Payday loans I cannot afford

rma1968

Hi all

Have been in a complete panic for months, rolling loans and borrowing more just to stay afloat and have finally realised that I have reached my limit and just cannot afford to pay anymore. Came across so much info on this site last night and suddenly realised that there are other option, so thank you all that have been offering advice.

I owe:
Quick Quid 813, due on 31 May
Swift sterling 442, due on 31 May
Wonga 800, due on 21 May

I accept these loans are my own fault and do not wish to run from my debt, I just cannot afford to pay this all, and the worry of it is starting to get me depressed, which is a road I went down many years ago and won't go down again.

I have seen much info here on how to deal with this, but not all on one thread and so I am getting confused.

If I cancel my debit card, can these companies still take money from my account?

Can i force them to only contact me by email.

I can afford to pay back £200 per month between them without leaving myself without enough to live on. Therefore want to pay back over 10 installments. I ampresuming that they will not like this, but also presuming that if it's all I can do then they cannot make me do more.

I would love complete advice on what I should do, when I should do it, and how I should do it. Sorry, I am ignorant about all of this and just want to pay back what I can, get them cleared and then start breathing again.

Thank you in advance for any help you can give.

Regards.

Trajal

Hi there,

Firstly I'd suggest you go to another bank, open a current account or basic account and start having your funds paid in elsewhere.

You are quite correct in your concern that even with a cancelled card the continuous payment authority you set up with the payday loan company will allow them to take payments from even a cancelled card so the easy solution to counter that is to move banks.

You will most likely find that the payday loan company won't even talk to you until the payment is rejected. So that has to be the first port of call even though it seems and feels counter intuitive to you.

Once payment has been rejected, you do need to talk to them of course, and that is where it will start to get difficult.

Whatever you do, don't send them your new card details because that will just leave you in the same pickle.

Start looking at ways to both cut down on your expenses (publish a statement of affairs here and people will look to see if any savings can be found there) as well as ways to increase (even temporarily) your income.

It's a lot of debt to be trying to service with only £200 a month so I envisage problems there, however it can be done. Get your SOA up and go open that new bank account asap and ask again.

Good luck, long and painful road ahead but everything is possible.

rma1968

Hi

Closing my account would be a real hassle as the morgage is with that bank and it is a joint account.

If my card is cancelled, how can they take money from it, and is there anything I can do to stop them doing this?

Thanks.

Spartacus_Mills

rma1968 wrote: »

Hi all

Have been in a complete panic for months, rolling loans and borrowing more just to stay afloat and have finally realised that I have reached my limit and just cannot afford to pay anymore. Came across so much info on this site last night and suddenly realised that there are other option, so thank you all that have been offering advice.

I owe:
Quick Quid 813, due on 31 May
Swift sterling 442, due on 31 May
Wonga 800, due on 21 May

I accept these loans are my own fault and do not wish to run from my debt, I just cannot afford to pay this all, and the worry of it is starting to get me depressed, which is a road I went down many years ago and won't go down again.

Well don't get too down. There are plenty of people out there who can help with advice.

Have you considered going to the CAB and talking it through with them.

Although the money is not due for 2 - 3 weeks you really need to start acting immediately.

paddyrg

The card was valid when you gave them the number, and even if cancelled the bank will (likely) process their demands, hence the 'new account' advice above. As you owe the money, they *will* keep trying to take payment the moment there's a spare penny in your account.

Visit the debt-free-wannabe board on this forum for advice and support on sorting out your finances, some great supportive guys there, going through the exact same things. Also visit your local CAB ASAP, they will help with getting the lenders to accept a payment plan.

chanz4

rma1968 wrote: »

Hi

Closing my account would be a real hassle as the morgage is with that bank and it is a joint account.

If my card is cancelled, how can they take money from it, and is there anything I can do to stop them doing this?

Thanks.

This is not going to help your mortgage renewal, or your partners file as you are linked.

fozmcfc

rma1968 wrote: »

Hi

Closing my account would be a real hassle as the morgage is with that bank and it is a joint account.

If my card is cancelled, how can they take money from it, and is there anything I can do to stop them doing this?

Thanks.

There are many instances, where companies still take the money, the authority is usually already in place and no doubt they have your bank details as well.

You might be better asking the bank for an overdraft, paying off all the payday loans, then look at reducing the overdraft monthly until paid off.

Basically as soon as any money hits the account, it will be gone, payday loan companies will try, try and keep trying several times a day to take the money.

So you basically need to move everything to another account. I wouldn't contact any of them now, because they may just try to recover the money sooner.

Once payments have failed you can then start to talk to them about repayment plans.

Be aware though they don't have to accept them.

iluvmarmite

I believe it depends which bank you are with when it comes to cancelling debit cards. I am with Halifax and had to cancel my debit card to stop a payday loan company taking money out. The halifax will NOT pay any money to the company using the old card so I am safe there. They cant take money out of my account even though they have the sort code and acc. number as no direct debit was set up. The bank told me that once my debit card has been cancelled and a new one issued then the old card no longer exsists so there fore no one can take funds from it.

Some members on here will shoot me down for saying this as they say they can take money from a cancelled card, how the hell they can do that though is beyond me as that card has gone and the numbers arent recognised, but there you go.

WellKnownSid

iluvmarmite wrote: »

Some members on here will shoot me down for saying this as they say they can take money from a cancelled card, how the hell they can do that though is beyond me as that card has gone and the numbers arent recognised, but there you go.

Because card numbers are not always needed to draw down against a previously valid continuous authority. Just the unique transaction identifier which is a very long number. It depends how the issuer, the gateway and several other things have been set up.

Trajal

WellKnownSid wrote: »

Because card numbers are not always needed to draw down against a previously valid continuous authority. Just the unique transaction identifier which is a very long number. It depends how the issuer, the gateway and several other things have been set up.

Indeed. The point here is that there is a huge difference between a point of sale transaction (buying on a card in a one off purchase) and a continuous payment authority (which is what every payday loan company requests I believe).

The PoS transaction is card dependant.

The CPA is a contract-formed authority, where you give the card details and they get the identifier for your account. They do not then draw down on the card, they draw down against the account with the legal authority to do so. They have every right to do this, it's in the CCA you signed when you took out the loan in the first place.

This isn't a scam, it's not sharp practice, it's perfectly legal and all within their Ts&Cs. You have been warned!

EricaB011

Contact Swift Sterling if you feel that you cannot pay and explain your situation. You can ask them to contact you via email and they will be able to help you as long as you keep communication open and respond to their emails.