Another Lending Stream thread.

[eugenespeed]

Hi

Been reading this site, sounds like you guys are doing a great job and know your stuff.

I have just moved into a new flat and as a result am pretty skint anyway. I'm also on benefits and not working.

I received a couple of large bills over the weekend, panicked and without thinking about it, got a PDL to pay off the bills, thinking that I would be able to afford to pay them off over the six months. After reading their automatic payment schedule and working out my money, I couldn't.

I admit I was rather wreckless in getting the loan in the first place, but what's done is done.

Lender: Lending Stream
Amount: £200
Amount after Interest: £440 (presuming I paid it off over six months)
Payments made: None
First payment due: August 31st.

I rang LS and got through to an advisor who after I first said "I couldn't afford the repayments" basically apologised for the inconvenience, but I still had to pay them. I repeated myself and said I would be back in touch after speaking to a third party and could he cancel the automatic payments. He did so for a month.

I backed up this phone call with an email stating the same and demanding they cancel ALL the automatic payments. To give them credit, they have done, but want me to ring them and arrange a payment plan. I know from reading previous posts this would be a bad idea and all communication should be in writing.

Now, I'm not too sure of my next move. Thank to some debts from a failed marriage, my credit rating is already in the bin, so I'm not worried about that. I'd be a little tempted just to tell them where to go, but I guess if I want to avoid any hassle, I should at least approach them regarding a token payment. Ask them to freeze interest and accept a pound a month until I am in a situation in which I can repay them.

The wheels are in motion for me declaring bankruptcy anyway. I know I was advised that I shouldn't get in any more debt as this could be seen as fraud, but the loan was to pay bills and not to go on holiday or on a night out.

Would you advise anything? Thanks.

[vint1954]

Re: Another Lending Stream thread.

The first thing to do is to ensure that any continuous payment authorities are cancelled, if you cannot cover the payments.

As far as the fraud is concerned, I think that would depend on any formal moves that you have made towards bankruptcy. If you have not made any formal arrangements as yet, I doubt that they would consider £200 as fraud.

[eugenespeed]

Re: Another Lending Stream thread.

Firstly, thank you for your reply Vint1954.

This is the email they sent me:

We apologize for the delayed response and thank you for your email.

We would like to inform that you have an active loan account with the agreement number xxxxxxxx

We have discontinued the "Continuous Payment Authority" on your account and will ensure that no further payments are taken from your account until instructed otherwise, effective from 20th August, 2013. While we have turned off our payment withdrawal system as per your request, please note that revoking such payment authority does not relieve from your obligations with respect to the amount due under the above mentioned loan agreement.

We are willing to work with you to help the outstanding balance, and suggest setting up a temporary arrangement whereby you can make affordable monthly installments to avoid going in to default. Failure to do so could result in additional fees being added onto your account as per the agreement and may impact your credit rating. Please contact a member of our helpful customer care on 0845 351 1482 at earliest to set up an alternative method of repayment.

They then went on to give me three methods of making payments.

Regarding my bankruptcy, I have not actually started formal proceedings. The local CAB are making an application on my behalf to have my fees paid by a local charity at the moment.

Thanks again.

[Deepie]

Re: Another Lending Stream thread.

I've just deleted that agreement number.......just to be on the safe side...

[eugenespeed]

Re: Another Lending Stream thread.

Hi Deepie.

Sorry, I didn't think. Thank you.

[vint1954]

Re: Another Lending Stream thread.

The important thing now is to ensure that they freeze interest. I would tackle that with them next

[eugenespeed]

Re: Another Lending Stream thread.

Right. I'll drop them another email.

Thanks again.

[eugenespeed]

Re: Another Lending Stream thread.

Sent them an email basically saying I'm unemployed, I have no money. I was going to pay you back in full, now I can't, please freeze interest until I am in a position that I can". But politer!

As soon / if they reply, I'll be back in touch.

Thanks again.

[oscar]

Re: Another Lending Stream thread.

I would also call your bank tomorrow and make sure the CPA is cancelled there. If it isnt, they can cancel it. Whats more they are obliged to under the Continuous Payment Regulations - so dont let them fob you off.

Wouldnt be the first time a PDL company has just gone ahead and taken money from someones account anyway.

[eugenespeed]

Re: Another Lending Stream thread.

Thanks Oscar.

Just rang my bank and they've went through and cancelled the lot.

So that's both LS and my bank informed to cancel.

The PDL haven't replied to my last email yet.

[SaltnVinegar]

Re: Another Lending Stream thread.

Hiya

Ok, the main thing is the CPA has been cancelled.

So onto the slightly more tricky one - the application for BR. Have you gone through with CAB yet all the debt to be added to the petition?

Now Lending Stream may huff and puff about the fact you may have known you were going for BR when you made the application for the loan with them, but TBH their is a case of irresponsible lending on their part also.

[eugenespeed]

Re: Another Lending Stream thread.

I'm going to make two posts if I may.

