Advice needed re Payday Loan Trap

matty1286

Just a bit of an update on my situation.

I have now provided WDA with details if I/E etc and am awaiting a response - I have a feeling they will now attempt delaying tactics in order to say that a payment plan was never set up etc but will keep ringing them until I get a defintive answer.

In terms of my two other payday loans that are not currently on payment plans (Payday UK and Paydayexpress) - both have told me that I will have to allow my account to go into arrears (i.e. allow my repayment to fail) before they will pass the matter on to their debt collection dept who will then be able to work out a repayment plan with me.

Paydayexpress say that repayment has to fail for two consecutive months before it is passed on to this department by which time I will have accrued a further £175.00 in penalty fees despite the fact I have forwarned them of my situation.

This seems a highly dubious method - but I cannot afford my sheduled repayments so will have to go along with it and see what happens. At least I have the assurance that the repayment attepmts will fail as I have changed my bank card from which they are taken.

CH27

Have you posted a Statement of Account on the debtfree wannabe section to get advice to stop you needing these type of loans in the future?

redpete

matty1286 wrote: »

At least I have the assurance that the repayment attepmts will fail as I have changed my bank card from which they are taken.

I'm fairly sure I've read of cases on here where cancelling a card is not sufficient to stop money being taken from the bank account that the card was issued on - so you might get a nasty surprise.

This is why people are advised to close the account to be sure that they can't take their money out.

Apples2

matty1286 wrote: »

In terms of my two other payday loans that are not currently on payment plans (Payday UK and Paydayexpress) - both have told me that I will have to allow my account to go into arrears (i.e. allow my repayment to fail) before they will pass the matter on to their debt collection dept who will then be able to work out a repayment plan with me.

Paydayexpress say that repayment has to fail for two consecutive months before it is passed on to this department by which time I will have accrued a further £175.00 in penalty fees despite the fact I have forwarned them of my situation.

This seems a highly dubious method - but I cannot afford my sheduled repayments so will have to go along with it and see what happens. At least I have the assurance that the repayment attepmts will fail as I have changed my bank card from which they are taken.

Hax has already described why this is not so dubious.

If it were so simple to reduce your payments, everyone would do it. They have no idea if you are in genuine hardship of just fancy spending their money toward a new car/holiday.

I agree with the other posters that you have no such thing as an assurance the payment will bounce simply by cancelling your card. There are dozens of posts on here from people who have falsely assumed the same thing.

an9i77

matty1286 wrote: »

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!

They are not 'helping themselves to your money'. They are helping themselves to their own money.

matty1286

And I have now taken the advice given and provided the details requested as it was suggested I should.

I realise that from a neutral/unbiased point of view it is perfectly reasonable for these companies to ask for such information, however, as I'm sure many others can testify, these companies are not normally associated with the phrase 'reasonable' - hence why I am so guarded in my dealings with them (I know I shouldn't have gone anywhere near in the first instance - but it is a little late to be wise after the event now).

The repayments are taken via a reaccuring card payment not via direct debit or standing order etc hence why I was under the impression that if the card used to take payments is cancelled payments will not then be processed.

Apples2

matty1286 wrote: »

these companies are not normally associated with the phrase 'reasonable'.

Agreed, which is why you have to take particular precautions.

If MSE is anything to go by, the overwhelming majority of borrowers simply fail to repay their loans on time (if at all).

If these companies did not have a robust mechanism in place to retrieve that money, they would go to the wall in no time.
They know exactly what to do and what they can get away with.

queenofstars

You take loans - you sign a legally binding agreement to make repayment.You break the agreement by failing to pay.The lender is legally entitled to his money plus interest.You make no attempt to talk to the lender and negotiate a deal.Instead you cancel your direct debit and ask your bank to cancel your card.

Definition of a PayDay loan. A sum of money borrowed for a maximum of thirty days and repaid in full when the borrower gets his next pay check - hence the term PAYDAY.

matty1286

queenofstars wrote: »

You take loans - you sign a legally binding agreement to make repayment.You break the agreement by failing to pay.The lender is legally entitled to his money plus interest.You make no attempt to talk to the lender and negotiate a deal.Instead you cancel your direct debit and ask your bank to cancel your card.

Definition of a PayDay loan. A sum of money borrowed for a maximum of thirty days and repaid in full when the borrower gets his next pay check - hence the term PAYDAY.

Please kindly read my original post - I have been attempting to negotiate affordable payment plans for the last few weeks - I haven't simply cancelled everything in an effort to blindly avoid my debt of which I know I am fully repsonible - I am simply seeking an affordable way in which to pay it back as my current position is untenable.

brokeinlondon

Hi matty, cancelling your debit card doesn't guarantee they won't take the payment. more info in this thread: https://forums.moneysavingexpert.com/discussion/2735257