Naive about debt, advice needed with regards to court summons on 4 PDL's

[determination2012]

Hello,

I currently have 4x payday loans outstanding, which I want to pay in full at the end of June,

however, if I do this I will not be able to pay my other bills (Natwest Mastercard, Very & Littlewoods Account and also Orange phone bill).

 

I am scared about not paying them, as I do not want to go to court etc,

so I wondered, how long does it actually take to get court summons over not paying debts?

 

Payday Loans are horrible debts but once they are paid I will be more than back on track with my other debts, and will be able to pay them much faster.

 

I'm not bothered about my credit file as I don't intend to take out any more credit unless it's a mortgage,

but in this day and age I don't think I'll be able to afford a mortgage for at least 6-7 years. Thanks

[Conniff]

Welcome - Don't pay off your payday loans and leave the others, it 'must' be the other way around.

 

All loan shark debts are horrible debts, but make payments to them last with what is left over, (isn't that what rats usually get, leftovers).

 

Don't worry about them taking you to court, you have more chance of winning the lottery.

 

Make a payment to them of how much you can reliably afford each week/month, one that you will be able to pay until they are clear with no breaks. Don't worry about the threatening letters they will send, and don't worry about the unlawful penalty charges they might add.

 

Just concentrate on your 'real' debts.

[renegadeimp]

As conniff said. PDL debts are LOW priority. If you cant afford to repay them, offer them £1 a month till your circumstances get better, or simply tell them that they wont be getting anything for now, as your HIGH priority creditors must be repaid first. They will stamp their feet like a toddler having a tantrum, but theres very little they can do, and they know it.

[determination2012]

I understand what you're saying, but I would rather pay them off first as they're a lot more hassle than the other creditors, I can handle a few letters coming in the post, but what I can't put up with is the phone calls and texts and emails and letters from the payday lenders. I only owe in total to the 4 companies around £800.00, which is why I would rather get it all cleared in one go, then deal with the other creditors the following month as I can get everything else back up to date and more. What do you think? Thanks

[renegadeimp]

Why are they more of a hassle? In law they are low priority. They just like to shout and scream and threaten you to make you think they are more important, and honestly, it seems like you are falling for it.

 

As for phone calls/texts, send them the following letter:

 

http://www.consumeractiongroup.co.uk/forum/content.php?493-Harassment-by-telephone-response-letter

 

 

They are relying on you not knowing your legal rights or the law. Once you show them that you wont be messed around with, they usually back right down. You'll still hear random things from them, but they'll be more of a whimper than a roar.

 

If you want to pay the PDL's off in one go, you have to take consideration to your Main creditors. If you miss a payment with them, you could land yourself in more trouble with them.

 

 

Personally, i would send the harassment letter to the PDL's, then write and tell them that they are getting £1-£5 a week/month until circumstances improve. If they dont like it, tough luck. They can take you to court (which rarely happens and even if it does, it is many months away), and you can easily show a judge evidence of your finances and the fact that you couldnt pay more.

 

The judge would then ask the PDL ( if they even turn up at court, they normally dont) why they completely ignored your situation.

[determination2012]

Well, one is with MiniCredit and they do not allow re-payment plans, and they'll constantly phone my work, home phone etc, which i don't need, so I'll definitely be paying that in full. The others are with CashCall, Cash Genie and TxtLoan, I'm on a comfortable payment plan with TxtLoan already, but they had no choice because I copied and pasted the amount of profit they had made from me already in the past, and it was over £1000.00 haha. I'm just sick of having to work around the PDL's, so this is why I would rather get them paid and get it over and done with.

[renegadeimp]

They cant refuse a repayment plan. No matter what they like to say or think.

 

Do NOT pay them in full, just because they are harassing you. Doing this means you agree with what they are doing and they will just move to the next person and do it again. You MUST call them out on their actions and report them, to the OFT.

 

If you don't complaint to the OFT about each PDL's actions and you intend paying them in full because they are acting like idiots, then it begs the question, why are you even on this site?

[Oh ffs]

Under no circumstances borrow any more money to pay off anyone even if they threaten this that and the other. That’s how I got in massive trouble, it’s a fools game.

PDL companies will usually make loads of threats but it’ll take a long time to go to court (if at all) after a non-payment.

Bear in mind you’re going to use the credit cards and store cards again, likewise you’ll want to continue using Orange services. I guarantee these will try to harass you just as much. I had MBNA on my back for ages and they called my home, mobile and workplace, despite my insistence not to. Oh and you’re going to rack up late payment charges & potentially over-limit charges too.

What are the individual sums that need to be paid and how much money will you have to pay against all these debts?

Insist only on communication in writing, email is great as it keeps a great trail of events and it doesn’t cost you postage and printing costs.

I assume the PDL lenders all have your debit card details?

[silverfox1961]

Hi

I heartily agree with the above comments and I saw on the net the other day-This

 

http://m.dailymail.co.uk/money/cardsloans/article-2149405/Payday-lenders-sign-new-rules-help-struggling-debts.html

 

While I'm sure that a lot of the PDLs will ignore the code of practice, you should be getting a fairer treatment from the PDLs.

 

If they ring you up, try and record their drivel then you have evidence of their poor practice meaning you can them report them

[2009dg]

Your mobile will be restricted till you pay what is owed. Mastercard you'll get charges like missed payment etc and a bigger bill the following month same with Very & Littlewoods I think.

 

I don't think you should pay the PDLs first but I also don't see one month having a big impact on the other bills. They won't stop you using them after just one late payment just make sure you're not already near the credit limits.

[manaboutadog]

Hi mate cashcall really good with payment plans I had one paying £50 a month and if you say your gonna pay them off then I dont think £50 a month will hurt u also txt loan speak to them though there website service I have a payment plan of £3 a month just offer what u can afford and cash genie will set up payment plan but do it all by e-mail with everyone that way u have proof as with mini credit I think they are starting to crawl into a corner as under big investigation.. And the one bit of advice I can give is listen to the guys and girls on here they are here to help and know what there talking about. They helped me when I didnt know what to do so dont leave yourself tight with money and pay all in one go offer what u can afford and on your terms .

[havinastella]

AND remember, you only pay PDL's what you borrowed and 1 months interst MAX!

[renegadeimp]

OFT guidance states that a creditor MUST take into consideration a debtors financial circumstances. This includes stopping interest and charges on a debt, so as not to escalate it to an unrepayable amount, and must also take into consideration any repayment plans put forward. Also, any repayment terms must be MUTUALLY AGREED.

[renegadeimp]

It's not legally binding, but if they breach it they can have heavy restrictions placed on their license, or have the license revoked. Plenty of PDL's and DCA's have been actioned, and even Wonga, the biggest PDL lender has recently been actioned for it.

[asmilecostsnothing]

I am afraid the FOS and OFT appear toothless

 

Totally agree x

You have to make your own justice, it can be done once loans are paid of

never give up hope, I wanna be the lady that throws her necklace into the water rather then shut her eyes for the worst (never liked the film much but it has got me through this)

[asmilecostsnothing]

How can there be a demand of this amount even when it can be proved, all debt charities say it's 50p to £1 payments in this situation along with being repeatedly told PDL's are the lowest priority but then these are always the charities that stand back...

 

I know I'm no expert but really feel for you and hope you can get a reversal - just keep at it

nice lengthy letter me thinks

 

x

Edited June 1, 2012 by asmilecostsnothing
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