Payday Loans debt

[merlin100]

Hi all,

need a bit of advice please as to how to proceed realistically if you dont mind, here goes -

 

A family member ( yes, honestly) has just bit the bullet and come clean to her other half regarding all the debt she is in.

 

Luckily shes done it before it had any impact on their priority debts ( mortgage, utilities etc).

 

They are all Payday Loans and are relatively recent ( some recently renewed).

 

Heres the state of play at the moment -

 

Inventive - £163 per month.

Pounds to Pocket - £154 per month.

Sunny - £275 per month.

Very - £70 per month.

 

- on top of these, she also has a Wonga loan with a balance of £1307 thats costing her £400 per month to "roll over".

 

So as you can see, shes currently paying around £1000 a month to these firms and its got to breaking point.

 

Two of them are paid by Direct Debit which Ive already got her to cancel through Internet Banking,

the other three ( including Wonga) are by monthly Debit card payment.

 

Ive told her to go to the bank this coming Monday and report the card as lost,

this should generate a new card but with a different security code thereby stopping the other companies taking any money.

 

Im sure I dont need to tell you that her other half has literally hit the roof, and understandably so,

but he knows Ive been through dealing with debt some years ago when I divorced and has asked me for help.

 

There is no question that he wants to repay these loans, but at an affordable rate, so I have a couple of questions for you.

 

After all his priority debts, there is around £300 a month spare cash.

 

Hes happy to offer each company £25 a month until the debts are cleared.

Do you think this is reasonable?

 

Also, do you think any of these firms will freeze the interest and if not, is there anything we can do about this?

 

At the rate of £25 a month it will take a little over 4 years to clear the greatest debt (Wonga), is this also reasonable? (that is if they freeze the interest).

 

Everything will be done in writing and by Recorded Delivery so if I do get any agreements, at least Ive got a paper record!

 

So people, I could do with some more experienced input and will keep this thread updated for anyone else in this situation.

 

Thanks in advance all.

[dx100uk]

cancelling the card WILL NOT stop them trying to use the CPA method.

 

GENERAL NOTES ON CHARGEBACK & Continuous Payment Authority & BACS

.....

We have been telling people to put a letter into their bank instructing them

not to make any payments under any circumstances to these companies

.

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

.

banks MUST follow written intructions from their customers !

.

This fsa guideicon has now been updated:

.

http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

.

Here's the text:

.

Cancelling a regular

card payment:

.

When you give your credit or debit card details to a company and authorise them to take regular payments from your account,

such as for a gym membership or magazine subscription,

it is known as a ‘recurring transaction’ or ‘continuous payment authority’.

.

These are often confused with direct debits, but do not offer the same guarantee if the amount or date of the payment changes.

.

In most cases, regular payments can be cancelled by telling the company taking the payments.

.

However,

you have the right to cancel them directly with your bank or card issuer by telling it that you have stopped permission for the payments.

Your bank or card issuer must then stop them – it has no right to insist that you agree this first with the company taking the payments.

.

Be aware, though, that you will still be responsible for paying any money that you owe.

and that CANELLING YOUR CARD WILL NOT STOP THE CPA

.

see:

http://www.consumeractiongroup.co.uk...-Viewing)-nbsp

.

http://www.fsa.gov.uk/pages/consumer...ng/index.shtml

.

http://www.theguardian.com/money/201...?newsfeed=true

..

.

New june 2013

.

Regulator orders Banks and mutuals to review complaints about not cancelling recurring payments from November 2009.

.

Consumers who have set up a regular payment from their account will now be able to successfully cancel that arrangement

by contacting their card provider, the Financial Conduct Authority said.

.

The FCA has been examining how easy it is for customers to cancel Continuous Payment Authorities (CPAs)

due either to payday lendersicon or for other regular payments such as subscriptions or gymicon memberships.

.

CPAs, which are also commonly called recurring transactions or recurring payments,

are relatively easy to set up but can be hard to cancel, causing problems for consumers trying to manage their finances,the FCA said.

.

Now, following the FCA review of how the largest high street banks and mutuals process requests to cancel CPAs, they have agreed that they will ensure that when

a customer asks for a recurring payment to end, that will be sufficient to cancel the arrangement. They have also confirmed that should a payment go through by

mistake following cancellation by a customer the customer will be refunded immediately.

.

In addition to securing this commitment, the largest banks and mutuals have agreed to review every individual complaint they have received about the non-

cancellation of a CPA and to pay redress where payments have continued to be made despite the customer cancelling the arrangement. This applies to all complaints

since November 2009 when the Financial Services Authority, the FCA’s predecessor, began regulating banking conduct.

.

Clive Adamson, the FCA’s director of supervision, said: “It’s important that consumers are confident that banks are meeting their everyday banking needs. Today

customers can be confident that when they ask for a Continuous Payment Authority to be cancelled – it will be cancelled - and that it can be done easily.

