DMPs

hulahoop_3

I am entering a DMP and my debts include a payday loan. Being that they're not obliged to negotiate, has anyone had any experiences where payday loan companies don't co-operate in this situation?

saltnvinegar

Hi Hulahoop

Who is the payday loan company?

I've successfully negotiated with 4. Have a look at my thread here:

https://forums.moneysavingexpert.com/discussion/2673537

SnV

Hannah_10

Every company has moments when they will play ball and oments when they wont. Probability means nothing, what's the probability of being over 6ft2 or being red haired or even of being a twin or triplet? You probably know all of the above, I certainly do.

If you have questions about what will happen next then perhaps putting what has happened to date and what it is you are fearing in a little more detail will help us discern what is and is not likely.

hulahoop_3

Thanks so much Salt and Vinegar. I have read your post which is very inspirational! You are now officially my idol!

I can't believe how similar our stories are - again for me there was no particular event that got me into this mess. I have a very well-paid job and I work very very hard. The effect it has had on me emotionally has been the worst thing...being harrassed and threatened every day is not nice, particularly when I have been contacted at work!

However, my DMP is ready to go, so I hope everyone will co-operate!!! I also came to the realisation that being in-debt does not make me a criminal or a useless person. I know now that I simply made a mistake that I will never ever ever make again!

Roll on DFD!

saltnvinegar

Hi Hulahoop

No problem, glad you enjoyed the read ( I know it takes a while! )

The problem with Payday loan companies is you have to remember that their business model is based entirely on getting a quick return on their 'investment'. Consequently they really don't like it if you get into arrears and offer to make payments over a longer term.

The best way to approach it I found was to completely detach yourself from the threats, letters, emails etc and never discuss things on the phone.

Keep plugging sending your letters, if they decline your offer, write back explaining that your offer is the maximum you can afford, is non negotiable, and to change it would be unfair on your other creditors.

Ask them for their bank details and say as a gesture of goodwill and intent to repay the original loan balance you would like to start making payments in line with your DMP asap as your other creditors have already accepted.

Once they start accepting these payments is makes it much more difficult to start demanding more.

Keep plugging away and don't give up.

SnV

ps, make sure that you set up a parachute account for your wages to be paid into and then phone your old bank and inform them your card has been stolen. Payday loan companies are well known for continuing to try taking the full balance using your card details or setting up a DD.