Payday Loan Problems

Hax

eyeopener2 wrote: »

To be fair? To be fair?

There is nothing fair about paydayuk. Yes I've made mistakes, yes i've been stupid but this bunch of clowns are absolute idiots.

I was simply pointing out that most creditors act in the way PDUK have with you. Well, in my experience that is. I found that very few (if anY!) of my creditors was willing to negotiate with me and were only interested in full payment or the account being brought up to date. Eventually, they defaulted the account and it was at that point, it was passed to a department (or external DCA) who were able to agree to a reasonable repayment plan. Mind you, this was around ten or so years ago - maybe things have changed a little since...

It's just part of their process - they're going to try and get their money as quickly as possible - if that means they keep banging away to try and claim it from your debit card then so be it. Eventually, they will give up and pass the debt on - at that point, the people you deal with will be more amenable to your repayment proposals.

UnderPressure

The reason I asked is because I remember a few years ago Provident who are also a high interest lender in a different market granted, anyhow I read an article somewhere that they no longer took people to county court over unpaid loans because 9 times out of 10 the judge threw the claim out due to unfair interest rates, similarly provident customers knew the interest rate before hand when they signed the credit agreement so as a result Provident (then anyhow) ceased all county court claims against borrowers who had not paid and used DCA's instead, resulting ultimately in not a lot they could do in the "real" world to enforce their own credit agreements.

Just had a quick look through the many pay day threads here and could not see a single 1 where they have instigated county court action, plenty of DCA nonsense but no county court claims (unless I missed them lol).

It was just a thought for anyone that has found themselves in a never ending circle with these things, apart from "trying" to raid your bank account and DCA's on the face of it there does not seem to be an awful lot they can do to enforce these agreements.

Would be interesting to find out if anyone has indeed been taken to county court over one of these and to know the result...............

Paul_london_2

That would be interesting to know, as i have read many treads here that talk about changing bank accounts and defaulting on the payday loans, but people rarely come back to let others know what happened next?

Where you hounded all day at work (these payday companies ask for work numbers as part of the application)
Was the debt passed onto a DCA straight away?
Was interest and charges added and how much?
Did they allow you to enter into a three month repayment plan?

Any advice especially any successes with PaydayUK would be appreciated

Thanks

Paul

eyeopener2

Hax wrote: »

I was simply pointing out that most creditors act in the way PDUK have with you. Well, in my experience that is. I found that very few (if anY!) of my creditors was willing to negotiate with me and were only interested in full payment or the account being brought up to date. Eventually, they defaulted the account and it was at that point, it was passed to a department (or external DCA) who were able to agree to a reasonable repayment plan. Mind you, this was around ten or so years ago - maybe things have changed a little since...

It's just part of their process - they're going to try and get their money as quickly as possible - if that means they keep banging away to try and claim it from your debit card then so be it. Eventually, they will give up and pass the debt on - at that point, the people you deal with will be more amenable to your repayment proposals.

The OP asked what the consequences would be of not paying immediately. I told him what could have happened to me. The consequence of not paying is having your account cleared.

But of course that just part of the process.

We have hundreds of posters asking for help with these companies, hundreds of people who have fallen into the trap (inc. me) and the Payday loan industry has GOT to start playing FAIR with people. They HAVE to start taking peoples dire situations seriously.

Clearing somebodys bank account is completely out of order, its disgraceful.

saltnvinegar

Paul_london wrote: »

That would be interesting to know, as i have read many treads here that talk about changing bank accounts and defaulting on the payday loans, but people rarely come back to let others know what happened next?

Hi Paul

Everyone I know who has done this has then gone on to set up Debt Management Plans, or made arrangements to pay, with their creditors in order to deal with their debts, including the payday loan companies.

Ultimately they are just another creditor, they just have a very good business model of trying to ensure they get at your money in front of any other creditors a person may have.

Paul_london wrote: »

Were you hounded all day at work (these payday companies ask for work numbers as part of the application)

Not by a payday loan company. All communication was email followed up by letter. If they do contact you at work they are on very dodgy ground and there are template letters to address this issue if needed.

Paul_london wrote: »

Was the debt passed onto a DCA straight away?