.

“We recognise that historically this is an area where some customers have struggled but the banks and mutuals have responded positively to our work on this issue.

From now on we expect them to be getting this right. In addition, they have committed to review past complaints.”

.

http://www.ftadviser.com/2013/06/28/...J/article.html

.

Also mentioned your displeasure that as whomever took your money had obviously attempted this many times

probably activating your banks own anti fraud software - nobody had the decency to inform my you this was going on.?

.In the FSA's own words:

.

..

What should I do about a payment from my account that I didn’t authorise?

.

Your bank must refund an unauthorised transaction.

Money can only be taken from your account if you have authorised the transaction

or if your bank can prove you were at fault –

see below.

Contact your bank immediately if you notice an unauthorised payment from your account.

If you are sure you did not authorise the payment, you can claim a refund.

However, your bank does not have to refund you if you do not tell it about the payment until 13 months

or more after the date it left your account.

.

Your bank must refund an unauthorised transaction

.

------------------

.

Your bank may only refuse a refund for an unauthorised transaction if:

.

? it can prove you authorised the transaction

– though your bank cannot simply say that use of your password,

card and PIN proves you authorised a payment; or

? it can prove you are at fault because you acted fraudulently,

or because you deliberately,

or with gross negligence, failed to protect the details of your card, PIN or password in a way that allowed the transaction

.

-----------------------

.

How quickly must my bank refund me for an unauthorised transaction?

.

The bank must make the refund immediately unless it has evidence that one of the above reasons applies.

Your bank may ask you to answer some questions and fill out a form confirming what has happened,

but it cannot delay your refund while it waits for you to return the form.

If the bank has evidence that one of the above reasons for refusing a refund applies,

it may investigate before making a refund

but must look into it as quickly as possible.

If your bank rejects your claim for a refund it should explain why.

If the transaction was on a credit card, the refund may not happen immediately.

But the card issuer cannot charge interesticon or ask for repayment of the amount unless it can prove you are liable to pay

[/b]

These are your statutory rights under FSA regulations. They are not guidance.

.

if you did it by your banking portal:

.

then follow this:

.

http://www.consumeractiongroup.co.uk...73#post4534173

 

 

as for very

 

that's a cat company not a PDL?

 

dx

[BankFodder]

Start off by reading the Consumer Credit Sourcebook CONC regs and especially these - http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?424-Conc-7-Arrears-default-and-recovery-%28including-repossessions%29-%28CONC-7%29

 

I have tired to summarise the most important ones but you need then to follow the links to the FCA website to get the more details version.

They arevery new and many PayDay lenders will not know much about them and of course many of these companies may just ignore them. Wnga is a good example of a company which has routinely acted against the law against its customers - and it seems may have gotten away with it.

Although there is a lot of reading there, it will be worth going through them and taking notes so that you have a good grasp of the position. Look at the conc rules concerning people who are preparing a repayment plan - http://www.consumeractiongroup.co.uk/forum/showthread.php?426134-CONC-7.3-Treatment-of-customers-in-default-or-arrears-%28including-repossessions%29-lenders-owners-and-debt-collectors

 

CONC 7.6 deals with continuous payment authorities http://www.consumeractiongroup.co.uk/forum/showthread.php?426139-CONC-7.6-Exercise-of-continuous-payment-authority

I'm afraid that they are so new that I am not fluent enough with them to direct you to all of the rules which are relevant to your case. Put some work into them and you will be happy that you did.

 

Let us know if you consider that any if these PDL firms breach any of the rules

[renegadeimp]

Stop that rollover. It's a scheme PDL's use to generate massive profits for absolutely no effort at all. It's basically " give us 400 a month and we wont ask you again for 4 weeks"

[BankFodder]

Stop that rollover.

 

Yes - this is probably the best piece of advice to get started with. Seeing as you are going to have to rock the boat - you may as well start with the biggest boat - and of course, the most dishonest lender.

 

I suggest that you start putting together an IE schedule as well, ready to send round.

 

Mind you, if you do stop the rollover, then best to let them know in advance in writing. Keep the moral highground by making sure that you inform people properly and keep a paper trail

[renegadeimp]

Mind you, if you do stop the rollover, then best to let them know in advance in writing. Keep the moral highground by making sure that you inform people properly and keep a paper trail

 

Fully agree with this. make sure you do things properly and let them make the mistakes; and they make a LOT of mistakes.

[fedup12]

Firstly it's good they shared the problem and acknowledged the issue.

 

Email them all telling about financial difficulties

 

I have and had interest froze and gone on plan.

 

Di this before the next payments are due.

 

I did actually ring sunny and they were great they split it over 10 months.

 

Doing it this way means your credit report shows as arrangement rather than late or defaulted. Good luck.

[renegadeimp]

Its best to do everything in writing so you have a full papertrail. Ringing is not a good idea unless you record the call in full.

