Cash Till Payday

[MARK1882]

Hello again. IVA application is now in the post & hopefully will have arrived. Anyway here's the problem. Stupidly since being in my DMP plan I have taken on extra credit through payday loans etc to cover the cost of emergency repairs to my house. One of these is a debit card loan, the other is in the form of cheques to a certain company. Now my IVA application is going through I cannot be sen to be favouring one creditor over another. So in theory by paying the charges on these loans I will be jeopardising my IVA application. I have changed my bank account for my wages so there will be no money to take off my debit card etc. However, the cheques are a different story. As they are all "£100 guarenteed cheques" I do not think I will be able to cancel them with my bank. Not sure if they will honour them anyway. The question is really do I try & let the cheuques go through so the bank account becomes a creditor or do I
somehow try to cancel the cheques so the loan company becomes a creditor.
Either way I am expecting a load of hassle but life is never easy.
Thanks for advice.

[kallis3]

You will get hassle, regardless. I assume that your prospective IP is aware of these cheques and the debit card loan?

If not, you do need to inform them.

Not sure what you should do about trying to cancel them or letting them go through.

Hopefully one of the experts will be along soon with advice.

[Michael Peoples]

It is likely that the bank will dishonour some of these cheques as the guarantee is for one cheque per day. Clearly more than one was written at a time so the bank may try and get out of paying. Jan is right about notifying your IP as someone will be owed money.

[MARK1882]

Thanks. Yes will have to batten down the hatches. My IP is aware but we are still in very early stages so will have to see how things progress. Not sure about the cheques as they are only processed one per day by the company involved etc.

[johnnybriggs]

You certainly aren't alone in this situation, any experienced debt advisor speaks to dozens of people who have done this. The key is to stop doing it now and take action to deal with debts - exactly as you have done.

[kallis3]

Good luck Mark, hope you don't get too much hassle.

Please remember that you can come on here for a rant or support or advice at any time.

[MARK1882]

Thanks for all your help & support. Personally I am hoping the bank honour the cheques as I have heard some horror stories regarding the payday loan companies. ie Using debit cards etc.

[kallis3]

Do they have any debit card details Mark?

At least you know that all of these debts will be covered by an IVA.

I assume these cheques aren't from your new bank account?

[MARK1882]

They do not have debit card details as such. However, I have sometimes used a debit card over the phone the pay the monthly charges to themselves. I have read on other forums that they tend to use any method they can to retrieve their money.

[kallis3]

I hope they've not kept your details.

If this is the bank you have swapped to before going for the IVA, I suggest that you change to another one.

The Co-op are recommended by other posters on the forum.

[MARK1882]

No, I have opened a new bank account especially for the IVA application. THe other bank account is now empty so no-one would be able to take anything by debit card anyway.

[kallis3]

I think you'll be ok then - you just may have to put up with hassle from the loan company.

Now your application has gone in, hopefully it won't be long before your proposal arrives.

[Shining]

I hope that once you get going with your IVA process a little further and have explained everything in detail to your IP, it will resolve. Glad you've changed accounts and not sure about the cheque/debit card situation myself but all excellent advice above as per usual x

[MARK1882]

Well decision made now. The first of the cheques went out of the bank today with a £25 charge on top. Account now overdrawn £125. With another six cheques to follow I doubt they will honour many more.

[Brucelee]

Im in the early stages of an IVA and one of my debts is with Pounds Til Payday, they are REALLY not happy with me. They have phoned my work even before advising me that I had missed a payment. They said that they will get a detatchment of earning. Hmmmmm. Luckily my Boss knows my situation.