pay day loan fraud

lil_raine

i got myself into the dreaded payday loan spiral.i owed 5 companies £2000.i have taken the bull by the horns and decided enough is enough,i have approached the companies and set up repayment plans with 4 of them,they all froze interest and were actually relly understanding.however one of the companies was having none of it so i decided to let them cash the cheques i wrote 4 x £100 (taking me overdrawn)and change bank accounts. earlier today i recieved a phone call from santander regarding these cheques as i am now £400 overdrawn plus the charges they have whacked on and they have told me they are going to report me for committing fraud as i must have known when i let the cheques go to the bank that the money would be not be in the account and that they would make me overdrawn.has anyone else had any experience in this matter as i am now terrified i amgoing to be prosecuted.

jonesMUFCforever

They won't prosecute you but they will send the debt to a collection agency unless you come to an agreement to repay Santander.

lil_raine

i have tried to set up a payment plan with them but they re having none of it they say i have so obviously committed fraud !

ILW

Not sure what you are saying. Did you give them the cheques knowing you were not going to have the funds to cover them and were going to move your account?

lil_raine

yes thought it would be easier to set up a repayment plan with the bank to pay off an overdraft than it would be with the payday loan company,how wrong could i be !

the_insider

Unfortunately it is technically fraud. You have obtained funds to which you had no right through deception. But don't worry, they won't presecute you for £400 plus some charges. Write to them explaining that you will pay £x each month, keep all your statements showing that you are paying it. Unfortunately they will trash your credit file but they won't prosecute you.

Enfieldian

Too many "theys" in that post.

Who is claiming that you have committed fraud? The Payday Lender or Santander?

lil_raine

santander is claiming i ve committed fraud as i let the cheques go to the bank knowing the funds were not there.

jonesMUFCforever

I repeat for £400 /£500 quid they will not prosecute.
Get in touch with CAB and see if they can liaise with Santander on your behalf to see what they will accept on a monthly basis.
Better all round for BOTH parties.