Dealing with Payday Loan Companies

taffy1984

1st loan £150, any idea how much i would be eligable to borrow for my 2nd loan once this has been repaid? my net salary is £1500 PER MONTH

thanks

saltnvinegar

taffy1984 wrote: »

1st loan £150, any idea how much i would be eligable to borrow for my 2nd loan once this has been repaid? my net salary is £1500 PER MONTH

thanks

Taffy - my honest opinion is that you borrow nothing with any payday loan company and that you look to why you need the money in the first place and address your financial situation so that you don't need to borrow from such organizations.

Have a look at the stickies at the beginning of this thread for a good start.

Best

SnV

saltnvinegar

Deadline for OFT PaydayUK comments - 17/01/2011

The Office of Fair Trading (OFT) has sent out an "invitation to comment" on the proposed takeover of loan firm PaydayUK, with submissions due in next week.

The body has issued an "informal submission" on the deal, announced last week which will see US company Dollar Financial Corp pay $195m (£126m) for Payday UK’s owner. OFT clearance was one aspect of the deal yet to be finalised. Any comments need to be received by 25 January.

The transaction is intended to expand Dollar Financial’s UK operations and add to its international presence. PaydayUK has been operating since 2003, while Dollar Financial was founded in 1979 and has a network of around 1,193 stores

saltnvinegar

And if you were ever in any doubt regards payday loan companies and how the handle direct debits this is some slightly older news:

Payday lenders warned over direct debits

Payday lenders have been warned not to misuse direct debit facilities after Safeloans Limited had requirements imposed on it by the Office of Fair Trading.

The firm, which traded as Paydayok, has had three requirements imposed on it by the regulator, all of which relate to the way it handles customers’ direct debits.

Safeloans Limited has been ordered by the regulator to only take money from the borrower's account on the date or dates set out in the loan agreement unless otherwise agreed with the borrower in advance.

The lender has also been ordered not change the repayment amount without agreeing with the borrower in advance, and to only take money from an account specifically given to Paydayok for the repayment of that loan.

If the company fails to comply with the requirements it could face a fine of up to £50,000 per breach or action to revoke it’s credit licence.

Ray Watson, director of consumer credit at the OFT, said: "We have made it clear that we will not tolerate companies misusing repayment facilities and we will take action to ensure that unfair terms are not used. Those who offer payday loans must do so responsibly and in accordance with the expected standards."

The OFT said some payday lenders were using direct debits as a way to make repeated attempts to extract money from customers without making proper checks on a customers ability to repay short-term loans.

The regulator also expressed concern that taking money from a debtor's account when they are already in difficulty could also prevent them from meeting priority debts, such as rent or mortgage payments.

losingbigtime

I have been on a DMP with CCCS which I have been managing (just) since April 2010. Anyway, my boiler broke in December and we had no water or heating for over a week, I had to have the whole thing replaced or have no water or heating at all for my famikly which in the middle of the snow and freezing temperatures we had was unbearable, especially for my children. I had nobody to borrow money from and no emergency fund whatsoever, so ( *gets ready for criticism here* ) I borrowed from Wonga. I borrowed £500 to get the boiler fixed and thought I would be okay next month but I wasnt, I had to roll it over again in January and I am supposed to be paying it back on the 13th february but I will not have enough money to do this or I wont be able to pay the mortgatge (I am already 2 months in arrears with the mortgage) :_(

I dont know what to do, can I roll it over a third time? ( I know this wil incur more interest but I am desparate) or can I add it to my DMP? I know this is against the rules of a DMP (ie taking on more credit) but this was a desparate situation and I had no other option, will CCCS stop the DMP if I tell them I got a payday loan? IM not here to be judged, I know i was stupid but I didnt know what else to do. I am scared to ring CCCS in case they cancel my DMP but |I am also not prepared to pay WOnga instead of the mortgage as I could potentially lose my home here. I have cancelled the debit card (told the bank I lost it) and I have a new debit card as I understand this is how WOnga take their money, with the card and not the account details (?).