None of my payday loan creditors have passed on my account to a DCA. I suspect PaydayUK may as I have been passed on to their In-House collections department (Keyes Whitlock)

Paul_london wrote: »

Was interest and charges added and how much?

None of them have added interest or charges and all agreed to freeze such. Wonga have stated that interest will be added should I break the payment arrangement. Fair enough. I know others who have not been so fortunate and have accumulated interest so perhaps it was the way I approached things by sending all my creditors my I/E sheet and list of prorata payments to each creditor (not that they are entitled to this but I thought that doing this they would have a hard job going to court and explaining why, when they had all that information).

Paul_london wrote: »

Did they allow you to enter into a three month repayment plan?

Better! All of them accepted my DMP (though Payday UK have now passed on the account to the In-House department I mentioned above). Wonga were initially obstructive and I received a lot of computer generated threat-o-grams but after emailing them daily and sending letters they eventually agreed.

Paul_london wrote: »

Any advice especially any successes with PaydayUK would be appreciated

I have dealt with them in exactly the same way as my other creditors. I can't say that they have been particularly threatening or nasty, but they haven't been helpful either but they are receiving (and accepting!) payments in line with what I can afford.

As has already been mentioned the way these companies operate in recovering money due to the recurring payment authority is what causes people so much trouble.

These companies will know that if a payment has been declined that there is insufficient funds to pay the loan back, so they continue trying for smaller amounts until they get a payment, clearing a persons account and leaving them with nothing.

This then makes the situation worse, as presented with the choice of letting children starve, or taking out further loans, what do people do?

To my detriment at the time I know what I did!

This is why I believe breaking the cycle of debt is so important, before anything else can be done.

Best

SnV

saltnvinegar

Hax wrote: »

Mind you, this was around ten or so years ago - maybe things have changed a little since...

I think things have changed and more than a little. The OFT have made things clearer on what is acceptable behaviour or not in relation to collection activities.

Of course it still doesn't stop creditors ignoring these guidelines and many do :mad:

My personal experience over the last 12 months is that creditors are happy to discuss a payment plan if you are in genuine hardship.

And I think thats the rub, you have to demonstrate that you are really struggling financially and are a 'Can't Pay' rather than a 'Won't Pay'. I think if you can do that then some creditors will be co-operate, some will accept payments grudgingly.

Some though will still try to get blood out of a stone and continue collection activity :mad:

You just have to keep plugging away and show a willingness to pay off your debts.

Best

SnV

littlemissmuffet55

Hi

Does anyone know if payday loan companys are able to phone you company and ask about you? If you default on your payday loan ... my husband did one to get us out of a sticky situation and now its evn stickier and he is worried they will call hos company??

Thanks in advance x

Gordon_Hose

littlemissmuffet55 wrote: »

Hi

Does anyone know if payday loan companys are able to phone you company and ask about you? If you default on your payday loan ... my husband did one to get us out of a sticky situation and now its evn stickier and he is worried they will call hos company??

Thanks in advance x

Did he give them a work number?

saltnvinegar

littlemissmuffet55 wrote: »

Hi

Does anyone know if payday loan companys are able to phone you company and ask about you? If you default on your payday loan ... my husband did one to get us out of a sticky situation and now its evn stickier and he is worried they will call hos company??

Thanks in advance x

They can call your place of work and ask to speak to you however they should not ask 'about' you or state why they are calling e.g. 'Mr X owes us £xx'.

If they do call your OH at work he can send them a letter requesting that they stop and if they continue to ignore this request they are in breach of OFT guidelines and should be reported.

However I wouldn't worry too much about them calling him at work. Its very unlikely, they are more likely to just bombard him with emails and calls to a mobile number if he gave them one.

Best

SnV

saltnvinegar

Gordon_Hose wrote: »

Did he give them a work number?

Even if he didn't he would have given the name of his employer on his application form.

If you're then of Facebook or LinkedIn (or similar) they will cross check this against your public profile and then visit your employers website to get a phone number and call the main reception.

I had a DCA who did exactly this, and then spoke to reception stating they were a personal friend who needed to speak to me urgently regarding a family matter in order to be put through.

They were reported to the OFT and Trading Standards for this nice little act. They've not called me at work again.......

Best
SnV