Firstly, I dropped them an email last night saying "I had just lost my job". In truth I've been unemployed for a few months now, but I thought it may have sounded better. The jist of the email was to basically ask if they would freeze interest.

I received this reply from them today and it has actually surprised me a bit.

We are sorry to hear about the loss of your job. This is to inform that you have one active loan account with the agreement number xxxxxxx

For your reference, the outstanding balance on your loan account as of today is £260.00.

We would request you to send us your last employer's relieving letter, P45 or job seeker's allowance form in a non-editable format (jpg/pdf) along with the Income and Expenditure details.

We are surely willing to help you in clearing your outstanding balance and can provide you with an extension for up to 10 days or we can setup the partial payment option on the loan agreements where you can make an upfront payment (partial payment) for this month and the remaining payment you can make along with your next months payment.

For your information, if you would like to set up a partial payment arrangement, Lending Stream is required to report all loan status to credit bureaus at regular intervals. Your decision to enter a partial arrangement will also reflect in your credit file. Please confirm you understand and agree to this.

NOTE: We have stopped our automated system permanently to make any further transactions. We have attached the Income & Expenditure form in this email for your convenience, please fill it and send it back to us.

And it goes on to give the same bank details again.

I don't have any of them. I could give them a bank statement with proves I'm on ESA and how little money I have, but that's it.

Any advice?

[eugenespeed]

Re: Another Lending Stream thread.

Hiya

Ok, the main thing is the CPA has been cancelled.

So onto the slightly more tricky one - the application for BR. Have you gone through with CAB yet all the debt to be added to the petition?

Now Lending Stream may huff and puff about the fact you may have known you were going for BR when you made the application for the loan with them, but TBH their is a case of irresponsible lending on their part also.

Now, I've just discovered to reply with quote. Hurrah!

Thanks for your reply SnV

I did start a bankruptcy petition last year, but I didn't finish it (I.e the form wasn't completed, let alone went to court!) as I didn't have the fee.

However, now CAB are taking me through a process where I can get the fees paid by a local charity. If I am successful with this, I will be then starting a fresh application which will include my previous debts and if I am allowed, this one.

Long story short, I've not done anything official towards bankruptcy yet.

[SaltnVinegar]

Re: Another Lending Stream thread.

And it goes on to give the same bank details again. I don't have any of them. I could give them a bank statement with proves I'm on ESA and how little money I have, but that's it.

No don't give them your bank statements or anything else. Only encourages them. In fact right now you only need to send them one further email which I will give you below.

Any advice?

Yes - stop lying to them. You're digging yourself a deeper hole, it's not necessary and gives them leverage over you. If they have lent you money without making a proper affordability assessment then thats their problem and they know it. Don't give them any ammo to shoot you down.

Did you make any statements when you applied for the loan that may have been stretching the truth somewhat? (i.e. did you state you were employed when you were actually on ESA?)

I'm not going to be judgmental at all (we all do what we have to do to keep heads above water) but need to know the facts before I can offer some sound advice.

So with that in mind your final email to them should be as follows:

Dear PDL Company

Please be advised that I am currently discussing my financial situation with the Citizens Advice Bureau and am seeking advice to the best options available to me.

While I am seeking professional advice I ask that you respect OFT and responsible lending guidelines in ceasing communication and requests for payment and would also request that you freeze interest and charges until I am in a situation to resolve my financial difficulties, when I will contact you with my debt advisors proposals.

Regards

Eugenespeed

[eugenespeed]

Re: Another Lending Stream thread.

No don't give them your bank statements or anything else. Only encourages them. In fact right now you only need to send them one further email which I will give you below.



Yes - stop lying to them. You're digging yourself a deeper hole, it's not necessary and gives them leverage over you. If they have lent you money without making a proper affordability assessment then thats their problem and they know it. Don't give them any ammo to shoot you down.

Did you make any statements when you applied for the loan that may have been stretching the truth somewhat? (i.e. did you state you were employed when you were actually on ESA?)

I'm not going to be judgmental at all (we all do what we have to do to keep heads above water) but need to know the facts before I can offer some sound advice.

So with that in mind your final email to them should be as follows:

Dear PDL Company

Please be advised that I am currently discussing my financial situation with the Citizens Advice Bureau and am seeking advice to the best options available to me.

While I am seeking professional advice I ask that you respect OFT and responsible lending guidelines in ceasing communication and requests for payment and would also request that you freeze interest and charges until I am in a situation to resolve my financial difficulties, when I will contact you with my debt advisors proposals.

Regards

Eugenespeed

Hi SnV

Thank you for your message. From now on I will follow the advice given by these forums and be 100% truthful. I realise I made a mistake and I do regret it. Thank you for being so kind in your reply.

I did lie. My status with Lending Stream (I have used before when I had money and paid them back no problem) still says I was employed and I used these same details when I got the loan on Sunday.

Is it still okay to send the abovementioned email?

Thanks, and I guess I owe you guys an apology.