Pay Day loan Help - about to stop paying them in full

josie31

Hi all,

I am new to this forum as a poster but quite often browse on here for help and relevant advice.

I have stupidly got myself into a mess with Pay Day Loans - I have 3 one for £540 with Pay Day Uk, one with Quick Quid for £550 and one with wage day advance for £350 - obviously these amounts do not include their charges just the actual loan amount they paid into my bank account, you can add an extra few hundred pounds charges onto those - not to mention the charges I've already paid when repaying them only to be left with no money and have to reloan again. I'm almost too embarrassed to write this down as feel such an idiot.
I've been in this cycle for about 5 months now and have decided enough is enough especially as although I should have about £150 pounds left over each month after bills, existing debts, food etc as all been paid for i have been finding with these loans even when reloaning I don't have enough to pay my bills and have got behind with both council tax and my utility bills.

I am currently 18 weeks pregnant and due to go onto statutory maternity pay in May so do not want to get into an even worse spiral of debt so have decided to take my head out of the sand and sort it out NOW!!

I sat down yesterday and have done my income and expenditure and worked out what I can offer my priority debts - utility and council tax and also the non priority debts each month including pay day loans.

I am so cross with myself as when I was younger I got into a lot of debt and managed to sort that out myself - well say sorted it was never completely paid off but I negotiated manageble payments with my creditors which have stuck to for about 4/5 years now and was getting to a position where my credit file and finances were almost back to normal - I have a CCJ that will be fully spent next year but then thats it - clear or well it would have been had I not managed to get sucked into the world of payday loans after having my hours reduced at work and being a single parent solely responsible for all the bills I panicked stupidly.

Having dealt with creditors and DCA quite a bit previously I know how they operate and also know the legalities behind what they can and can't do etc...and am prepared for the initial onslought with these pay day loans but from reading on here it seems that Pay day loan companies are maybe a different kettle of fish. I have worked out with the amount I pay to my original creditors, living costs, bills and priority debts exactly what I am able to offer these payday loand a month and will be sticking to it but probably need some advice and guidance on exactly what to do and expect from the PD loan companies - it may be worth mentioning that I have nothing due to come out from them until the end of this month - I did phone them yesterday to say I would not be able to pay in full and could I set up a payment plan - they refused point blank and said they would have to try to take the full installment - not willing to talk any further or co-operate!

So anyway I am in the process of doing the following:

Transferring my balance from my current account to another bank account not linked to any creditors or existing account in any way, i will also have my salary paid into this account from now on along with all my tax credits/child benefit etc and arranging for all my bills etc to be paid from the this account aswell.

I will be closing my existing account down over the next week or so but just have a few dd set up to go from it which need to be honoured first.

I have spoken to national debtline for advice - to be honest most of it I'd read on here or knew already but still good to have someone official confirm it. I have cancelled all the DD on my existing account set up to the PD loan companies but obviously know this won't stop them which is why am closing the account and have set up payment plans for the arrears with the council tax and utility company - thankfully I was only a few months behiond on these so arrrears won't take to long to clear.

I will write to all 3 of the pay day loan companies shortly to inform them I will not be able to repay in full and do not wish an extension or rollover as I cannot afford this but would like to make them an offer of payment - i have worked out I can afford about £25 a month to each of them which they won't be happy with but they are not a priority debt and I need to address these first plus still honour the creditors I am paying back. I will also ask they only communicate with me by letter and ask they freeze all interest and then i suppose I sit back and wait for the onslaught which I am dreading but refuse to be bullied by these people so will stick to my guns.

Are they likely to try and take money earlier than the loan agreement dates so potentially before I have closed the account, I am not due to pay any of them til the 31st of this month but worried that now I have phoned them they will try.

josie31

Just bumping this up!! To see if anyone has any advice/experiences of these!!

RAS

Read this thread and pm SNV

https://forums.moneysavingexpert.com/discussion/2735257

josie31

Thank you! Will do that - already found so many of the threads on here useful and informative. Sometimes being in debt and being chased by people or having to resort to payday loans can be the loneliest feeling so nice to have this forum to turn to!

mrs_skint

Hi Josie31
Let us know how you get on. I am in the same position as you with the very same payday loan companies! I have had a look on National Debt help, Payplan and CCCS websites for some advice and letter templates. Like you I am also in the process of moving bank accounts and having salary paid into new one etc. If you're worried about them taking the money earlier - and I have no idea of the legalities of this or whether they would try - maybe someone else can advise you - but there is a template letter of appropriation on the CCCS website, whereby you inform your bank that the only payments to go out of your account are xxxx and xxxxx and all other payments are not allowed. It might be best though to get everything moving along ASAP. Good luck with everything and hope all goes well with your pregnancy x

Super_Ram

I know how you feel josie31,

It was only last week after several months of reloaning to sustain the money I have to pay them back that I relaised I am in a rut.

