Multiple Payday Loans

[cjefc]

Good Afternoon Everyone,

 

I wonder if anyone would be kind enough to provide me with some guidance.

 

What started out as one PDL with one company to finance car repairs following a failed MOT and assist with buying birthday presents for my two children who were born on consecutive days, has now spiralled completely out of control and has resulted in me owing circa £4,600 on my next payday, 26th July. I have bitten off more than I can chew and simply do not have the resources to pay these off.

 

This amount is spread between five companies as follows:

 

Quick Quid £1,819

Payday Express £938

Wage Day Advance £775

Lending Stream £635

PaydayUK £440

 

Paying deferment fees will not only leave me and my family with nothing to live on for the next month, but will also see me in an identical position next month.

 

I feel like the only way forward is to e-mail all five companies explaining my position and ask if they would consider a repayment plan. I am not seeking to have anything reduced and it is my intention to pay off every penny I owe as they are my debts and the money was issued to me in good faith, it will just now take longer than I originally anticipated.

 

I am embarrassed and sick with worry about this situation which is aggravated by my wife having been Sectioned under the Mental Health Act and also the death of an extremely close relative.

 

Having had a look around the sub-forum, I fear I am going to have severe difficulties with Quick Quid and Payday Express and perhaps others. I have also today applied online for a Lloyds TSB Basic Account as I note that it may be prudent to open a new account.

 

Any advice would be gratefully received.

 

Many thanks in anticipation.

 

Kind regards

 

Chris

[renegadeimp]

Default on all of them, close your current bank account and open a new one with a different banking group. This will safeguard your money. Then you can start working out repayments based on what you can afford and repay by giro or Standing order only.

[PDLVictim]

Hi Cjefc,

 

I was and still am in a similar situation, as probably a majority of those who start to take out payday loans. You are definitely doing the first step in the right direction by trying to set up repayment plans with those companies instead of "rolling over".

 

I do not know how much you have left over every month to repay those loans, so I cannot give specific advice, but I can give some general advice from my own experience with those companies you lent from:

 

- Quick Quid £1,819: They are easy to deal with as they are a big company. Contact them before you default (but after you have a "safe" bank account). They will only agree to a maximum of 4 monthly repayments which would be 455 GBP in your case. They do not require any documentation or Income/Outgoings forms from you and the easiest way to setup a repayment plan is over the live chat on their website. I do not recommend to call them as they will try to talk you into "rolling over" when you speak to them, use the live chat instead. Make sure to make a screen shot of the conversation after you spoke to them and save it somewhere, so you have proof what was agreed (but they are a big company and usually also send a confirmation email). If 4 months are not achievable due to the amount you would have to repay, you can "stretch" it a bit by contacting them only 1 day before your loan is due, because then they will set up the first repayment not for end of July but for end of August. You can also be 1 month behind repayments after the first payment on this plan without consequences (apart from a 12 GBP late payment charge) - let's say you pay 1st rate end of August, 2nd rate end of October, 3rd rate end of November and last rate end of December. This would effectively give you 5-6 months to repay and some breathing space in the first month. Unlike other companies they will not add other exorbitant charges or interest to it. If you cannot afford 4-6 months repayment on them, then you will have to wait until they pass the debt on to their DCA (which they will do after 90 days). Their DCA will be able to set up a repayment plan up to 18 monthly payments. I do not know your credit rating and if you want to "keep" it, but basically if you set up the repayment plan over 4 months with them it will either not show up at all, or it will show up as 'Payment arrangement' on your credit file. If they pass it on to DCA it will show up as 'Default'. But do not worry too much about your credit rating, because there is no other way out than repayment plans. If you do not start repayment plans now your debt will grow (mine grew to nearly 11000 GBP with 14 payday companies). Better to stop this now:-) QuickQuid does not have a UK bank account to receive payments, you can pay by card over the phone. I set up a third bank account (BankOfScotland - EasyCash) just to pay them and only paid in this bank account every month the repayment rate and then phoned them to pay. Do not set up a direct debit with them (on the third bank account) if you try to play "the delay game" I mentioned above to get an extra month, because then they will try to debit several times and this will incur charges on your bank account.

