Advice on payday loans and overdraft- mess

BackInTheBlack

AndyC2112 wrote: »

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

I can't add anything more than Willing2Learn on the DFH front.

With regards to Payday Express - the method that most PDL lenders use is a continuous payment authority on your debit card, cancelling your card (say it's lost or stolen) may temporarily stop this but I've heard of them forcing the payment through. Tell your bank to stop the CPA, they have to, if they don't, they (the bank) will have to refund you. If you come to an agreement with Payday Express, obtain their bank details so you can make the repayments instead of them debiting your account.

I'm a newbie to this forum but not a newbie to debts. These things have worked for me, I hope you have some luck with them.

If you feel like you're going to go to a PDL in the future or get in credit card debts, consider joining a credit union, there is always another way than a payday loan.

Willing2Learn

Please see my previous post as I've just edited it. I noticed something important in T&Cs. You need to write to both DFH and your bank or payment may be processed.

And yes, sort code and account number is sufficient information to draw funds.

AndyC2112

Thanks, il cancel to be on the safe side..

I've decided to pay my PDUK £250 off in full next payday, then sort a plan with express by getting there bank details and setting up a standing order, if it will be as easy as that, and my overdraft, well I may arrange to have a chat with my lloydstsb branch manager, does this sound suitable?

Willing2Learn

To sum up my understanding.

Their Terms and Condition are really badly written and not clear as a result.

I believe that (according to their t&cs):

• You have requested DFH and they have agreed to act on your behalf
• During your telephone request for DFH to act as you debt advisors you gave DFH your bank details and authorised DFH to debit the initial payment for their services from your account
• Once the initial payment has been debited and received the agreement begins.
• The agreement can be cancelled within the first 7 days

Willing2Learn

AndyC2112 wrote: »

Thanks, il cancel to be on the safe side..

I've decided to pay my PDUK £250 off in full next payday, then sort a plan with express by getting there bank details and setting up a standing order, if it will be as easy as that, and my overdraft, well I may arrange to have a chat with my lloydstsb branch manager, does this sound suitable?

I'd run your plan by with Stepchange just to be safe and see what they say as they are the debt counselling professionals. Remember, overdrafts can be withdrawn at any time and without notice

AndyC2112

Willing2Learn wrote: »

I'd run your plan by with Stepchange just to be safe and see what they say as they are the debt counselling professionals. Remember, overdrafts can be withdrawn at any time and without notice

I've never got 2500 in my account to pay it off anyway, I'm going to ring step change tommorow, already filled out the form, il report back on here tommorow, thanks for youres and everyone else's help, feel a lot better already :j

AndyC2112

Been thinking all day about my situation, I've came up with this soloution...

Pay my £250 PDUK on 30/1/13

Open a basic Barclays bank account, Transfer all wages to that (after direct debits come out, which is the 1st of the month)

Inform my employer of my bank details for wages.

Change all direct debit details to Barclays

Keep my -£2500 lloyds account.

Inform lloyds I can pay £100 off every payday (by transferring it from Barclays to lloyds)

Get in touch with with the dreaded payday express and offer them 100 pounds a month towards my £780.

After 8 months when it is paid off, pay £200 off towards my overdraft instead of £100.


Just a few queries..

Will lloyds still be charging me overdraft interest? Can they freeze it?

What will payday express reaction be? There hard to please, and if they do agree with the £100 , how can I pay it without them taking more than agreed.

Thanks for any advice :A

OldGregg1889

Andy,

Firstly, well done on seeking help on this and you're obviously determined to do something about it. You need to get away from the PDLs sharpish but I know from experience that people have got out of worse situations than yours so don't give yourself too hard a time about it (whilst remembering enough of the misery so you never ever go back!).

You've already had better advice than I can give re Stepchange and you need to follow the good advice so that Debt Management lot can't take any money. I might give a slightly different viewpoint though. From what you've said (and sorry if I've missed something), i wonder if you might actually be able to get through this without closing bank accounts and defaulting on the PDLs. It'd almost certainly cost you more in the long run but it might be worth it to avoid completely crippling your credit file (I acknowledge that some damage will already be done).

