Payday Loan-minicredit.

Harper75

I took out a payday loan about 2 months ago to the tune of £250 with a co. called Minicredit. I was due to make a payment on the 8th December but couldn't afford the minimum payment until I got paid on the 15th. I told then I would struggle to make the payment. However they would not cooperate and when I got paid on the 15th they took £470 out of my account. I could not stop it going out. This is half my monthly salary and has totally screwed me over. I now have bills I can't meet. I am so angry with them. Surely they just can't take money out my account like that? And £470 is almost double the original loan. Thanks for listening.

complimentschemistry

Hi Harper,

First of all I'd speak to your bank to see why they authorised this much money coming out of your account. And payday loans usually come out on your payday thus the name, so you should speak to them and see why they took it out before you got paid. At least this will start you on the right track to getting this sorted.

Hope this helps

dreamdreamer

Unfortunately they can (and will!) just take the money out of your account. They're entitled to do this in most cases, especially if the account is overdue. £220 in interest over 2 months is, for a payday loan, actually pretty low. About 528%. Some are up to 3000%.

I'm intruged as to why it was due to come out on the 8th though, when you get paid on the 15th. That nature of a payday loan is that it comes out on your payday! Why was the repayment date set up for the 8th?!

ciscokid

You agree to the repayment date when you take the loan. They email and text you days in advance of it coming off and often try to have you defer the repayment (more £££ for them). I fell into the same trap but I used to borrow from one to pay the other and accept that I would have to lose the interest in the middle. One day I got hit with an unnecessary cost of £1000 (long story) which ruined my ability of paying these back and I was unable to pay back both companies for quite some time. Never let it get to that stage!!! Borrow from another company and try to gradually reduce the amount you borrow and increase the amount you pay back, this is the only way you can stagger the payments on these type of loans. Its hard work, providing you don't find yourself where I did it should be possible however!!

Harper75

When I set up the payday loan the due date was just automatically set to the 8th December, one week before my payday. I have other payday loans but they go out on my pay day and becsuse of what has happened some of these payments have not gone through.

vitalisd

Some payday loan companies are not strictly speaking "pay day" loan companies, though most are. Some simply offer 30 loans, which means repayment dates can fall on any day of the month depending on when the loan was taken out.

saltnvinegar

Hi Harper75

You need to understand the repayment mechanism of payday loan companies and when you do you will realise that the payment date you have is irrelevant.

Most payday loan companies ask you to give your debit card details. The reason being in the small print of the contract you invariably authorise them to set up something called a 'recurring payment authority' or 'continuous payment authority'.

This effectively means that they can take what they like, when they like, to recover an outstanding amount.

There is nothing your bank will do about this, its perfectly legal, though morally questionable. Have a look at a thread I started on this for more detail and advice:

Dealing with payday loan companies

Best

SnV

JayJay11

This company are bad news, they have made 3 searches on my credit profile and have took 1p out of my bank... Not sure if theres anything i can do about it though, i got pretty angry about them taking a penny from me, especially when i don't have any loan with them!