 

Payday Express £938: I have no experience with them unfortunately. They were the only company I never lent from

 

Wage Day Advance £775: They are "medium" to deal with but not impossible. Try not to call them as they will definitely try to accuse you and force you to pay (they were not really harassing on the phone, but quite "pushy"). Contact them before you default (but after you have a "safe" bank account). They will agree only to 6-8 months repayment and they are difficult to negotiate with. They want an Income/Expenditure form and I actually sent them one. Some people on the forum say to not send this form, this is up to you. If you send them the form they will try to push the monthly rate you can afford up (they pushed mine from 50 GBP offer to 84 GBP) so beware to discuss this with them. Do not call them, negotiate instead by email only. Try to expedite the negotiations with them, because they will add charges and interest to it until the repayment plan is set up, so better start soon. Pay only by standing order to their bank account (Wagedayadvance, Sort code 20-45-14, Account number 90931772) and always quote their reference number (your loan ID). Beware: They will set up a new direct debit on your "old" bank account every month one day before your payday for the whole amount outstanding despite agreed repayment plan. So you have to watch your account and delete this direct debit every month, even if no money on your account (as otherwise you will incur bank charges). They might report to the credit agencies as 'Payment arrangement'.

 

Lending Stream £635: They were easy to deal with I would say. Contact them before you default as they also will add charges and interest otherwise. They agreed to a 12 month repayment plan quite easily by email. Pay only by standing order to their bank account (LendingStream, Sort code 20-19-90, Account number 13434028) and always quote their reference number (your 6-digit agreement number). In case you have several "agreements" with them you have to negotiate for every agreement and pay them separately. They will report to the credit agency as 'sustained delinquency' - which I think is incorrect as it should be 'Payment arrangement'. Not sure if they messed up my case, when I have time I will try to get it corrected and then can let you know.

 

PaydayUK £440: I arranged my repayment plan with them over the phone and they were a bit rude and pushed me into a higher rate, which I only after 3 months "adjusted". So I think also here try email to negotiate. They arrange plans for up to 12 months (I have read even up to 18 months). Pay only by standing order to their bank account (MonthEndMoney, Sort code 60-00-01, Account number 39524906) and always quote their reference number (your 7-digit loan number). They mark on the credit file as 'Payment arrangement'.

 

I hope this helps a bit.

 

Do not feel embarassed, it is not your fault, and try not to feel to sick. See it positive, you will get out of this hell and you take back control over your money. I managed after 6 months of repaying to half my debt with those. I am currently struggling again, but I will manage the other half as well!

 

I agree that money owed should be repaid, but these companies benefit definitely from this "spirale of debt", I truly believe this is part of their business model, so do not have too much feelings for them. You have to get out, so stay as tough as you can with your negotiations and never accept a further "roll over". On the other side you are very lucky, because the companies you lent from are not the worst. There are much worse PDL out there (e.g. Minicredit, Toothfairy) which are nearly impossible to deal with.

 

Keep us updated how you are getting on with them!

[cjefc]

Thank you for the very helpful and detailed response, PDLVictim.

 

Today is D-Day and I have already had several exceptionally pushy and embarrassing calls from PaydayUk whilst at work. Is there any way to stop this please?

 

I have sent all five companies an e-mail and wish to communicate only by e-mail.

[maroondevo52]

I have already had several exceptionally pushy and embarrassing calls from PaydayUk whilst at work. Is there any way to stop this please?

 

 

Hi,

 

You could try sending them this...........................

 

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

[cjefc]

Hi,

 

You could try sending them this...........................

 

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

 

 

Many thanks for the link, maroondevo52.

 

A quick update:-

 

Other than Payday Express, everyone appears to be acting in a very reasonable manner.

 

Other than a computer-generated response, Payday Express will not reply to my e-mails, have rang me upwards of two hundred times in work and have applied charges of over £200.00 since my payment was not taken on the 26th July 2012.

 

Any advice please?

[renegadeimp]

You must complain about those phone calls. Oft fos trading standards ofcom your local mp, even the press. If there dong it to you its guaranteed its a widespread issue.

[cjefc]

Another generic response:-

 

 

Dear Mr xxxxx,

 

Client Reference: xxxxxxx

 

Thank you for your recent contact regarding your account with Payday Express.

 

We note that you are currently unable to repay the balance on your account as agreed.

