’s an excuse negating me of my responsibilities, but I couldn’t afford these loans in the 1st place.

End Quote

 

 

I do not know whether you have seen this already but maybe have a listen,go through the letters.

Good luck.

Tawnyowl.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?396982-New-payday-loan-survival-guide-by-mike-dailly-govan-law-centre.

 

Edited by tawnyowl
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Thanks for this.

 

I'm currently on the phone to HSBC as they let one of the payday loan payments go through despite me cancelling the CPA and the other 3 loans I asked to be stopped, were stopped. My HSBC account shout have actually been closed at the end of last week as I changed bank accounts... still on hold... oh the joys.

 

I've e-mailed the PDLs but am being ignored via e-mail and hassled to call them (which I'm not going to do). Want to set out my repayment plan offer and just start paying them but of course getting their bank details is like pulling teeth. Any advice?

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This is why I think people should move bank accounts like you did, rather than relying on your original bank cancelling the CPA, and possibly getting access to your wages!

 

A lot of people do say not to call the PDL's, but if you have prepared your expenses and are happy to put up with a bit of pressure then sometimes it is faster than waiting for them to start writing letters to you. I have done it in the past with mine and sometimes you just want it out of the way so I bit the bullet and gave them a call.

247moneybox: £418.04

1monthloan: £260

WageDayAdvance: £462

MicroCredit: £156

Amigo: £427.44

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You send a simplified budget summary and sign it as a declaration of fact. PDL's have no need to see a fully detailed breakdown of a debtors financial situation for a debt of 100-200. If you were talking thousands, then yes, they would have a genuine case, but they dont.

 

As for charges and interest, they can theoretically add interest up to the point the repayment plan starts, but any charges would be unlawful and reclaimable. Regarding the interest, youll find a LOT of PDL's will try and stall a repayment plan ( just like yours is doing now), so they can build up extra interest/charges to benefit themselves.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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Ah ok. So does that mean they can't legally claim any more money than the initial total of the loan? For example (plucking figures out of the air now) £300 loan for 30 days at a cost of say £100 so total amount repayable £400

 

They've rejected my offers (3 PDLs) but I've got the bank details for all 3 and I've just been reading through the OFT's guidelines for debt recovery, debt management plans and irresponsible lending (a little light reading for a Friday night!). I'm tempted just to go ahead and start paying as per my offers and keep e-mailing them with quotes from the OFT guidelines!

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They should only be able to claim the amount that was in the contract. Meaning The original loan amount and original contracted interest. The extra interest each month after the loan term ends is a very grey area, and even the FOS seems reluctant to step in, unless its blatant profiteering such as Toothfairy or any number of other PDL's.

 

You say youre repayment plans have been rejected. Ignore that. You have the bank details, so set up a standing order and start paying at the rate you can afford.

 

If they are stupid enough to try legal action, you can go into court, throw the bank statements and letters on the judges desk and simply say " I have given them proof for weeks. I have sent any number of evidence showing my case and financial details. They refuse to cooperate and forced the debt to be hiked up. As you can see, i have made and am maintaining regular repayments at an affordable rate in order to clear the debt."

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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So I received this reply from Swift Sterling after several e-mails back and forth. I'm offering them £10 to start with. I've made a bank payment with their bank details I sneakily got but it's not yet registered against my account.

Thank you for your email.

In reference to what you have told us, the only alternative available for you would be option A in my email below.

 

The debt management organisation we have proposed is a governmental organisation and therefore they do not charge you for their services. They would send you a pack in the post and you will need to fill in your list of creditors. Once you establish with them the amount that you would be able to afford each month, this will then be split between all your creditors. That way you will pay your creditors the amount you can afford.

 

As I mentioned previously, Swift Sterling can only accept a minimum of £96.48 per month, therefore your only route is to contact a Debt Management company of your choice.

 

It is in your best interest to let us know what you have decided. I look forward to hearing from you soon.

 

Now I don't have to go with a debt management company do I????

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Surprisingly QuickQuid have pretty much agreed to my offer, they just won't accept a SO. I've also made a payment to them but it's not yet registered against my account.

 

Wonga are being a pain after I refused to complete their very complex I&E form and send them bank statements. They said they can only manage it via me phoning them. Well I don;t really want to!

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They cant refuse to accept payments. Their bank details are on this forum, but if you want to really annoy them, send them money using the postal order method. Theyll soon sit up and take notice.

 

As for phoning, write to their compliance officer and state that you want ALL communication to be in writing and you wish not to be forced into calling. Should they not comply, you will be making complaints to the regulators.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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My son got into problems with 3 companies when he was suffering with depression - Pay Day Loans, Wonga and Tooth Fairy. With the help od a debt counselling service he now has agreements over payments with PDL and Wonga. Tooth Fairy is a different matter. They refuse to negotiate at any level and simply keep adding to the debt (was £200, nor £1400). They use tactics like threatening e-mails / letters and sending round the bailiffs. They have not yet arrived, but if they do, they are not bailiffs, they are just debt collectors and do not have the sane rights as bailiffs who would have been authorized by the court (when it gets that far). However, internet research shows that they will employ scare tactics and some of their operatives have allegedly used weapons to intimidate people into paying or handing over goods.

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Part of my current financial situation is due to depression. I think debt and depression often go hand in hand. I have spoken to a debt management company previously but they said my circumstances don't allow them to be able to help me, hence battling through it myself.

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Don't phone wonga, or any PDL for that matter You're entitled with any PDL to deal with them in writing. The reason they want you to call is so they can bully you into paying more. If they continue to refuse this reasonable request; get a formal complaint in and report them to FOS.

 

Re using a debt management company, you don't need to. Give Stepchange a call on 0800 138 1111, talk your issues through with them. They're trained, free and will help you. Don't try to struggle with this stuff on your own when there's help and support available.

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The important thing with these people is to stick to your guns, do not let them bully you and know your rights. They will try and question your knowledge with stupid quotes and try and twist the law to suit them.

 

If you do decide to send the postal orders remember to include a cover letter and in that state opening balance, current balance (after postal order) and deduct the cost of the postal order and postage from the balance.

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