The Sub Prime Credit Thread - Part IV

never-in-doubt

cifpower wrote: »

I have a query from a friend.

He banks with A&L had last year got a payday loan which was based on them holding non-guaranteed cheques. He has been paying £40 a month to roll them over ever since so has paid an absolute fortune. He rang them today to see if the £40 could come off the balance and they said no. They would, however, let him pay back one cheque at a time.

He just phone me and wondered if he would be able to report the chequebook lost or stolen and would this prevent them from cashing the cheques. Would he be hit with a bounced cheque fee if he went down this route?

He would be best to cancel the chequebook, no charges if he cancels it as stolen before any are presented. However the payday loan firm may default him....

cifpower

never-in-doubt wrote: »

He would be best to cancel the chequebook, no charges if he cancels it as stolen before any are presented. However the payday loan firm may default him....

I think he alread has a default or two. I advised him to let it default because then he would be able to come to a payment agreement with the DCA.

If he cancels the chequebook as stolen now will that still cover cheques dated last year which was when the payday loan was taken out? HE really doesn't want his bank to hit him with £25 charges as he can't afford it. He does have a spare account set up though.

TheEffect

I just remember i applied for Vanquis about 4-5 weeks ago and have still heard nothing, not that I want their card now anyway.

never-in-doubt

cifpower wrote: »

I think he alread has a default or two. I advised him to let it default because then he would be able to come to a payment agreement with the DCA.

If he cancels the chequebook as stolen now will that still cover cheques dated last year which was when the payday loan was taken out? HE really doesn't want his bank to hit him with £25 charges as he can't afford it. He does have a spare account set up though.

Hiya - yes if he cancels chequebook as lost.

Ok, here's how to do it.

'Dear XX Bank - I recently went to write a cheque and realised that I couldn't find my chequebook anywhere - it must be lost! I last used cheque number (this will be the last one before he issued them to payday) so can you cancel all cheques after this'...

That will only work if he doesn't use many cheques and the ones issued to the payday loan are the last ones he used. If he's used cheques since then, he'd be better and cheaper to be done by the bank - i.e. let the bank take the hit and work a prepayment with them (being he's banking elsewhere now?)......

Are the cheques not guaranteed then no? If not, if they present them he will be charged - so it may be better paying a tenner for each cheque to be stopped - also a cheque is only vaid for a certain time.

He could also close the bank account totally - that way when they come to bank the cheques no charge will occur as the account is closed..... an unguaranteed cheque cannot make a closed account re-open into negativity like a guaranteed one can.

cifpower

If chequebook is lost he gets charged, but if stolen then not charged. Is that right? So he would be best to say "stolen"?

The cheques are not guaranteed as he doesn't have a guarantee card

This is all very complicated!

never-in-doubt

cifpower wrote: »

If chequebook is lost he gets charged, but if stolen then not charged. Is that right? So he would be best to say "stolen"?

The cheques are not guaranteed as he doesn't have a guarantee card

This is all very complicated!

lol, its not complicated.....

ok, if he last used a cheque that was issued to the payday loan company he will be fine to report as stolen - if he's used cheques since then he cannot say it was stolen can he!

If he closes the bank account he will not get charged either!

cifpower

I get what you are saying though that, if he has used cheques since writing his payday ones, and he cancels his cheques, those cheques won't be stopped. That is why, I presume, he would have to stop each one individually.

cifpower

He just told me that he hasn't used any cheques since and there are no dates on the payday cheques. He is going to tell his bank that his chequebook and card were stolen.

never-in-doubt

cifpower wrote: »

He just told me that he hasn't used any cheques since and there are no dates on the payday cheques. He is going to tell his bank that his chequebook and card were stolen.

Good idea - it was stolen and to cancel any future cheques as I have never written any for months and months! lol - that will do it.

Did they photocopy his debit card? So if he reports that stolen as well, if they try and take funds they will reject it?

cifpower

Surely if he puts his card down as stolen they won't be able to use that as it will be blocked?