Cheque Centre - Payday loan hell

freeofdebt1

Hi,
Currently I am in the situation of having a loan of £1000 with the Cheque Centre, as I cannot afford to pay this off they debit my account for £1275 per month and I go back to them each time for a loan of a £1000. This has been going on for a while now. The situation has me depressed and there is no way out of this situation I can see. I plan to bite the bullet this month before they take the money of me and cancel my card and email them to see if they will agree to a repayment proposal. I am not too confident however as I have read horror stores concerning this company issuing arrest of earnings, ccj's and not to mention multiple calls to work which I am terrified about. Can anyone assist please? any advice would be appreciated.
Thank you

Tixy

Just cancelling your card won't necessarily stop them taking funds from your bank account. You need to speak to your bank and cancel the CPA (Continuous payment authority) with your bank.

After that point you should be able to arrange a repayment plan with them at a rate you can afford.

If you can set up a repayment plan they are happy with to pay them back at a reasonable rate then the chance of them taking court action is small (but still possible). An arrestment of earnings could only happen if they successfully took court action and if you then didn't pay in accordance with the judgement.

It is possible they may call your work. You can send them a letter to tell them that you require all communication to be in writing but this isn't failsafe. Usually they best way to stop them phoning (or phoning too frequently) is to keep in touch with them and arrange a repayment plan and stick to it.

These letters may help Harassment by telephone

Edit Cheque centre have signed up to the good practice charter for payday loan companies and the CFA Lending Code - so its worth knowing the details of those when you are dealing with them - and if they do not act in accordance with those remind them or make a complaint (both are linked to from their website)

dealer_wins

Sell stuff, ask family for help, approach them and ask for a 12 month repayment plan.

At least you will not trash your credit for 6 years, and suffer debt collectors etc

dktreesea

If you can't follow some of the options presented here, how about going back to them each month for a little bit less than you borrowed the previous month. Eventually that way you will be able to escape the scycle.

I_luv_cats

dktreesea wrote: »

If you can't follow some of the options presented here, how about going back to them each month for a little bit less than you borrowed the previous month. Eventually that way you will be able to escape the scycle.

Further debt is not a good idea and shouldn't alarm bells be ringing @ TCC about the loans being affordable.

A repayment plan is the best advice.

Contact a debt charity for help. (you need to break the cycle!)


StepChange Debt Charity - StepChange.org‎

Adwww.stepchange.org/‎0800 138 1111

Free Debt Help - Free Debt Plans from Payplan® - Payplan.com‎

Adwww.payplan.com/Free-Debt-Advice‎


National Debtline | Agency Information

https://www.nationaldebtline.co.uk/agency_information.php‎
National Debtline is part of the Money Advice Trust, (registered charity no ... MAT's Mission: To support individuals in the UK with unmanageable debts and to ...

StuC75

Use this as your lightbulb moment, what was the root cause of this?

Why is it that you need exactly £1k per month? Do the SOA to list all your income and expenditure. See where you can make cuts..

This is the trap that people fall into with PDL's whether it be £100 or £1000, unless your income is increasing you have to make the cuts somewhere the next month..

The payment is likely to be by CPA, so do be carefull about how you attempt to do this..reporting card lost isn't going to help...

heartbreak_star

I missed one payment and CC rang me 10-12 times a day

I eventually managed to whittle it down by taking £50-£100 less a month and being frugal.

Good luck.

HBS x

National_Debtline

Hello there.

It is possible to break the cycle as the other folks have mentioned. What's important is to ensure that you get to the stage where you can meet all of your important outgoings each month without needing to borrow again. The key to doing this is to draw up a comprehensive financial statement. Not only will this allow you to figure out how much you need to live on each month, it will also allow you to work out how much you can afford to pay towards your debt on a monthly basis.

We have an automated budget you can use over at www.mymoneysteps.org or you can print one off here: http://www.nationaldebtline.co.uk/england_wales/pdf/personal-budget-sheet/your-personal-budget-sheet.pdf

Also on our website you can find some sample letters which can be used to write asking them to accept the new payments and to freeze any interest and to stop any further charges being added. Always include a copy of your personal budget so they can see they are being offered a reasonable amount. It may take a few attempts to get them to agree.

It’s recommended that you contact your creditors in writing rather than via the telephone. Here are our sample letters: http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

General information about dealing with Payday loans can be found here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=41_payday_loans

Hope you find this information useful!

Best wishes,

David @ NDL.

Monkeyballs

Hi,

I don't see it on any of the other posts so I just wanted to add that you should contact the cheque centre to get them to cancel CPA too as well as your bank and send a follow up letter by recorded post (or at least that's what step change told me).

Believe it or not, cheque centres customer service were actually pretty good so don't panic and make yourself I'll or anything...

Good luck!

MB

In2deep

I am currently in the same position as you with the cheque centre. However, I am going to be in a position to clear the balance after the new year.

I owe them £1040 approx every month (borrowing £800).

Thankfully my work has started savings club/menage, where each member puts in £100 per month. I am getting the 1st turn in January so will get £1000 and will clear, all I need to worry about is paying £100 into savings club each month. Basically an interest free loan.

This may be something to consider, or even a credit union who offer ethical payday loans. My credit union offers a £300 loan with £5 interest per month payable over 3 months.

I know people sometimes say borrowing more money shouldn't be an option, but when it is interest free or practically that, then it's a no brainier as they say?