Payday Loans - Plan required!

MBOBE

At least if she kicks me out I'll move closer to work and cut my rent by half! Just kidding... Although I know it's getting close to the time when I have no choice but to confess!

Interestingly enough I found this on The Money Shop Website which may come in handy:

" If you are constantly spending more than you earn and delving deeper into debt, we recommend that you seek guidance from a qualified and reputable credit counselor. These financial professionals can assist in negotiating with your creditors, creating debt consolidation plans and finding alternative repayment options that may potentially help you get out of debt faster."

little_miss_T

I read posts about these pay day loans with great interest and i get more and more incensed by the sharks that call themselves loan companies..

they ruin lives and dont give a s**t about it.

we get these loans (i have still got some now and am in exactly the sam position as you) and then something happens that means that we have to extend them and extend them and get another one to cover that one and another and so on...

then we get into such a panic about what to do (and in my case make ourselves ill about it) and they so not care...

Im really angry about this, as you can probably tell.

the best advice is open a Co-Op cash minder account as that is the easiest one to get with not so good credit, cancell the cards with the bank you have now, pay off the ones you can and then pay the others off as and when you can.

These people really make me sick.. what makes me sick is that they claim to be responsible lenders but how responsible is it to chase someone for money they just dont have it for one reason or another and send them letters threatening with door step collection??

Rant over.

I hope you get it all sorted out.

Good luck

Miss T

SimIsOnTheUp

Hi MBOBE, and folks.

I hope you get this all sorted out.

Hope you don't mind me jumping on this thread, but I have stupidly taken out a Money Shop 'cash 'til payday' loan, and I can't afford to pay it back.

I can't sleep tonight, due to panicking so much

Last Tuesday, I went into The Money Shop, to cash some cheques (from my own cheque book).

The chap in The Money Shop, explained about 'cash until payday'..

I stupidly wrote out 5 x Cheques, from my A&L chequebook, each for £100 = a total of £500.

Looking at the print out, I was given, it shows that Money Shop have charged £15.99 for each cheque they processed.

Their printout, also shows the cash paid out, for each cheque = £84.01.

So, for the £500 loan, I took out from them, they gave me a total of £420 in cash.

This Money Shop loan, has to be paid back in 30 days time.

They told me, that they will bank each cheque, on a seperate day, from 8th July and 14th July.

There is no way I'm going to be able to repay this, and I am so worried.

What makes it even more embarassing, and regrettable, is that I'm a recovering alcoholic (fell off the wagon last week, and have since climbed back on), and I spent almost all of the £420 on alcohol, in 4 / 5 days.

When I agreed to the loan, in the Money Shop, I was also dishonest with them, and told them I was still working at my old job (I left last November).

Can't believe I did this. Looking back to last week, I certainly wasn't thinking straight.

What happens next with these people?

Obviously, I'm scared witless of The Money Shop finding out, that I lied about my working, when I'm not. This will no doubt, come out if they take me to Court, for a CCJ won't it?

Also, there is no way on earth I can repay this £500, in the forseeable future, let alone in 3 weeks.

Reading your helpful advice above, on this thread, I am considering calling my bank and cancelling my Visa Debit / Cheque Guarantee Card (the same care, that Money Shop used to guarantee the 5 cheques).

I'm torn, because I'm worried this will obviously annoy the Money Shop, and they will of course add charges.

However, if I let them cash the cheques, at the A&L (my bank), then the A&L will also charge me, as the funds won't be in there.

Am I able to cancel my Cheque Book and Guarantee Card with A&L?

If I do this, do you guys know, if the Money Shop are still able to cash the £500 worth of cheques, from last week.

I am determined to try and be positive, and sort this out.

I even considered going into the Money Shop, telling them the truth, about the fraudulent application / alcoholism, apologising, and asking to come to a repayment arrangement.

My Girlfriend has told me that this would be 'too honest', and it could make things worse. I just don't know.

Any ideas as to what to do next, regarding this Money Shop loan, would be most appreciated.

I'd really like to try and keep my A&L bank account, as it's the first 'proper bank account', I've had in years.

Am now worried, that I'm going to lose it, due to all the charges.

I think I'll call A&L first thing, later this morning, and ask them to cancel both the cheque book / card, and reissue new ones.

Could The Money Shop still bank the old cheques then though?

Many Thanks,

Sim.

SimIsOnTheUp

Any ideas please guys?

Am so worried, I'm going to be done for fraud.

david.l_4

Aright mate im no lawyer so don’t quote me but this is what i would do (i had a loan from the m.s for 350)
You have to take all money out of your bank account (or close it)
Call your bank and ask them to canx the cheques (as if you don’t they will go through as you said you had a cheque guarantee card)
And when the money shop call you say you lost your job and you will pay them "x" each month i owed/owe them 350 they run through a income and expenditure form with me and i am now paying £30 a month and they seem happy with that.
they may try and give you abit of grief over the phone as this is your 1st loan but stick to your guns tell them you just lost your job and its up to you but i would NOT tell them the truth as it may open a can of worms.

david.l_4

p.s when you default with the money shop they will charge you £25 per cheque so that will be added to your original balence so you will owe them £625 in all.

