Losing Sleep and panic attacks over PayDay Loans

Redpepper10

Please can someone reassure me?! Im making myself ill over this.

I have payday loans with Quick Quid and Lending Stream. My circumstances have changed and I simply can not keep up the repayments.

Ive already gotten advice from payplan and have been through a financial statement - the conclusion is that I should offer all my c4editors token payments of £1. We pretty much break even each month.

Anyway, the issue is I am beyond petrified that these companies will contact my employer when I default!

I will be in a terrible position if my employer finds out not to mention the embarrassment of the office gossip.

Does anyone know if this is likely to happen??

Im seriously considering not eating for a month so I can pay them. I have kids so obviously I will be feeding them.

Growurown

I have been on a DMP for two years now and not one of my creditors has contacted my employer or my OH's employer, however none of my creditors were pay day loan companies.

sourcrates

Hi Redpepper10,
Do these people have your work number ?, by rights they should not contact your employer, but this has happened in the past, please don't worry yourself over this, there are steps you need to take though to regain some control over the situation, first and foremost, im assuming they take payment via your debt card yes ?, you need to contact your bank and cancel the continuous payment authority that allows each company to debt your account, the bank is obligated by law to do this although its not commonly known amongst some bank staff, your other option is to contact your bank and report your debt card stolen, that way they cant debt it again, and you receive a new card, with different details, however the creditor can, and sometimes does, set up a direct debt instead and takes the money that way, the only certain way is to open a new bank account. That done you must write to each creditor explaining your situation and making your offer of payment, NEVER give them your new card details, pay by online banking, cheque, postal order etc, bit of hasstle I know but the only way to stop them emptying your account, simply asking them not to take the money will not work, you need to act quickly.

Growurown

sourcrates wrote: »

your other option is to contact your bank and report your debt card stolen, that way they cant debt it again, and you receive a new card, with different details.

My friend did this and the pay day loan company still took the money from her account using her old card details. Your best bet is to make sure you write to your bank cancelling the agreement. If they fail to do so when asked you can reclaim those payments.

More info here

http://www.moneysavingexpert.com/banking/recurring-payments#cancel

Redpepper10

Hi I've sorted everything with the bank etc and changed bank accounts.

I dont think the companies have my work number but do have my employment details so a quick Google would give them the contact details.

Due to the nature of the business I would probably lose my job if they do this.

Growurown

According to this website employers can be contacted but can't tell them why.


http://credit.about.com/od/debtcollection/qt/Can-Debt-Collectors-Contact-Your-Employer.htm

sourcrates

Redpepper10 wrote: »

Due to the nature of the business I would probably lose my job if they do this.

I deduce from this that you probably work in the financial sector, you can write to each creditor informing them to only contact you in writing or by e-mail, and that employer contact is strictly forbidden, and you will report them if they breach this request, thats all you can do really and hope they comply with your request, sorry cant be any more positive.

Redpepper10

Thanks for the replies.

I guess all I can do is hope for the best. Technically they should have no reason to contact me at work as they have my contact details and ill be calling them to explain the situation before the payment is due.

But there seems to be a few cases of work contact happening.

sourcrates

Redpepper10 wrote: »

Thanks for the replies.

I guess all I can do is hope for the best. Technically they should have no reason to contact me at work as they have my contact details and ill be calling them to explain the situation before the payment is due.

But there seems to be a few cases of work contact happening.

Best not to phone them, always do everything in writing, much safer and you have a record of what was said, agreements made on the phone have a way of been dis-honoured on a regular basis, if you have it in writing you have evidence