Advice on payday loans and overdraft- mess

AndyC2112

Hi everyone, im new to this forum, signed up as I need advice on my current debts...
I'm 24 and got my self in such a mess last year due to having 1 too many Ibiza trips :beer:

I owe payday express £780, since October, they have addded on about a 100 pounds since then as I haven't paid anything.

I owe payday UK £250

And I have a £2500 lloyds tsb overdraft, wich I'm allways in, I'm living on it, when my pay runs out, my balance is -2500, and I pay £50 interest on it each month..

It's really getting me down and becoming depressed.

I applied for some debt consolidation loan, got denied, and Some friendly guy from a company called DFH debt managment came along and offered me a deal where I pay £245 upfront 1st month and then 25 months of £175, wich would in time, wipe my debts. He advised me to close my lloyds TSB bank and open a new one and use that instead..

I'm a bit dubious about it.

Any advice would be much appreciated

Thanks :T

honey10

never ever ever pay someone to deal with your debts.
Payplan and CCCS (I think they are now called stepchange) can do this for you for free.

Opening a new bank account, out of the Lloyds banking group is a great idea, it means that you can allocate your money to the things costing you the most, as you can, and the payday lenders can't get to it. that should be the first thing you do. A bank account from the Co-op would work, just basic, no overdraft etc

The best idea for you at the moment, is probably to complete a statement of affairs (theres a link in the 4th sticky down, in the second reply i think) and post that. That way, you can see what kind of position you are in, and we can try to advise. it helps if you can find the APR you are paying, although the payday loans will be super extortionate.

Willing2Learn

And here is the link to the Stepchange thread where trained advisors from StepChange Debt Charity (formerly CCCS) are waiting to answer your debt questions (during office hours of course).

and hi Andy, welcome to the forum. Try not to be too down. If you work in partnership with Stepchange or any of the other free debt counselling services things will improve as you'll have an achievable plan to pay down and resolve your accounts with your creditors.

Well done on realising that your difficulties required immediate attention.

Edit: As honey said above, do not pay DFH or anyone else money to arrange a repayment plan when you can receive the same service for free.

AndyC2112

Thanks guys, il cancel that DFH, it's probly getting myself in more debt, il take a look at these debt charity's..
I've done my statement of affairs but I'm not sure how to put it on here..

If I got a new bank account and got wages paid into it, what would happen to my overdrawn lloyds account regarding fee's etc
Thanks

BackInTheBlack

AndyC2112, I am in a very similar situation to you and I understand how hard it gets.

I would recommend that you ring the National Debt Line on 0808 808 4000. They will help you run through an income and expenditure form and mail it out to you within a pack. You will feel tons better after speaking to them. I spoke to a woman there today and she was really helpful, you're not alone in this so they are not judgemental. It is a charity set up to help, no cross-selling or profiteering.

As Honey10 says, never pay for a debt management company. They are paid by the lender for retrieving money, Payplan are good. The Debt Line can advise of others.

If you have given a PDL lender your debit card details. Tell your bank to stop the CPA (continuous payment authority) to that organisation on your account - phone them and then follow it up with a letter. Banks are legally obliged to respect your wishes on this under FSA regulations. If the worst comes to the worst, open a basic bank account and make sure your wages go there - repay on your terms and make sure you pay rent, c.tax, gas elec, travel and food above all else.

After you've spoke to the Debt Line, contact your lenders and offer reasonable repayments that you can afford. You're accounts may default which will stay on your account for 6 years but you could be paying interest on the payday loan for years to come so it's a calculated risk.

Don't panic and bite the bullet. Once you've got plans in place, it's a massive weight off your shoulders. There is a lot of people on here who have been through this and come out the other side smiling and they can help.

Good luck.

BackInTheBlack

My experience with this (Halifax) is that they will continue to add charges until either 1) they give up, default the account and pass to collections / debt collectors 2) when you tell them you've entered a debt management plan, they will default the account anyway but you will have entered into a repayment plan with them if they accept it.

Main thing is, review your income / outgoings, tell the lenders in writing as soon as you can. This will limit extra charges.

