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Payday Loan Trouble
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if someone had been declared bankrupt, and got into further trouble with several payday loans they, could not afford to payback. Would it be possible for them to put the debt together to pay off in one monthly payment?.
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The Financial Conduct Authority regulates lenders, who are meant to ensure that they don't lend money to people who can't pay it back. Responsible lenders would stick to the rules and refuse to lend to someone with a very poor credit history (particularly when that credit history includes bankruptcy) and where the loan requested is solely to pay off other loans which they admit they can't afford.
However not all firms play strictly by the rules (or they stretch the rules to their utmost) so there might be a lender who would consider a loan to consolidate such existing debts but any such lender would almost certainly charge extremely high rates of interest, with the debtor ending up pay much more than he/she otherwise would have done.
It would make more sense to tell the existing lenders that the loan repayments can't be met and wait for them to apply for a CCJ. As long as the debtor attends the court and explains their financial circumstances, the court would normally make an order requiring the debtor to pay back the loans at a rate that he/she could actually afford. Then, as long as those (more realistic) payments were kept up, the debtor couldn't be further chased for payments by the lenders.
However not all firms play strictly by the rules (or they stretch the rules to their utmost) so there might be a lender who would consider a loan to consolidate such existing debts but any such lender would almost certainly charge extremely high rates of interest, with the debtor ending up pay much more than he/she otherwise would have done.
It would make more sense to tell the existing lenders that the loan repayments can't be met and wait for them to apply for a CCJ. As long as the debtor attends the court and explains their financial circumstances, the court would normally make an order requiring the debtor to pay back the loans at a rate that he/she could actually afford. Then, as long as those (more realistic) payments were kept up, the debtor couldn't be further chased for payments by the lenders.
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