Payday loan company has cleared my account, what do I do?

24

Comments

  • mitchaa
    mitchaa Posts: 4,487 Forumite
    Surely a lesson learned?

    The debt has been paid back, you can rest easy now. Do not ever use payday loans in future. You're clear of them now, dont get sucked in again.
  • Orville
    Orville Posts: 1,900
    First Anniversary Combo Breaker First Post PPI Party Pooper
    Forumite
    Sazzle-cuz wrote: »
    Thanks for your comments, I have made a call to the FOS and am waiting to hear back. So if THL Direct were legally entitled to take £1015 from my account (albeit somewhat unethically), can they leave me in a situtation where I am unable to pay my rent, council tax and even eat? Also I have no idea where the sum of £1015 comes from as the original debt was just £255, should they provide some form of statement clarifying charges and interest?? I'm a fool I know but I'm tearing my hair out! I do not know what to do.

    In the mean time i'd open a different bank account with another bank and have my wages paid into a different bank. That way it can't happen again.
  • pippitypip_2
    pippitypip_2 Posts: 1,018 Forumite
    I'm so sorry to say, that the money they have taken would probably include ridiculous charges etc for the defaults. They can probably legitimise the £1015 one way or another. I really doubt there is any case for a refund either I'm afraid.

    I hope the FOS have some good advice, if there is any way to reclaim and re-set up a debt management plan then they'll be able to let you know, but I wouldn't get your hopes up.

    Do you have any kind of contingency plan, bank of Mum and Dad?

    pippitypip
    I know I'm in my own little world, but it's ok - they know me here! :D
  • hoggums
    hoggums Posts: 213 Forumite
    Tut tut,

    you weren't paying off one payday loan and were going to another company for another one. AND you had over a grand sitting in one of your accounts...
  • pippitypip_2
    pippitypip_2 Posts: 1,018 Forumite
    hoggums wrote: »
    Tut tut,

    you weren't paying off one payday loan and were going to another company for another one. AND you had over a grand sitting in one of your accounts...

    It doesn't seem to be over a grand just sitting in an account - that would be wages earmarked for rent and bills no doubt.

    Judging without any helpful advice is really UNhelpful, esp when someone is scared and isn't even talking to friends or family about this - just MSE.

    These kinds of queries are better off on the DFW board, less judgement, more help.

    pippitypip
    I know I'm in my own little world, but it's ok - they know me here! :D
  • I think you'll find if all I get is a grand a month wages it doesn't exactly make me the worlds highest earner, especially when my rent is £420, then you have gas, electric, water, tv license, council tax, need I go on. Thanks for your encouragement.....
  • Kimitatsu
    Kimitatsu Posts: 3,894 Forumite
    The reason that you will owe them that much money is that they will have just kept rolling the loan over again and again so that you are paying interest on interest. Typically these companies can be anywhere between 200% and 2000% interest a year, you should have a rate in your loan agreement.

    You can ask them for a breakdown but I would imagine that the loan agreement you have is correct and is legally binding but you can take it down to your local CAB to ensure that.
    Free/impartial debt advice: Consumer Credit Counselling Service (CCCS) | National Debtline | Find your local CAB
  • i have used payday loan companies got to say, never again, at the time, great ! bad credit, need the cash, suddenly there is a loan company to help you out .lovely, didnt think of the interest, took 4 months to pay £500 plus interest,Now when i am skint which is often, i come to this site, read about people mananging and their hope,support etc, & eat beans until the drought has passed, and it does.I dont smoke, drive or drink very often,so, luckier than most,i feel these companies almost take delight over the power they rein cos they know people like me have little or no option for credit.hope that OP gets through this
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  • zartub
    zartub Posts: 194 Forumite
    Sazzle-cuz wrote: »
    I think you'll find if all I get is a grand a month wages it doesn't exactly make me the worlds highest earner, especially when my rent is £420, then you have gas, electric, water, tv license, council tax, need I go on. Thanks for your encouragement.....


    you always get one ( some ) prat on here that really has no idear what it is really like to be living on low income ( like its only £1000 don't worry ) & get a friend or relative to lend you it ?????? some people really have no clue really !
  • euronorris
    euronorris Posts: 12,247
    First Anniversary Name Dropper First Post PPI Party Pooper
    Forumite
    OK, firstly, as there were two separate amounts taken, it's very important that you clarify whether or not that's correct. It's possible only one payment was meant to be taken, but as they kept requesting it in the days leading up to your pay pay, it's entirely possible it went through twice by mistake.

    So, request a full breakdown from them so you can be sure.

    Secondly, I believe local councils offer crisis loans. Linky here: http://www.direct.gov.uk/en/diol1/doitonline/dg_4017683 Have a read, and if you're eligible, apply!

    Next, contact your landlord, the council tax people, utility providers and advise them of the situation. Explain all the steps you are taking to remedy this situation and that you would really appreciate their understanding at this time, and let them know that the payment will be late this month (or may have to follow next month). If you can't afford double payments next month, work out how much you can afford to pay them each month to get back up to date.

    I know the above seems scary, but communication is key and you'll find more help if you let them know the problem.

    Another alternative is to talk to your work and ask them if they could provide you with an advance, to be repaid, directly from your wages, at X amount per month. However, only do this if it won't get you fired (banks etc don't take too kindly to their employees being in debt crisis).

    And then, do an SOA (statement of affairs), to see where you can cut back and make savings so that a) you can afford to repay whoever you still owe money to once this month is over, and b) so that you don't ever need to use a pay day loan company again. Linky here: http://www.makesenseofcards.com/soacalc.html If you complete this, and post it in the DFW (Debt Free Wannabee) boards then you will get lots of helpful suggestions and tips. :)

    And, of course, to make your food, and any money you may have left last as long as possible, search through the old style boards for ideas.

    Also, sell anything of value on ebay. See the up your income threads etc etc.

    I hope all that helps.

    xx
    February wins: Theatre tickets
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