Dealing with Payday Loan Companies

WorriedJB

If anyone can help me I'd be really grateful. I have (enormously foolishly I know) ended up with a mass of payday loans that I can no longer service. I decided to big up and deal with them so agreed a rollover with one firm. By now, I had chenged banks to ensure that none of the companies had my details. I'm sure all will know what happened next - I went to the frim's rolover site, entered my new details and immediately had the full amount taken - over £650. This now means I have even less left to pay the other companies and I'm at my wits end.

I think I need to enter a DMS but I notice that most of these companies have exclusions to say that if you enter one of these, they have first right to full payment. What can I do?

My wife doesn't know and I can't concentrate at work - I have to try to get home earlier than her every day just so I can see if there is any mail and I spend the eveneings worrying about a knock on the door. I do want to address it, I just need some impartial advice please

One_Fine_Day_2

Well that failed spectacularly. Despite card being reported as stolen, woke up this morning to find that full £935 has come out of my account. I could weep. In fact I will weep as soon as I finish work for the day. I now have £92 to keep two adults and two children on for the entire month - it won't even pay our petrol to work each day. I really feel like just running away.

saltnvinegar

One_Fine_Day wrote: »

Well that failed spectacularly. Despite card being reported as stolen, woke up this morning to find that full £935 has come out of my account. I could weep. In fact I will weep as soon as I finish work for the day. I now have £92 to keep two adults and two children on for the entire month - it won't even pay our petrol to work each day. I really feel like just running away.

Hi OFD

Sorry I haven't seen your posts before now, I am reaaally busy with work at the moment.

I'm afraid the situation that you find yourself in is not unusual and why PDL companies need to be dealt with so savagely.

For a start your bank should not have authorised a payment from a card reported as lost. In fact I am pretty sure they didn't.

When you applied for the loan did you also give your bank your sort code and account number? Some PDL companies sneakily set up a direct debit or standing order which takes the money automatically should the debit card method fail. I suspect this is what has happened in your case.

The important thing now is that you try not to roll over the pay day loans and instead try to generate enough money to get you through the month from other sources. Are there things you can sell on eBay, Car Boot sales etc?

Also you need to get some professional help to assist you in analysing your finances so you don't get into the PDL trap in the future.

Best

SnV

RAS

OFD

Can you do a few things urgently to sort this out.

Please please open a new bank account with a company not related to your exiting one and make sure any benefits etc are paid into that - get this done today.

Check out the Trussel Trust who run foodbanks; they may well be able to help you get to the end of the month.

Go round the house, pull together everthing that you no longer use and work out how to flog it; e-bay, amazon and car boot sales plus other ideas.

Make a list of what is in the cupboards and freezer and go over to the Old Style forum and do a store cupboard challenge; creating a menu that will get you as far as possible with no or few purchases.

Buford_T_Justice

Hi all.

First time poster, just wanted to share my recent experiences.

As with many other posters in this thread, I recently found myself in a horrible position with Payday Loan companies. I was lucky enough to be able to fall back on family for support. As humiliating as it was to admit the mess I'd got myself in, I am now so relieved to finally have all my payday loans closed out.

I am furious at myself for allowing it to get as bad as it did (although I do appreciate that by comparison to a lot of posters on here, I got off lightly).

I would just like to say, to anyone currently contemplating taking out one of their loans "just as a one-off";

Please, please, don't do it! Don't let things get to the point where you are getting into that vicious circle where you're taking out one to pay another off, or worse, taking out more loans just to cover the interest. It is so easy to to.

I was at a point where I was paying £700 per MONTH just in interest, leaving me with nothing to pay off any of the princpal, just rolling over and rolling over. It truly is a horrible place to be in, and not one I ever wish to revisit.

If you have a loan from any of these people, please stop what you are doing now and re-evaluate your situation. I was in denial for so long and it just made matters worse. Swallow your pride and borrow off family if you can (my male pride has done many things, it's never paid a bill for me though). Sell anything you can get your hands on, follow the great tips on this site and do whatever it takes to clear your balance sooner rather than later.

