Got myself in a hole with payday loans....

paulc19

Hi there.

I'm so angry with myself, after going bankrupt in 2009 i got myself finally debt free and now i'm back in debt through stupidly taking out a payday loan and then another and....yeah another until I had 4 on the go to the tune of £1,375. I can't afford repayments, i've known it for a while but just been burying my head. I'm so annoyed with myself i could kick myself but i want to pay them off and get back to where i was before.

So, i've sent them all letters offering token payments of a few quid a piece until my financial position improves and i can step up the payments. Only one has responded (via email & negatively) stating that such a payment will not hold action on the account. So I'm dreading tomorrow when they're all due and my phone is going to be ringing i imagine with them all baying for blood?

Is there anything else i can do realistically? What's the worst they can do? Do these type of companies freeze interest? Because if they keep piling it on I will be down **** creek with no paddle. And if they do shall i carry on making my payments?

I'm really dreading tomorrow. Please, I know i'm daft for getting back in a mess so no 'you're a fool' type posts, nobody knows it more than me. I've handed all finances over to my wife now ready to admit i'm useless with managing money.

Thanks for any help you can offer me.

Welshdebtor

Just keep paying the couple of quid. Despite what they say they would rather have the couple of quid than nothing.

If the phone calls cause you distress then politely ask them by letter to stop phoning and to remove your number.

if they continue to phone then use this..............

Dear Sir,

Ref. XXXXX

Despite my letters regarding ANY communication from your company, in which I stated that I require ALL communications in writing, your telephone calls continue.

This behaviour constitutes harassment; the letters stated quite clearly to you that I require ALL communications in writing for future Court use. Do not telephone me again - remove any telephone numbers you hold for me from your systems.

Your telephone calls are in breach of the Office of Fair Trading guidelines. If you continue with them after the receipt of this letter an official complaint, together with a log recording the times and frequency of the calls will be passed both to that office and to the Trading Standards office. For your information note that ALL telephone calls are taped.

This type of debt collection method is contrary to the ‘Administration of Justice Act 1970’ in that it is intended to cause alarm and distress to the recipient. Your methods will not be tolerated. A formal complaint, containing copies of all correspondence including yours, has now been submitted to the relevant authorities. This will be relevant to questions of your fitness to hold a licence under the Consumer Credit Act, whether or not it results in a prosecution.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

Communicate in writing and ONLY in writing, your telephone calls will NOT be answered.

HOWEVER, CALLS WILL TRIGGER COMPLAINTS TO THE REGULATORY BODIES.

I trust that I have made myself understood on this matter,

Yours faithfully,

WASHER

Do you have a barring facility on your phone? Or get the answer machine to take the calls.

Did you give your work number to the companies, if so, you need to write to them using the letter templete above, as their calls could be a nuisance whilst at work.

Welshdebtor

To answer your question about freezing interest. Some will and some wont. Even the ones who do only do it for a short period. Just keep paying what you can afford,whether it's £1,£10 or £100.

here is a handy template.


Dear Sir/Madam
Account No: 4563210025897412
Thank you for your letter of DD-MM-YYYY concerning the above account. We are sorry that you feel unable
to suspend interest charges on the above account. The majority of our other creditors have agreed to the offer
of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to
charge interest would not assist us in our present financial difficulties, and can only serve to increase our total
debt.
As you are aware, we have already paid considerable sums in interest to our account. If interest charges
continue, the monthly instalments we are paying will not even cover that interest. Also, the cooperation of our
other creditors who have agreed to freeze interest already would be put at risk.
We would therefore be grateful if you would reconsider your decision not to freeze the interest. This would
mean that the monthly payments we make would actually reduce the balance outstanding to your company.
We look forward to hearing from you as soon as possible.
Yours faithfully

Welshdebtor

And if they still refuse to accept your token payments and to freeze interest. National debtline suggest this template.

Dear Sir/Madam
Acc/Ref No 4563210025897412
Thank you for your letter of DD-MM-YYYY. We are very disappointed that we seem unable to reach a
satisfactory compromise in this case. As we have already explained, we can only afford £_____ per month at
the present time, and we feel that it is pointless paying this amount to you only to see the debt increase. We
invite you therefore to sue us for the debt, when we shall have the opportunity of offering £_____ per month
through the courts.
In addition, once judgment is granted we understand that further interest will be suspended in any event. It
seems that we can only achieve a reasonable outcome to this matter by allowing the courts to decide, although
this will involve us both in extra expense and time wasted with court proceedings.
The offer of £_____ per month plus suspension of interest is of course still open to you to accept.
Yours faithfully

Welshdebtor

Or an alternative to the above where you are not inviting them to take you to court in so many words.

