Can PD Loans take money..

abc1989

Hi All,

I'm in a DMP and one of mycreditors are a PD loan company. They are aware that I am in a DMP and have agreed with a settlement payment each month.

I have just checked my bank this morning, (I currently have a payment plan in place at the mintue with my bank to pay off my £500 debt with them) and again a P.D loan company (Cash Genie) have taken a total of £320.75, taking my debt way up to £820.75 with the bank and this means have broken my plan with them. I'm on my last chance with the bank (apprentley) I broke my plan with them last time due to Lending Stream taking money out of my bank which wasn't really there.

Is there anything legal I can do i.e. take them to the F.O? - I have asked the bank to block any payments coming out but they have refused and I have asked cash genie & lending stream not to take any money as I'm in a DMP and they have ingnored this!

dancingfairy

Not really no. They are allowed to take the money out of your bank account - it's probably in their terms and conditions or something
All you can do is get a new bank account asap as payday loans will continue to rinse your bank account if you let them - including to pay their extortinate charges and they will take out 10, 20 pounds at a time - whatever they think they can get- sorry.
You need a new bank account to get any wages/benefits paid into - you will probably need a basic bank account as you probably won't get a standard one due to your money problems.
At least from a new bank account you are in control and can pay off your old bank account at a pace that suits you rather than being held to it by threats of having your living money taken.
df

RAS

Really really your DMP provider should have told you to close your bank account before you went into a DMP with payday loans.

abc1989

Thanks,

Yes I have done this already my wages are safe, I'm just concered about the plan I have in place at the mintue with the bank!
They have gave me £710 overdraft to be used to stop charges etc., It goes down each month after they have recieved a payment from me.

I paid £100 this month so it went back down to £610 now its rocketed out of the overdraft and my plan!
It's a nightmare!

abc1989

RAS wrote: »

Really really your DMP provider should have told you to close your bank account before you went into a DMP with payday loans.

Unfortunatley I couldnt as I owed money on the account to the bank !

eyeopener2

I owed £1800 on my overdraft and closed the account when I entered my DMP, the overdraft is just another creditor. You should been advised to do the same. CCCS insist on you changing bank accounts.

WHo are you with?

Tixy

abc1989 wrote: »

Unfortunatley I couldnt as I owed money on the account to the bank !

Is your overdraft part of your DMP? it should be and then they would close the account so you can pay off the balance on the closed account.

Who is your DMP provider?

Hannah_10

No no, you can change bank. You just open a new basic account. I recommend Cashminder from Co-Op (don't allow yourself to be upsold something else). You don't need to formally "close" your old account. Get a new account, do it this afternoon. Then have your wages/benefits moved, you can do that this afternoon too.

Until you do close your old account, the payday loans sharks can keep dipping it, so another option I would ask you to consider is going in to your bank branch and speaking to your bank face to face to explain what has happened, and that you need to close this account. Explain to them that if they do not default and close the account you will not have money to eat and live on. (Say "to eat" as well, food is the top priority). This means you will have no choice but to abandon your account, ignore statements and wait for it to be passed to a debt collection agency. Also say you realise that the DCA are not by law allowed to return even a £1 a month repayment and that as you will have so many other debts and problems to consider, with trying to shore up your DMP, this may well be all you have at that time. You have to do this calmly, rationally and like you are asking for help and are in a very tricky situation. If the person you are speaking to gets the impression you are blackmailling them they will stonewall everything you are saying. It's the truth though, that's what will happen, you will just have to abandon the account so that you have money to eat and you really will just have to wait for it to be defaulted and deal with whatever debt collection agency buys it. It is not in the banks interest to keep this account open when it is being raided by a PDL Co. and if you can explain that to them you might avoid the agro of plan B (waiting for a DCA).

dancingfairy

To be honest you might find it easier to have the payday loans people raid your old bank account as you have a new account - you may find them easier to deal with than the payday loan people and 1 old bank account to sort out is going to be easier than dealing with 3 or more creditors (ie each of the payday loan people and the old bank account).
It's not really up to you though its up to the bank in question - you can advise them of the situation and the fact that the payday loan people will continue to rinse your account but you'd really like them to close it but it's up to them really.
At least your wages are safe and if you have to pay less to the bank each month than they want - well it's tough really - it depends on how willing they are to take action on the payday loan thing.
Best of Luck
df