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 DAS with Payday Loans now in mess
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imacv1970
Just Joined

2 Posts

Posted - 05 December 2018 :  17:37:52  Show Profile  Reply with Quote
Hi, I am nearly 2 years into a 6 year DAS and my husband is 2 years into a 4 year TD. For the last year or so we’ve been struggling financially again due to having to repay money to family and friends, and some unexpected financial outlays we’ve experienced. This has culminated in me - stupidly - taking out several Payday loans which is nearly wiping us out each month. We are now in arrears with our mortgage, utilities and council tax and I feel like we are now drowning in debt again. I made a general enquiry with my DAS administrator about taking a payment break for a few months to get rid of these loans and get back on an even keel but have been advised this would only be considered in exceptional circumstances (ie a job loss, illness etc). Don’t know where to turn next....any help or advice would be appreciated.

TDA (Debt Adviser)
Trust Deed Expert



12692 Posts

Posted - 05 December 2018 :  20:26:49  Show Profile  Reply with Quote
Hi imacv1970 and welcome.

I'm sorry to hear that you're in this difficult position.

The first advice I'll give you is that some payments are more important than others. Debt advisers refer to these as "priority debts". These include payments like your mortgage, council tax, utilities, car finance etc. These are the things that will cause you the biggest problems if they get into a mess.

If there isn't enough money to pay everything, you should pay the priority debts first (before the payday loans, the DAS, the trust deed etc).

You should also contact each of the priority debts where you have arrears and agree a plan with them to get things back on track.

The second issue is probably the DAS. There is an issue if you take out additional debt or if you fall behind on current liabilities (like your mortgage). I think you need to face up to this and contact the DAS Administrator and be open with them about it. It doesn't seem like there's really an alternative to this unless I'm missing something?

The final issue of course is the payday loans. This is by far the least important of the issues. If there isn't enough money to pay everyone, they should be the last on the list.

Under consumer credit rules they should not expect payment from you if you have demonstrated to them that the repayments are not affordable. You can do this by contacting them and explaining your income and other important commitments. You might be able to agree a token payment with them, for example £1 per month.

I personally get pretty angry about this issue. There are public registers for DAS and trust deeds. Being in these debt solutions should be a red alert that, almost by definition, you had no chance of being able to afford to pay them back. This could give rise to an affordability complaint than could, sometimes, even result in the balance owed being written off. The payday lenders, it would seem, have done insufficient work in assessing whether you could afford to pay them back.

We don't normally link out to other sites from this forum much, but this article about payday loan affordability complaints is excellent and I'd suggest you have a read:

https://debtcamel.co.uk/payday-loan-refunds/

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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Kevin Mapstone
Trust Deed Expert



3625 Posts

Posted - 06 December 2018 :  14:28:01  Show Profile  Reply with Quote
Perhaps you could seek to reduce your DAS payments instead, therefore allowing you to set up repayment agreements with these new debts (particularly the priority debts as Trust Deed Assistant mentioned)? I guess the viability of doing so will really depend upon how much you can afford and how much debt there is to repay.

Or perhaps you may wish to consider switching to a different solution instead, if suitable, such as a Protected Trust Deed? Again whether this is suitable will depend upon the detail of your circumstances (and in particular whether there is significant equity in your property).

I guess what I'm saying is that there may be options open to you, so perhaps you just need to lay it out for your DAS money adviser and see what they can suggest? It obviously isn't easy for us to give good advice tailored to your circumstances over this kind of forum, but I'd be happy to try and do so if you were to get in touch.

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imacv1970
Just Joined

2 Posts

Posted - 10 December 2018 :  10:34:11  Show Profile  Reply with Quote
Thank you both so much for your advice, it is much appreciated.
We have agreed a repayment plan with our Mortgage Lender and our utility companies, and just now need to arrange something for council tax arrears. You mention that there is an issue if I take out additional debt whilst on a DAS plan, and that I should be open and honest with my Debt Administration. Can you advise what may happen to my DAS......is it likely they may remove me from the DAS....this is worrying.
Can anyone advise what rights a payday lender may have if I miss payments, can they send in bailiffs for example or could I be subject to legal proceedings?
Before embarking on the DAS I did enquire about a TD, but I'm afraid I was advised that I'm not eligible as I part own my elderley father's home.
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TDA (Debt Adviser)
Trust Deed Expert



12692 Posts

Posted - 10 December 2018 :  14:58:37  Show Profile  Reply with Quote
Hi imacv1970.

Unfortunately the answer is yes. DAS can be revoked (cancelled) in certain circumstances. Taking on new debt without permission and/or falling behind on important current commitments could each cause problems.

A new lender can only take formal recovery action of the type you mention after first going to court. They have the option to take you to court if they're not paid in line with the credit contract.

I'm sorry I can't give you a more reassuring answer to your questions.

Going back to your DAS Money Adviser seems like the right thing to do, in the circumstances you describe, to see if there's a chance to set the payment at a level that could help you to get back on track again.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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