Payday Loan problems

boppy2

hi
i am hoping some of you here might be able to advise me, i am due to pay back 2 payday loans when i am paid but i dont have enough with the interest charges, i would like to pay it back but at the moment i would need to negotiate a monthly payment plan with them. I have tried to discuss this with them but they would't allow me to do this and that if the payments are not made they may contact my employer, can they do this? and is there anything i can do as i wont be able to pay any bills if they take this money?

GeorgeUK

I would contact CCCS or Cistizens advice. I'm sure they will have dealt with payday loans before. Hopefully others will be along with more advice soon.

boppy2

CCCS said they shouldnt do it so im hoping they dont, just wondered if anyone else had been a similar situation to see what will happen

jimmer1980

Have you asked if you can just pay this months interest and roll over the loan?

The interest on these loans are extortionate. I used to used the a few years ago. Would be debt free by now If I hadn't.

RAS

You should have a copy of the agreement that you made when you took out the debt. Does this give the loan company the right to contact your employer? If not, they would be breaking the Data protection Act and you can get them into serious trouble with the Information Commisioner.

it might be a good idea to contact your local credit union. Some will alllow people to take escape loans which have a higher APR than their usual ones but are desigend to get peopel away from payday and provident loans. paying 1.5% per month would be a lot better than you current situation.

taffam

Hi there

Who are they with? I had a few so might be able to help.

I can't see why they would contact your employer, they wouldn't pay it on your behalf and surely they don't have the authority to make an attachment of earnings, so I would take this as a threat

Depending on whether they credit checked you first and there is an active account on your credit file, you could default the payment and let it go to a debt collector and pay them back monthly. I did this with one of mine, and although it's not particularly great advice, it sorted me out. I spread the loan over 5 months and there was no interest, just a small charge for it being passed over, and there are no marks on my credit report from this

You may want to cancel your debit card or direct debits (depending on how you pay them) as if you have rent/council tax to pay these should take priority

Burlesque_Babe

Without an Attachment to Earnings order (through the courts after getting a CCJ) they can't ask your employer for money to be deducted.

If they do contact your employer (without the CCJ), all they are allowed to be told is confirmation you work there.

boppy2

thanks for all your advice, i dont have the terms i signed but i will have a look at the websites. They are with payday uk and poundstillpayday. Im going to cancel my debit card and the direct debits and when they contact me ask to set up a repayment with them. I have been just paying the interest on them for some time and am never able to get out of the trap. Hopefully they wont contact my employer

blondescorpio

I have got myself in the same position. You have to borrow it back every month just to pay for your bills. Terrible rut

boppy2

This is quoted in payday uk terms and conditions
"You grant us permission to contact your employer named in your Employment Details at anytime as may be reasonably required by Us"
Do you think they will contact my employer?

taffam

Personally I can't see them contacting them for any reason other than to confirm you work there, usually they would phone and ask whoever picks it up if you are there, if you are they will probably speak to you but if you're not they will still see that as confirmation you are actually in employment, it is unlikely they will say where they are calling from

A friend of mine defaulted with poundstillpayday, and they were quite reasonable if I remember, I believe they let him setup a payment plan or actually offered a discount on the balance if they paid it all in one go

However, these people are sharks don't forget and will push you as far as you can go before they cave in so tread carefully. I have an active loan with ptpd too, and I know how difficult the trap is to get out of, I hate it. Please post back how you get on, and good luck!