Will payday loan company report as default after I've paid?

rubbishgambler

Hello,

I have recently received a lot of correspondence from a couple of payday loans from last year which I took out. Text Loans (£100 loan, requesting £246 now) and Moneyshop - now called Dollar Financial (£200 loan, now requesting £345).

I am in the process of satisfying my oustanding defaults on my three credit reports however neither of these debts have been registered with any agencies. Both loans were taken out at my current address and I was surprised when they didn't show up.

What I am worried about is if I use some of the money I have saved up to pay my defaults and use this to pay these two loans instead, will the debt companies then retrospectively register these debts as defaults on my credit file. It would then seem a waste to pay them now if they then in the future report them to the agencies as I will then have to wait six years for them to clear. I would prefer to use the money to satisfy another one of the defaults all ready on my record.

Does anyone have any experience of this? Could I maybe write to these two companies and request they confirm in writing they won't report them as defaults if I pay straight away now?

Thanks, Matt

fermi

Anecdotal accounts suggest that many payday lenders do not report to credit reference agencies, either in cases of successful repayment or default.

The point was brought up by someone in parliament the other day.

Not heard of any retrospective recording of defaults, but wouldn’t like to put money on it either. Especially if the debt is sold on.

What does it say in their T&Cs?

tenbob84

not sure if this helps or not but i had a few loans from wonga, and payday uk and everytime they showed up at the end of the month on my experian file. if the ones you listed reported to the credit agencies, it would of showed up originally

rubbishgambler

fermi wrote: »

Anecdotal accounts suggest that many payday lenders do not report to credit reference agencies, either in cases of successful repayment or default.

The point was brought up by someone in parliament the other day.

Not heard of any retrospective recording of defaults, but wouldn’t like to put money on it either. Especially if the debt is sold on.

What does it say in their T&Cs?

Hi fermi, It does state that they can report any missed payments or defaults to the 3 CRA's but as you mentioned I think quite a few PDL's don't report. I would just be annoyed if I paid them and then to be spiteful they reported afterwards to the agencies!!

Thanks Tenbob, yes I have a default registered from MEM Consumer Finance (Payday UK) and also Express Finance (Payday Express). As Fermi mentioned it seems quite a few of the companies don't report whilst a few do. I think Quick Quid do as sometimes as well.

Think I'll risk writing to them to try and negotiate settlements and hope they don't then report afterwards.

Thanks

Matt

Experian_company_representative

Sounds like they don't report data to the CRAs. In relation to defaults, they should tell you quite clearly if they are planning to register a default, giving you chance to put the situation right.

James Jones