 

Please contact us on 0115 908 1163 to discuss the repayment of the outstanding balance.

 

If you do not contact us then interest and charges will continue to accrue as well as collection activity in line with our collections policy once your account falls overdue.

 

Our opening times are:

 

Monday to Friday: 9am – 5.30pm.

 

 

Regards,

 

Payday Express

[renegadeimp]

Keep contacting them by email or letter. As long as you can prove that you have constantly been trying to contact them with repayment offers, it would be impossible for them to get any of the charges or interest amounts to stick.

[cjefc]

Many thanks for your response, renegadeimp.

 

These calls are now causing me massive problems in work.

 

What worries me is that I'm off for two weeks from this Thursday and colleagues will have to answer my direct line which is going to be exceptionally embarrassing.

[renegadeimp]

You must report them to the relevant authorities and also issue a full complaint to the PDL. Also have a read of http://www.consumeractiongroup.co.uk/forum/content.php?493-Harassment-by-telephone-response-letter and make sure to add work phone.

 

Have a word with your manager too. Make sure you discuss it "in confidence" so you know nothing else can come of it. Remember, your employer can also make a formal complaint to the OFT and ofcom. It isnt your fault they are breaking the law by calling. You have already informed them that you wish to exercise your legal right to have all correspondence in writing. It is the PDL's fault they are breaking that law.

[cjefc]

I have just sent them this e-mail:-

 

 

Good Morning,

 

I would be very grateful if you could please note my original request to undertake all correspondence via e-mail. I am currently receiving a substantial amount of telephone calls in work which I simply cannot answer.

 

Discussing matters over the telephone is not going to alter my current financial situation. I have made a realistic offer of a monthly payment which I would like you to consider at the earliest opportunity so that an arrangement can be put in place. As previously indicated, I am trying to address these debts in a fair, reasonable and realistic way and I am not trying to run away and hide.

 

Many thanks.

 

Kind regards

 

xxxxx

 

I hope they don't send me a generic response.

[cjefc]

Response:-

 

Dear Mr xxxxx,

 

Client Reference: xxxxx

 

Thank you for your recent letter.

 

Our accepted criteria for a repayment plan are as follows:

 

• Significant Loss of income

• Unexpected change in personal circumstances e.g. Major Loss of income

• Severe Disability or illness (not excluding close family members)

• Terminal illness or Mental illness (not excluding close family members)

• Deceased (not excluding close family members)

• Redundancy or Reduced hours (contractual hours reduced by company)

 

We are unable to set a repayment plan unless it is evidence that one of the above has caused yourself financial difficulties.

 

Should you wish to discuss these options or your account please call our office on 0115 908 1163 and one of our advisers will be able to assist you. Alternatively you can contact us at collections@paydayexpress.co.uk.

 

Please do not hesitate to contact us should you require any further information.

 

 

Regards,

 

Payday Express

[renegadeimp]

It's the generic response they give anyone. Ignore it as they do not get to decide criteria for repayment plans. The ONLY criteria for a repayment plan is that you cant meet the originally agreed repayment plan due to your financial circumstances, and you can prove it by way of a budget summary.

 

It very much looks like they are trying to force you into phoning them. Pity you know your legal rights and you wont be doing that unless you can record the call in full.

[dickturpinn]

I found payday express to be the worst company to deal with when i defaulted ,there operators were useless and we went round in circles on phone until i eventually stopped answering there constant calls

 

after emailing them about my need for a payment plan I eventually recieved this email

 

 

We note that you are currently unable to repay the balance on your account as agreed.

 

So that we can identify how we can help you, please contact us on 0115 908 1163 to discuss the repayment of the outstanding balance. Whilst you can contact us via email at collections@paydayexpress.co.uk, there may be up to a 3 working days delay in responding due to the number of emails we receive and in order to understand your current circumstances as well as trying to resolve this with you, contact is preferred. The above number will pass you through to a Financial Difficulties agent whom will try to help you.

 

If you do not contact us then interest and charges will continue to accrue as well as collection activity in line with our collections policy once your account falls overdue.

 

Our opening times are: Monday to Friday: 9am – 5.30pm.

 

We look forward to hearing from you.

