Toothfairy finance- advice on next step to take

[patsy12]

Hellooo

 

I am currently a first year student and have got myself into a bit of a pickle.

HSBC - £500 overdraft

Nationwide - £400 overdraft

Wonga - £131 due on the 29th Feb

Toothfairy - £466 due on the 4th.

 

The HSBC and Wonga are not urgent as I am planning to pay the overdraft off during summer (I will be working full time again). I am managing to lived within the Nationwide overdraft. I currently work part time so will be able to pay the Wonga.

 

The problem is with Toothfairy. Unforseen circumstances (problem with student loan and rent payments) mean that there is no way I will be able to pay them back ANYTHING until the end of February.

 

I rang them up (no answer) so I emailed them. The first reply stated they do not accept payment plans and are not obliged to deal with debt management companies.

I replied to the email stating that I had not mentioned anything about entering a debt management plan and then received a reply saying I should call them urgently to discuss my options. I rang them and the picked up quite quickly.

 

I explained my situation to the woman and she seemed helpful; even said that she should be able to set me up on a payment plan but would need to speak to her manager first. A few minutes later, she returned and said that no payment plan can be set up and if I do not pay on the 4th, they will take me to court for fraud.

 

I have been reading other threads so I am slightly clued up and asked her "why will I be accused of fraud?" to which she replied "You only took the loan out last week and now you are telling us you can't pay. It is fraudulent" I then said "Is it not possible for someones financial circumstances to change dramatically within a week?" and she said "yeah it's possible but it's still fraud"

 

After this conversation, I realised that I had not confirmed how much I owed and what date it was due so I rang back. I said to her "hello, I just rang a minute ago. I want to know how much I owe and when." to which she replied "you owe £466 on the 4th" NO SECURITY CHECK.

 

I would really like some advice on how I should tackle this as I feel I might have to go to war with them very soon.

 

Will they just try to take the money out of my account on the 4th? (causing me to go over my agreed overdraft). Should I call up Nationwide and somehow prevent this from happening?

[silverfox1961]

Hi and welcome to CAG

I think you nshould have a read around the forum and take particular notice of what nearly everyone says. STAY OFF THE PHONE.

 

This is a creditors tool of choice to harass you into paying more than you can afford.

If you must ring them, record the call. You do not have to tell them either.

Fraud-NAH! Total bull****

For it to be fraud you would have taken the money with no intention of paying it back.

 

If TFF have your card details, report your card lost or stolen and instruct your bank not to pay anything to anyone

[patsy12]

Thank you for the reply silverfox1961

 

I took your advice and have reported my card as lost. I then called up the general enquiries department and vaguely explained the situation (cannot repay payday loan. my card was lost but will they still be able to take payments?)

 

The woman said that they will have the card details for my old card but the only thing changing is the long number on the front (account number and sort code are the same).

 

Will tooth fairy be able to take money from my account ?

 

Also, I was considering sending them an email stating that I will be paying them a minimum of £100 a month via standing order until the debt is cleared. I was also going to include that I will only be able to make the first payment on the 29th February and will accept to pay the interest that would have been added on as long as it is frozen once the first payment is made. Hope that makes sense.

 

I currently owe £466

Will make first payment (on the 29.2.12) less than 4 weeks after repayment was initially due (4.2.11)

I have been led to believe that interest is £72 every two weeks so I will have incurred £144 in interest charges

That will bring my total to £610.

 

I will then pay a minimum of £100 a month so should be done with them by July.

(Hopefully I will be getting a second job very soon so may be able to pay them off earlier)

 

I am aware that they may send emails and write letters claiming that I owe them money for legal fees, etc but I will not pay these and will stay strong with my plan.

 

Could someone please advise me whether it is a good idea to send them an email about the £100 a month before the 4th?

 

Thaaankssss in advance

 

p.s. sorry for the long post

[silverfox1961]

I assume TFF have your account info (to pay the money into your account)

I would write to your bank. Take two copies in to the bank and get them to date stamp one of them. Instruct them not to make any payment to TFF or CIM Technologies (the managing company) If the bank refuse, complain.

With TFF, email them you repayment offer and gently remind them that you are aware of the slap the OFT gave them.

http://www.oft.gov.uk/shared_oft/press_release_attachments/cim-requirements.pdf

[BRIGADIER2JCS]

To report your card stolen is not wise.

You could be accused of fraud on this

rather than the non payment of the loan.

The spurious report could lead the bank

in to making costly action to ensure security

etc.

Also even if you are issued with a new card

on the same account automated systems can

and will access the same account number.

Had you been honest with the bank and told

them the account had been compromised most

banks will issue a new account number.

I have seen some quite severe consequences from

claiming cards have been lost.

[patsy12]

Thank you for the advice. I will call nationwide up and explain that I do not wish to go over my agreed overdraft limit so they should not allow any money to be taken by web loan processing ltd.

 

I have checked my account via the "pay now" tab on the toothfairy website and the pay now form has my Halifax account details. This is a basic easy cash account so cannot go overdrawn. I also emailed toothfairy to ask what card details they have linked to my account.

 

In regards to the email I wish to send them about paying £100 a month starting from the 29th with interest being frozen from the date of the first payment. Does this soun like a good idea ?

[BRIGADIER2JCS]

Worth a try, but as you no doubt know these companies

are not reliable or sympathetic.

[patsy12]

Yeah I totally understand. I'm going to give it a try on Monday.

 

I sent them an email asking what card details they have and here is the reply I received

 

Thank you for writing in. I cannot disclose your account details over email, however, we do not have an active card on file for you. Whoever entered in your bank information did not state the card type on file, so there cannot be any charges made.

 

Thank You

 

Thanks

 

Collections Team

 

Toothfairy Finance(121)

 

Can I trust that they won't take any payments then ?

[BRIGADIER2JCS]

BE very carefull check your account every day.

[patsy12]

I just spoke to the bank and asked if there are any payments due to go out on the 4.2.12.

She said that there are no direct debits set up for web loan processing but if the payment is due on the 4th, the direct debit will be set up by the 1st so I should check then.

 

I then explained the situation to her and she said to me that the payment would cause me to go over my agreed overdraft limit so it will be rejected.

 

I also emailed tooth fairy about my plan to pay them a minimum of £100 a month so I'm just waiting for the reply.

 

Will keep you updated.

 

Thanks for all the help