Recovering Alcoholic - Can't pay PayDay loan;

SimIsOnTheUp

Hi,

I swore back in February / March, that I would never get in this situation again.

Because of my alcoholism, I did, at the end of April.

I now owe a PayDay loan company £250 which is due on the 31st May, and I don't have the money.

At least I've been sober since, so I've been methodically sorting my finances out once and for all.

My total debt stands at just over £16,000. I was going to go for a Debt Relief Order, but because my debt tipped over the £15K limit, I'm now looking at Bankruptcy.

Rent arrears - Called my landlord and agreed a payment plan with them.

Electric - Have been lucky enough to get some support and guidance from Consumer Focus. Now looking at either 'Fuel Direct', from my Employment and Support Allowance each fortnight, or a prepayment meter.

Water - Agreed for them to take this from my ESA each fortnight. Up to date with this now.

I'm wittering.

So, anyway, my Priority debts are slowly getting sorted.

As for all of my Creditors, I still need to send letters (have a template letter from CCCS) out to them.

My overriding concern is this PayDay loan company £250 loan (I borrowed £200 - they want £250 back).

I fraudulently applied for it (in that I told them I was at my 'old' job still; I left this job in January), and the risk of this coming out and my being prosecuted is my biggest worry.

This PayDay loan company has my ex (who they think, is my current) employer's phone number and address.

They are to take payment on the 31st May by debit card (they took my Co-oop basic bank account debt card number).

I really don't want to lose this bank account, as if I go BR I will need it. I do have another 'basic' bank account which I'm currently using - a Bank of Scotland 'Easycash Account'.

I was considering reporting my card lost to the Co-op, but I've read that they can still force a payment through, so I'm now considering closing my Co-op account down, and then reopening another Co-op account.

This all sounds so grim and dodgy. I've been tempted to just go into the branch and tell them everything - ie - just tell them I'm a recovering alcoholic, and that I lied on the form.

What do you guys think?

Many Thanks,

Sim.

ani_26

Obviously, i don't know who you have taken the paydayloan with, but with the company i use, its possible to defer payment for another month, by paying the interest on the loan, i.e. the £50, only. Which unfortunately means you'll end up paying £100 interest on your £200 loan, as you'll still have to pay £50, the following month.

So if you can manage the £50, go and ask them if you can just pay this months interest. Theres no such thing as not paying a payday loan, unfortunately.

Hope this helps x

Trajal

I agree with deferring the payment, and trying to pick up some income increase between now and when the next payment would be due (June 30 from what you've said).

I'd make sure that you do move all money from the co-op account though, just in case anything nasty happens, but leave enough to cover the payday deferral interest costs.

I know exactly how you feel with these payday loans, and it's painful to pay them back, but we spent the money in the first place so have to have some serious low spend weeks to try and force enough to either pay in full or at least the interest and a hit to the capital so that the next interest charge will be less.

I'd avoid talking to a financial institution about alcoholism, certainly I'd steer clear of your bank, it's fine for people to know you're having a difficult time personally, but unless you get to the point where you are unable to pay for *anything* and need doctor's letters etc, I'd definitely not put that much information forward.

eyeopener2

Tell the payday lot your going to declare yourself banckrupt, move all your money from your co-op account, and see what the response.

You go banckrupt, they get nothing.

Or they accept a low repayment amount (say £1 a month).

Do NOT, whatever you do, roll this one over. You need to address your problems head one and defering this, so they get more money out of you, is not the way to go.

Also, are you back at AA yet?

ani_26

Presumably if the OP does'nt have the payment for the payday loan, they won't have the fees for going bankrupt before the 31st May, either. So no payment at all, and wait and see what happens? since it does'nt matter anyway?

vaporate

If it were me I would go bankrupt. Debt cleared, albeit at a price. Why stress yourself further with such a huge unpayable sum of 15k?

NeverAgain_2

Expect no sympathy or understanding from the payday loan company.

If you are going bankrupt, act now and empty the Co-op account and close it.

I would stress to the bank the account is to be shut, not just left lying dormant.

SimIsOnTheUp

Thanks guys.

I can't afford to 'roll over' the loan at £50 a month. It's just not sustainable.

Eyeopener2 - I haven't been going to meetings no. Need to get back.

