Payday loan repayment - How did this happen?

crazyguy

And people wonder why these loan company's charge so much, me thinks it has a lot to do with the risk factor in lending to people who want to try and avoid paying it back !

dresdendave

demay wrote: »

Took out a payday loan last month, but lost my bank card shortly after - Contacted my bank and got sent a new card, with a new card number, expiry date, and security code - I didn't pass this information onto the lender, as I forgot, but have just noticed today that they still managed to take the payment back out? How did this happen?

The above scenario surely shows fantastic customer service on behalf of the PDL company. After you "lost" your card and then "forgot" to inform them of your new details, they could have let you miss your payment and then hit you with massive charges and additional interest. Instead they went to all the trouble of making sure they still collected the repayment, thus saving you all these extra fees.

I hope you have sent them an email or letter thanking them for such wonderful service on their part.

pvt

Am I missing something here?

If the PDL company used the details of an old debit card given to them prior to it being declared lost or stolen to the bank, then the bank is surely obliged to pay them. That's something that has been exhaustively discussed on this forum.

I am surprised the PDL company would try to draw funds using a DD as the payee could surely just invoke a DD indemnity refund. And someone who is trying to defraud a PDL company in this way could just cancel the DD as soon as it is set up (which it has to be before the PDL can draw funds using it).

Naf

demay wrote: »

Spoke to my bank - it was indeed a direct debit payment that was taken, after the payment they tried to take from the 'old' card which obviously didn't work.

Lesson learnt - and to the person who said don't take a loan if you can't pay it back, life is not always that simple!!! Things happen, and if it's a case of eating or not, then sometimes you have to do what you have to do!!

Government offer Crisis Loans. Its NEVER a choice of eating or not.

pvt wrote: »

Am I missing something here?

If the PDL company used the details of an old debit card given to them prior to it being declared lost or stolen to the bank, then the bank is surely obliged to pay them. That's something that has been exhaustively discussed on this forum.

I am surprised the PDL company would try to draw funds using a DD as the payee could surely just invoke a DD indemnity refund. And someone who is trying to defraud a PDL company in this way could just cancel the DD as soon as it is set up (which it has to be before the PDL can draw funds using it).

The indemnity would be illegal (although that's not to say it wouldn't have retrieved the money in this case) as the PDL company were entitled to take the money once the primary agreed payment method fell through. Its all in their T&Cs. But having done the indemnity the PDL company would continue attempting to take DDs, likely causing the OP charges on their bank account, as well as chasing them directly. Believe me, much better off this way.

Ronaldo_Mconaldo

Government offer Crisis Loans. Its NEVER a choice of eating or not.

More like a choice between smoking and drinking down the pub or not. But then again being prevented from doing those things due to lack of funds are probably perceived to be human rights abuses now.

Naf

Ronaldo_Mconaldo wrote: »

Government offer Crisis Loans. Its NEVER a choice of eating or not.

More like a choice between smoking and drinking down the pub or not. But then again being prevented from doing those things due to lack of funds are probably perceived to be human rights abuses now.

I'm not suggesting the OP has done this, but I live just down the road from a homeless shelter (or something; Arc Light). In addition the area is an alcohol exclusion zone. We get loads of homeless who clearly spend all their benefit money on cigs & booze. I never even see them eating (suspect the centre feeds them). Called the police about one group who were being rowdy on our doorstep. The police poured their alcohol away and reminded them it was illegal, they responded that the centre didn't let them drink inside and so they HAD to come out here to do it; as if it were so vitally important and a basic right of theirs.
The money they spend could very quickly get them a copy of their birth certificate, then passport and so find a job and get back on their feet; but they just don't bother. I don't think they should be entitled to state money just to !!!! it down the drain like this!

ihateyes

demay wrote: »

Spoke to my bank - it was indeed a direct debit payment that was taken, after the payment they tried to take from the 'old' card which obviously didn't work.

Lesson learnt - and to the person who said don't take a loan if you can't pay it back, life is not always that simple!!! Things happen, and if it's a case of eating or not, then sometimes you have to do what you have to do!!

so if you cancelled so you didnt have to pay, why did you state you lost it when you didnt.....

your obviously not too birght, as you werent even aware they were taking by ddeb.... ah well,,, tuff

ihateyes

pvt wrote: »

Am I missing something here?

If the PDL company used the details of an old debit card given to them prior to it being declared lost or stolen to the bank, then the bank is surely obliged to pay them. That's something that has been exhaustively discussed on this forum.

I am surprised the PDL company would try to draw funds using a DD as the payee could surely just invoke a DD indemnity refund. And someone who is trying to defraud a PDL company in this way could just cancel the DD as soon as it is set up (which it has to be before the PDL can draw funds using it).

some PDL's take by ddeb.... quick quid, Wage day and Early Payday.... they will use the card as back up if ddeb fails...

remember the only time the card fails is when its attempted, and generally the system wont tell the merchant why cad has been declined

pvt

Naf wrote: »

The indemnity would be illegal (although that's not to say it wouldn't have retrieved the money in this case) as the PDL company were entitled to take the money once the primary agreed payment method fell through. Its all in their T&Cs. But having done the indemnity the PDL company would continue attempting to take DDs, likely causing the OP charges on their bank account, as well as chasing them directly. Believe me, much better off this way.

I bow to your greater knowledge, I have never seen the Ts&Cs for a PDL. Do I assume that the PDL application contains a DD mandate? I believe a DD mandate also has to have details of the DD Indemnity arrangements as well, is that also on the PDL agreement somewhere?

I believed that a DD can only be set up legitimately if a mandate is completed and signed by the bank account holder. I wouldn't have thought it was possible to do it via the Ts&Cs on a contract as the mandate is an instruction from the account holder to the bank. Whilst I acknowledge that in most cases that mandate is kept by the drawer and the bank takes their word that it exists, but if the account holder disputes its existence then the drawer would surely be obliged to produce the mandate.

pvt

ihateyes wrote: »

some PDL's take by ddeb.... quick quid, Wage day and Early Payday.... they will use the card as back up if ddeb fails...

remember the only time the card fails is when its attempted, and generally the system wont tell the merchant why cad has been declined

In this instance though the OP clearly didn't believe he had set up a DD mandate, and believed the card to be the only method of repayment.

As others have said, it's very lucky for the OP in this instance that the PDL Co was somehow able to collect by DD. Otherwise he would have let them down on the agreement he had openly and willingly entered into with them.