[letsgetitsorted]

what i did with each off they PDL that I owe, was to send them a detailed ( in their minds anyway) income and expeniture list, however the spare cash indicated on the list only showed what i could afford to pay them, mine showed that i only had £13 left a month to pay wonga and after a lot of peruading they took it...did the same for payday express to.

so worked the I & E to my advantage.

[merlin100]

Thanks for the advice everyone.

 

DX, there is a company called Very Loans,

whether its tied to the catalogue company, I do not know (at least not yet).

 

I do intend to do everything in writing - Ive learned the hard way about that in the past!

 

Ill now draft letters regarding each card payment and send her to the bank cancelling the Authorities forthwith.

 

Then I will draft letters to each loan company outlining the serious amount of debt and containing an offer of repayment ( £25 a month each).

 

Does anyone think this is too much or too little based on there being £300 a month surplus funds?

 

Also would you suggest I send an IE sheet from the outset or wait until they ask for one?

 

Thanks everyone, time to start reading up.......................

[renegadeimp]

Offer them what you can realistically qfford. Dont cut back on essentials just cos they want money

[merlin100]

Just an update guys.

 

I took your advice DX,

 

been to the bank today with separate written confirmations re the cancelled Direct Debits.

 

Also produced three separate letters cancelling the CPAs to the rest of them.

 

Ended each letter with the line -

"Any further payments after the date of this letter will be considered to be unauthorised payments"

 

That seemed to make the bank sit up and take notice without arguement or any "buck passing".

 

Inventive are already ringing her mobile, they must have already been informed of the cancelled Direct Debit.

 

Letter posted to them yesterday ( 1st class recorded) explaining the situation.

 

So let the ninth circle of Hell begin - the dreaded DCAs cometh!!

 

One good thing about these debts being passed to DCAs

- at least they mainly come after a final figure so you know where you are.

 

The PDLs will just keep adding interest and racking up the debt

- but this is probably something to tackle in the near future:roll:

[dx100uk]

well done

 

there is no requirement to send I&E sheets.

 

dx

[fletch70]

DX

Two of the links you gave do not work

As for everything else all seems done and dusted.

Can I just suggest that you send the inwriting no telephone calls letter and if you have a smart phone to download a call blocker . For android I find an app called "callblocker" very good as it blocks calls and txts but keeps a log of them

[renegadeimp]

Make sure to keep that call log as well.

[merlin100]

Hi all, had the first response, its come from Wonga by email, and come from the "Hardship Team".

All they say is that they are sorry to hear of her difficulties and would like her to ring them to discuss a repayment plan.

The letter they got from me did say that all future correspondence should be in writing but they seem to be ignoring that.

So if I get her to ring them, does anyone think it may be a good thing or is it likely just a ruse to put pressure on her to increase the offer?

Just trying to get forearmed before we tackle them.

Thanks all

[renegadeimp]

Dont ring them. They are already in breach of official guidance on debt collection. Stand your ground.

[fletch70]

Agreed , do not ring them and when you reply remind them that all communication must be in writing .

 

The do not talk on the phone is general good advice as many operatives will say anything to get rid of you and that is not just where debt is concerned

[merlin100]

Ok guys, got the message and thanks.

Inventive are now ringing 5 to 6 times a day on 02075263030 even though they have received an identical letter.

All letters have now been signed for and Ive printed off the signatures and filed them in their respective folders.

So is the next step to write to them again reminding them that all communication must be in writing only?

[renegadeimp]

Nope. Log all calls and get full complaints rolling. You have a valid case for harassment if theyre calling that many times a day.

[fletch70]

When did they sign for the letter?

 

If you want to make a formal complaint and go through the Fos you will need to start with the company so a letter headed in big bold letter FORMAL COMPLAINT to them detailing that on x date you sent a letter saying all contact in writing. It was signed for my XX on y date .

 

Indeed log all calls as well as you can use that as part of your complaint.

[merlin100]

Another update guys,

Think Finance (Sunny) have done the decent thing. Theyve frozen the account, stopped all future interest and agreed to the repayment plan, so thats one down, three to go.

Im about to reply to Wonga reminding them that all correspondence must be in writing even though they have complied with my initial request of "in writing" only and sent an email ( even if that email does ask that we ring them).

Inventive however are apparently being awkward. They are still ringing 4 to 5 times a day even though they too have been ask to communicate in writing only.

Havent heard anything yet from Pounds to Pocket.

[fletch70]

Hi Have you got them all logged?

have inventive definitely received the letter ?

 

If so then I would be considering if I should be sending a letter before action or at the very least a formal complaint . Do you ever answer these calls?

[renegadeimp]

If theyre still harassing you, report them and log every single attempt they make at contacting you. Don't put it off. report them asap. We've seen first hand that the FCA are coming down hard on rogue offenders. And also remember that you wont be the only person they are doing this to.

[letsgetitsorted]

I am just about to report payday uk for same thing