Payday loans noooo! Please help!

leopardxgirl

So about 8 months ago I borrowed around £90 from Wonga to pay for a train ticket to see my now x-boyfriend. What a slippery slope that was. I am now approx £3500 into payday loans across Wonga, Quick Quick, Wageday Advance and PaydayUK. I seem to have got myself into a horrible situation where I can only barely afford the interest repayments on these darn things every month. I asked my bank to please increase my overdraft so that I could pay them all off and have my debt as an overdraft, but unfortunately since I did not grow up in this country ever since I turned 18 here, it has been a horrendous struggle to obtain any sort of credit as I had never had any before. I earn too much money to claim benefits, but not enough to pay this stuff off and pay rent and get to work and live. I have tried to look into debt consolidation loans and I just can't seem to find anything that isn't going to get me into a worse situation or just some telemarketing scheme. Please someone, anyone. WHAT DO I DOOOO? Feel free to tear my idiocy to shreds, I know I am a fool. I just don't know where else to turn to as it seems no one is willing to help me out of this. Thank you for your input.

ineed

Hi leopard girl, welcome to the forums. Don't panic there is help available and it's great you are seeking help.

Firstly you should post up a SOA so you can look at area's where you could cut back a bit, then have a look into charities like CCC's who can provide a pay plan if needed to help you.

UglyDebty

Hi Leopard Girl
I've just arrived here at MSE with same problem, same scenario. Wish there was a back button on this one. Back to June last year I would never ever have applied for a PDL.

I've been reading a lot on the Consumer Action Group forum and we are not alone, so don't panic. You can regain control.

This all sounds dramatic but I've been working my way through these steps.

You need a new bank account and transfer all your income and essential outgoings to that one.
Cancel your debit card, report as lost.

Write to each payday loan creditor explaining your situation, ask them to freeze the interest and stop all additional charges, request a repayment plan. Under no circumstances phone them.

You need everything documented.

I've written to my bank asking them not to honour any payments by the PDL companies I'm with and advised each PDL company that I withdraw my consent. Explaining I cannot carry on under the terms of the current agreement.

You can get through this.
I'll let you know how I get on.

raven83

Also, i suggest opening up a new bank account and having all of your wages etc paid into that one so they cant take your wages, then i would close down your current bank account and then write them each a letter with an offer of a payment you can afford each month.

taffy056

raven83 wrote: »

Also, i suggest opening up a new bank account and having all of your wages etc paid into that one so they cant take your wages, then i would close down your current bank account and then write them each a letter with an offer of a payment you can afford each month.

You don't have to close down accounts or change cards etc, you have a legal right to insist that the bank stops all payments from debit cards to the payday companies, also direct debits can be cancelled.

Continuous Payment Authorities - How to stop them


http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

raven83

taffy056 wrote: »

You don't have to close down accounts or change cards etc, you have a legal right to insist that the bank stops all payments from debit cards to the payday companies, also direct debits can be cancelled.

Continuous Payment Authorities - How to stop them


http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

Oh really? Don't payday loans put some sort of thing onto your bank account will automatically take your money, i never had one so i wouldnt know.

gizmo111

taffy056 wrote: »

You don't have to close down accounts or change cards etc, you have a legal right to insist that the bank stops all payments from debit cards to the payday companies, also direct debits can be cancelled.

Continuous Payment Authorities - How to stop them


http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

Banks are idiots and it may take several atttempts before they take notice in the meantime the PDL's will take money from the account leaving people with no money.
Best to open a new account where you owe no money and transfer all income over to there - then tell the PDL's. It may be in the meantime that you have to bite the bullet and pay a rollover to keep costs to a minimum.
Also make sure you change phone numbers on your accounts online else they will start ringing you at work.

Denis_UK

I agree set up a new account.

You can stop transactions from a DD but the vendor has to cancel the contract.

A DD takes 3days to process through BACS you can only stop payment during this period.

Set up a new account.

leopardxgirl

Hi everyone, thanks so much for your help. I'm sorry for being a little confused still. So I shall transfer my account to a new bank? My only concern is that I have an overdraft facility of £3500 which I happen to unfortunately be maxed in at the moment. Can I still transfer my account that my salary goes into to a new bank even though I'm in my overdraft? Can I write letters to payday companies telling them to freeze stuff? I'm so sorry, I kind of need some kind of walkthrough action plan if you guys don't mind please helping me? Thanks again for your support. It's helpful to know I'm not alone.

FireWyrm

1) Get your regular pay moved to a basic account like the post office. This is because PDLs, at the first sign of a potential default will attempt to take the whole debt regardless of your ability to pay. They can and will leave you destitute. It's happened before to people on here, so you must protect what you have and your ability to buy food for instance.

2) now write to your PDLs informing them that you are in financial difficulty and that you request a payment plan. Some will be reasonable, some will tell you to get knotted and try to collect anyway which is why you put your money into another account. It's going to take several attempts, but keep at it.

3) write to your bank, stop the continuous payment authority. Stop then honouring the PDL in the first place. Just incase your bank is as incompetent as the rest, you will send two letters from different start points, recorded delivery. Back it up with a telephone call and demand that they stop the continuous authority. Don't listen to them when they tell you they can't, just demand a supervisor and then quote the law, which you will have looked up above.

4) resign yourself to a trashed credit record for the next 6 years because the PDLs will default you, but at least you're not getting any deeper.

5) stick to the payment plans and do your level best to dig yourself out of the hole as fast as humanly possible.

6) never do it again.

Vikipollard

What FireWyrm said, PLUS:

Under NO circumstances give ANY of the PDL companies your new bank account/debit card details even though they will try to tell you that you must.

Get THEIR bank details and set up a standing order from your new account. That way they cant fleece your account for more than YOU know you can afford. If they wont give you the details, then send a postal order with a covering letter, recorded delivery, each month.