AndyC2112

BackInTheBlack wrote: »

AndyC2112, I am in a very similar situation to you and I understand how hard it gets.

I would recommend that you ring the National Debt Line on 0808 808 4000. They will help you run through an income and expenditure form and mail it out to you within a pack. You will feel tons better after speaking to them. I spoke to a woman there today and she was really helpful, you're not alone in this so they are not judgemental. It is a charity set up to help, no cross-selling or profiteering.

As Honey10 says, never pay for a debt management company. They are paid by the lender for retrieving money, Payplan are good. The Debt Line can advise of others.

If you have given a PDL lender your debit card details. Tell your bank to stop the CPA (continuous payment authority) to that organisation on your account - phone them and then follow it up with a letter. Banks are legally obliged to respect your wishes on this under FSA regulations. If the worst comes to the worst, open a basic bank account and make sure your wages go there - repay on your terms and make sure you pay rent, c.tax, gas elec, travel and food above all else.

After you've spoke to the Debt Line, contact your lenders and offer reasonable repayments that you can afford. You're accounts may default which will stay on your account for 6 years but you could be paying interest on the payday loan for years to come so it's a calculated risk.

Don't panic and bite the bullet. Once you've got plans in place, it's a massive weight off your shoulders. There is a lot of people on here who have been through this and come out the other side smiling and they can help.

Good luck.

Thanks for you're advice, I gave the guy my account number and sort code, they can't take money out with just these details can they?

I'm going to open a Barclays account on Saturday..

I heard about payday express and making repayment plans with people then just taking the full lot out at one go, is this possible

Willing2Learn

AndyC2112 wrote: »

Some friendly guy from a company called DFH debt managment came along and offered me a deal where I pay £245 upfront...

AndyC2112 wrote: »

...il cancel that DFH...

AndyC2112 wrote: »

I gave the guy my account number and sort code, they can't take money out with just these details can they?

Have you paid DFH any money yet?
Have they also got your debit card number?

You need to write to your bank and tell them that you have withdrawn authority for DFH to debit your account by DD or debit card (if applicable)

You also need to write to DFH also advising them that authority been withdrawn and that you do not wish to go ahead with the plan as per 2.2 of their Terms and Conditions. Make sure you quote 2.2 from their t&cs within the letter.

2.2. The agreement maybe cancelled by you at any time during the first 7 calendar days of the period. You can do this by writing to us at the address above or by telephone on 0161 233 6928. We will then refund you any cleared funds that have been paid to us.

DFH Financial Solutions Terms and Conditions of Business. V11.03.12

Edit: I have just noticed the poor use of grammar/spelling in their T&Cs. Very poor and professional.

AndyC2112

Willing2Learn wrote: »

Have you paid DFH any money yet?
Have they also got your debit card number?

You need to write to your bank and tell them that you have withdrawn authority for DFH to debit your account by DD or debit card (if applicable)

You also need to write to DFH also advising them that authority been withdrawn and that you do not wish to go ahead with the plan as per 2.2 of their Terms and Conditions. Make sure you quote 2.2 from their t&cs within the letter.

Thanks for this , really appreciated..

I have not signed up and sent forms back to them, just a quick discussion on the phone, they have not got my debit card details, just account and sort code

Willing2Learn

Personally, I would still write a brief letter to the bank informing that DFH Financial Solutions do not have authority to debit funds. You could also check online daily for the next couple of weeks and look through the list of DDs on your account to make sure nothing has been setup in error.

Everything should be cool as it stands right now to be honest, but it may be advisable to do the letter to cover your a**e just in case DFH make an 'administrative error' and still go ahead with the DD.

Edit: Just looked again at their T&Cs and 2.1 states (I've highlighted the important bits):

2.1 You request us and we agree to act on your behalf, as debt advisors to provide the services offered in this agreement. The agreement shall begin once we have received the Client Authority Form or the initial payment in cleared funds. The agreement shall continue until the final repayment has been made to the creditors.

Having read that, it looks like DFH may go ahead with processing payment from your account if you do not write to them to cancel. I go back to my original suggestion and recommend it is probably best to officially cancel in writing to DFH to be safe.

AndyC2112

Can they take money out with only the use of my account number and sort code?