Major Problem - Ealing Trading Company LTD (handycash.co.uk)

londonboy2010

hi everyone, MSE Newbie here :j

I have a massive problem i was paid my income support on monday 01st march 2010, and noticed at 08.34am a debit was taken for £50.00. I nearly had a heart attack as income support i get is £120.00 and suddenly it said £70.00. I had a loan from HandyCash.co.uk for £200 about 3-4weeks ago it was due. I didnt pay it back on the day and they wrote to me with debt letters etc. I can confirm it was Ealing Trading Company limited that took the £50.00. Are they allowed to do this even though the total i owe is way over £200-£300. and without my permission?

thanks everyone i hope someone can advise.
:money:

John.

benoit

How did they get your bank details? Were you meant to pay back the whole lot in one go or £50 installments?

londonboy2010

hi, yes i was meant to pay back the £200 + interest totalling approx £257 in one go they would automatically take it. it has been at least 2 and a half weeks and they have taken £50

benoit

Out of interest. Are they one of these companies who automatically charge a fee for use of their services without telling you?

londonboy2010

No, it was a payday loan company no upfront fees and no transfer fee i had £200 paid but didnt pay it back on my payday.

benoit

And what penalty do they give you for not paying on the day? A £50 fine by any chance?

benoit

Smack bang in the middle of their hompage is this -

Other Potential Charges...

We don't charge any administrative charges or any hidden little extras for a standard loan. But if a customer defaults on their loan, we reserve the right to charge a fee to cover the adminstrative expense incurred to recover the loan.

There's your £50, and that's on top of what you already owe. I'd get on the phone sharpish if i were you & start negotiating full repayment because they could be making a further charge on you for every week you are in default and with a Typical 1355% APR i think i'd be changing my pants about now.They are probably charging you for the letters they have sent you so far.

There's a very good reason why payday loans should only be used as a SHORT TERM loan.

londonboy2010

oh my good god, so if i have no money in my account they will get declined if they try to take money out?

benoit

Depends what account you have. You could end up getting in even more trouble with your bank if you go into unauthorized overdraft. Seriously, you will be screwed if you don't get this loan paid off asap. You urgently need to call them and work out a repayment plan with them because this could be potentially very damaging to your credit file.

londonboy2010

i have a basic bank account with no overdraft facility

benoit

Well that's not so bad but it doesn't mean you don't need to worry about the loan spiralling out of control. I really would urge you to get this loan off your back asap because you could end up in real trouble paying this off with the horrific interest that will now be piling up. This could get out of hand very quickly if you don't act fast.