You're right in that I need to face this head on, which I'm trying to do.

Am just scared that they're going to take me to court / prosecute me for fraud.

NeverAgain - Re closing my Co - op account, this is what I'm considering. I wanted to do this, as I didn't want the Co - op knowing about this, in case I need the account at a later date.

Am probably going to have to go Bankrupt, as I can't go on like this. It's been really getting me down.

I have £20 left in my bank account for food (no food in yet) until next Friday.

Couldn't the PayDay loan company take legal action against me if I close the Co - op account though, and their debit card transaction fails?

Also, how on earth am I going to explain that I'm not working any more (and haven't been since January). Am scared witless of them finding out about this.

Thanks,

Sim.

Oneday77

Sim - When you say you used a basic Co-op card, is it really a debit card? Most basic accounts are cash cards and not debit.
In which case they can take nothing.

When you took out the loan yes you mis-lead them. However they are sharks and if they don't quantify the information supplied there own loss.
The worst they can do is pursue the payments. After all how many people tell the truth on loan applications anyway.
You could let them know you've been laid off and that will stop them contacting your ex-employer anyway hopefully.

As for the drinking good luck. I suggest with all this stress goung about and you having £20 and no food.
Go buy the food now, empty the ccount and only buy food. That way temptation is reduced

elsiepac

Hi Sim

I really feel for you, what a nightmare of a situation.

OneDay77, I also have a Co-Op Cashminder Account, and yes, it is a Visa Debit card, NOT a cash card. Co-Op are extremely good to bank with I've found, hence I understand Sim being reluctant to lose the account.

Sim, I'm curious as to why you cannot include your wageday advance with CCCS? I'm assuming they've agreed you for a DMP or similar as you already have the template letters, so I think the best course of action would be to ring CCCS first thing Monday, explain things have changed slightly in terms of total amounts owed (you can explain alcoholism to them, I'm sure, they've always been fantastic with me for other reasons), and get the WDA included in your plan. One of my debts with CCCS on my DMP was £650 to WDA (the company), who are nice as pie on the phone and when you are borrowing, but turned really nasty if I'm honest. They even declined to recognise CCCS etc, however, once the payments had been going to them for that first month, they backed off and it's now absolutely fine. Horrible companies, I vow to myself I will never be in that situation again. Ever.

I kind of agree that bankruptcy does seem to be the best overall option for you, however, the big question is if it would all go through in time before the issue of the CCCS payment arises, which I don't know anything about the process, so couldn't even speculate.

I hope you get something sorted, and feel better about things. There is a solution out there for you, finding it, acting on it, and accepting is key. And if nothing else, please spend some time tomorrow doing those letters and send them out. Use some of your £20 food money to buy the stamps. It's worth it.

Lee-anne x

SimIsOnTheUp

Oneday77 wrote: »

Sim - When you say you used a basic Co-op card, is it really a debit card? Most basic accounts are cash cards and not debit.
In which case they can take nothing.

When you took out the loan yes you mis-lead them. However they are sharks and if they don't quantify the information supplied there own loss.
The worst they can do is pursue the payments. After all how many people tell the truth on loan applications anyway.
You could let them know you've been laid off and that will stop them contacting your ex-employer anyway hopefully.

As for the drinking good luck. I suggest with all this stress goung about and you having £20 and no food.
Go buy the food now, empty the ccount and only buy food. That way temptation is reduced

Thanks Oneday77.

Yes, my card is a Co - op Bank Visa Debit Card.

The account is their 'basic' Cashminder account.

They 'swiped' my card when I took out the loan, and they took my account number and sort code

Your suggestion of letting them know that I've been laid off is a good one, thanks. This is what I've been considering doing.

Better to let them know beforehand. Damage limitation and all that.

I just hope and pray that they don't call my ex - employers, which they could do even if I tell them I don't work for them anymore.

You say that the worse they could do, is pursue me for payments. I'm just worried that they'll go one step further and take me to court / prosecute me for fraud.

As for the drinking, I've no desire to drink whatsoever, and any cravings that have passed me by this past week, I've just ridden out and let go of

I'm about to nip out and get some food in this evening.

Enjoy your evening.

Thanks,

Sim.