Payday Express...Hell

Hellrid3r

Hi, i don't know if this is in the right section, but feel free to move it if it is.
I got a payday express loan a few weeks ago, and i got into some financial difficulty, and couldn't afford to pay it back, i did try and sort it out with them, but that didn't get anywhere unfortunately, I reported my card lost and the guy on the phone said the card had been blocked, so i thought great one worry over for now.
I only have a Basic Bank account with Lloyds Tsb, which never EVER let's me go overdrawn, upon checking my online banking today, to my horror, payday express has taken out, £150 and £30 leaving me in unauthorised overdraft, with my old card.

I have read other thread's on this forum about this happening, but i was always led to believe My basic bank account is incapable of going overdrawn (I have tried many times unwittingly thinking there was enough in), can they do this? any help would be appreciated thanks in advance Hellrid3r

Tixy

Hi

Most payday loan companies will keep trying to take the payment, or many have it in their small print that they can debit the account direct if the debit card details don't work.

Whether the bank chooses to honor this is down to the bank, but its not uncommon that they will even with a basic bank account. Basic accounts are capable of going overdrawn, but they usually won't let you take cash out a machine that will take you overdrawn.

Is your debt to the payday company now paid off by them taking this amount? or do you still owe them more? If you still owe them then I would suggest you'll probably need to set up a new bank account - its what most people end up doing if they get into difficulties trying to repay payday loans.

You'll obviously also need to come to an arrangement with your bank to make payments towards your unauthorised overdraft, hopefully they should be easier to deal with than the payday loan company.

Hellrid3r

Hi, thanks for your reply.
I now owe around £15 pound (as of last week anyway), and i have applied online for a new bank account with Barclays, so i can get paid into that one and see Lloyds about the overdraft to get it down gradually, i feel stupid for even thinking about using payday express now, i should of just put my xbox 360 in cash converter's or smth, at least you can pay them a little extra at the end of the loan term to renew. thx again Hellrid3r.

paulwellerfan

ahh well. we all live and learn.
hope you get it sorted soon.

edinburgher

A better idea for future (not much help in the current situation) would be to open a savings accounts with your local credit union if you want to build up an emergency pot and worry that you might need to borrow money to get by again.

Most credit unions will let you start saving with very small amounts (think my local one it's £4/mth or higher) and will consider you for loans at reasonable rates once you've been saving with them for a short while.

A much better alternative to using a scummy payday lender - hope you get it sorted soon.

chuckley

it appears PDL'S and Lloyds bank work together.