Pay Day Loan - Deferral

Pedro1984

All,

I have often spent time around this wonderful forum taking on your advice and now has the come mine to ask!

I stupidly had to take a payday loan when there was a complete !!!! up in my wages at work. Stupidly this then turned into a second one, (as the stories go).

However, I have been working off mine and deferred one a couple of months back, I know it's not the best thing but the only thing to do to pay the money back.

HOWEVER!, after paying a deferall this morning they then posted this e-mail back to me, (key bits deleted!)


Dear

Thank you for your repayment of £145.00, which has been debited today, by (Company) in respect of loan No..... Please retain this email as proof of payment.

Deferral Process

1. Now we have taken a repayment of £145.00 to defer your loan, your new loan agreement No....is now active.

2. We will take the repayment of £145.00 from your account on 30/09/2011 to close your new loan.

3. You can repeat the deferral process by clicking on the link below and following the step by step instructions.


Kind regards,

Collections Team Leader

As you can see from this e-mail it states in number 2 that I have this amount to pay, whereas I actually owe £350?! I have checked the money previous and this was correct.

I have spoken to a standard customer service adviser and now a team manager who said well you signed the credit agreement anyhow.

Upon this, I asked the following questions :

1) On my loan agreement signature, it said the total amount, does it inform me of what the the numbers are? They said they don't know what I am talking about. On the deferral loan agreement it states the old one, which is me paying the £145 in the first chapters, but the one states in chapter 2 is nowhere to be seen!

2) I said this is a proof of receipt, can you tell me what would happen if you couldn't find payment of my amount back to yourself? The TM this time said we would ask you for this proof. Of which I stated well this then stands as a legal document does it not, with you telling me the wrong amount on this letter?

Maybe I am wrong, maybe I am trying to find a way of clawing myself out of this money hungry company who have had their money and then some off me already!

Has anyone got any points on this? Am I barking up the wrong tree? I said I will speak to the FO to find out my rights and then this TM was making arrangements for a callback from some higher complaints and resolutions team before I knew it!

Thanks for reading my blurb...!
P
xzx

LovelyLeeds

I've read your post twice and I'm still not clear exactly what you mean.
How much do you think you owe?
How much do they think you owe?
How much have you paid?

iaintw

is it normal ones like banks and buliding society?
Some companies havent got credit agreement and their also breaking the laws too. what is the name of the loan company so i can have a look at them so i will search them on FSA web site

Enfieldian

As Lovely Leeds says, the figure of £145 is irrelevant unless you tell us what the capital is.

PDL companies will usually only take the interest each month unless you request otherwise so the £145 could just keep things ticking over.

Lending Stream are an example of a different lender that take a little capital each month.

All are horrendously expensive though.

Pedro1984

Ok so I think this may answer a couple of questions, my total amount not owing is £350.

This is £280 plus their usual service and interest charge this is the total amount.

In previous e-mails the company have sent me after payment of the loan deferral it states the total amount not owing, or if the total amount has been paid.

In the e-mail it clearly states that the £145 is to close the loan despite me owing more then this. The company know though that its £350 despite their e-mail which states how much I owe.

Does this clarify everything? Does an incorrect amount on payment receipt not count for anything?

Tixy

Not sure but maybe they are treating it as 2 loans (the second being 145 to pay the deferral of the first), so that when you pay off the £145 this will just cover this second loan? Does it have a different loan account number?

jonjamie1970

Honestly, if you are using google translate this post makes no sense to me whatsoever, its undreadable IMHO and I work with foreign customers all day long.

What do you mean total amount NOT owing ??

Pedro1984

No in previous months once the loan has deferred it just shows the total amount left to pay.

So the month previous my first deferral it stated I have paid £160 and now the amount to be withdrawn on the 31/08/2011 will be £425.

I then deferred it again to pay £145. That's when I got this receipt I know it's an absolute !!!! up by the company but I was under the impression that this would have to stand as it states in the e-mail £145 to close this loan.

Once it's deferred they give you a new loan ref not the existing one.

ihateyes

Pedro1984 wrote: »

Ok so I think this may answer a couple of questions, my total amount not owing is £350.

This is £280 plus their usual service and interest charge this is the total amount.

In previous e-mails the company have sent me after payment of the loan deferral it states the total amount not owing, or if the total amount has been paid.

In the e-mail it clearly states that the £145 is to close the loan despite me owing more then this. The company know though that its £350 despite their e-mail which states how much I owe.

Does this clarify everything? Does an incorrect amount on payment receipt not count for anything?

Generaly with PDL' they create a new loan when you defer..... so the revious loan was closed with interest only, then they create a new loan.

Strictly speaking as it is a 31day loan, and credit agreement can only charge interest for 31days, now if you defer 6mths in a row, i believe they wont have eecuted the credit agreement correctly, thus the reason why the create a new loan.

Pedro1984

100% English, apologies its a typo it's meant to say now owing.

KingElvis

Sorry but I can make no sense of this at all.