Help with payday loans

[Guest]

Re: Help with payday loans

I also want to ask if it is likely that they will come to my house to ask for the loan? I ask this because a self proclaimed pdl specialist told me that they probably would

They would have no more right to come to your home than any one else, and you would have exactly the same right to tell the to sod off. They may threaten this but it very rarely happens, they have absolutely no powers to do anything in this area.

D

[Musashi10]

Re: Help with payday loans

Ok thanks for your help.

My plan now is to firstly set up a new bank account

Then instruct bank to deny any recurring payments

Then email the pals saying that I,m out of work and can pay them £20 each/month until I find work where I will increase the payments and ask them to freeze interest- not sure if there is anything I can quote them to get them to do this?

Does this seem reasonable?

[Musashi10]

Re: Help with payday loans

And also maybe phone the national debt helpline for advice too

[Guest]

Re: Help with payday loans

Ok thanks for your help.

My plan now is to firstly set up a new bank account

Then instruct bank to deny any recurring payments

Then email the pals saying that I,m out of work and can pay them £20 each/month until I find work where I will increase the payments and ask them to freeze interest- not sure if there is anything I can quote them to get them to do this?

Does this seem reasonable?

Legally they can only charge whatever you signed up for, despite what others may tell you . Your contract will terminate when the payment is due, so all you will owe is whatever you agreed to pay on that date.

Anything else they add will be default charges, which are unenforceable(or have been up to date).

So it is not a matter of freezing interest, their right to charge it will be terminated with their contract.

D

[Musashi10]

Re: Help with payday loans

Legally they can only charge whatever you signed up for, despite what others may tell you . Your contract will terminate when the payment is due, so all you will owe is whatever you agreed to pay on that date.

Anything else they add will be default charges, which are unenforceable(or have been up to date).

So it is not a matter of freezing interest, their right to charge it will be terminated with their contract.

D

Thanks would that include any late payment fees or fees for breaking the contract my end?

[Guest]

Re: Help with payday loans

Thanks would that include any late payment fees or fees for breaking the contract my end?

No those are default charges, although they would have been itemeised in the agreement, common law says that they must be proportionate, in other words be a direct representation of the loss uncured by them due to your default. Obviously they are far in access of what anyone would consider a "reasonable estimate of their losses", and so they are unenforceable.(this is the argument).

D

[Musashi10]

Re: Help with payday loans

Thanks davyb I will do the proposed actions and post the responses I get here

[Musashi10]

Re: Help with payday loans

One last thing I,m a natural worrier and was just wondering how these things usually pan out from experience?

[Guest]

Re: Help with payday loans

Usually they add ridiculous charges to the bill, threaten all sorts of actions and then transfer the ridiculously inflated debt to a dca like Mackenzie Hall, who pay probably 5% of the account"value" in the hope that they will be able to apply enough pressure to the debtor to get him to cough up money he couldn't afford in the first place.

Sorry if i sound disillusioned but i have had a lot of dealings with them, and until the law is changed am likely to have a lot more.

All you can do is make them an offer that you can afford, it will make it even less likely that they will take you to court because the judge will see that you have tried to pay as best you can against a blatantly unfair bargain.
D

[Musashi10]

Re: Help with payday loans

Thanks Davy, so it is quite likely that court action could happen?

I,m sure I read somewhere about collections and cca agreements that the lender should give in the first instance 1-2 months grace at the very least and should accept any reasonable repayment plans. Can't remember where I read that now

[Guest]

Re: Help with payday loans

Thanks Davy, so it is quite likely that court action could happen?

I,m sure I read somewhere about collections and cca agreements that the lender should give in the first instance 1-2 months grace at the very least and should accept any reasonable repayment plans. Can't remember where I read that now

No sorry that is not what i meant, it is not likely at all that they will take you to court, in general they only take people to court if they think they re going to get a default forthwith judgment.

The court will not award payment that you cannot afford to pay, if you have already offered it then what would be the point.

They would much rather get what they can from a DCA, the DCA will then collect whatever money they can and try and turn a profit on it.

In any case you can only play one step at a time, you are being totally straight forward with them and offering what you can afford to pay, i am just trying to make you aware of the arguments you may come against, it may be that they will accept your offer, whatever happens you have t make it.

D

[Musashi10]

Re: Help with payday loans

Yes I understand. Thanks a lot davy

[Musashi10]

Re: Help with payday loans

Update.

I wanted to cca them but I,m not 100% sure about the law on this and it's effectiveness with pdls.

So far 1 has defaulted. I emailed them the day before saying that I was unemployed and can only pay them £5/ month and suggested a review after two months where I hoped to be employed and would then be able to make substantial payments.

The next day I got a zillion phone calls. Then they did stop and I got a reply saying that they haven,t frozen the debt and could I send them my p45, info of my final pay date and dates of when benefits will be paid not my account.

I don,t know how ti reply to this because sending them this info will reveal that I took out the debt after I finished work, stupidly I know.

I,m currently waiting fir benefits ti be processed, and I am at the second stage of one interview and have 3 more interviews lined up so I,m hoping to be employed in the next month or two.

The other two which I haven,t written too yet are due next weds. Should I down the cca route with these? Contact before default?

And with the one currently in default how should I reply?

Any help would be great. I,m really stuck at the moment

[Guest]

Re: Help with payday loans

Update.

I wanted to cca them but I,m not 100% sure about the law on this and it's effectiveness with pdls.

So far 1 has defaulted. I emailed them the day before saying that I was unemployed and can only pay them £5/ month and suggested a review after two months where I hoped to be employed and would then be able to make substantial payments.

The next day I got a zillion phone calls. Then they did stop and I got a reply saying that they haven,t frozen the debt and could I send them my p45, info of my final pay date and dates of when benefits will be paid not my account.

I don,t know how ti reply to this because sending them this info will reveal that I took out the debt after I finished work, stupidly I know.

I,m currently waiting fir benefits ti be processed, and I am at the second stage of one interview and have 3 more interviews lined up so I,m hoping to be employed in the next month or two.

The other two which I haven,t written too yet are due next weds. Should I down the cca route with these? Contact before default?

And with the one currently in default how should I reply?

Any help would be great. I,m really stuck at the moment

All you can do is stick to your guns, you only owe whatever is due under the contract,the initial loan plus interest.

Not really a lot of point requesting a cca they will probably just copy the contents of their web site.

Have you agreed a method of payment so you can pay your token offer, you can also tell them to stop ringing you and that all communication must be done via e-mail or mail , i should make this request i writing.

Personally i would log every phone cal they make and threaten them with a harassment action if they are excessive.

D

[Musashi10]

Re: Help with payday loans

All you can do is stick to your guns, you only owe whatever is due under the contract,the initial loan plus interest.

Not really a lot of point requesting a cca they will probably just copy the contents of their web site.

Have you agreed a method of payment so you can pay your token offer, you can also tell them to stop ringing you and that all communication must be done via e-mail or mail , i should make this request i writing.

Personally i would log every phone cal they make and threaten them with a harassment action if they are excessive.

D

Hi. No, no repayment plan has been out into place until I send in p45 and benefit info. Is this something that I have to send them?

As I said before this would reveal that took outbthe loan when I was unemployed.