Battling Wonga - Advice Needed

GrumpyOldTroll

Hello there first time poster but not the first time on this forum, so thank you to all those who take the time to advise on these matters.

Situation: Cannot replay Wonga loan as employment situation has just changed dramatically. I am now self employed, but certainly will not be able to repay them on May 04th - £1400. In fact there is no real chance of any more income forthcoming, at least right now, as my first product will only become available in during May.

I have a family and my Tax Credits, CB and Housing Benefit have all been adjusted. However there is very little disposable income.

Actions: I searched around some debt sites, and even have a call with StepChange planned for tomorrow, although I actually have it all worked out on a spreadsheet and have made all the cuts possible to spending.

After some research I called Wonga to explain and come to a payment arrangement. However they refused on the basis there system will not let them set up an arrangement until days before. They gave me a load of rubbish about not being able to do anything until just before it was due, so in effect they were saying we won't work out a plan with you until you owe us £300 more!!

Currently as it stands I owe them £1151.42 and obviously I have contacted them now rather than May 4th at which point I will owe £1400.

I got nowhere with them and so noted down the time and name of the person I spoke to and told them I was going to email them instead requesting a payment plan.

After reading a bit more on here I have got my bank to send them a cancellation, withdrawing Wonga's authority to take any money out of my account. I have has dealings with this previously when i had one coming out for a subscription website which wouldn't let you unsubscribe (no replys to emails etc). I cancelled that one with the bank and when they did take a payment again, the bank refunded it.

My plan now is to send an email to Wonga, with a screenshot showing the amount I owed to them at the time of the call and the name of the chap and request they accept a payment plan. However that payment will be very low, as I will only to be able to afford £20 a month until I begin to generate income from my self employment.

My proposal to them would be to accept £20 a month and review it on a monthly basis, going over my income and outcome again to review?

Has anyone got any thoughts or suggestions?

Thanks in advance for reading and responding. :money:

DevCoder

1. Not that it matters to you (probably) but your credit file will be shot to hell
2. Wonga are kindof correct, they, like a lot of other companies, won't discuss repayment plans until you default (hence the credit file point).
3. They will add the extra fees and interest, you will be hard pushed to recover those, however once you have filled out and income and expenditure form for them they should freeze interest, although Im not sure they'll accept £20 on a £1400 loan. Thats about 6 years to pay off.
Only your I&E details will enable them to determine that.
Note that as the loan is above £750 they can petition your bankruptcy although I doubt theyll do that.

Apples2

I can't see your problem with wonga just now. You can't simply decide they should freeze interest a number of weeks before the repayment is even due.

It is entirely normal for a creditor not to discuss payment plans in advance of defaulting.

Step change is a great choice but don't assume your spreadsheet is the final plan, they will help you but you may have some serous choices to make.
Make an soa and post it up on the dfw board, you may be surprised how others view it e,g. Mobile phone contracts, sky TV, gym, multiple cars, the list goes on relating to your wants a opposed to needs.

nbc

I honestly can not see them accepting £20pm and with freezing the interest on the money owed as well, that's just takeing the mick.

I do know that Wonga will freeze interest but not for £20pm:eek:. As for waiting to defult before they will talk about a repayment plan, that's new to me.

More than likely you will need to find more cash than £20pm and for a person who is self employed, your credit will be shot to hell.

In the meantime keep on paying Wonga via your account you set up with them, select an amount and click, (it's a sign that you are trying to make good your promise)

Have you been on the Wonga forum?

DevCoder

As soon as they agree a repayment plan then they default anyway, most lenders just like to keep it simple and get the borrower to default before a repayment plan.

dealer_wins

Another one who took out a "PAYDAY LOAN" without a payday, and is no wondering why its gone boobs up.

No need to battle them, they will agree a payment plan (but not for a paltry £20 a month LOL), and trash your credit file for 6 years as a thank you.

GrumpyOldTroll

I appreciate all the comments here but I have heard it stated, on these very forums that if £1 a week is all you can pay they have to accept.

I did state above that the £20 was on review each month as when my product is out in May, I may well have considerably more income to pay off the debt faster.

I didn't realise there was a Wonga forum but will have a look for it.

"Only your I&E details will enable them to determine that." I have also heard it said that they do not decide what you are able to pay, you do, so how are they to determine if you have the means?

Also, does anyone know any more (or can direct me) to information on if they can petition for my bankruptcy if it's over £750?

gb12345

GrumpyOldTroll wrote: »

Also, does anyone know any more (or can direct me) to information on if they can petition for my bankruptcy if it's over £750?

https://www.gov.uk/bankruptcy/overview

GrumpyOldTroll

Thank you for the link, I suppose the answer here is that even though it may be only a while before I can pay off the loan fully, I need to start off at more than £20. Maybe if I can commit to £100 they will be more willing.

Apples2

If you can change £20 to £100 per month at a whim as you have done here, it does how little you have prepared for this.

You should be taking this much more seriously than simply looking at them as bad guys out to take " your" money.

happy_bunny_2

Read these and complain to them if they break them then report to OFT:
http://www.oft.gov.uk/shared_oft/consultations/OFT664Rev_Debt_collection_g1.pdf