No income? In a mess how to sort

[paydayjoke]

Hi there

 

I have managed to get myself into another mess with some PDL

 

I now have no job and had to leave before probably getting sacked.

 

I took out two loans after I left one with Peachy one with wonga. Both due on 28th feb. I expected to get some money in to pay them back but this hasn't happened.

 

I haven't approached wonga yet I will closer to the time as have dealt with them before.

 

Peachy is £257 including one month interest. They started going on about extra charges and I told them where to stick it (nicely).

 

Peachy are being difficult in that they initially wouldn't offer a repayment plan. I pushed further and now they are saying they will if I send them proof of no more job "Your loan was issued less than 2 weeks ago and it is our right to make sure you have not requested it after loosing your job."

 

They want to know that I didn't take out the loan after losing my job. Does this really matter?

 

This was my last letter (they asked for proof of unemployment - p45 and of income) then they replied asking for PROOF!

 

Any advise?

 

-------------------------------------------------

"Thanks for your reply.

 

I am trying to be candid and cooperative, yet I will stand my ground on this matter.

 

You do not have any right to these documents.

 

I will be washing cars during the month to earn your money and will make repayments every month on the 15th. I washed 5 this week just for you!

 

Please take this notice as in line with FSA guidelines I am withdrawing my authorization and cancelling any Continuous Payment Authority on my bank account. I will be informing my bank of this as well so hopefully between the two of you no attempts to drain my account will work.

 

I hope you will understand that any attempts to debit my account and then direct debits for bills going unpaid will add more charges to my bank account, thus leaving me in a worse position to be able to repay you.

 

As I said if you do not accept this plan then what is the alternative? If we end up in court then I know the judge will grant me an even lower plan most likely as he will not see this as a priority debt!

 

Please can you confirm these are your bank details:

 

Sort code 20-03-53

Account number 43882942

 

 

Many thanks

[paydayjoke]

here was an earlier email from them. I said I don't recall that to be honest. I also said

 

"

I don't have any income at the moment and am not on JSA yet but I am willing to find £25.70 to pay you per month. If not then obviously we can go down the default and court route; I am more than happy to do this as having a bad credit file is the least of my worries at the moment."

 

Should I just make the payment I am willing to offer and leave it in their ballpark. Stop when I have paid of the principal amount?

-------------------------------------------------------------------------------------------------

 

Please could you provide your bank details and I will make an initial payment today.

Please note that you have electronically signed our Credit Agreement

including the following clause:

 

1.7 You agree that at the date of applying for and accepting an

advance from us, you are not:

a) in a Debt Management Plan (or similar scheme) or considering entering a Debt

Management Plan (or similar scheme);

b) in an I.V.A or are considering entering into an I.V.A.;

c) bankrupt or considering filing for bankruptcy;

d) under notice of termination of employment, redundancy or any other

notice which could

affect your employment status;

e) in receipt of Statutory Sick Pay or suffering from any medical

condition which would cause

you to apply for Statutory Sick Pay during the period of the loan;

f) in receipt of any benefits instead of your usual wages, salary or

other income declared to us

in your application.

 

Please send us the proof that you have become unemployed after took

out the loan from us. Once the required documentation is received, we

will require the best repayment plan offer from our Credit Committee.

Also please specify what kind of income are you planning to exploit in

order to cover your debt with us.

[renegadeimp]

Ignore their silly terms and conditions. 99% of the time, they are baseless anyway.

[paydayjoke]

Thank you for your reply renegadeimp.

 

What should I say in my reply to them? I think I should just say I am paying the 25.70 per month (more if and when I get a job) and then ignore any pestering from them? Pretty sure that will hold up in cout (and I know it wont get that far). My two concerns:

 

They keep adding charges, and even if I will never pay them over and above loan + 1 month interest I would like it settled in my mind.

They will use CPA to take whatever is in my bank acct (well of my available overdraft, and I need a certain amount available on the 2nd of each month for halifax to take their authoised overdraft fee). My overdraft is quite large and I don't want the bank to know I am in problem times as I can just pay the fee each month until I get in a position to start paying off my overdraft.

[renegadeimp]

Stick to your guns. You pay what you can afford. Nothing more, no matter what they say. They know for a fact, if they were ever to take it anywhere near a court, a judge would side with you and could even lower the repayments. Thats why they threaten and harass you, so you give in and pay their silly amounts. Once you admit liability for those charges, they can simply say to a judge " Here you go. He agreed liability so he must pay."

[paydayjoke]

should I just ignore them about asking for proof of not having a job now and when i took out loan having it? I will write and say I can't find the letter. Here is my first payment. Many thanks

[renegadeimp]

It's no concern of theirs regarding your personal details. If you cant repay a low priority Payday loan, then they have to agree to repayments.

 

WHat you could do is this, courtesy of one of our site admins.

 

Get a postal order for the amount you can pay. Send it to the Lender and tell them that since they will not agree a repayment plan, you are going to be paying by postal order until they agree. Also tell them that you are deducting the cost of the Postal order and stamp/stationary used from the total debt you owe. It might sound weird, but they cannot refuse this postal order as payment as it is classed as legal tender. Dont worry if they cash it or not, that is their problem once they receive it.

[paydayjoke]

In the end I caved into a repayment plan with a reduced interest rate (lol 50%) so I am ending up paying ~£60 extra. Do you think I should just go and tell them where to stick it after paying off the principal +1 month and not pay them the last two payments (which in effect are the extra interest)? It's my fault for not sticking to my guns enough and saying I would pay a small(!) interest rate on it.

[renegadeimp]

Why did you cave to their demands? Repayments are done according to YOUR financial circumstances, and any charges are unlawful and unenforceable.

[dakky]

Why did you cave to their demands? Repayments are done according to YOUR financial circumstances, and any charges are unlawful and unenforceable.

 

They were asking me for proof that I hadn't taken the loan after becoming unemployed and I couldn't find it (to be fair it was very close between me losing job and taking loan though i think I took the loan after...)

 

"1 28/02/2013 £11.18

2 28/03/2013 £33.18

3 26/04/2013 £33.44

4 28/05/2013 £34.14

5 28/06/2013 £33.93

6 26/07/2013 £33.43

7 28/08/2013 £34.11

8 27/09/2013 £33.80

9 28/10/2013 £33.88

 

Until we haven´t arranged a repayment plan our system still tries to

collect the full amount and also additional charges and interest will

be added.

 

Please note that with this repayment plan, you will have the loan for

9 months instead of the original 26 days which you agreed to when you

signed the Credit Agreement. Although there will be no additional

penalties added for the overdue time during the repayment period, a

small daily interest will remain and that is why the total of the

repayment plan will be slightly higher.

Please confirm if this is suitable for you, in order to finalize the

repayment plan."

 

 

I have stuck to it up till payment 4....

[renegadeimp]

You know they were lying to you and breaking the terms of their credit licence right?

 

Repayments are to be done on YOUR terms. NOT theirs.

[dakky]

You know they were lying to you and breaking the terms of their credit licence right?

 

Repayments are to be done on YOUR terms. NOT theirs.

 

No I didn't.

 

So I should I be making a complaint to them/someone else?

 

They're going to be getting £1 a month for now and I will pay until they have had the principal and one month's interest IN TOTAL and ignore any extra interest they have been adding yea?

[renegadeimp]

You need to write a formal complaint to the lender and the OFT.

 

With regards to what you owe, it depends on the contract you signed. If it is a 28 or 30 day PDL, then you owe the original loan, original CONTRACTED interest plus a fair default fee.