Advice required please

[Dadsmada]

Have 2 payday loans that I intend defaulting on at the end of this month in order to get a repayment plan set up

 

One is £180 with one month loans ( rolled over once )

 

And one is with lending stream £350 ( one payment already made )

 

Have salary secured already but what is the best process in dealing with these companies in order to get a payment plan set up , avoid charges and avoid phone calls to work / mobile

 

Thanks

[renegadeimp]

Write to them and ask them to set up a repayment plan that YOU can afford and tell them to stop interest and unlawful charges. The phone calls can be sorted by the harassment letter in CAG library.

[Dadsmada]

Thanks for your prompt reply

 

Should I contact them in advance of defaulting?

 

Should I ask my bank to devoke the cpas ( can this be done over phone ) ?

 

Does the one month plus interest apply to lending stream as their loans are over 5/6 months?

[renegadeimp]

Yep. Contact them a good time ahead of defaulting so they cant use the excuse you didnt tell them. Make sure that everything is in writing and by recorded delivery so they cannot try and squirm out of their responsibilities.

[Dadsmada]

Would a recorded phone call suffice as it is difficult for me to get into the branch?

 

Renegade am I only liable for loan plus one mths interest with lending stream?

[renegadeimp]

With PDL's, the FOS have said that you are liable for the contracted loan amount, contracted interest and a default fee. The FOS won't talk about charges which is why PDL's think they can levy them. If the PDL does try to levy any charges, DEMAND they issue a fully itemised breakdown of the charges and what they are allocated to.

 

With CPA, you could do it by recorded call, but it is much better to do it in writing, and get it signed copied, stamped and dated so there is no possibility of the bank saying they didnt get your instruction.

[Dadsmada]

As its a 6 month loan would that mean I am liable for 6 months interest at 3000% plus?

[renegadeimp]

6 month loan isnt considered a PDL, its regulated differently and iirc is subject to a normal loan agreement. However, 3000% interest on a 6 month loan is astonishing. Is this a 30 day one, which they try and evade the law by continually rolling it over every month until it's 6 month birthday? Then they charge you the full whack of interest?

[Dadsmada]

In effect I borrow £350 and end up paying over 6 months - diff amounts each month and at the end of 6 months its cleared

Last month was £100 this month near £200 then it gradually decreases until 6 months is up

Might be their way of avoiding legislation

 

May 2013 75.00

Jun 2013 125.00

jul 2013 110.00

Aug 2013 95.00

Sep 2013 80.00

Oct 2013 65.00

 

This is example of a £240 loan

[renegadeimp]

Gotcha. so what they are doing is rolling over the loan each month then getting you to pay the interest and a small amount of the loan. That way, the next month, the loan is reduced and so is the interest payment. 450 repayment total on a 240 loan is nothing short of extortionate.

[Dadsmada]

U can clear at any time so not tied to complete 6 mths so is a payday loan IMO - just allows that facility to squeeze more money from you

[Dadsmada]

Would one months interest apply in that case

 

Already paid back nearly £100 on the initial amount borrowed

[Dadsmada]

By looking on this site I expect one month loans to be relatively easy couple of emails setting up 6 mth plan 1st month I can do up front but don't know how to approach the lending stream one

[renegadeimp]

Nope. Thats still not a payday loan. PDL's by their very nature are 7/14/28 day loans. If it exceeds this, then it is considered a "rolling agreement". It seems like a fair amount of PDL's are trying this new loan to evade their responsibilities.

[Dadsmada]

Any advice as to how to deal with them now you know the nature of the loan?

 

Thanks for all your advice so far

[renegadeimp]

Even though its not technically a PDL; since it is administered by a PDL, i would treat them the same way for now.

Edited June 11, 2013 by renegadeimp