How does payday lenders take back their money?

Karamos

Hi,
I am wondring how does payday lenders take back their money. Does any one know how they do it?
If I cancel the card that I had given to them what is going to happen? Or even If I cancel my bank account and create a new one are they lossing their's money?

Thanks

Tixy

Depends on the broker and the terms & conditions you have signed up to.

Usually they first try to take it out via your bank card. If that has been cancelled some banks will still pay out the money, most don't (some banks often reissue you a card with the same number anyway if you say its lost so the payment would still go through).
Then some payday companies will next try to take it direct out of the bank account (the T&C might state something that means this is allowed - they usually have your bank details from when they paid the money to you).

If you have closed the account the bank may still honour the payment -in which case the bank would then be chasing you for the money. If the bank refuses the payment the payday loan company will then start chasing you for payments, so lots of letters, adding on charges, debt collectors contacting you etc, sometimes even going as far as taking you to court.

Just changing your account won't get you out of having to pay. But when people really cannot afford to pay they are often advised to cancel the card/close the account and then try writing to the payday loan company asking to pay in installments that you can afford.

Apples2

Sounds like a community without a pillar

KingElvis

If you change your bank account, the debt goes away, is written off and you'll have nothing to worry about.

No, just kidding, the Payday sharks you borrowed from will hound you like a dog until they get their money back including making you overdrawn at your old bank and sending round Barry the Baptist.

paddyrg

Don't forget you will rack up charges and interest if they have to chase you - and they *will* chase you.

webuyanyhouse

king elvis - you are absolutley hilarious mate.

KingElvis

webuyanyhouse wrote: »

king elvis - you are absolutley hilarious mate.

Why thanks, I appreciate that :rotfl:

Truth can be harsh sometimes so why no pepper it with a joke or two?