Can I freeze interest and get extra time to pay a PAY Day loan

doug81

Hi

A good friend of mine works for bank and is thus unable to enter into an IVA, Bankruptcy or have Defaults against his name.

They have have the following pay day loans

£816 CFO
£1100 Wonga
£500 Lending stream
£797 Payday express
£750 Swift Sterling
£790 Payday UK
£300 Sunny

£5053 Total

He has repayment plans with some of these but they are looking for around £200 a month for each loan and they are still charging interest.

What is the best way to deal with this to Freeze the interest, not incur a default and to get the payments to around £20 per loan or less per month which is manageable.

Any suggestions please do help as this is causing my friend great concern and many sleepless nights.

Thanks

Doug

Apples2

SEVEN Payday loans, only wishes to repay 10% of what they are requesting but wishes to avoid a default??

If your friend works in a bank, tell him to speak to a colleague in the lending dept and see what they would do it a borrower suggests repaying 10% without incurring a default.

Caz3121

what did they use the money for? Can they sell any of the things they purchased.
£20 per month to each would still take them 4 and a half years to clear them. Payday loans by definition are short term loans the interest rates are high and this could soon see the amount of debt multiply.
Are they able to get a loan through their work, do they do staff loans? Although payday loans on a credit file are usually a red flag and indicates someone who cannot manage their money. They need to do whatever they can to pay these off as quickly as possible

doug81

If there was a way to get the payments up to £100 to each lender, I am not sure if this is an option.

But could that allow something to get sorted to stop the interest as that is the killer on these loans as we all know.

imoneyop

doug81 wrote: »

What is the best way to deal with this to Freeze the interest, not incur a default and to get the payments to around £20 per loan or less per month which is manageable.

Has he asked the PDLs if they will freeze interest? That's the only way he is going to find out if they will play ball.

I'd also be surprised if at least one of them hasn't defaulted him already - after all, he has defaulted, by not paying back the money at his next payday.

It might also be an idea for him to consider a new career - he's probably not cut out for banking judging by his money management skills.

DCFC79

doug81 wrote: »

If there was a way to get the payments up to £100 to each lender, I am not sure if this is an option.

But could that allow something to get sorted to stop the interest as that is the killer on these loans as we all know.

Why oh why did he resort to pay day loans and 7 of them, they are meant to be paid on pay day hence the name.

[Deleted User]

doug81 wrote: »

A good friend of mine works for bank and is thus unable to enter into an IVA, Bankruptcy or have Defaults against his name.

It doesn't appear he is going to have any choice in the matter.

BugsyBrowne

Going by past posts your friend seems to be in exactly the same situation as you!

somethingcorporate

imoneyop wrote: »

It might also be an idea for him to consider a new career - he's probably not cut out for banking judging by his money management skills.

I totally disagree, he sounds like the next Fred Goodwin!

Tixy

Your friend should check which of the pdls he has are signed up to the good practice charter (wonga certainly are).

This charter state that they will charge a maximum of 60 days interest. If they are still charging after that time then he should write to them to point out this is against the charter they are signed up to.

http://www.cfa-uk.co.uk/assets/files/PD&STL_Charter.pdf

If you are having problems repaying your loan, we will:



Deal with cases of financial difficulty sympathetically and positively and do what we can to help you manage what you owe.








Freeze interest and charges if you make repayments under a reasonable repayment plan or after a maximum of 60 days of non-payment.

Tell you about free and independent debtcounselling organisations who can also help you.

Clive_Woody

doug81 wrote: »

What is the best way to deal with this to Freeze the interest, not incur a default and to get the payments to around £20 per loan or less per month which is manageable.

I think the only way that this is going to happen is for him to kidnap the firstborn child of the CEO of each of these companies and use that as a negotiating point*, and even then that may not work knowing what these PD lenders are like



*please do not seriously consider this as an option as there will be legal consequences beyond a black mark on his credit file.