Dealing with Payday Loan Companies

sgtbush

Step 2
You also need to call your old (or current bank if you've not set a new account up) and inform them your debit card has been stolen (do not just cancel it or report it as lost) and that all transactions should be blocked as possibly fraudulent.

Also check that no direct debits have been set up (especially late at night!) as they sometimes do this to take a payment if a card payment is declined. You may need to check this daily and keep cancelling them every time they are set up.

This should (but not guaranteed) give you a little bit of time if you've not been able to set up a new bank account for your wages to go into. The second those wages hit that account though withdraw your cash so its safe! Once that new bank account is set up get that cash in there.




this is fraud--- you are lying to the bank regarding your card-- if they find out they will freeze assets until you explain why you have done this and then they will link the two accounts be warned

saltnvinegar

sgtbush wrote: »

this is fraud--- you are lying to the bank regarding your card-- if they find out they will freeze assets until you explain why you have done this and then they will link the two accounts be warned

Thanks for your input to this thread.

I'll refer you to my answer already given on this view at post #7 and post #11

http://forums.moneysavingexpert.com/showpost.php?p=36755995&postcount=7

http://forums.moneysavingexpert.com/showpost.php?p=36773794&postcount=11

If you are stupid enough to go out and buy a load of goods in a shop and then claim that your card has been stolen and that it wasn't you then yes, that is fraud.

If there is a pattern of fraudulent activity on your account. or you continually contact your bank to say your card has been stolen, then yes, they may well get suspicious and investigate.

However, this is a completely different context we are talking about, is something that you do as an emergency 'one off' and is about breaking a cycle of debt.

Seriously - if you call up your bank to report your card as stolen, how are they going to prove that you're nothing more than mistaken and there are more sinister motives, unless, as I mentioned above you are being seriously stupid?

If you read the thread properly you should notice that I have never condoned fraudulent activity.

As it happends the OFT have also recently recognised that the abuse of the recurring payment authority system is an unfair business practice, and one that has put people further into debt but then we all know how much notice that Creditors, DCA's, Bailiffs etc pay attention to OFT guidelines.

Consequently until the banking industry prevents Payday Loan companies from plundering peoples accounts through the abuse of the recurring payment authority method (and washing their hands of it) then consumers have no choice but to fight back, even if that means stretching the truth to the limit (because since when has the financial industry done that either).

Best

SnV

saltnvinegar

Dear All

For anyone who has had experience of the payday loan industry this may be important. An e-petition is currently running, which if it gets 100,000 signatures will make this issue eligible for discussion in the house of commons.

Please offer your support and join us in signing the petition here:

http://epetitions.direct.gov.uk/petitions/20219

This petition condemns the Government for continuing to delay action on regulating the high-cost credit market and calls on them to introduce caps on the total cost of credit, so that British consumers get the same protection from payday lenders, home credit companies and hire purchase agreement providers as enjoyed by others across the world.

Given the evidence of growing numbers of UK consumers getting into debt as a result of these forms of credit we call upon the UK Parliament to act on this matter before Christmas in order to defend British consumers from the legal loan shark industry.

Best
SnV

TwelveStopsThenHome

I've fallen into the trap:

£45 with Lending Credit from about £375!
£300 with Wonga
£320 with Payday Express
£110 with Payday UK
£110 with TxtLoan - I had to take the Payday Express Loan to pay this one off!

I've signed the e-petition, but it's so easy to fall for their trap. I'm a low earner and all my wages seem to be vanishing on repairs and bills. Maybe if the government lowered VAT to 15% and offered tax breaks and hit the rich.....people would be reluctant to fall in the trap.

playmate86

Hey All

I am completely confused with this whole thread thing, i have no idea how to start my own for some advice regarding my own personal circumstances, so i hope you don't mind but im effectively "hijacking" this thread for my own advice (if anyone wants to point me in the right direction that would be great! lol)

Basically, i made the stupid, stupid, stupid mistake of getting a pay day loan out a few months ago. The time came for the payment to be made...but they offered me this shiny sparkly temptation to extend the loan... so i did, i paid the extension fee and that was it until the next month. But then the next month came, i hadnt worked out my finances correctly and i didnt have the money to pay this so i took out another loan from another payday loan company to pay this one off... sadly not the full amount. This kept happening and it wasn't until this month i realised i have now taken out SIX, yes SIX payday loans and im completely snowed under and in a mess and don't know what to do. I have read many things about debt management plans, cancelling your card and bank etc and all these different things... i dont even know where to begin!

