fell into a payday loan trap

downer01

hi all, I am new here.
As the title states, i fell into a payday loan trap with various lenders. It got to the point i was borrowing and as soon as it hit my account i was logging into another site and repaying that loan. It eventually got to much and i couldnt afford to make payments. I had not told my partner and dealt with the worries and stress myself. I decided i needed to get my head out of the sand and contact the creditors. I completed an income and expenditure and sent it to all creditors with an offer of a monthly token with a request for a payment plan. 3 out of 5 creditors agreed, those being myjar, satsuma and fernova. Myjar and satsuma ( 2 of the highest balances) refused to take my offer but instead asked for a smaller amount. Fernova took the full offer ( just under 200 owing and added interest ontop). The two lenders that wouldnt accept my offer was wonga and sunny. Both wanted to go through a DMP in which i explained this would mean a smaller payout. I sought advice from both stepchange and payplan. It was advised my best option would be to file for bankruptcy however because i do not have any assets this would mean all creditors would not get a penny. I have contacted wonga again with this information trying to explain that i do want to pay back but if im forced into bankruptcy they will as a result lose out. Satsuma have taken my request and put it through to the complaint team, i was told yesterday on the phone that they have sent it off to be investigated for irresponsible lending as given my income and job status they should never have lent to me. They have suspended my account for 8 weeks whilst it is being looked at and after this time they will help me. Satsuma have been by far the best creditor with their support. I have put a complaint in with wonga and have been told they aim to respond within 42 days.
Has anyone put a complaint in with fernovo(quidie) and if so how long did it take for a response? With all applications for credit, i did not exaggerate my income and during this time they would have all been able to see the borrowing on my credit report, by this alone they should have been able to see that i was borrowing to much in a short time and if one account was opened another was closed. I have not been through this before. Is it fair to ask creditors to suspend activity on accounts whilst a complaint is put in and investigated?
I am sorry for the long post, i suppose in away i have had all of this festering and the stress on my shoulders affecting my all ready ill health and it just feels good getting it off my chest.

fatbelly

You might be better posting on the complaints thread

https://forums.moneysavingexpert.com/discussion/5289150/reclaiming-money-back-from-various-payday-loan-companies

Presume you know about this resource - you can also ask questions there:

https://debtcamel.co.uk/payday-loan-refunds/

downer01

Thank you,

I will look at the links you have provided.
I just need help on whats the best to do, after speaking to satsuma yesterday the advisor said he could not understand why wonga are digging there heels when i actually want to pay.

I am determined to make this right, all i want to do is pay back what i borrowed at a rate i can afford and they are happy with. 3 are playing ball now its trying to get the other 2 to understand and help,

Thank you again.

[Deleted User]

W@nga have hit trouble themselves.
https://news.sky.com/story/10m-cash-call-rescues-payday-lender-wonga-from-insolvency-11460332

plus, do see
https://www.theguardian.com/money/2015/jan/02/payday-loans-caps-fca
https://www.moneyadviceservice.org.uk/en/articles/payday-loans-what-you-need-to-know

National_Debtline

Hi Downer01,


It may help if you post a SOA for other members to look at, because bankruptcy seems like quite a big option for 5 payday loans. A SOA will help us look at what you owe and guide you on negotiation tactics. If you have other debts, that will affect how you approach the debts and could explain why some of the creditors are being reluctant to negotiate (it is possible that your offers are not appropriately proportioned).


Normally, when you self negotiate, you would send the money each month, even if a creditor has rejected your offer. However, if they are investigating the possibility of writing the debt off due to irresponsible lending, or you are going to go bankrupt, it would be better to save the money that you have calculated you can afford to one side, until your complaint is dealt with.


You also need to ensure that you cancel payday loan's authority to access your account. They would normally have a continuous payment authority as part of the agreement which means they can still take money from your account, even after you cancel the direct debit. You can cancel it by sending the bank this letter - https://www.nationaldebtline.org/EW/sampleletters/Pages/Withdraw-your-continuous-payment-authority-from-your-card-issuer-%28sole-name%29.aspx


Laura
@natdebtline