Pay day loan trouble

neverletmego

Hi, I'm quite at odds about what to do with regards to a pay day loan I took out just over a month ago.

I took out a loan of £400 at speed credit a month ago for four weeks. The expected repayment was £596ish. I was supposed to repay on Christmas day.

On Christmas eve I tried calling them and E-Mailing them explaining I wouldn't be able to repay (in full) until the 9th January as that's when my next pay day is.

I had no response to my E-Mail and no one answered the 0843 number for quite a while. Today I woke up to find my out standing balance was at £696 and that they'd try and collect again tomorrow.

The reason I couldn't repay on time was that a truly unexpected cost had come up.

I'm not entirely sure as to what I can do? Any help would be great!

tomjonesrules

Contact them as soon as they are open again, however chances of getting the additional charges wiped are minimal, you will have agreed to them when you took out the loan. Is it not possible to borrow the money from family? Even if you repay with interest it will be far less than what the payday company charge.

neverletmego

I've been trying to contact them all day today although if seems their offices might be closed. Borrowing from family at this moment would have to be a last resort although I may have to. I'm just hoping they don't add an extra £100 charge for tomorrow. It would seem a little unfair as I've not been able to contact them explaining the situation

CLAPTON

from their website FAQ

Q: What happens if I do not pay after 30 days?
A: If you have any doubts about whether you will be able to repay aloan, please don`t apply for it in the first place. If you do not pay the loan within a specified time you will be charged for another loan period. If the payment still does not arrive, we will unfortunately have to send the debt to a debt collection agency which will incur additional charges. None of these things are worth risking

richardvc

neverletmego wrote: »

I've been trying to contact them all day today although if seems their offices might be closed. Borrowing from family at this moment would have to be a last resort although I may have to. I'm just hoping they don't add an extra £100 charge for tomorrow. It would seem a little unfair as I've not been able to contact them explaining the situation

Welcome to MSE - forgive me, but this may not be what you want to hear but you agreed to pay it back on Xmas Day and chose to pay another bill.

This is how these companies make their money and just because you have not been able to contact them to explain the situation will mean very little to them.

I mean this with the greatest respect esp as you are a newbie but pay it back, in full, on time, and this conversation doesn't have to happen.

bengal-stripe

neverletmego wrote: »

It would seem a little unfair as I've not been able to contact them explaining the situation

They would have added additional costs. as soon as you failed to make the agreed payment on time. Whether or not you 'explain the situation' would not have made one iota of difference.

You better check your contract how much charges they will add (a day. a week, etc.)

marleyboy

Regardless of your circumstances, any delayed payment will slap a considerable surcharge onto your bill. Companies like this rely on delayed payments, especially around Christmas. Its where they make the most profits at the least effort.

RichGold

neverletmego wrote: »

I've been trying to contact them all day today

It wont make any difference speaking to them, you're simply wasting your time as all they are interested in is your money.. The rules were set when you took the loan and you broke them. The additional costs are clear and you must have been aware of them.

The Season of Good Will doesn't apply to PDL's.

richardvc

I do treat all these 'pay day loan' companies with suspicion BUT am I right in saying that the complaints that have been made about them have ULTIMATELY been because people haven't repaid the original loan either in full or on time ?

marleyboy

richardvc wrote: »

I do treat all these 'pay day loan' companies with suspicion BUT am I right in saying that the complaints that have been made about them have ULTIMATELY been because people haven't repaid the original loan either in full or on time ?

My biggest reason and complaint for avoiding them is..........

Representative 1734% APR.
Representative example: Borrow £50 for 30 days. The total charge for credit is £14.75. Interest is fixed at a rate of £14.75 per £50 loan (359% per annum). The Total Repayable is £64.75.

And thats without delayed payments.

opinions4u

neverletmego wrote: »

Hi, I'm quite at odds about what to do with regards to a pay day loan I took out just over a month ago.

The traditional approach to this sort of borrowing is to make sure it's paid back when agreed.

I took out a loan of £400 at speed credit a month ago for four weeks. The expected repayment was £596ish. I was supposed to repay on Christmas day.

Pay back when agreed and it's expensive. Pay back later than agreed and they crucify you. Seasonal.

On Christmas eve I tried calling them and E-Mailing them explaining I wouldn't be able to repay (in full) until the 9th January as that's when my next pay day is.

It makes no difference. They will apply whatever charges your agreement with them allows and they will attempt to raid your bank account every day until they get the money and charges back.

Not paying a PDL back at the agreed time is financial stupidity of the highest degree. Stop spending money. Clear your debts. Take a step back and take a long hard look at how you manage your finances.

You need to take clear action to ensure you don't put yourself in this position again.

The reason I couldn't repay on time was that a truly unexpected cost had come up.

Out of interest, what? Why was this more important than meeting an earlier commitment?