Will Wonga agree to a payment plan if I contact them to explain? I simply cannot pay this at all, when I have paid the mortgage I have £68 for the whole month to live on, and thats for food, transport to school for the kids and everything. I have no friends or family at all who can help me.

SHould I contact CCCS or should I contact Wonga BEFORE the payment is due to see if they will agree to let me pay a certain amount per month to clear the debt?

:mad:I know this is foolish but ..............any advice would be greatly appreciated. Thankyou I am so scared....

saltnvinegar

losingbigtime wrote: »

I have been on a DMP with CCCS which I have been managing (just) since April 2010. Anyway, my boiler broke in December and we had no water or heating for over a week, I had to have the whole thing replaced or have no water or heating at all for my famikly which in the middle of the snow and freezing temperatures we had was unbearable, especially for my children. I had nobody to borrow money from and no emergency fund whatsoever, so ( *gets ready for criticism here* ) I borrowed from Wonga. I borrowed £500 to get the boiler fixed and thought I would be okay next month but I wasnt, I had to roll it over again in January and I am supposed to be paying it back on the 13th february but I will not have enough money to do this or I wont be able to pay the mortgatge (I am already 2 months in arrears with the mortgage) :_(

I dont know what to do, can I roll it over a third time? ( I know this wil incur more interest but I am desparate) or can I add it to my DMP? I know this is against the rules of a DMP (ie taking on more credit) but this was a desparate situation and I had no other option, will CCCS stop the DMP if I tell them I got a payday loan? IM not here to be judged, I know i was stupid but I didnt know what else to do. I am scared to ring CCCS in case they cancel my DMP but |I am also not prepared to pay WOnga instead of the mortgage as I could potentially lose my home here. I have cancelled the debit card (told the bank I lost it) and I have a new debit card as I understand this is how WOnga take their money, with the card and not the account details (?).

Will Wonga agree to a payment plan if I contact them to explain? I simply cannot pay this at all, when I have paid the mortgage I have £68 for the whole month to live on, and thats for food, transport to school for the kids and everything. I have no friends or family at all who can help me.

SHould I contact CCCS or should I contact Wonga BEFORE the payment is due to see if they will agree to let me pay a certain amount per month to clear the debt?

:mad:I know this is foolish but ..............any advice would be greatly appreciated. Thankyou I am so scared....

Hi

Responded to your main thread here:

https://forums.moneysavingexpert.com/discussion/3022842

SnV

saltnvinegar

Another example of payday loan companies abusing the recurring payment authority process by taking additional money from a persons card after they had come to a payment arrangement!

Ugh! Payday Loan Companies and other debts

I can only emphasise again, do not trust these companies with your card details!!

Best

SnV

Flash-bang

Thanks for this thread - great advice. I wish I had seen it a little sooner!

saltnvinegar

Here is another example of a payday loan company taking money from someones account after a payment arrangement had been agreed over the phone.

Capital Finance One - help with contacting them please

If this happens to you, please report this to the OFT so they can start to understand how much of a problem this as and how widespread the abuse of recurring payment authorities are in the payday loan industry.

Best

SnV

saltnvinegar

I know I'm a little out of date on this but here is an update on the Payday UK buy out. It will be interesting to see how/if this will change Payday Uk's tactics in dealing with debtors.....

OFT clears PaydayUK’s US deal

The Office of Fair Trading has given the all clear for short-term lender PaydayUK to be sold to US-based Dollar Financial Corp.

The OFT clearance means that the pay day loan business can be transferred to Dollar without any additional issues. Dollar said in January that it was to acquire Purpose UK Holdings Limited, the parent company of Month End Money which operates under the trade name PaydayUK in a deal worth $195m (£126m).

The initial funding for the purchase is expected to be provided by a combination of cash on the balance sheet and a draw down from Dollar’s recently expanded global revolving credit facility. The deal will be finalised in the next 30 days.

You can read one of Dollar Corps press releases here:

http://www.businesswire.com/news/home/20110307006813/en/Dollar-Financial-Corp-Receives-Approval-Office-Fair