GLASGOWOODS Posted September 17, 2013 Share Posted September 17, 2013 Hi all. So a young lad at work had major surgery and couldn't pay all his bills on the sick-pay he received.He eventually fell into the "payday loan" trap and got himself into a bit of a pickle. He thought (after reading comments on other forums) was to report his card lost to his bank, and that would put a stop to continuous payments. However,the PD companies still managed to clear his bank account out.This ultimately left him skint and unable to pay his "priority" bills. I told him he needs to cancel the CPAs directly with his bank! Then inform the PD loan companies by letter (special delivery) e-mail and to call them to set up a payment plan. I didn't know this until looking at FCA (financial conduct authority) website. The site also states that if you instruct your bank to cancel the CPAs,but the PD companies still manage to take the money,then the bank has to refund you immediately. So forummers. I'm looking to see if anyone else has had this problem on the forum. I know it's a delicate topic to discuss,but I would like to put my young colleagues mind at rest. Oh! Please no "high horse" comments. Thanks! Link to comment Share on other sites More sharing options...
geared Posted September 17, 2013 Share Posted September 17, 2013 Has he considered declaring himself bankrupt? Link to comment Share on other sites More sharing options...
GLASGOWOODS Posted September 17, 2013 Author Share Posted September 17, 2013 Has he considered declaring himself bankrupt? I would imagine that's a last resort. He wants to pay what he owes. Link to comment Share on other sites More sharing options...
geared Posted September 17, 2013 Share Posted September 17, 2013 That might depend on if all his creditors start making charges for non-payment and adding to the original debt. What he owes can quickly spiral out of all control if they start charging him. Link to comment Share on other sites More sharing options...
GLASGOWOODS Posted September 17, 2013 Author Share Posted September 17, 2013 That might depend on if all his creditors start making charges for non-payment and adding to the original debt. What he owes can quickly spiral out of all control if they start charging him. I think it's in the payday loans best interest to freeze any extra charges. Strangely enough,some advice given on websites is to let the debt be passed on to collection agencies. Apparently they are more willing to negotiate a better outcome for people. Link to comment Share on other sites More sharing options...
Manlinose Posted September 17, 2013 Share Posted September 17, 2013 Has he considered declaring himself bankrupt? it depends on lots of other issues - not least of which is the amount of debts he has, the value of his assets (if any) and his disposable income. bankruptcy may be his best option, but there are lots of other options to consider before taking that route Link to comment Share on other sites More sharing options...
JennyB Posted September 17, 2013 Share Posted September 17, 2013 I would direct him to stepchange.org or for him to contact them on 0800 1381111 He can do a budget planner online or over the phone and they will help him with template letters etc to offer token £1 payments to his non priority debts. Step change used to be the CCCS. They have an article on their website about continuous payments. Hope this helps and bravo for helping him out yourself. Link to comment Share on other sites More sharing options...
bassy Posted September 17, 2013 Share Posted September 17, 2013 Tell him to contact the CAB, they sat and helped a family member of mine fill out a comprehensive list of all their bills, debts and outgoings and then contacted each debt and had any interest immediately frozen and arranged a suitable and realistic repayment plan to which he had to sign agreements that he would adhere to them, put his mind at rest as well as cutting his monthly outgoings down by a third on debts alone, maybe it's worth a try before being made bankrupt as a last resort Link to comment Share on other sites More sharing options...
Manlinose Posted September 18, 2013 Share Posted September 18, 2013 bear in mind he would also have to pay £700 to make himself bankrupt! Link to comment Share on other sites More sharing options...
kidneystone Posted September 18, 2013 Share Posted September 18, 2013 Has he considered declaring himself bankrupt? I would imagine that's a last resort. He wants to pay what he owes. Just like Kerry Katona, bankrupt twice and now living in poverty . Did anyone see her on Through The Keyhole last Saturday. She lives in a massive house with indoor swimming pool and furnished to the hilt, all paid for by the creditors she has had another one over on Link to comment Share on other sites More sharing options...
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