I had dug deep and deep and only managed to shave off maybe £200 in 6 months form these loans so thought that is it there must be another way.

So when I stumbled upon some posts on here and other sites I was relieved to see there was some hope which actually still involved me paying all the money back which I was thrilled about as didn't want some easy way out of not paying them back which sounds stupid I know.

Anyway reading your post Josie it seems you are already in total control but I'll offer my few tips anyway

In terms of closing your account and getting anew one you seem to be on the ball there.

One thing I would stress is avoid phoning them as before the full payment date is due they will no way agree to a plan because they can still apply to get the full amount. And afterwards they are going to start playing hardball and come out with all the usual lies like being able to send a bailiff to your house etc.

I would communicate by Email as everything is then recorded nicely for you if you need to find anything.

The only other thing I have is my progress with Wage day Advance as I know that is one of yours.

After I sent an Email to them yesterday I already received a rpely back form there collections asking to fill out a Income/Expenditure Form before they could agree to anything. Whehter this is a stall tactic or not I dont know but at least a start.

I can see you have already worked out your I/E but I used a form on here whih was good and added bits that werent on there as the one I got from wageday didn't even have an entry for food

I have emailed that back but no response as of yet.

I hope it all goes well for you and I think the one thing I am going to hold onto even when it seems hard is I could have been in a worse place of having paid them fully again and reloaned again.

eyeopener2

You've done the right thing in closing your account but be prepared for a lot of nasty phone calls, emails etc.

They will bully you, they will tell you lies but you have to stick to your guns and pay them, by whatever means necessary, only what you can afford.

And please don't pay them by debit card or direct debit. They will try and clear your new account out.

Can you pay by Standing Order, so you control what is paid and when?

josie31

Thanks for the replies - Mrs Skint and Super Ram seems we are all going to be going through this at the same time so hopefully can offer each other a bit of moral support at the same time! I used an income and expenditure form very similar to the one on here but am shocked that the one WDA sent you through ddn't even allow for food - kind of an essential but then doesn't surprise me they didn't add that in!!

Thats a good thing to think of when it gets hard though SuperRam the idea that however nasty they are getting at least we are positively getting ourselves out of the rut - and like you have every intention of paying it back but just gradually so doesn't take over my finances as it has been doing until now - to be honest though probably paid the amount originally borrowed already in charges a few times over!!

Thats a good idea Mrs Skint about the letter to my bank - although have already emptied my account (well what little was left after the payday loans had taken their share!) and transferred the balance to new one have left just enough in to cover the few small dd's due to come out over next week and then will close it.

I had been tempted to keep it open just wth no money in but had visons of the bank honourng the payments still and ending up with unauthorised overdrafts so closing it to be on the safe side!

Thats really good advice eye opener and I had been wondering about how would make payments to them once a payment plan had eventually been agreed on - well hoping they eventually do agree one!

Welshwitch45

Mrs Skint....Re trying to prevent payday loan companies setting up new direct debits on an existing bank account. I have looked at the CCCS website and can't find the letter that you mention in your post. I don't really want to close my account because I'm not sure I'd be able to get another one because my credit rating is so bad so it would seem to be a good idea to send my bank a letter stating that only direct debits set up by companies agreed by myself should go through. Can you please tell me where on the CCCS website is the letter of appropriation that you mention? Thank you

saltnvinegar

Welshwitch45 wrote: »

Mrs Skint....Re trying to prevent payday loan companies setting up new direct debits on an existing bank account. I have looked at the CCCS website and can't find the letter that you mention in your post. I don't really want to close my account because I'm not sure I'd be able to get another one because my credit rating is so bad so it would seem to be a good idea to send my bank a letter stating that only direct debits set up by companies agreed by myself should go through. Can you please tell me where on the CCCS website is the letter of appropriation that you mention? Thank you

Get a new account opened up first before you close your existing account

You should be able to get one fine, my credit rating is as shot as anyones could be but got one fine with Natwest.

Appropriation is a rare thing and the majority of bank managers/customer services people won't even be aware of what it is and does.

You can find more info on this subject at CAG:

http://www.consumeractiongroup.co.uk/forum/showthread.php?36790-Is-the-bank-taking-your-Benefits&highlight=appropriation

Best

SnV

Tixy

Wheredomy£sgo? wrote: »

josie31,

Hi

I see you are new - as a tip its useful to look at how old posts are before replying. This post is from many months ago now.
You might want to start your own thread - or if offering advice focus on the posts from the last couple of weeks or so.