Payday loans

[Introuble]

To cut a long story short, I have got into trouble with these payday loans, I have over 4grands worth of loans by my salary is £1698.

I have looked on the web for advice and it seems to be cancel your card which stops them taking money from you in the first place and then contact them and come to an agreement.

Does anyone know if this works? Stoppin the card I mean - they have my bank details and my card details, can they still access my money if I have cancelled my card?

I want to pay them and clear them but I am being left with nothing each month and then get another loan to get me through.

Help me please I am desperate.

[ummmm]

Yes, I think this is true. Phone your bank to double check.

Trouble is....their interest rate is so high that your debt will increase rapidly. Is there no one you can borrow the money off?

[NoMercy]

Do you have any assets you can liquidate?

[ojread2]

Cancel everything, cards, DD etc. Change your bank account if you can as well
How good/bad is your credit rating? Is there any chance you would be eligible for a bank loan? An interest free credit card?


There are the latest scourge on our society. Every time I see one of these ads I shout at the TV. Never, ever take short term loans, call who ever you are 'in trouble' with. They wont charge you huge amounts of interest for a start plus you could have come to an agreement in far friendlier terms before you owed even more

[Introuble]

Thank you for you very quick answers - no my car is very old and I live in rented accommodation - its my own fault tried to live above my station.

Reading on the internet it seems that if you make contact with them and make payments there seems to me restrictions as to how much interest they can add.

I hope there is someone out there that knows.

[Old Salt]

You need help from a professional. I don't have a lot of time for banks, but go to them and look them straight in the eye and tell them, "I need help".

They have a duty to help and advise and when they see you are worried enough to come to them in person, it will show them you want to fix the problemt. It will be necessary for you to eat a bit of humble pie, but, you cannot get out of the mess on your own.

Their advice will not be nice, and it will not be easy, but, you could find a way (eventually) out of the dilemma.

Remember ignoring the problem is not an option. You need rapid action to stop the interest eating you alive

Do it now

Old Salt

[albaqwerty]

Visit your CAB for advice too.

[albaqwerty]

^^^ you just get everywhere this morning

[ojread2]

Looks like Debtline mayu be able to help you and mediate
http://www.debt-line.net/payday-loans

The list includes all the payday loan types and it seems that they will help you find a payment plan
Only drawback is that certain ones will still hound you will emails etc, but there are spam mail options and filing in the bin after you have your agreement in place for that kind of thing ;-)

[ojread2]

ooo and read the yellow box down the right hand side of that page ......

"Payday loan companies can not force you to repay more than you can comfortably afford each month."

"Payday loan companies can not add charges as a penalty for non payment, other than to cover the real costs of collections activity."

There was something I caught on TV yesterday (may have been the news) about some governing body looking into these legalised loan sharks, so hopefully they will all be shut down! I've seen interest rates as high as just under 7k - ridiculously high

[Introuble]

thank you all - why have I got showing an answer removed?

I will contact the bank today

[ummmm]

It was someone posting an Ad!!

[albaqwerty]

Twas a spammer InT, and not helpful in answering your question.

Wishing you all the best x

[jd_here]

Good luck IT, as alba says, go to the CAB first, they will point you in the right direction. Actually, I've never used them but know people who have and had their problems solved pretty quickly.

[dzug2]

Cutting up your cards and cancelling the accounts is not a 100% guarantee that you won't get charged - there are plenty of accounts of people doing it, the closed account being charged and the bank coming after them for the money.

It shouldn't happen, but it does - and your bank may need a lot of persuasion to - eventually - stop the payments.

[EDDIE51]

Yes cancel your debit card and tell the bank that unauthorised payments were being taken from it. Doing this means the bank will not allow any one to transfer payments to the new card. Then contact the payday loan people and give them a sencible repayment plan, make the payments by direct debit from your bank DO NOT give them the new card number.Once there is a repayment plan they have to stick to it and can not add intrest

[Captain Spod]

I can't add anything to the very valuable advice above, but would take this opportunity to argue with those who see these companies as the scourge of the earth etc. Yes, they are parasites and to a degree they prey on the financially naive, but don't forget, they ARE regulated and they don't break legs in lieu of repayment. They are addressing a need that won't disappear just because we 'wealthier' people don't have or see it.

[themas]

1. You will have given them a "continuous payment authority". This cannot be cancelled just by your bank. You need to write to your bank instructing them not to accept any more requests from the payday loan company, & send a copy of the letter to the payday loan outfit with a covering letter telling them you have cancelled the authority.

2. Change the card as well.

3. If you do set up a payment arrangement to repay them at a rate you can afford do it by Standing Order - not by direct debit as they can alter the amount they take if it is a direct debit. However, I think you may well find the amount of interest they continue to charge becomes unaffordable.

4. If you want to be free of this you might be able to qualify for a Debt Relief Order, although that would restrict your ability to get credit in the future. Talk to your CAB or to CCCS for more info.

[tonywiltshire]

The first thing to remember is that no unsecured creditor can make you pay more than you can afford and the county court will support you in this.
First do as themas advises and stop any further payments being taken from your bank account.
Second work out what you need each month to live on and therefore what you can afford to pay off your debts, be realistic in this do not try to repay more than you can afford, there are draft income/expenditure sheets on line, keep a copy of the completed form.
Third send a copy of your income/expenditure sheet to your creditor ask them to stop charging interest and make them the offer of payment that you can afford. Ignore all protests from the creditor.
Fourth make a standing order as themas says not a direct debit for the amount you can afford to pay, again ignore all protests, rude letters and telephone calls saying you cannot do this.

You may lose your credit rating, which may be a good thing unless you wish to obtain credit, the most your unsecured creditor can do is start court action but if your income/expenditure sheet is realistic the court will support you and the creditor knows this.