Lender playing unfair?

Goldfishy

Hi,

I know it was proboably not the best financial decision I've ever made, but a couple of months ago I borrowed £300 from PayDayUK, with plans to pay them back when I got paid.

For various reasons, I deferred the loan until the following month, paying only the interest that month. I have recently been made redundant, but I start a new job in a couple of weeks. I was due to pay the loan off on the 8th of July, but with my redundancy, I decided to again defer the loan payment. On the 7th of July I tired to log into my PayDayUK account and defer the loan, but every time I tried to log in, I got a message saying that my account was locked and I had to call their customer service department. I tried to call, but got no answer. There was unsufficient funds in my bank account for the full loan payment to clear, so unsurprisingly on the 8th I got a call from PayDayUK looking for the money. I explained the situation, that I was unable to log into my account to defer the loan, and that I could not reach anyone on the phone. I also explained about my redundancy and my new employer. The person on the phone then said they would need to call my new work and confirm that I would be working there, then they would be able to set up the deferred payment. I gave them all the details they needed to confrm with my new employer that I'd be working there. However, yesterday, PayDayUK debited the full loan payment from my account, sending me £152 overdrawn from my Abbey account. So right now, I have no money, bank charges and direct debits hitting my account this week, all of which will bounce.

Am I right to feel very annoyed at PayDayUK? Through no fault of my own, and against what PayDayUK told me on the 8th, I am now in a very uncomfortable predicament. Had they kept to their word, they would have collected the deferral interest payment only, and I would not be pennyless and £152 overdrawn.

Just while I'm ranting away, is it right that Abbey would allow my account to become overdrawn by so much? I would like to have hoped that if I couldnt afford something then Abbey wouldnt honour payment for it.

Does anyone have any advice or suggestions as to the best way to deal wth this when PayDayUK open tomorrow?

Many thanks,

Fish

LeeSouthEast

Was this by Direct Debit? If you get nowhere with PDUK, you could instruct Abbey to refund you under the DD Guarantee, thus returning you to (almost) normality.

From the BACS website:

"If the amount to be paid or the payment dates change the organisation will notify you normally 10 working days in advance of your account being debited or as otherwise agreed. If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid."

Goldfishy

Hi,

Unfortunately it was a debit card payment. When I phoned the bank they said there was nothing they could do from their end.

Fish

talana

I can't help thinking that in a sense they've done you a favour by paying off the loan in full.
The last thing you want is to defer a payday loan month on month. It's a downward spiral and before you know it you could be owing a hideous amount.
Personally I'd rather be dealing with the bank. If you know your direct debits will bounce next week then cancel them BEFORE that happens. Otherwise you'll only rack up charges for no reason. Then talk to the bank about temporary overdrafts and any other possible solutions.

jonesMUFCforever

I suspect that OP would not get a loan or overdraft from his bank otherwise he would not have gone to Payday loans in the first instance.

pmcg01

Goldfishy wrote: »

Hi,

I know it was proboably not the best financial decision I've ever made, but a couple of months ago I borrowed £300 from PayDayUK, with plans to pay them back when I got paid.

For various reasons, I deferred the loan until the following month, paying only the interest that month. I have recently been made redundant, but I start a new job in a couple of weeks. I was due to pay the loan off on the 8th of July, but with my redundancy, I decided to again defer the loan payment. On the 7th of July I tired to log into my PayDayUK account and defer the loan, but every time I tried to log in, I got a message saying that my account was locked and I had to call their customer service department. I tried to call, but got no answer. There was unsufficient funds in my bank account for the full loan payment to clear, so unsurprisingly on the 8th I got a call from PayDayUK looking for the money. I explained the situation, that I was unable to log into my account to defer the loan, and that I could not reach anyone on the phone. I also explained about my redundancy and my new employer. The person on the phone then said they would need to call my new work and confirm that I would be working there, then they would be able to set up the deferred payment. I gave them all the details they needed to confrm with my new employer that I'd be working there. However, yesterday, PayDayUK debited the full loan payment from my account, sending me £152 overdrawn from my Abbey account. So right now, I have no money, bank charges and direct debits hitting my account this week, all of which will bounce.

Am I right to feel very annoyed at PayDayUK? Through no fault of my own, and against what PayDayUK told me on the 8th, I am now in a very uncomfortable predicament. Had they kept to their word, they would have collected the deferral interest payment only, and I would not be pennyless and £152 overdrawn.

Just while I'm ranting away, is it right that Abbey would allow my account to become overdrawn by so much? I would like to have hoped that if I couldnt afford something then Abbey wouldnt honour payment for it.

Does anyone have any advice or suggestions as to the best way to deal wth this when PayDayUK open tomorrow?

Many thanks,

Fish

I Assume you gave them the debit card details then if they took it from that - if so, then I owuld ask why, if you di dnot agree to pay it - if not then it is an unauthorised payment by them and they should not have done it and I would ask for proof you agreed.

I would not rock the boat too much though, as you are due them the money and for these types of lenders, they have been accomodating to you.

talana

jonesMUFCforever wrote: »

I suspect that OP would not get a loan or overdraft from his bank otherwise he would not have gone to Payday loans in the first instance.

Hmm, fair point.
If it comes to the worst, the OP can of course always get another payday loan from somewhere else. But if it were me, I'd still want to at least look at other options first.

PaydayUk charge a typical 1737% according to their website.
If that's what the OP was on, he would have been paying £178 per month to defer it. Just to stand still in other words. Can't be good!
If the bank won't help, then in the short term sell things, pawn things, borrow from family, ask for a salary advance from work, ask to increase your work hours, stop going to the pub etc. Just thinking aloud here

Snakeeyes21

No the op would be paying the interest of £75 per month to defer it, the interest they charge is £25 per £100 per month.
the figure you quoted was the APR, if it was paid over a year which it isnt.
payday loans are only meant to be for a month.
why would you feel angry with paydayuk? They have done what you requested, taken the money you agreed to pay on the day you specified.

talana

APR calculations always make my head hurt!
These loans are only meant to be for a month I agree, but it they're deferred several times then it could be many months.
You should still be able to use the APR to calculate the payments surely?
I went to a snowball calculator, plugged in 1 debt, £300 balance, 1737% apr. If you then play around with various repayment amounts, see what you get.
Oh well, it's late, too late to be doing maths!

iceland_viking

Im reclaiming my charges with Payday loans......noone has done this before, so keep watching this space!

spikescot2005

Im reclaiming my charges with Payday loans......noone has done this before, so keep watching this space!

What charges are you claiming back?