Dear Sir/Madam
Acc/Ref No 4563210025897412
Thank you for your letter of DD-MM-YYYY. We are very disappointed that we seem unable to reach a
satisfactory compromise in this case. As we have already explained, we can only afford £_____ per month at
the present time. This is the only realistic payment proposal bearing in mind the enclosed personal budget
sheet.
You have stated in correspondence your intention to commence proceedings in the county court against us.
The commencement of legal proceedings under such circumstances could be counter to the ‘Overriding
Objectives’ of the new Civil Procedure Rules. You will be aware that the Overriding Objectives underpin
everything the court does. Moreover, paragraph 4 of the Protocols Practice Direction states that in cases not
covered by an approved pre-action protocol, the court will expect the parties “to act reasonably…….. in trying
to avoid the necessity for the start of proceedings”.
We would suggest that your refusal to accept our offer could be viewed as unreasonable and we would ask the
court to consider this matter with reference to the Overriding Objectives.
The offer of £_____ is of course still open to you to accept.
Yours faithfully

And on that note I am off to bed after my mammoth template posting

dancingfairy

I suggest you get a new bank account that the payday loans don't have access to. From there you can make sure your priority bills rae paid - rent/mortgage, electric, gas etc and then make token payments to your creditors - the payday loans people. Then 1 of 2 situations is likely to apply
1) They ignore your repayment offer and rinse your old bank account. You will then just owe money to your old bank account and should try and set up a payment plan for this.
2) they accept the payment plan.

You really need the new bank account though as it is known that some payday loans companies will raid your account until they get your money back - they may try and take it in one go or take it in 10ers every time they think you have money until you have paid off their fees. This is why it is important to have a new bank account so you have control over who will get paid, how much and when.
df

paulc19

dancingfairy wrote: »

I suggest you get a new bank account that the payday loans don't have access to. From there you can make sure your priority bills rae paid - rent/mortgage, electric, gas etc and then make token payments to your creditors - the payday loans people. Then 1 of 2 situations is likely to apply
1) They ignore your repayment offer and rinse your old bank account. You will then just owe money to your old bank account and should try and set up a payment plan for this.
2) they accept the payment plan.

You really need the new bank account though as it is known that some payday loans companies will raid your account until they get your money back - they may try and take it in one go or take it in 10ers every time they think you have money until you have paid off their fees. This is why it is important to have a new bank account so you have control over who will get paid, how much and when.
df

What I have done so far is cancel my bank card and order a new one and cancel the direct debit for the one company that wanted to do it that way. I have a balance of 0.00 in my account and as I have a co-op cashminder account I don't think any payments will go through. The tricky bit will be when i get my expenses cheque from work which has to go through my account, i've heard barclays do an account for bankrupts? Could this be the answer? My wages are now being paid into partners account and bills coming out of there, too.

Wasn't too bad today, got texts from them all. No phone calls as yet. Wageday advance gave me their account details so have set up a standing order with my token payment.

Thanks for all responses, it helps and is reassuring. Just don't want bailiffs turning up (not that i have anything they could take).

Welshdebtor

paulc19 wrote: »

What I have done so far is cancel my bank card and order a new one and cancel the direct debit for the one company that wanted to do it that way. I have a balance of 0.00 in my account and as I have a co-op cashminder account I don't think any payments will go through. The tricky bit will be when i get my expenses cheque from work which has to go through my account, i've heard barclays do an account for bankrupts? Could this be the answer? My wages are now being paid into partners account and bills coming out of there, too.

Wasn't too bad today, got texts from them all. No phone calls as yet. Wageday advance gave me their account details so have set up a standing order with my token payment.

Thanks for all responses, it helps and is reassuring. Just don't want bailiffs turning up (not that i have anything they could take).

Bailiffs will not turn up as they are unsecured loans.Nor can things be taken to pay, so do not worry.

Bailiffs are appointed by courts, which you are not involved with (least at present).

"Door Step Agents" may get involved these like to think they are bailiffs but have no powers at all. You can stop them entering your property, do not have to speak to them and warn them against even coming through your gate again.

Welshdebtor

To stop the threat of door step agents, you can use this template.

Dear xxxx

Account Ref xxxx

Please be advised that I will only communicate with you in writing. I have noted your repeated attempts to contact me by telephone over the past few weeks/months and these have been duly logged by time and date.

Furthermore, should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you.

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

Yours faithfully/sincerely

Welshdebtor

To stop phonecalls, firstly ask them verbally or in writing if that fails use this template.

Dear Sir,

Ref. XXXXX

Despite my letters regarding ANY communication from your company, in which I stated that I require ALL communications in writing, your telephone calls continue.

This behaviour constitutes harassment; the letters stated quite clearly to you that I require ALL communications in writing for future Court use. Do not telephone me again - remove any telephone numbers you hold for me from your systems.

Your telephone calls are in breach of the Office of Fair Trading guidelines. If you continue with them after the receipt of this letter an official complaint, together with a log recording the times and frequency of the calls will be passed both to that office and to the Trading Standards office. For your information note that ALL telephone calls are taped.

This type of debt collection method is contrary to the ‘Administration of Justice Act 1970’ in that it is intended to cause alarm and distress to the recipient. Your methods will not be tolerated. A formal complaint, containing copies of all correspondence including yours, has now been submitted to the relevant authorities. This will be relevant to questions of your fitness to hold a licence under the Consumer Credit Act, whether or not it results in a prosecution.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

Communicate in writing and ONLY in writing, your telephone calls will NOT be answered.

HOWEVER, CALLS WILL TRIGGER COMPLAINTS TO THE REGULATORY BODIES.

I trust that I have made myself understood on this matter,

Yours faithfully,