Payday loan lenders

NHS_worker_bee

inneedofafriend wrote: »

@ NHS worker bee; would I perhaps be better at just getting a company to put me into a debt management plan rather than me contact the PDL companies myself to offer what I can afford? That way I'd also be paying them all with the one payment every month as opposed to paying them all seperately with different payments .?

As tealady has already wisely said in the post underneath this question, do not go with a fee charging debt management company. I'd recommend StepChange (a debt management charity whose services are free). My reason for recommending them is from my own personal experience (I found them very useful). You can use their free 'debt remedy' tool anonymously on their website or you can phone their free helpline 0800 138 1111. (You may find other debt management charities are equally helpful, I'm just speaking from my own good experience as someone who is now completely free of payday loans - I have very much learnt my lesson and will never ever go there again) Good luck

inneedofafriend

Guys, I received this email from the PDL company whom I owe the most to:

"
Thanks for your response, and for sending across your income and expenditure.


I am here to help, and do want to work with you to get your account back on track. As advised, in order to look at putting a minimum payment plan in place on your account, I will have to have the plan approved by the collections manager. I will need to provide as much information as possible to look to put this in place on your account.


Therefore, please advise why your income has decreased since you originally took out the loan, and provide a copy of your most recent payslip to show this.



Please also advise why your rent has increased so significantly, and send across a copy of your bank statement to show this. Please advise of your secured loan/2nd mortgage. "


Ermm....excuse me !!!! But NONE of this information should be of any concern to them, surely?

All that they have asked me is my own personal business, between me and my bank only , and is not open for discussion.
Surely they will not themselves personally benefit or gain anything from obtaining all of this info from me? I thought all that they should know is that I cannot afford to pay the loan off, but can do so in some sort of repayment plan and that if I was able to repay the loan back in full then I would have done so. Surely that is all that matters to them??
I haven't responded to this yet, I thought I would seek advise from you peeps first

stevemLS

My view would be that you are asking them to accept less than you agreed to pay and they are perfectly justified in asking you to evidence your request.

It is you that is asking them for a concession.

As for them being required by some law to accept reduced payments, where on earth did that idea come from?

youknowthis123

I'd reiterate the above. If you cant afford to pay it back then you have broken/will break terms of loan, thus are asking for the lender to help you out. They are justified in seeking evidence that you cant repay, otherwise you could just be going on holiday instead of paying your loan (obviously I am in no way suggesting you are doing this!)

If you work with them, you may be surprised at how helpful they can be.

Thanks

YKT

inneedofafriend

"As for them being required by some law to accept reduced payments, where on earth did that idea come from?"

If you'd read my OP thoroughly, I said I was sure I read somewhere that creditors are legally obliged to take token payments. If I had read this I obviously now know that it is incorrect, as everyone on this forum has said they are not legally obliged to accept them, and can insist on taking what amount they want as opposed to what I can afford.

inneedofafriend

All of this now leaves me with little or no options, if they are not legally obliged to take what I can afford (even if that's as little as one pound, just say for argument's sake) and can insist on having what amount they want, then I suppose I must default and be taken to court and just have to fight my case or get a debt management plan ? I am currently looking into StepChange.
Thanks guys, most of you have been very helpful.

inneedofafriend

Also, can someone explain to me what an "in-house" collection agency is, and whether they can take you to court and/or visit you in person?
I do really believe that with my OD (overdraft) debt, payday loans and credit cards (yes I was very stupid) a DMP or IVA is the only options available to me; but if they can refuse token payments offered by me, then what is to say that they won't refuse to agree to a DMP company ?

[Deleted User]

inneedofafriend wrote: »

If you'd read my OP thoroughly, I said I was sure I read somewhere that creditors are legally obliged to take token payments. If I had read this I obviously now know that it is incorrect, as everyone on this forum has said they are not legally obliged to accept them, and can insist on taking what amount they want as opposed to what I can afford.

Are the lenders doing this? taking what they like?
or is your bank assisting them? After being told not to of course, these are 2 different things.


How did you get on with that probing lender your last post was about? They need reporting and complaints if they are giving you hassle after friendly co-operation, first you do this in writing then can escalate to the Financial Ombudsman Service/Trade Association - you can actually find if they are a trade association member by looking at the lender's website it should say - I found the trade association's very helpful during my own battle few years back now, see more here too
http://www.fca.org.uk/consumers/complaints-and-compensation/how-to-complain

sourcrates

inneedofafriend wrote: »

Also, can someone explain to me what an "in-house" collection agency is, and whether they can take you to court and/or visit you in person?
I do really believe that with my OD (overdraft) debt, payday loans and credit cards (yes I was very stupid) a DMP or IVA is the only options available to me; but if they can refuse token payments offered by me, then what is to say that they won't refuse to agree to a DMP company ?

Hi,
A "inhouse collection agency" is what it says, its a dept within the original creditor company that chases debts, this is different to a "stand alone" collection agency, (DCA) which are separate companies that either have debt assigned to them by creditors, or buy delinquent debts for penny's, then chase you for the full amount.
Now, OP, listen, it is very unlikely you will be taken to court for this, or receive a doorstep visit, the usual procedure is this, if the creditor cant agree a payment arrangement with you, then they will either assign, or sell your debt to a DCA, they are usually more willing to accept what you can afford to pay, one last point, you are under no obligation whatsoever to share your personal finances situation with any 3rd party, so don't, I would wait until they sell the debt on, then negotiate with the DCA concerned, always in writing, remember, never ever, phone them, good luck.

inneedofafriend

Sourcrates thank you, you have been most helpful

The whole debt thing is causing me sleepless nights (yes, literally, not figure of speech and so much stress and even depression (I do not use the word depression lightly), I am in a very dark place. I know all of the debt that I have in my name is my fault and I accept responsibility. I am now taking action to get debt-free, it's just going to be a long and hard journey as I can hardly afford to do it (and that is because I have so many creditors).

Sourcrates, do you think a DMP or an IVA would be the options best for me? And may I ask, why you advise writing to them as opposed to calling them? I've been advised by someone to ignore the debt collectors, but they keep calling me and sending letters, so ignoring them seems a little difficult to do since they keep chasing me.

You say they are unlikely to take to court, however the most recent letter advised that failure to pay the debt or come to an agreement will result in court action, is that just to frighten me and is it all part of bullying tactics to scare me into paying?