 

 

After speaking to someone with a brain we agreed a plan over 5 months with the interest frozen

 

We agreed I pay by standing order and i got this in writing with payment plan via email

 

Stick in there

[cjefc]

Almost two months on from this and I have arranged plans with everyone save for Payday Express as we continue to go around in circles. It really is pathetic. Most of the other companies have already received two payments out of twelve whilst these clowns continue to send a generic response to my proposals with upwards of what must be five hundred calls in work.

 

I have to say that, regardless of what people think of these companies and their purpose generally, I have found them more than reasonable to deal with.

 

I will post my most recent correspondence with Payday express below:-

[cjefc]

Good Morning,

 

Further to my recent e-mails and your response below, it is my intention to repay £78.17 per month for twelve months via Standing Order.

 

This is a realistic amount given the £4,606.00 I owe to all five payday loan companies, on top of the circa xxx I currently owe in long-term repayment plans which total xxx payments per month.

 

I cannot afford to offer any more as things stand and sincerely hope that this is acceptable. If so, I propose to pay by Standing Order on the 26th Day of each month (will pay amount for August asap upon receipt of your bank details).

 

I currently live with my wife and two children (ages 12 and 8). A brief summary of my income/expenditure is provided below:-

 

Salary xx

Child Benefit xx

Mortgage xx

Utility Bills xx

Council Tax xx

Groceries xx

Insurance (Car/Life/House) xx

TV Licence xx

Public Transport xx

Fuel xx

Road Tax/Breakdown Recovery xx

Mobile phone xx

School Meals xx

Health xx

Clothing/Hairdressing xx

Repairs/Emergencies/Children's Clubs/Entertainment xx

Long-term loan repayments xx

Payday loan repayments (inc. proposal for PayDayExpress) xx

 

Please once again accept my apologies for being unable to honour my original commitment.

 

I look forward to hearing from you by return of e-mail as I am extremely anxious to come to an agreement at the earliest opportunity.

 

Many thanks.

 

Kind regards

 

xx

[cjefc]

Dear Mr xxxx,

 

Client Reference: xxxxxxx

 

Thank you for your recent contact and your request for a repayment plan.

Our accepted criteria for a repayment plan are as follows:

 

• Significant Loss of income

• Unexpected change in personal circumstance, e.g. Long term sickness

• Severe Disability or illness (including close family members)

• Terminal illness or Mental illness (including close family members)

• Deceased (including close family members)

• Redundancy or Reduced hours (contractual hours reduced by company)

 

All or any of the above may require documented evidence. I.e.:

 

• If you are now unemployed or in receipt of financial support, please provide proof of unemployment or redundancy. If your contractual hours have been reduced by your employer, please provide a letter from your employer on company headed paper to confirm this.

• If your circumstances have changed due to personal illness, please provide a copy of a doctor’s note or hospital letter.

 

If your financial circumstances have changed we may be prepared to consider a reasonable and affordable repayment plan.

 

A repayment plan does not vary or release you from the terms and conditions of the signed loan agreement, so if you fail to comply with the terms of repayment plan we have the right to obtain payment of the full amount outstanding together with accrued interest and charges from any of the debit cards that you have supplied to us.

 

At 90 days past the original due date whether an agreed repayment plan is in existence or not we will register a default on your records with credit reference agencies.

 

Should you wish to discuss these options or your account please call our office on 0115 908 1163 and one of our advisers will be able to assist you. Alternatively you can contact us at collections@paydayexpress.co.uk. (there may be up to a 3 working days delay in responding due to the number of emails we receive) and in order to understand your current circumstances as well as trying to resolve this with you, contact is preferred. The above number will pass you through to a Financial Difficulties agent whom will try to help you.

 

Our opening times are: Monday to Friday: 9am – 5.30pm

 

 

Regards,

 

Payday Express

Edited September 5, 2012 by cjefc

[cjefc]

Almost two weeks and countless telephone calls later, PaydayExpress still refuse to set up a payment plan whilst some of the other firms are about to receive their third payment.

[renegadeimp]

Ok. Regarding those telephone calls, you MUST issue a complaint and consider legal action. In the news a few months ago, a person in similar circumstances to you had extreme number of telephone calls. He took the creditor to court, and gained a fair amount of compensation as well as the company being fined.

 

You also need to contact OFCOM and tell them that despite your written instruction not to telephone you or to call your employer, they continue to do so multiple times per day.