DMP & Mutual Support Thread - Part 9

Poundsandpence

Hello all. Newbie here, and just started sorting out debts, and spoke just now with Payplan, who were not as demanding and sniffy as I thought. I've looked at the link for a SOA here but it links only to a credit card comparitor. I have about £7500 of debt (about £2000 with payday lenders) and am looking to get a basic bank account and set up a DMP. I don't know what else I should be saying but I've gotten A LOT of encouragement from reading so far. It's doable. My first fear is what payday lenders will do when I fail to pay this month, i.e. next week. Any ideas please? And thanks for reading,

Poundsandpence

£4,330 is in an overdraft with RBS which I've had for years it seems and have been paying £65 per month. IN getting a new basic account, will RBS react badly to the DMP and demand immediate repayment? This is a bit crucial as the majority of the total is with them.
thanks.

sillymeme

Poundsandpence wrote: »

Hello all. Newbie here, and just started sorting out debts, and spoke just now with Payplan, who were not as demanding and sniffy as I thought. I've looked at the link for a SOA here but it links only to a credit card comparitor. I have about £7500 of debt (about £2000 with payday lenders) and am looking to get a basic bank account and set up a DMP. I don't know what else I should be saying but I've gotten A LOT of encouragement from reading so far. It's doable. My first fear is what payday lenders will do when I fail to pay this month, i.e. next week. Any ideas please? And thanks for reading,

Hi,
Ive just made the third payment as part of my DMP which ive set up through stepchange. I had loans with 4 payday lenders also for roughly the same amount.
When I first contacted them I stated all contact should be in writing. One of them, froze the account immediately, with no extra interest and I have not had a single letter or call from them. Wonga accepted the plan, sent one letter and called a couple of times (I didnt answer). PaydayUK called about 10 times a day for the first few days, I emailed requested they stop - and it did, so after about three days Ive had no more contact off them (no letters either). Payday express, were the worst in that they continues to add daily interest and ignore any letters/email, but this stopped about 6 weeks after the due date. They have also called quite a few times and they insist on sending a daily text message reminding me my loans overdue.
Basically, by a month and a half in, all had frozen the accounts and mostly given up with the phonecalls. I was terrified coming up to their due date, but it really really isn't that bad. I have not answered any of their phone calls (and had just one letter through the post). They never leave messages, and if its important I figure they would, or they would write to me as requested. And Ive had far less calls from them than I expected - and Ive got most their numbers on auto reject on my phone anyway. I was worried at first about ignoring the calls, and every time I saw an unknown number come up was filled with dread, but quickly got used to it.
Anyway, thats been my recent experience with getting a DMP set up with payday lenders. They really haven't been any more trouble than my other creditors, so try not to worry!

Poundsandpence

thanks sillymeme. I have just phoned the bank to cancel the continous payment authorisation on the payday loans (3) and prepared a letter to confirm, and they say they can't do this. If payments are requested they will go out, but possibly reclaimed later. This will clean out my account on Saturday. Default on mortgage payment, and all essential bills.

sillymeme

Poundsandpence wrote: »

thanks sillymeme. I have just phoned the bank to cancel the continous payment authorisation on the payday loans (3) and prepared a letter to confirm, and they say they can't do this. If payments are requested they will go out, but possibly reclaimed later. This will clean out my account on Saturday. Default on mortgage payment, and all essential bills.

Do you have another account set up yet? If you do i would transfer all money out before Saturday if you can, and then you can set up payments from your new account.
I also cancelled the CPA, only the money still went out. The account was empty and so this left the account in an unplanned overdraft which the bank then charge £5 a day for. So annoying! However, the payments were reversed but it took a week. My loans were due on payday,and even though I had arranged my wages to go to my new account I was paranoid they would go to the old one, so stayed awake to check, so if possible I could move the money manually.
If you can, I would transfer everything you need for other bills before Saturday. I think if you've cancelled with the bank (you need to do the same with the payday loan companies) then you should get the money returned if it goes out. But i wouldn't trust that they wont still try and take it.

Poundsandpence

I don't have a new account - it was only suggested by Payplan this morning and I wouldn't have the time to have my salary paid in on 15/8 anyway. The woman at the RBS CPU office said they will go out, and then reclaimed at a later date, probably. Which still leaves me utterly done. Paydayexpress have said they won't try pending 30 days grace on the DMP being put in place. Quickquid and Wonga haven't replied. It's the Wonga £1007 on Saturday that will do for me. Am suddenly feeling sunk and stupid. Essential stuff will go unpaid.

sillymeme

So do you have enough in you account just now for your essentials?
If you do can you either try and quickly open a new account, or transfer that to someone else?
Then, if that leaves your account empty/at overdraft limit, the bank may not let the payements go through anyway. If they do, thef should be returned, bringing the account back to where it was (empty/at overdraft limit). By the 15th, if the payday loans have been trying to take money, I would assume after having it blocked or returned by the bank they would have given up, and if you are able to, log onto online banking as soon as you are paid and transfer wages out the account. Hopefully by the 15th if money was taken it will have been returned, and so your full wage should be available to transfer.

Poundsandpence

You are being very kind and patient sillymeme. Thank you. I am otherwise alone with this.
I have £100 cash with me now, with no more outgoings on the acc. All essentials go out on 15th of each month. My acc is up to the £4300 o/draft limit. I'm in a bit of shock and need to have a think. I need to open a new bank acc tomorrow, whatever. I am still struggling to accept that the CPA office of RBS cannot stop the payments before they happen, with so much notice even.

Poundsandpence

Quickquid (£275 due on 15/08) have replied, asking for my Payplan rep to call them prior to 15th. The tone appeared reasonable, and said how much I appreciated that. I replied with her details and will ask her tomorrow to call them. I also sent them the cancelling CPA authority letter, and pointing out the extreme hardship a payment would make, and the poss fraudulent consequences. For what it is worth.
many thanks again. It's tougher than it first seemed.

sillymeme

I know it is very scary setting everything up. One minute I would feel so happy and releaved and the next full of panic. I remember wondering when I would stop thinking about money/DMP every waking moment (As thats what it felt I was doing) but before you know it it will all settle down.

If you have an account set up for when you get paid, you can prossibly transfer your wages before any of the loan companies try and take payment. I know my wages get credited at midnight and, for example, wonga stated they would try taking payment from 5am onwards. Payday express (who also stated my account was on hold) sent a receipt for the payment they took at 6.30am (so not sure what time they actually took it, but unlikely to be right when wages went in). If you can go online as soon as you are paid you might be able to transfer the money out.

I know your other bills are due paid, but you should be able to pay them from your new account if you can get the money there.
If the direct debits are still set up on the old account and the bank doesn't pay them, they may add some fess to the overdraft, but if this is going into the DMP anyway it probably doesn't matter hugely. But if you cancel all those payments now and reset them up on a new account as soon as its open, you should avoid any fees on the old account. If possible, maybe you could move some of the payment dates too, to a bit after payday, then if any loan payments are taken you will have a bit of time to allow the payments to be returned before your other bills are paid.

You never know, maybe the bank will stop the payments and you will have no issues or you may be able to get your full wage transferred out before they try taking payemnt. I am sure it will work out in the end