pay day loan problem

Silverscreen_2

My girlfriend had a payday loan from payday UK before she was made reduntant.

She called them up today and informed them the situation and asked if it is possible for the to delay this month's payment to next month as she's found a job but is only going to start in December.

They told her that they do not loan money to unemployed people and that she must pay the entire amount this month. They then said they will have to call her new work to verify her work details. She told them strongly not to ring her work as she does not start until 1 December. She then managed to get hold of a manager who then told her that she needed to send in her new work contract and it would be taken up by the collections department.

I'm rather disappointed by the company's refusal to delay the loan for a month until she's got an income as it wasn't her fault that she lost her job and asked her to pay the full amount back when she's got no money.

Can anyone tell me what they might be up to and if they would be legally able to put penalties on her (such as extra charges)

chalkie99

Silverscreen wrote: »

it wasn't her fault that she lost her job

But then again, it wasn't the loan company's fault either.

She voluntarily entered into an agreement which she now cannot keep. The loan company seem to want to see proof that she does have a new job to enable her to repay the loan. She must have known what charges she would have to pay if she didn't settle on time - or are you suggesting she should not pay interest?

Also, if she was made redundant, why has she not been paid by her previous employer?

Silverscreen_2

chalkie99 wrote: »

But then again, it wasn't the loan company's fault either.

She voluntarily entered into an agreement which she now cannot keep. The loan company seem to want to see proof that she does have a new job to enable her to repay the loan. She must have known what charges she would have to pay if she didn't settle on time - or are you suggesting she should not pay interest?

Also, if she was made redundant, why has she not been paid by her previous employer?

Yes, i totally take your points, i was just wondering if they might take advantage of her. I meant would they make her pay more than the interest + principal? (the thing is, she is only asking for a month delay until she gets paid next month, not that we don't want to pay it back)

she's not been paid because the company has not paid her and it's gone to a tribunal hearing in January

dougyd

Silverscreen wrote: »

Yes, i totally take your points, i was just wondering if they might take advantage of her. I meant would they make her pay more than the interest + principal? (the thing is, she is only asking for a month delay until she gets paid next month, not that we don't want to pay it back)

she's not been paid because the company has not paid her and it's gone to a tribunal hearing in January

The charges they levy are dis-proportionate to the cost they incur so if they did levy charges, you *should* be able to claim them back.
However pay day companies are notoriously hard to deal with.

What's the amount owed and when's it due?

Ivrytwr3

if they aren't willing to help, then tell the company to carry on with the agreement and she will just have to default the first payment and carry on the following month allowing for the extra charges.

I would rather this then some loan company contacting my place of work!!!

Silverscreen_2

dougyd wrote: »

The charges they levy are dis-proportionate to the cost they incur so if they did levy charges, you *should* be able to claim them back.
However pay day companies are notoriously hard to deal with.

What's the amount owed and when's it due?

£512 and due end of the month

Ivrytwr3

loan the money off family (ensuring you DO pay it back), pay off the loan sharks and NEVER EVER go anywhere near these sharks again.

Lesson learned.

dougyd

Can you offer £50 - £100 this month as a sweetener if they freeze charges and interest on your account.