Question about PayDay loans

[LooLoo]

A friend of mine has got herself in a bit of a pickle this month... and needs to borrow £300 sharpish so she does not go into rent arrears.

She wants to get a payday loan which she will repay by 31st Jan.

She is on an IVA and she is really worried that if she takes out this loan either a) the payday company will check and see that she is on an IVA and say no or b) the IVA company will hit the roof........

I've never looked at payday loans (except at the mega interst onthe adverts!! ) so i am really not sure what the criteia/checks are.

thanks

[BBoo]

Re: Question about PayDay loans

If it is really urgent, the Insolvency Practitioner may allow it, but it needs clearing with them first.

Normally people are not allowed to borrow further once in an IVA.

[LooLoo]

Re: Question about PayDay loans

Ah right thanks for this......... so in the first instance she must speak to her IP......

so just for arguments sake she just took out the loan and the IP found out (obv they will as she has to send them her bank statements) will she get in trouble?

[5corpio]

Re: Question about PayDay loans

As Bboo says........check with IVA, as it says in the T&C.........The IVA may allow a reduce payment that particular month which would help your friend rather than having to pay a % to payday loan on the £300.

[LooLoo]

Re: Question about PayDay loans

I said that to her - see if you can have a month off of the IVA payments but all her bills apart from her rent have left her account.... including the IVA Payment - I think she say gets paid on last day of month and all DD's/SO's come out on 1st apart from the rent which comes out on 19th...............

It's ridiculous that she is in the situation of having to pay that interest!!! But sadly she is a bit at the end of her tether........ It is no wonder that this firms do so bloomin well!

[5corpio]

Re: Question about PayDay loans

not too sure, but i think you can change the DD date with the IVA..........i remember i could with the CCCS, but again that was NOT an IVA set up.......might be a bit different.....Hope she gets it sorted Looloo. get her to tell the IVA in any sense (unless someone differs), as not really suppose to apply for credit/over draft or anything (unless she has another bank account which ain't on the IVA list and possibly get an OD temporary

[LooLoo]

Re: Question about PayDay loans

thanks scorps - i think she literally has no where else to turn.......

I've said to her to see if maybe her daughter can get the loan for her as it is only for 3 weeks - but not sure what her own committments are........

Personally I wish she had not gone for the IVA and had spent some time here - but she is not really au fait with computers and I think at the time thought the IVA was her only option.

She is such a nice person and does not deserve that and the worst thing - most of her debt has been caused for her trying to help our her kids and their partners........

[BBoo]

Re: Question about PayDay loans

I wouldn't take the risk of not telling her IP due to the potential trouble it cold cause - ultimately only she can make that decision.

The problem I see with this is if she takes the payday loan now, what state will her affairs be in this time next month when she's had to pay back God only knows how much to a payday loan company? Will she have the money for rent then? If not, she'll be financially less able, need to borrow a larger amount and the downward spiral begins.

Are there no friends or family who can help her? If not, I would suggest she talks to her IP about her situation and asks what she should do. Part of their role is to ensure she doesn't get into more debt.

If her IVA has been calculated correctly, technically she should not need to be in this situation, so is there something wrong with the IVA set up, or is it one of those things and your friend has just been a bit wild at Christmas without thinking through the consequences?

[garlok]

Re: Question about PayDay loans

Thanks BBoo. I was a little worried at the direction this was going. Its a bit like using a credit card to pay a credit card bill, using loans like this to pay monthly bills is serious decision and in most cases ends up in Skid Row.

I think as you say a talk with her IP is the best route before anything is decided. The IVA must be incorrect or her circumstances have changed and the iVA hasn't.

regards
Garlok

[LooLoo]

Re: Question about PayDay loans

Thanks BB

She has actually been really silly....... she leant someone some money who promised to pay her back... guess what - never materilised and what with Christmas.... you get the situation (she is not my friend she is one of my best friends sister - so i don't know too much of why she did this etc).

She has two children that live at home with her - and then another 3 who are with partners and have babies of their own.....and I think no one realises how much she is struggling........ (and as i said a lot of her debt was from trying to sort out things for her kids - one loan she took out was for her daughters ex boyfriend to start a biz with promises of him paying it back...... never happened.......... so she was stuck with it)

So the only thing I can really say to her is to contact IP and explain it all.

I think she may have exhusted the family and friends help...... and i think she feels she is old enough and should be able to sort out herself.

I think she must have asked my friend (her sister) for the money but she struggles most months herself so her sister suggested she contact me to see if I could find out any further information of best way of dealing with it - and my best way is coming here.......

So i wil get her to talk to the IP and worst case she will have to speak to her LL and see if she can defer just for this month some of the rent and try and sort it out next month............

[LooLoo]

Re: Question about PayDay loans

Thanks Garlok - I personally feel the same I would never steer anyone in the direction of a PayDay Loan (it gives me nightmares when i see those silly adverts)

Thanks so much everyone for your help with this - I am sure she will get something sorted

xx

[BBoo]

Re: Question about PayDay loans

Fingers crossed for her! A hard lesson to learn, but someone in her position can ill afford to be lending money. I hope she tells this supposed 'friend' how much trouble they have caused.

[LooLoo]

Re: Question about PayDay loans

Totally agree FP!!

and thanks so much BB - i now about he money lending...... it is ridiculous................ as i say she is not my close friend - she is my friends sister and does not live us - otherwise i might have to give her a slap hehehe - at the very worst case she will have to ask her mum and dad but they both are not very well lately and i know over the years they have lent her money before......... I am sure she will get it sorted and hopefully without the PDL!

[Never-In-Doubt]

Re: Question about PayDay loans

I just read this, left and came back.

I can't believe you even mentioned a PDL on here!!!

Are you stark raving....?

No offence, step back loo and suggest she speak to her ip as its illegal to borrow when you do iva/BR and she could go to jail

[LooLoo]

Re: Question about PayDay loans

yep Nid def told her that!!!

She just asked me about it all hence i asked here - as I have NO knowledge of these as FP says "Loan Sharks"

just wished she had spoken to me in more depth and i could have got her on her a year ago - i even offered go down and go through things with her and get her set up on here as I am sure an IVA was not her best option but hey ho only so much you can do.

as i say she is my friends sister and it was just to see what she could do - I've done my bit now and hopefully she will get it sorted

don't worry i won't be mentioned PDL again -promise!!