I know from my own experience that both PDUK and Express allow deferrals. Now, this should never normally be contemplated with PDLs but when your PDLs are simply more than your monthly income it might be worth considering paying back as much as you can possibly afford and deferring the rest. Ie, if you could pay £250 to PDUK this month and just the minimum to Express (about £150ish i guess), then next month you could pay £400 to Express, similar the next month after and so on. You could probably have got rid of them in 3 months without defaulting. I assume that the bank aren't demanding any repayment on the overdraft at the moment? If not, i wouldn't even consider paying anything off this at the moment - you've got to channel every spare penny into the PDLs till they're gone (for good!). This may well mean three months of being a baked bean eating recluse but so be it, it'll be well worth it when they're gone. You should then be in a decent position to start tackling that overdraft.

12 months ago I was in a lot deeper than you are with PDLs and i had the lot paid back by September without changing banks or defaulting. It was tough but I'm glad that I did it this way. If you can give some idea of your monthly income and essential outgoings then we could give a more accurate idea of how much you could pay off each month.

Hang in there buddy.

Peace.

AndyC2112

OldGregg1889 wrote: »

Andy,

Firstly, well done on seeking help on this and you're obviously determined to do something about it. You need to get away from the PDLs sharpish but I know from experience that people have got out of worse situations than yours so don't give yourself too hard a time about it (whilst remembering enough of the misery so you never ever go back!).

You've already had better advice than I can give re Stepchange and you need to follow the good advice so that Debt Management lot can't take any money. I might give a slightly different viewpoint though. From what you've said (and sorry if I've missed something), i wonder if you might actually be able to get through this without closing bank accounts and defaulting on the PDLs. It'd almost certainly cost you more in the long run but it might be worth it to avoid completely crippling your credit file (I acknowledge that some damage will already be done).

I know from my own experience that both PDUK and Express allow deferrals. Now, this should never normally be contemplated with PDLs but when your PDLs are simply more than your monthly income it might be worth considering paying back as much as you can possibly afford and deferring the rest. Ie, if you could pay £250 to PDUK this month and just the minimum to Express (about £150ish i guess), then next month you could pay £400 to Express, similar the next month after and so on. You could probably have got rid of them in 3 months without defaulting. I assume that the bank aren't demanding any repayment on the overdraft at the moment? If not, i wouldn't even consider paying anything off this at the moment - you've got to channel every spare penny into the PDLs till they're gone (for good!). This may well mean three months of being a baked bean eating recluse but so be it, it'll be well worth it when they're gone. You should then be in a decent position to start tackling that overdraft.

12 months ago I was in a lot deeper than you are with PDLs and i had the lot paid back by September without changing banks or defaulting. It was tough but I'm glad that I did it this way. If you can give some idea of your monthly income and essential outgoings then we could give a more accurate idea of how much you could pay off each month.

Hang in there buddy.

Peace.

Thanks for that Gregg, that is a good idea which I may seriously consider, I could.afford to pay next month 390 then following month 390.
No the bank are not requesting money, just gets me down me being in minus and knowing these PDL companies are on my case, il concentrate on the PDL for now. Thanks mate

OldGregg1889

No problem at all Andy. I wish I didn't know anything about Pay Day Loans but sadly I do so I'm happy to try and help out a little. Like you I got in trouble with too much partying, it's easily done.

I'm not trying to put you off the advice others have given but it is another option worth considering and then you can decide what is best for you.

It is a horrible feeling, i know that only too well but if you can commit £390 a month then you'll have the PDLs paid back before you know it. And at least this way you wouldn't have the stress of getting chased for the money which is also horrible, and they will show on your credit file as settled rather than defaults. Once you start to make a dent in the PDLs you'll feel loads better and the feeling when the last penny is paid is mega.

If I were you I'd take care of the PDLs and then when you've got some breathing space ask your back to reduce your overdraft limit by what ever you're comfortable with, say £200 a month. This is what I did in the same situation. If you leave your limit at £2500 and try to reduce how much you're in it by £200 a month then there's always the temptation to spend up to the limit again. But, the PDLs are a your biggest problem so take care of them as your first (and if needs be, for now only) priority.