Advice needed re Payday Loan Trap

matty1286

Hi All

I have been skimming over the posts on this forum, and it is comforting to note that there are other sensible, rational people out there who have got themselves into a similar situation to mine.

I first took out a payday loan in June 2009 after finding myself short of immediate cash following a stay in hospital, to cut a long story short I then went on to make some very poor financial decisions and ended up trying to balance six payday loans at the same time, this obviously soon became untenable.

Thankfully I have recently taken back a degree of control on the situation and have paid off one loan in full and am currently on a payment plan for two others. However I am having difficulties in regards to agreeing a payment plan with WageDay Advance and wondered if anybody on here has had past experience with them.

Basically they are refusing to agree my proposed payment plan without me providing them with highly personal information such as bank statements and detailed income and expenditure sheets – which I am refusing because I am not legally obliged to do this.

I have cancelled my direct debit and requested that my bank issue me with a new debit card so that they cannot simply help themselves to my money. I have given them notice of every detail of my plan and have suggested that I will send them monthly instalments via cheque every month until the total balance is paid in full – they would not provide me with bank details to set up a standing order.

I have also pointed out that if they persist in suggesting that I have defaulted upon my account, they will simply have to pass on the matter to a third party (debt collection agency) who will have to negotiate a payment plan with me anyway, therefore coming to WageDay Advance first is actually saving them time and effort of this.

However despite my continued efforts they are still point blank refusing to accept my plan and say that my account will be processed as normal and that if is fails I will incur all sorts of nasty side effects such as daily interest being added, regular phone call etc.

I’d be really grateful to get some constructive feedback from people who have maybe gone through a similar situation or even used this company before.

Many thanks!

ILW

matty1286 wrote: »

Basically they are refusing to agree my proposed payment plan without me providing them with highly personal information such as bank statements and detailed income and expenditure sheets – which I am refusing because I am not legally obliged to do this.

!

True, you are not legally obliged to supply this info, but on the other hand, the lender are not legally obliged to stop charging you interest. I would not recommend letting it go to a collection company if you can help it.
Is your credit record already destroyed or worth saving?

koloko

deleted deleted deleted

matty1286

Thanks for both responses - much appreciated.

In terms of the income and expenditure sheet, the template that I have been sent by WageDay Advance asks for income and expenditure relating to my partner - the loan is in my name only and has nothing whatsoever to do with my partner or her bank account, hence one of the reasons why I have refused to complete this.

Whilst I appreciate the suggestion of having to give and take a little, in my previous experiences loan companies such as these only understand the take aspect, which is why I am very loath to provide them with any unecessary, private information.

Hollypop_2

How do they know you have a partner?

could you not just fill the form in and not fill the 'partner' section in? for all they know you could have a lodger or even live on your own. so what would they expect you to put in then?

Clive_Woody

matty1286 wrote: »

Whilst I appreciate the suggestion of having to give and take a little, in my previous experiences loan companies such as these only understand the take aspect

With all due repsect the loan company did their giving at the begining of the agreement and in accordance with the contract it is now their turn to do the taking....

Moneymash

Hi Matty,

I am concerned you have cancelled your direct debit -did you read the small print what are the implications of this? They could still try and get a payment via direct debit (unless you informed them you have cancelled this) and you could be charged for the lack of DD and a missed payment. Are you able to set up your own fixed monthly payment with a standing order?

Also, be careful if you make payments to them using your Debit card - if they have your debit card number they can set up a recurring payment which is very difficult to stop (these payments are prioritised and come out of your account regardless). Until some arrangement is sorted make payments to them from your bank to their company. Don't phone them and make a payment with your debit card, say yes in the wrong place and you could end up with a recurring payment you can't afford.

Although some posters have said the company is entitled to ask about your financial situation. I would be wary myself, they will no doubt be looking to see 'how much your good for'

Good luck with sorting this asap

catflea

All you can do is jump through their hoops really.

I'd suggest sending back the income/expenditure form and leaving the partner field blank.

matty1286

In answer to a couple of points raised by Moneymash - I have cancelled my old debit card and been issued with a new one so that I avoid them taking any money off the card of the own volition.

They are unwilling to provide me with their bank details so I cannot set up a standing order - hence why I have suggested making payment via cheque.

Thanks for all comments!

Moneymash

Hi Matty,

I have now read paragraph four of your first post I was so incensed I fired off a prompt reply without reading properly.

Hax

With regard to the income/expenditure, you are claiming poverty and an inability to pay - they want proof of this. Is that too much for them to expect? After all, you're asking them to stop charging interest and allow you to make repayments on your own schedule.

If they didn't ask for this and just blindly took your word for it, then everyone would be trying to do the same thing - which would result in their business model being broken and them no longer being able to make a profit.

You've asked them for help. They're asking you for more information so that they can consider whether or not to provide that help. Even if this does go to a debt collector, they may well request the same information from you. My thoughts are to give the info needed.