Payday loan merry-go round!!

Hi there, was a bit scared to post but want to get out of this horrible merry go round of paying then borrowing. I started with payday loans to cover a vet bill then paid them off straight away only to find I didn't have enough money left to live on. I've finally came to the end of my tether as I'm worried sick about it, I phoned two of the companies (I have 4) and neither say they can do anything until the day the loan is due.

I'm lost. I don't know whether to apply for a DAS to take the sting out of contacting these companies or whether this will harm me long term.

I didn't have very great credit before these loans as I didn't have anything really in my name. I was hoping to build it but I've wrecked that now should I go down the route of DAS?

Thanks
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  • raven83
    raven83 Posts: 3,021
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    Ok, first things first, i would ring your bank and cancel all direct debits etc with them, that way they can't take your money. Then i would write to each one and offer a repayment plan of something you can realistically afford ( you don't want to leave yourself short for the month to be able to afford basics and to live. I am sure that they will accept your offer of repayment, also ask them to freeze any interest, there are forms with this all on that you can download and just fill in, if you google it. Try not to panic, and try not to offer more than you can afford to pay as it will just lead to more loans, if you can only afford a small amount each month then offer that.
    Raven. :grinheart:grinheart:grinheart


  • Thanks so much Raven, do you think it's better to contact them myself rather than go through a DAS? Do you know if they will call me at work (sorry I'm just scared!!)
  • raven83
    raven83 Posts: 3,021
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    Thanks so much Raven, do you think it's better to contact them myself rather than go through a DAS? Do you know if they will call me at work (sorry I'm just scared!!)


    They most certainly shouldnt contact you at work but it has been known, i would to tell them in the letter not to make any form of phone contact with you at all and to keep everything in writing. I would try doing it on your own without going through a DAS but i think the best one to use if you are gpoing to use a company like that is PayPlan.
    Raven. :grinheart:grinheart:grinheart


  • raven83 wrote: »
    Ok, first things first, i would ring your bank and cancel all direct debits etc with them, that way they can't take your money. Then i would write to each one and offer a repayment plan of something you can realistically afford ( you don't want to leave yourself short for the month to be able to afford basics and to live. I am sure that they will accept your offer of repayment, also ask them to freeze any interest, there are forms with this all on that you can download and just fill in, if you google it. Try not to panic, and try not to offer more than you can afford to pay as it will just lead to more loans, if you can only afford a small amount each month then offer that.

    Except PDL companies don't take money via direct debit, they use a recurring payment authority.

    Dimples, see this thread about dealing with them: http://forums.moneysavingexpert.com/showthread.php?p=36725197
    ..
  • raven83
    raven83 Posts: 3,021
    First Anniversary Combo Breaker
    Forumite
    Except PDL companies don't take money via direct debit, they use a recurring payment authority.

    Dimples, see this thread about dealing with them: http://forums.moneysavingexpert.com/showthread.php?p=36725197

    Oh i did wonder if they put some sort of marker onto the account, in that case then you need to open a new account and close your current one down.
    Raven. :grinheart:grinheart:grinheart


  • taffy056
    taffy056 Posts: 4,895 Forumite
    The advice of closing accounts is very often not correct, you have a legal right to stop reoccurring debit card payments to be stopped from your account, you need to tell the bank to stop them, don't take it's not possible as answer. Here is something that may help you from CAG.

    http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them
    Excel Parking, MET Parking, Combined Parking Solutions, VP Parking Solutions, ANPR PC Ltd, & Roxburghe Debt Collectors. What do they all have in common?
    They are all or have been suspended from accessing the DVLA database for gross misconduct!
    Do you really need to ask what kind of people run parking companies?
  • I would get a new account asap it takes at most a couple of hours if you don't have an appointment, if you use Barclays as I did you get you new card in a couple of days.

    If you don't you may end up with all your money being taken out on pay day is it really worth the risk?
    Total Debt: £4610.75
    Debt Free Date: May 2016.
  • Gimpsdad
    Gimpsdad Posts: 315 Forumite
    In practice, asking the bank to stop a debit card payment, or recover it if it has been taken, is useless in most cases. Neither do you have to close your account and get a new one. Easiest way is to report your card lost and they will cancel it and send you a new one. Do be aware that payday loan companies are very sneaky though and may set up a d/d remotely as well without your knowledge. Make sure that you inform your bank that no d/d's to the said companies are to be paid, that way if they do pay them then they will have to refund you.
  • Hi there - I can't thank you all enough. I have been panicking over this for a few days and I'm really grateful for all your support. I got a response from Wonga today to say they accept my offer of £77.00 over 12 months to clear that loan but I haven't heard anything from the 2 others which total £900. I spoke with my bank who were very understanding and guided me to "lose" my card and then just as Gimpsdad says register with online banking to keep an eye on DD's being added.

    I'm thinking of sending the lenders a letter with my budget and an offer to try and clear them within 12 months as dealing with them over the phone is quite a challenge.

    Again many thanks x
  • raven83
    raven83 Posts: 3,021
    First Anniversary Combo Breaker
    Forumite
    Hi there - I can't thank you all enough. I have been panicking over this for a few days and I'm really grateful for all your support. I got a response from Wonga today to say they accept my offer of £77.00 over 12 months to clear that loan but I haven't heard anything from the 2 others which total £900. I spoke with my bank who were very understanding and guided me to "lose" my card and then just as Gimpsdad says register with online banking to keep an eye on DD's being added.

    I'm thinking of sending the lenders a letter with my budget and an offer to try and clear them within 12 months as dealing with them over the phone is quite a challenge.

    Again many thanks x

    Yeah, don't ring them put everything in writing, that way you don't have to feel intimidated or bullied and if you write things you can clearly state what is going to happen ON YOUR TERMS. :)
    Raven. :grinheart:grinheart:grinheart


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