urgent help today please

[jack1966]

hello, im sorry but the details i have are few, my son has been depressed for months now, and he's finally told my why, he is stuck in the cycle of payday loan trap, he couldnt make payment this month but offered to pay £30 on tuesday 31st this month to which they agreed, he has just called me to say he had an e-mail this morning (yes Sunday morning) demanding £50 payment by 10 o'clock tonight or they will add another £100 onto the loan which he owes. to me this sounds like threats with menaces, can they do this ?

 

any advice would be a brilliant help

 

thankyou

[renegadeimp]

What they are doing is illegal and is breaking OFT guidance . Don't worry though, we can help you out easily.

 

Tell your son not to panic, and that we need more details about each loan he has. Such as name of company, amount of loan plus original interest, and the amount each PDL claims he owes now. We also need dates such as the original repayment date, and how long its overdue. You can also write to the PDL's he owes money to and demand FULL breakdowns of each debt. It's pretty certain going from your post that they are full of unfair and unenforceable charges that have been added purely to inflate the debt in hopes that a judgement by default would be gained and they can push for the entire amount.

 

 

Be aware though, that some PDL's will take him to court and try to get a judgement by default. In these cases, its imperative that he stays calm, and keeps everything in writing, including the PDL's threat letters. He must then be ready to form a defense to show a judge exactly what is happening. Courts in these cases arent like you see on tv. It's just the debtor and his/her rep, a court rep/judge and the creditor's representative.

 

 

Has he worked out a full I&E to clarify his full financial situation? This is the single most important thing he can do right now. It might even mean that he can only pay £1 a month ( the legal minimum) to his creditors. They will not like this at all, but theres nothing they can do about it at all.

 

Use http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#5 Section 3 part 1 for his own records ( dont give it to any creditors), and the second part to give to the PDL's as a summary of his finances. If they ask for more, just laugh at them.

 

 

If he is too scared or nervous to deal with them himself, have him write a short letter to each creditor giving you the authorisation to deal with his debts on his behalf. Sign it as a statement of truth, but PRINT his name and your name. When dealing with things like this, you will need someone with a level head to sort things out. If you go into dealing with debts panicking, youll never get it sorted.

 

 

Let us know if you need more info.

Edited July 29, 2012 by renegadeimp

[jack1966]

thank you so much,

my son is coming over later to talk to me, i will update you with any other info,

 

once again thank you

[renegadeimp]

Just take as much time as you need to get full details on everything he owes, and his full incomings and outgoings. Those are the most important things you need to do. Once those are done, look into opening a parachute account so he can secure his incomings and ensure repayments are made on HIS terms only.