Everyday Loans & DMP's

mdnn85

I have recently gone into a DMP with StepChange in order to sort out my finances once an for all. In general all of my creditors have been great, agreed to freeze interest etc, with Everyday Loans being the one exception.

I contacted them initially before going into a DMP to find out my balance so that I could provide the most accurate information to StepChange and they advised me the outstanding balance of my account was approx £3000.

A little while later I contacted them to say I was going into a DMP and to request that they freeze the interest and charges. They declined this and said that it was company policy that the do not freeze charges or interest on their loans. (I know that they are perfectly within their right to do this)

However, I have just logged into my StepChange account and they have now stated my balance as being in excess of £9000 which is triple what they advised me about a month ago. I am assuming that they have added all of the interest for the term of the loan however if they are now charging interest on this amount that just means that my debt with them will constantly just keep increasing :eek:

Has anyone else had similar dealings with this company? Following the advice of StepChange I have wrote to them to complain but I'm not holding my breath

sourcrates

Have you got a copy of your credit agreement ?

Shouldn't rely on what the creditor tells you, check your agreement and see what that says in regards to total amount to pay.

Is a debt relief order an option for you instead ?

According to there website, there interest rates are out of this world :

Representative Example: Borrowing £3,000 over 2 years at an interest rate of 59.9% p.a. (fixed), you will repay £217.24 per month. Total amount payable £5,213.68. Rates from 24.2% to 299.9% max APR.

299.9% Max APR !!!!!!!!!!!!!!!!!!!!!

At rates like this, you would be better advised to go bankrupt.

mdnn85

sourcrates wrote: »

Have you got a copy of your credit agreement ?

Shouldn't rely on what the creditor tells you, check your agreement and see what that says in regards to total amount to pay.

Is a debt relief order an option for you instead ?

According to there website, there interest rates are out of this world :

Representative Example: Borrowing £3,000 over 2 years at an interest rate of 59.9% p.a. (fixed), you will repay £217.24 per month. Total amount payable £5,213.68. Rates from 24.2% to 299.9% max APR.

I can't seem to find my credit agreement but I have requested a copy of this along with my complaint.

Before they added this £9000 on I owed around £15000 so a DRO wouldn't be suitable for me. However now that my debt has increased to around £22000 StepChange have advised that I could also look at an IVA or BRO but ideally I wanted to avoid insolvency.

[Deleted User]

Have you tried complaining to The Financial Ombudsman Service?

Along of the lines of "I've done my very best to be reasonable with such company, here is the evidence they won't help" - they do have the sway to ask the business to help you.

The FOS is not just there to ensure people only get 'millions of compensation after the event but can ask a business to do right by you. I wish I could link to their section when payday loans goes wrong to see what I'm trying to get across.

Write a formal complaint, leave it 8 weeks or sooner if you can get 'final response' out of them, you can then submit details of the nature of your complaint online through the FOS site to be considered by the FOS.

There is help out there without resorting to such desperate measures and ruin of the next 6 years.

I would also suggest seeing how far you can take things with the loan provider's trade association if there is one (it will be in the small print) or to the FCA. (Yeah they might not be able to listen but least you've exhausted every avenue for your fight, least you can try)

mdnn85

Deleted%20User wrote: »

Have you tried complaining to The Financial Ombudsman Service?

Along of the lines of "I've done my very best to be reasonable with such company, here is the evidence they won't help" - they do have the sway to ask the business to help you.

The FOS is not just there to ensure people only get 'millions of compensation after the event but can ask a business to do right by you. I wish I could link to their section when payday loans goes wrong to see what I'm trying to get across.

Write a formal complaint, leave it 8 weeks or sooner if you can get 'final response' out of them, you can then submit details of the nature of your complaint online through the FOS site to be considered by the FOS.

There is help out there without resorting to such desperate measures and ruin of the next 6 years.

I would also suggest seeing how far you can take things with the loan provider's trade association if there is one (it will be in the small print) or to the FCA. (Yeah they might not be able to listen but least you've exhausted every avenue for your fight, least you can try)

StepChange did mention complaining to the FOS however I wasn't sure if they would deal with something like this as I am guessing it is just the amount I would have paid had I completed the loan without default. I submitted my complaint yesterday so I will see what they come back with and take it from there

Inneedofhelp89

Hello sorry for bringing up an old post, i borrowed 3600 from this company back in may this year, i have fallen on hard times again.. payday loans & gambling etc, gambling is done with now im stuck with all this debt. I tried to ask everyday loans my self if i could pay less for a short while, i was refused and told to make smaller payments to other creditors and i must pay these their 366 a month still. Is it worth getting a dmp on these or just to pay them their wack and put the rest in to DMP?

Deep_In_Debt

Inneedofhelp89 wrote: »

Hello sorry for bringing up an old post, i borrowed 3600 from this company back in may this year, i have fallen on hard times again.. payday loans & gambling etc, gambling is done with now im stuck with all this debt. I tried to ask everyday loans my self if i could pay less for a short while, i was refused and told to make smaller payments to other creditors and i must pay these their 366 a month still. Is it worth getting a dmp on these or just to pay them their wack and put the rest in to DMP?

If you go in to a DMP you have to include all creditors otherwise it will seem that you are treating Everyday Loans more favourably.

Inneedofhelp89

Okay thanks just with this persons experience looks like everyday loans dont accept a Dmp.

sourcrates

Inneedofhelp89 wrote: »

Okay thanks just with this persons experience looks like everyday loans dont accept a Dmp.

In which case they will sell the debt on.

You only pay what’s affordable to you, if they don’t like it, that’s tough.

I suggest you call one of the debt charities in my signature for advice on how this works in the real world.