SimIsOnTheUp

Hiya David.

Thanks for your helpful reply.

Regarding my A&L bank account, there is no money in there now.

I really would like to try and avoid closing the account, but I can see where you're coming from.

Great idea about cancelling the cheques.

My plan was, to call the A&L bank today, and tell them I've 'lost' my cheque book and Visa Debit / Cheque Guarantee card :-/

I realise, that this is not the truth, but I need to cover my back, and I'm so worried, that if I ask the bank to cancel the cheques, they'll flag it with their 'fraud department'.

Obviously the bank will then want to know why I cashed cheques, when there was not going to be enough money in my account.

Will the Money Shop still be able to put the cheques through, even if I cancel my card and cheque book?

I'm worried that they will be able to, due to them having my (soon to be) old card details on the back of the cheque?

Even if I do ask the bank to cancel the specific 5 cheques, I'm also worried they wouldn't even do this due to them being previously 'guaranteed'.

As I'm seeing the CAB next week, to deal with all this stress, I'd rather write to the Money Shop, and offer a repayment with my SOA then, rather than call.

My nerves are all over the shop, at the moment, and I don't think I could handle calling them.

I just thought, that the first step would be to call the A&L bank, and ask them to stop *all cheques*, as I've lost the chequebook / card.

As you say David, I don't want to 'open a can of worms', so I don't think they need to know the whole story.

However, my main worry is, that they will want to know 'when' I lost my job..and I really don't want them knowing it was last year :-/

I'm so worried I could go to prison for this mate.

Many Thanks,

Sim.

SimIsOnTheUp

david.l wrote: »

p.s when you default with the money shop they will charge you £25 per cheque so that will be added to your original balence so you will owe them £625 in all.

Thanks.

Yes, I saw on the credit agreement from the Money Shop, their charges.

Can't believe I did this.

I am searching on the net, to see if I can find details, as to whether or not, the Money Shop can still cash the cheques, even if I cancel my card / chequebook.

However, I can't find any details as yet.

Any ideas?

Thanks again,

Sim.

David_Brent

SimIsOnTheUp wrote: »

Thanks.

Yes, I saw on the credit agreement from the Money Shop, their charges.

Can't believe I did this.

I am searching on the net, to see if I can find details, as to whether or not, the Money Shop can still cash the cheques, even if I cancel my card / chequebook.

However, I can't find any details as yet.

Any ideas?

Thanks again,

Sim.

Hi - Don't stress too much - you just need a plan and theres no way you will be going to jail!!

First of all I would cancel your debit/credit card and cheque book as they may try and make a card payment with your details if the cheques bounce. Also it is worth checknig with your bank theres no standing orders/DD set up on you bank with these guys if so get it canceled.

Now just wait do nothing.....next thing you will receive is an overdue account letter more than likely....then give them a ring to set up a payment plan £20 - 50 a month or somthing...and you tell them what YOU can afford to pay back each month, don't let THEM tell YOU what to pay back each month they are very pushy but don't get bullied into paying back money you cant afford.

Obviously this will maybe impact your credit score - but the main thing is you keep to your agreement with the company and pay each month (if you can't, ring them and tell them, don't be too nervous to ring them otherwise it could get worse and slap on extra charges etc).

From my experience with payday loans companies they didn't touch my credit score when I defaulted - and they even threatened court action - anyone else had this experience?

SimIsOnTheUp

David_Brent wrote: »

Hi - Don't stress too much - you just need a plan and theres no way you will be going to jail!!

First of all I would cancel your debit/credit card and cheque book as they may try and make a card payment with your details if the cheques bounce. Also it is worth checknig with your bank theres no standing orders/DD set up on you bank with these guys if so get it canceled.

Now just wait do nothing.....next thing you will receive is an overdue account letter more than likely....then give them a ring to set up a payment plan £20 - 50 a month or somthing...and you tell them what YOU can afford to pay back each month, don't let THEM tell YOU what to pay back each month they are very pushy but don't get bullied into paying back money you cant afford.

Obviously this will maybe impact your credit score - but the main thing is you keep to your agreement with the company and pay each month (if you can't ring them and tell them, don't be too nervous to ring them otherwise it could get worse and slap on extra charges etc).

From my experience with payday loans company they didn't touch my credit score when I defaulted - and they even threatened court action - anyone else had this experience?

Hi David_Brent,

Thanks for your help.

Am finding it very hard to think straight, but am determined to sort this.

I am about to call A&L, and cancel my Visa Debit / Cheque Guarantee card, as well as my cheque book.

Will it be safe, to reorder a new card and cheque book, do you think? - ie - can The Money Shop still take money out of my account?

My worry is that they will just try and take a Direct Debit out from A&L next month, and then in turn, A&L will slap on 5 x £30 charges

I'll check online daily, as I do already.

Can The Money Shop still get these cheques cashed, even if I cancel my cheque book and card? I'm worried they will, due to my having used a cheque guarantee card.

Also, I can't really call A&L bank, and ask them to cancel the specific cheques, as that will raise suspicion, and the bank will see, that I've written the cheques without funds in my account.

Thanks,

Sim.