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Debt Relief Order & Payday loan question (paydayuk)

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preciousillusions
preciousillusions Posts: 543 Forumite
edited 1 December 2009 at 11:36PM in IVA & DRO
Was just wondering if anyone could help me as i am not sure what to do...

I am due to be undertaking a Debt Relief Order next Thursday at my next appointment with my advisor due to reaons i won't go into right now. However, i have a bit of a problem in that i have a payday loan from paydayuk coming out of my account tomorrow which i cannot pay. I had not told my advisor about this one before as i thought i was going to be able to pay it off before i did the DRO as it is not for much and i was embarrassed seeing as i took it out after going to the CAB for help and listing all my debts so didn't want to bring another up later (i suffer with mental health issues which have led to most of my debt and felt desperate hence this loan. The CAB knows all about these issues so i don't think it will be that much of an issue to them even though you are not supposed to get it to more debt after seeing them, as they know i still struggle.)

I thought i would have some money left to pay this one but i obviously don't. So i will have to add it to the order afterall. This is fine on my end but i am worried about what the reaction will be from paydayuk (i have had an e-mail from them today giving me the option to defer my loan or stating that if i do pay it off i will be able to get a bigger loan next time :rolleyes:, they tried to ring me about this too but i missed the call, so as far as they know at this point they are taking the full amount which is £187 out tomorrow.) I am debating as to what the best thing to do at this point would be, should i:

1. E-mail them now to apologise and explain the situation and inform them that i will be undertaking a DRO next Thursday and will need the final balance for them for this.

2. Wait for them to contact me tomorrow when they try to take the payment and cannot and then explain it all to them when that happens (when the *** hits the fan basically.)

3. Ignore all communication and just let the DRO go through next Thursday as planned, so that will be the first they will know of it

I am reluctant to go for option 2 seeing as i have a complete phone phobia and really hate controntation on the phone. Maybe if i e-mail them i can explain i would rather communicate that way?

I am just freaking out a little i guess. I am already very upset about the whole DRO thing (i do blame myself completely, i am only 22 and it is a big deal for me :() and not sure i can deal with someone on the end of the phone demanding payment.

Also, if i inform them of the DRO do you think they will still try to take payment from my account (i have nothing in there now at all but will get a little credited next Tues) in the future? Can they try that even after the DRO is served? Basically, do i need to cancel my card and re-order? (been there with Wonga before, heh)

Please no judgement...thank you in advance for any replies. xxx

Comments

  • kerrypn
    kerrypn Posts: 1,233 Forumite
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    Hi

    If a DRO works the same as a bankruptcy, you may have been in trouble for paying that creditor anyway, so its probably worked out for the best.

    You need to include it in your debt relief order-I understand the criteria is far stricter for DROs and you want to make sure it goes through properly.

    I would just wait for the DRO to go through now.

    Someone with more experience will add more info Im sure.

    Best of luck :)
  • preciousillusions
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    Thank you Kerry. Yeah i will definitely be adding it to the DRO now. I feel ashamed to admit i have this new debt but i know i need to. Atleast i know this will be the last one i have. I know i can never let myself get into this situation again.

    I guess i am just more worried at this point about what will happen with paydayuk between now and next Thursday when i can finalise the DRO and they are unable to claim right to the payment.
  • kerrypn
    kerrypn Posts: 1,233 Forumite
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    Its far better you do it now rather than after the DRO is granted.

    Everyone makes mistakes, keep your chin up, be honest and everything will be fine :)
  • confused76
    confused76 Posts: 12,680 Forumite
    First Anniversary Combo Breaker
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    hi i'd go for option 3, avoid communication with them between now and your dro date. don't answer the phone unless you know who is calling.

    everything will get sorted out next week, try not to worry. at least going forward you will be out of the payday loan cycle (i've only learnt of these things recently and the very concept makes me uneasy)

    be honest next week and it will all come out in the wash as they say! x
  • preciousillusions
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    Thank you all! Do you think i need to cancel my card then and re-order one? (just my basic bank account that i have my benefits paid into, no overdraft or anything so not part of the DRO)
  • kerrypn
    kerrypn Posts: 1,233 Forumite
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    What account have you got?

    I think you will need a BR/DRO friendly one-Co op Cashminder or Barclays basic anyway-it might be worth sorting that out as other accounts are likely to be closed after BR/DRO.

    HTH
  • confused76
    confused76 Posts: 12,680 Forumite
    First Anniversary Combo Breaker
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    is there enough money in the account to cover it? or do you need this for living expenses food etc? will the dd be bounced?
  • preciousillusions
    preciousillusions Posts: 543 Forumite
    edited 2 December 2009 at 12:33AM
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    The account currently has a few pennies in it! Bur my benefit will be paid in next Tuesday. Yeah i imagine they will just try to take it with my card details and it and it will come back declined. I just worry as i had this with Wonga before and then after that they tried to get every last bit of any money i had, however small out of my account, all in random payments.

    I thought i could keep this account as it has no debt. It is a new one i took out after having my previous long-term one with hsbc blocked up due to a recalled overdraft. So i got a new one to just get my benefits paid into so i could access some money. The HSBC one is being included in the DRO of course. Hmm i guess i will just have to check with my advisor next week to be sure about this.

    Also sort of worried if i don't speak to or get in touch with paydayuk that they will call my (previous, temp) employer...does anyone know what the likelihood is of that happening/have experience with it? :( I am okay with ignoring them if that doesn't happen.
  • confused76
    confused76 Posts: 12,680 Forumite
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    if it was me (and this is just what i would do)
    cancel the direct debit tomorrow
    take your benefits out as soon as they get paid in if you need them for essentials (as long as there are no other direct debits coming out and it doesn't send you overdrawn)
    keep an eye on your account before your dro
    consider opening a coop cashminder account for after the dro

    i hope you get this sorted
  • preciousillusions
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    Thanks but the payment is actually due to be taken by debit card not by direct debit hence me wondering whether i should cancel the card ;).
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