Dealing with Payday Loan Companies

sugar9

Hi have now set up a new bank account so do not now need to report card as stolen. Will try to sort out a payment plan with payday loan companies when they contact us. We are seriously considering a DMP with CCCS filled in on line form and they suggested a DMP as we are not managing very well. Can I ask, do we need to inform our new bank if we decide to go ahead with a DMP? Would again like to thank SnV for your advice as you took the time to try and help us. Thanks for any advice anyone can offer.

MARKYS_MISSION

I dont have any advice in relation to this particular problem however I dont believe you have either. I am willing to accept that your advice is sound if it is the reccommended course of action that the various consumer / debt agencies give.
I am also willing to apologise for doubting your advice if this is a recognised way of dealing with the horrible situation these people find themselves in. I am not a betting man however I feel resonably confident this is not advocated by any consumer / debt agencies.

As I have already said if your advice helps anybody out of the problem I will be delighted for everyone ,however I have my doubts.:(

saltnvinegar

MARKYS_MISSION wrote: »

I dont have any advice in relation to this particular problem however I dont believe you have either.

But you still don't back up this statement as to WHY you don't think my advice is sound..........

As it happens almost all the debt charities and DMP companies advise that a seperate bank account needs to be set up to have wages paid into and that all cards with your old bank are cancelled.

The problem is that just cancelling your card does nothing to prevent recurring payment authorities.

This is the reason why such drastic action needs to be taken if you don't have time to get a new bank account set up.

Again, browse the forum, you will find plenty of people who have taken this advice who are now able to get the time they need to get back on their feet and pay their debts.

In fact you only need to look through this thread, 2 people have confirmed this already.

SnV

jazzajojo

This is such a good thread and its got such a lot of good information in it, thank you for posting. I'm sure this will help out alot of people, myself included x

JoS1972

Brilliant thread SnV. I was one of the many that feel into the payday loans rut, although I hadn't read your post before I took action I did as you said and thankfully am now paying them off on my terms, so to the doubters out there it does work long enough to help you stop, take a breath and take back control of a spiralling situation.

saltnvinegar

Hi Everyone

Thanks for all your input to this thread.

In response to Marky 'who has his doubts' on whether this would help (if the above responses are not enough) read the following two threads:

https://forums.moneysavingexpert.com/discussion/2735587

https://forums.moneysavingexpert.com/discussion/comment/36846004#Comment_36846004

As I have mentioned (but worth repeating) I do not condone using the advice given as a method of debt avoidance.

This is for when there really are no other options and it is a choice between pay the mortgage & eat. It is intended to help end the payday loan cycle and enable a debtor time to set up a DMP and get back on their feet.

The consequences of course, as with any other debt, are that you will accrue interest until a payment plan is agreed and you will likely to be defaulted.

Best

SnV

SimIsOnTheUp

Hiya saltnvinegar,

Thank You for your helpful advice on here, and your nice tone which comes across too!

I am in a mess with The Money Shop, to the tune of £500.

I took out a 'Cash 'Til Payday' loan a couple of months back for £500, and now I can't pay it back.

Stupidly, I took out the loan when I wasn't working (I said I was to Money Shop, even though I hadn't worked since last year - am a recovering alcoholic and I'd fallen off the wagon at the time, so was hardly thinking straight).

The loan of £500 was taken out with them by me giving them 5 x £100 Cheques, and Money Shop giving me £420 back.

I showed them my cheque guarantee card when I took out the loan.

I've been on ESA now for a while due to health issues, and I won't be able to afford to pay this off, and I'm really panicking.

The loan was deferred for 1 month in August, and if I defer again on Saturday, they'll want £80 (without even paying any of it off).

I'm seriously considering this, as 1 / I don't want to be 'done' for fraud and 2 / I don't want to lose my full current account (won't get another due to poor credit history). 3 / I'd just rather repay it over a few months if possible.

However, I have to face facts, as £115 a fortnight is barely enough to live on, let alone enough to pay these guys off too.