I have opened a new account but currently waiting to receive the card/details etc for this account before i could actually take it any further if i decide to take this route.

I have read many things about the companies i owe money to, and its like reading a horror story!

Listed below are the companies i have taken loans out with and a average-ish amount of what i owe each - everyone, take a deep breath before you read this... and please, no one give me a lecture after reading the following. I'm already shooting myself in the foot! trust me!

Payday Express - 350 - Late by 2 days as of today
Wonga - 480 - Due on the 22nd - cant afford to pay it!
Payday UK 0 £250 - Due on the 28th - again cant afford to pay it!
Quickquid - £810 - this is including the extortionate rate of interest and extension fee due 28th
Peachy - £115 - this includes the interest due on 25th
Txtloan - 234 - Due on 22nd

All in all i owe nearly £2240 and i earn around £800 a month... a mere pittance compared to what i owe!

Silly me!

It really hits home when you write it all down and add it all up....

So anyway. Monthly expenditure i have worked out to be about £400 so i have £400 to play with each month.

However, i dont know where to start or who infact to start with. Do i pay them all an equal amount? or do i divide it by who i owe the most to? I hear most dont accept repayment plans and if they do they only accept 3 months... as you can see it will take me about 6 months to pay these off providing they freeze interest etc...

Is there anyone out there that can help me? please?

:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(

AndyCash

What is the best way to actually pay the payday loan companies once you have setup your new bank account as obviously you dont want them being able to remove whatever money they like again from your new account?

gizmo111

AndyCash wrote: »

What is the best way to actually pay the payday loan companies once you have setup your new bank account as obviously you dont want them being able to remove whatever money they like again from your new account?

Either standing order or faster payment

musashi10

Hi.

I have got into serious payday loan trouble.

For the 6/6/12 I have going out of my account

£1000 quickquid
£650 payday xpress
650 Payday uk.

I have £1450 in wages to come in.

I fell behind with my usual credit cards last month and nearly all of my wages this month will go on living costs and brining those account up to date as promised.

I want to pay back the payday loans.

Now I'm not sure what to do and am very sick with worry.

I've read this thread but I still have some questions

How long would it take for me to get new account details to change bank? I plan to get a basic account with barclays.

How long usually does it take for payroll to change payment details at work?

Is it best for me to contact the payday loan people before I default or after?

Is it best for me to try and get a dmp with the cccs or try negotiating one myself?

I think realistically I could pay them back if I live frugally and not much interest is charged in 4 months.

sistafromanothermista

musashi10 wrote: »

Hi.

I have got into serious payday loan trouble.

For the 6/6/12 I have going out of my account

£1000 quickquid
£650 payday xpress
650 Payday uk.

I have £1450 in wages to come in.

I fell behind with my usual credit cards last month and nearly all of my wages this month will go on living costs and brining those account up to date as promised.

I want to pay back the payday loans.

Now I'm not sure what to do and am very sick with worry.

I've read this thread but I still have some questions

How long would it take for me to get new account details to change bank? I plan to get a basic account with barclays.

How long usually does it take for payroll to change payment details at work?

Is it best for me to contact the payday loan people before I default or after?

Is it best for me to try and get a dmp with the cccs or try negotiating one myself?

I think realistically I could pay them back if I live frugally and not much interest is charged in 4 months.

Are these total payments? how much do you owe on each after this is paid and at what interest rate?

musashi10

Hi thanks for the quick response.

These include the interest charges.

Amounts borrowed were

QQ£800
The other two £500 each. After this is paid that would be it