Your help and advice needed please

[wongaless]

Hello,

 

I am ashamed to say that I have gotten myself into a payday loan mess that is really scaring me and I just don't know how to get out of it.

 

It started a three months ago with just £200 to help with some car repairs, it has spiralled out of control to a point where once they take out the loan of £800 in 9 days it will leave me with £20 to live on with this vicious circle just continuing, I feel sick just thinking about it.

 

I can afford to pay it back over 4-5 months if I didn't have to worry about the interest and could just manage it over a realistic period.

 

Is this something that you think they may be agreeable to and if so how might be the best way to go about it, it says to contact them 3 days before but this will obviously accrue another 6 days interest amounting to £60. I've read that it's best not to contact them by phone and to also contact my bank?

 

Thankyou!

Edited November 16, 2013 by wongaless

[Bazooka Boo]

Who is the PDL company?

Wonga?

 

YOU are in control NOT them, so YES get onto your bank and ensure that any direct debit is cancelled, and they are under no illusion that they MUST NOT pay these vultures a penny.

 

Get in touch with the PDL company, in writing and inform them that you are having financial difficulties at the minute,

and you wish to enter into a realistic payment plan with them, BUT it will be on YOUR terms only, they may ask for an I&E form to be sent and in your case it would be advisable to send them one, BUT NOT theirs, it MUST be your own or one from here, or the CAB.

[wongaless]

PDL company is indeed Wonga, it's not actually a direct debit, they take it from my debit card, I cancelled my current card just now and they are sending me a new one. I was reading some of the other advise on here about cancelling a continuous payment authority to stop any further payments being taken, do I cancel this with my bank and Wonga? Will this ensure that they can't take the whole amount from my bank?

[fletch70]

Yes you need to put it in writing to both your bank and Wonga just to be on the safe side. With the letter to Wonga if possible send it by royal mail signed for . You can do it at the same time as saying you want a replayment plan. If they already have your email address what I often do is email any letter and put a hard copy in the post. Belt n braces approach

[renegadeimp]

Youd ont have to do it with wonga. Just your bank, but as fletch says, its a good idea to do it with both so your back is fully covered.

[fletch70]

Indeed, recommendations from OFT

[Bazooka Boo]

You can cancel a CPA with your bank, no need to inform the business. From the OFT!

http://www.credittoday.co.uk/article/14670/online-news/regulator-introduces-cpa-principles

[fletch70]

Oh dear I wasn't saying you HAD to just that it was best practise.

I can not see anything on the credit today link that says that however the FCA link here does say contact the company first but you can cancel a CPA direct with your bank

 

http://www.fca.org.uk/news/continuous-payment-authorities-your-right-to-cancel

[renegadeimp]

Official way is to ask the creditor to cancel it and put it in writing that they have done so. However, because most creditors will just laugh, the main advice now is to cancel it with your bank directly, THEN inform the creditor of your actions. It has been known for a creditor ( especially PDL's) to strip an account clean when they get any kind of a sense that you are going to deny them payment.

[fletch70]

Thanks for the confirmation Renegade, I have only once had a problem with a bank letting through a CPA and that is with the Fos now. I can quite imagine some PDL's clearing your bank out if they get a wiff.

 

I may be wrong but it does seem as if Wonga are cleaning up their act a little (I hate saying that ) but of course there was a lot to clean up

[renegadeimp]

Wonga, dare i say, used to be ok. But thats when they were trying to become a bank. Now they know they have no chance at that, they have reverted to the same depths as every other PDL. Theyve even been in the media recently for allowing people to commit ID fraud. The CEO's response? " Oh it happened ages ago. It doesnt matter now and has no bearing on our current business".

 

2 months later? Same thing happened again.

[fletch70]

I take it all back then. Not heard that but Wonga are not on my radar these days. I did hear something about someone paying into another account...was it on here?

[renegadeimp]

http://www.thisismoney.co.uk/money/experts/article-2318891/Wonga-fraud-Advice-do.html

 

Just one example

[fletch70]

As i said i take it all back.

It beggars belief that they can fall for what must be systematic fraud.

I wonder if the banks accounts that received the money were with the same banks that issued the debit cards?

[wongaless]

Hi,

 

Handed in my letter to the bank yesterday and also emailed them.. Will be writing to Wonga today to let them know and to try and set up an arrangement bafore Monday. I now know that just by virtue of having a PDL my ability to obtain a mortage etc is not great so this may be a siilly question but if I enter into a 3 month arrangement with them will this result in a default on my credit file? I have spent the last couple of years cleaning up my credit file and would hate for this to have an additional adverse effect.

 

Thanks again

[silverfox1961]

Hi

Some of these companies say that they won't enter into a payment plan until the account has been defaulted. (I don't know if Wonga is one of them)

This is a fallacy. Once informed that a debtor is in financial difficulties, the interest should be suspended and as you are going to make a reasonable payment arrangement, this should be marked on your credit file as such, not a default. A payment arrangement will stay on your file for 1-2 years.

 

If you were offering 'token payments' (usually £1-2 per month) a default is always placed but as you are offering a substantially higher amount, I would hope the mark the file 'Arrangement to Pay'

[wongaless]

Hello

 

Funnily enough Wonga have just written back to me with the below, there is no option to set up a repayment arrangement via my account as this isn't available 3 days before due date apparently.

 

Our aim is always to help you settle your loan as quickly as possible. Acknowledging difficulty in repaying is half the battle, so thanks for contacting us.

 

You can set up a repayment arrangement online by logging into the ‘my account’ area of our site and clicking ‘applying for a repayment arrangement’. You’ll need to complete an income and expenditure form so please follow the onscreen instructions.

We’d like to get you on a repayment arrangement so we can freeze interest when you make your first repayment. If you need any help completing this form, please call us on 0207 138 8331.

[wongaless]

Hi

 

Can someone help me with this please. Wonga have come back to me with the below. I have sent them 3 emails chasing them on a decision on my repayment plan offer over a 4 month period. I understand it's best to not communicate with them over the phone... They've sat on this now for 2 days.

 

After reviewing your email, it seems clear the best way to get this matter sorted is over the phone.

Please call us on 020 7138 8331. We look forward to discussing your account and trying to help find a solution for you.

You may also find you can get things sorted by using the options in the ‘my account’ area of our site.

[renegadeimp]

Tell them writing only. If they persist trying to force you to call, youll make formal complaints to the regulators.

[Bazooka Boo]

Ah yes the old "We can do this over the phone" trick!

 

If you have their bank details, then IMO I would set up a standing order with what YOU decide YOU can afford to pay them, and send them a letter stating that you have done so, and that should they need to clarify anything with you, then it MUST be done in writing ONLY, and any call they make to you, will be regarded as harassment and intimidation and treated as such.

[wongaless]

Great thanks so much for your help, just wanted to double check. Does anyone have their bank details?

[Bazooka Boo]

Don't you?

Google, Bing,???

[wongaless]

Sorry I thought this was a consumer forum for helping, I want to obviously ensure that I get the details right before transferring monies over and by pulling information from like minded people like the members on this site who have had similar experiences is comforting in what already is a pretty depressing situation.

[fletch70]

Wongaless

This is indeed a consumer forum to help people however I could put some bank details up but lets face it they could be anyones.

 

I know the rule is not on the phone but you could just phone up and ask for bank details and reference number but refuse to discuss anything...whats the worst that can happen, they say no!

[wongaless]

Good call. Thanks... I hadn't thought about the bank detail issue...

 

Cheers