Cheque Centre - Payday loan hell

[freeofdebt1]

Hi,

Currently I am in the situation of having a loan of £1000 with the Cheque Centre, as I cannot afford to pay this off they debit my account for £1275 per month interest and I go back to them each time for a loan of a £1000. This has been going on for a while now. The situation has me depressed and there is no way out of this situation I can see. I plan to bite the bullet this month before they take the money of me and cancel my card and email them to see if they will agree to a repayment proposal. I am not too confident however as I have read horror stores concerning this company issuing arrest of earnings, ccj's and not to mention multiple calls to work which I am terrified about. Can anyone assist please? any advice would be appreciated.

Thank you

[citizenB]

If you have signed or authorised a Continuous Payment Authority, your first stop is the bank. They MUST cancel this as soon as you tell them, this is in new instructions issued by the FCA in the last couple of days.

 

Once you have done that then you need to contact the company and enter into a Payment arrangement. Almost certainly they will not make it easy for you.

 

Hold tight and I will find a draft letter for you and the link to the instructions from the FCA.

[citizenB]

Ok, here is the letter you need to send them.

 

 

 

 

 

 

[Your address]

 

 

 

 

[Their address]

 

[Date]

 

 

 

Dear Sir or Madam

 

Account No/Reference No: XXXXXXXX

 

Since making that above agreement with you, my circumstances have changed. I cannot now afford the previously agreed monthly payments because [your reasons added here]

 

I attach a Personal Budget sheet which shows my total income from all sources, and my outgoings. As you can see I only have £xx.xx per month left for my creditors. The offers I have made to my creditors have been calculated on a pro-rata basis, and I have written to all my creditors asking them to accept reduced payments.

 

In view of these circumstances, please would you agree to accept a reduced offer of £xx.xx per month. If interest or other charges are being added to the account I would be grateful if you would freeze these so that all payments made will reduce what I owe.

 

 

Should my circumstances improve I will contact you again. In the meantime, I would appreciate it if you could send me a paying-in book / standing order form to make it easier to pay you.

 

 

Thank you for your co-operation in this matter, I look forward to hearing from you as soon as possible.

 

Yours faithfully,

 

PRINT OR SIGN DIGITALLY

 

 

 

And here is the link to the information regarding the cancelling of CPAs. If your bank gives you any hassle, simply point them to the information in this link.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?395493-Been-refused-cpa-cancellation-since-nov-2009-Go-get-your-money-back-now

 

 

I have also attached a budget sheet below for you, so that you can see how much disposable income you have and you can then work out how much you can reasonably afford to repay.

 

Ellens Budget Sheet.xls

Edited July 3, 2013 by citizenB