Best of luck

MGMMC2008

I would like to share for this great post my advice. I tangled myself with 5 payday loans. Few were smaller amounts but i have QuiQuid to repay £750 (interest £150 a month) and Wonga £1000. The way i had to balance my repayments it was nervous breaking as i had to repay Wonga each 28 days with full salary in order to get money back the same day - of course minus interes of over £250 . So in Ocotber 2010 I decided to stop repaying, come with arrangment plan and try to get out of it. I have reported my card lost and any of companies were able to get money but Wonga. They have hit me with seven £20 amounts before midnight one day and i was lucky as i withdraw money straigh as i had my wages so only this was lost. But i have contacted my bank next day Lloyds and i was told there is nothing i could do. So i have closed bank and opened new one same day.Anyway i did not pay and started to receive hundreds phone calls and leeters. I have send to each company recorded letter saying i am not in position to repay and i am happy to pay £20 of what i with their interest if they freeze charges immediately. I also stated i will not respond to any phone calls from now on or call them and the only way i want to comunicate is my email which i have set up new for this purpose only. To my surprise i received reply from all of them asking me to make in front payment, I replied email yes but send me your agreement to my repayment with dates and final numbers. QuickQuid did not agree to my repayments they said they wanted £150 a month and Wonga from now on ignored me adding each week about £100 of interest. I am still paying off the other paydays but i have dealt with Wonga. I have found here on forum this the most brilliant suggestion somewhere in here apply- to apply to court for Time Order. It is form N440 (Notice of application for time order by debtor or hirer) I have got this form, filled, in a week i had a hearing with Judge, where i explained i was in situation i was forced to take this loan, was making repayments but can not aford anymore and would like to ask for intrest to be frozen and repayment plan. Judge order next hearing with Wonga present. Of ocurse they did not bother and never would. So judge ordered me to repay debt , froze interest, did not ask me to sow or produce anything only what is my income, i siad i am ablr to repay £20 a month so was ordered to PO box, whicj i will do for next 6 years. I had to pay £35 for this and because they didnt show up Judge ordered them to pay me cst back hahahahaa, which he deducted from debt i owe. I have to sya after this i found out judges are very syphatetic to us learning how much money i actually borrowed and already paid them. So it will take me 6 years but there is nothing they can do against me, no legal action, no phone calls or letter -it was ordered too, no CCJ, as long as i will repay. I am very happy about this. Want to say to all of you who think there is no light - there is. As for Quick Quid I havent done becasue my debt was sold to different Debt company each time and i actually lost truck who has it. Form time to time i receive a letter about coming home visit or my court etc but i just bin them. So far a year almost passed and nothing happend. In worst case they can not do anything but go to court and if i do receive documents iw ill jsut fill it with my finanical data stating i can not repay more then £20 a month.
Ok, i might have CCJ but then, i think most people who already in this situation have bed credit? But it is not really highly possible i think as cost is too high for them.And is i am lucky, after 6 years with no contact from my side, no one repayment, debt will be wiped by law.
This is just to give you people my side to show it is not the end and you can actually live your life.

saltnvinegar

Hi All

Well the payday loan industry debate is finally making its way into pariamentary debate. You can read a debate that took place on the subject here:

http://www.theyworkforyou.com/debates/?id=2011-07-04a.1252.2&s=%22financial+inclusion+fund%22

saltnvinegar

Hi All

Regardless of your politics there does seem to be an MP who is taking a real interest in the Payday Loan Industry and highlighting the problems that people face because of it.

If you have fallen foul of the payday loan trap and have experienced bad treatment at the hands of PDL companies then I urge you to contact Stella Creasy MP and tell her your experience.

The only way that MP's will sit up and listen is if evidence is provided from the people who are being really affected by this matter rather than listening to the glossy marketing spin that these companies present.

You can contact Stella here:

http://www.theyworkforyou.com/mp/stella_creasy/walthamstow

Best

SnV

saltnvinegar

Just to prove that Stella is making waves and getting PDL companies rattled Wonga felt compelled to address her views on their website:

https://www.wonga.com/letter-to-stella-creasy-mp.pdf

Steph_C_2

Hi,

I am yet another person that has fallen into the PDL trap, oh how I wish I'd seen this before it all started.

I'll try and keep this as short as I can and really hope that someone can offer me some advice. I have an outstanding amount with Wonga that they were due to take on the 28th June when I got paid. I called Wonga a week before this payment date to explain that I couldn't afford to pay the full amount and if I could defer payment or something. They basically said no chance, you've already defered the loan before and we can't do this for you again. Their advice was to let the transaction be declined by my bank and then call them to arrange repayment.

Payday came on the 28th and I was fully expecting my bank to be in a total mess and Wonga to have taken their money and my rent not been paid etc. However they hadn't taken anything from my account and I had funds available. I transfered my available funds (after paying my rent etc) to my savings account and called the bank to see if Wonga had tried to take any money that day. The bank informed me that no transactions had been attempted and they would report my bank card as lost and ensure that no further payments to Wonga were authorised on my account.

To date Wonga have taken no money from my account, they haven't contacted me either by letter, phone or email to discuss the payment. I am checking my account everyday and nothing has been taken. I appreciate over this time the interest is increasing and increasing but even when I try and log into my Wonga account online it says that the user name etc is not recognised, I logged on fine a few days before the payment was due.

I don't know what to do, I'm petrified to call them as I don't have the money to repay the full amount and am pregnant with twins due to start maternity in a few months so my finances are only going to reduce, not improve. Obviously I would like to set up a payment plan with them as I have no intention of not paying this money back but I'm scared that if I call them it will cause them to start trying to attack my account.

I have read all of the advice on here about changing bank accounts and redirecting a salary etc however I have an overdraft on this account which I can't clear so won't be able to close the account. Also it is a joint account and both mine and my partners wages get paid into the account, he doesn't look at statements or online banking etc so has no idea about this Wonga loan so I don't want to have to ask him to change his salary to a new bank.

Does anybody have any advice that they can offer? I'm so stressed about this and am trying to deal with it on my own, I know it was me that got into this stupid mess in the first place but any help would be greatly appreciated.

Thank you.