Money Shop are expecting their first £100 cheque to be paid (they're due to present it to their bank) next Monday 27th, and then each subsequent £100 cheque daily after that, and I just can't afford it.

I'm tempted to ask my Girlfriend for help (for the £80 extension and maybe some of the loan), but I just don't have the heart to as she helped me out with them before (and due to my mental health / addiction issues, I ran up another loan with them). The guilt of doing this to her is driving me nuts..

It's not fair on her, and it's not a long term solution either, so I'm also considering letting the loan default.

Am thinking of telling my bank that my cheque guarantee / Visa debit card was stolen. However, won't Money Shop still be able to present the cheques and still get their £500? ie - taking my bank account overdrawn? (Apparently the bank will honour them according to the CAB, who checked a while back.)

So, would telling them the card was stolen even help?

I already have a second, 'basic' bank account with Co-op, however I have a sneaking suspicion Money Shop took those details (as secondary details) when I took out the loan, but I can't remember 100%.

Sorry to witter, but I'm so worried about this, and I've got enough on my plate what with an ESA Appeal Tribunal Hearing this Monday!

Am determined to try and solve this though.

Any idea as to my best way out of this mess would be most appreciated.

Many Thanks,

Sim.

SimIsOnTheUp

PS - I think it's the issue of 'fraud' which worries me the most. Hence, I feel I have no choice other than to struggle and pay them back (or I'll be looking at it coming out in Court down the line).

Thanks again.

Must get to bed!

Night all,

Sim.

saltnvinegar

SimIsOnTheUp wrote: »

PS - I think it's the issue of 'fraud' which worries me the most. Hence, I feel I have no choice other than to struggle and pay them back (or I'll be looking at it coming out in Court down the line).

Hi Sim

Thanks for your post and taking time to get everything down in writing, I know from personal experience that couldn't have been easy for you so well done making that first important step.

However could I suggest that you create a new thread and copy/paste what you wrote in post #18 into this thread?

The reason for my suggestion is that there are quite a few things I think you could get help with, and some of them I'm just not remotely experienced enough in. There will be other DFW's who will be though and a new post of your own will help draw their attention.

I think if you can get help on these things, it will also help you with your debt situation.



But what can I help with?!

I'd suggest posting a statement of affairs to start with (http://www.makesenseofcards.com/soacalc.html)

The DFW's here can then help you look at ways you can make savings and get free up some cash to make it go further.

I would also recommend (in fact almost insist!) going to the debt charities (CCCS or Payplan) and have a chat with them and they'll be able to tell you what options you have, help you deal with your creditors etc.

I'm afraid I don't know for sure what the situation with the cheques would be and I'm really sorry as I'm finding it hard to be positive and I hate that.

My first point of call would be to call the bank and see if you can get the cheques stopped (I don't expect much here though)

Second, if thats not possible is it possible to close the account before the cheques are cashed?

I'm not sure where this would leave you on this front though, whether it would be the bank, the loan company (or both!) who would pursue you.

Sorry I can't offer more options than this to stop the cheques getting cashed.

If the cheques do get cashed, and you go over your overdraft limit, would the interest and charges on that overdraft be less than the interest you are paying to The Money Shop?

Just a thought, but it might make the best of a bad situation in the short term.

Another alternative (but only if you can afford it) is to actually pay that deferral fee which then gives you a whole month to get things in progress with the CCCS or Payplan and get some sort of debt management solution in place.

I'd also recommend closing your Co-Op account if you think this is compromised, open up another basic bank account with someone else (thats not financially linked to any debt you have) and don't give out the details of this one to anyone! Have your income paid into this.

Best

SnV

Billy_two_speakers

Do not report you card stolen report it lost ........ if you say its stolen and the card company add your card to a list they report to the list as stolen to the police .... say because a few have been reported stolen in that area you are on thin ice

Report it lost say you have no idea where you lost it... anyone could get hold of it, but your not doing anything wrong


it is a crime making a false crime report or wasting police time and if you tell the bank and they tell the police thats what your doing