Cheque cashing foul up

Happiness6500

Help .. fell foul of using pay day cheque cashing... one of my debts .. In hands of CCCS now so plan will be in place soon i hope

However. I have spoken to the creditor to advise them of my payment difficulties, they hold 5 cheques of mine meeting a total of £450. I explained im having difficulties and that they should pass the debt to there central collections. As i havent missed a payment yet they say it cant be passed till each cheque gets returned which they will then charge me £25 per cheque for the pleasure of . Also if my bank returns them or ask the bank to cancel the cheques it will cost me £10 per cheque. Thus adding £175 to my debt of £450.

I am going to send a letter explaining that i have been in touch as soon as i reasonably recognised i had payment problems and that until now i have been a good customer and to waive charges .. but i wondered if there is anything else i can do ?

Help

MrsTinks

The cheapest option I guess would be to cancel the cheques surely?

Happiness6500

Yes i can cancel at a cost of £10 per cheques by the bank. the £25 is charge from the creditor per cheque as a returned fee . Even though i have told them not to bank them and save the bother !

MrsTinks

Ignore the £25 charge - if you default the account anyway and enter a DMP then chances are you can argue they are unfair charges... but start saving up for full and final payments anyway and you'll probably be able to eventually one day offer them a relatively low settlement amount for the remainder of the debt... I am guessing the £10 to cancel the cheques is still less than you would be charged for a bounced checque or going over your overdraft by the bank

MrsTinks

Oh and make sure you notify them in writing that the cheques are cancelled - it will help your side to be able to prove you told them not to cash them if need be in future...

Happiness6500

Ta muchly sound advice,,, lloyds have put me onto a contol basic account which means i only pay £10 to return an item instead of £20 but ur right i will have to bite bullet and cancel cheques. Also i have CCCS on case , just about to send NOtify letters to my creditors to tell them, and am including a letter asking them to waive , will keep you posted.

Can i ask , see if i make token payments before my DMP is in place to keep them happy... whats best way to pay them , i dont want them having my bank card no or dd etc , ?

MrsTinks

I've never had a DMP so not sure... CCCS should be able to tell you or maybe another MSE'er can advise what they did on their DMP

Dayoshir

LLoyds dont charge for cancelling cheques? I have had to cancel a few lately due to non arrival and they havent charged me for that? And yes i am with Lloyds.

Happiness6500

thanks both . Mrs Tine ill post on the DMP help thread


Also Dayoshir i had spoken to Lloyds and they said it would be a £10 charge per cheque to cancel. I might plead dumb and try again tomorrow when i go to cancel them. Could i say i have lost my cheque book do you think !!!!! Maybe not i want to keep honest with my debts .

Dayoshir

I dont know, i phoned up the telephone banking and cancelled them and they have never mentioned a charge at all?