Continuous Payment Authority - Debit cards

Iwillbefree_2

Hi all,

I am stuck in the horrendous cycle of payday loan hell. Stupid I know, and entirely my own fault but I need to find a way out

My wages are due to hit my bank (Natwest) on Tuesday 25th. I have 3 companies who are due to take out their fees (they roll over unless I tell them otherwise) on that date. I have no other bank account as yet set up. Wonga are due to take a payment on 26th October which will pretty much clear out my account. Clearly, this has to stop. I only have a basic bank account with the Natwest so if I call them on the 24th and say my card has been lost/stolen and ask them to stop any transactions, will that stop the companies taking payment? I have checked my online banking and there are no DD's set up for any of the companies or standing orders.

My plan would be to then withdraw my wages in full over the counter on the 25th/26th and set up a new bank account elsewhere.

I would like to say, I do intend to pay every penny I owe back, just the situation I am in is not sustainable and I cannot afford to carry on like this. Once I have ringfenced my income, I intend to *try* to negotiate with the companies I owe money to.

Any help gratefully received.

TIA

[Deleted User]

Very unlikely to work. The authorisation you've already given on your current card will carry on to the new one. PDLs are wise to this particular manoeuvre.

Changing bank accounts would be the only way, but of course will rack up the charges due to failed collection attempts.

Tixy

The majority of pdls will take money direct from your bank account if you cancel your card. Its in the small print of the T&Cs that they can do this.
If you can't afford to pay them all back - could you ask your employer to pay you by cheque this month? then you could pay that into your new account as soon as you have set it up, and then try to set up repayment plans with the pdl companies. Although as said above that will incur fees & high interest from the pdl companies when they cannot take their money out.

Might be worth a read of this thread - Dealing with Payday Loan Companies

Iwillbefree_2

Hi,

Thanks for the replies, I am anticipating the high interest charges, my own stupid fault for getting in the mess in the first place :mad:

If I take all the money out on the 25th and close the account (am guessing it will take 1-2 weeks to open another?) this should stop them being able to take money out should it not? Or am I wrong with that? My council tax will leave the account on 25th and I can transfer my rent over before closing account - everything else gets paid later in the month so I can make manual payments in the meantime to avoid extra charges from other companies. I just really need to break the cycle, my plan is to write to them all on Monday 24th explaining situation and offering payment plans (I know not all will accept but I need to do something ).

Thanks,

Tixy

If you are not in arrears for any of the PDLs and none are due to go out on the 25th then yes in theory you could empty the account on the day you are paid.
I wouldn't write to them on the 24th - on the off chance they get the letter on the 25th they may try taking the money a day early and get to it before you can.

amandaoc78

Reporting your debit card stolen does work!!! Ive done it myself had several of these companies trying to take money out of my account, once my card was blocked all their payments where declined, and they don't try and take it out any other way. Some people are basically full of C**P!

ILW

Only CPAs set up after the card was reported lost will not be transacted.

Emmzi

amandaoc78 wrote: »

Reporting your debit card stolen does work!!! Ive done it myself had several of these companies trying to take money out of my account, once my card was blocked all their payments where declined, and they don't try and take it out any other way. Some people are basically full of C**P!

Thanks for your experience, however a quick search of this board will confirm that this is not the experienc of many others. I would not be urging the OP to "take a punt"

garth549

In my experience reporting your card as lost/stolen blocks all existing CPAs. This has happened to me twice (once on a debit and once on a credit card) and both times I had to set the CPAs back up again on the new card number. This may depend on the bank, I don't know.

Remember the vendor is still entitled to contact the bank to get your new card details without asking you.

Tixy

amandaoc78 wrote: »

Reporting your debit card stolen does work!!! Ive done it myself had several of these companies trying to take money out of my account, once my card was blocked all their payments where declined, and they don't try and take it out any other way. Some people are basically full of C**P!

Well if thats been your experience then I guess that the many posters who have had money taken direct from their bank account by payday loans companies after cancelling a card must have been imagining it.

They must have imagined that their bank accounts were left empty, that the charity debt advisors told that this does happen quite a lot and that they must have imagined that were unable to pay their priority bills / buy food etc.

poppasmurf_bewdley

garth549 wrote: »

Remember the vendor is still entitled to contact the bank to get your new card details without asking you.

This is something I've never heard of before. Can you give us details of which act gives Pay Day Loan Companies permission to override the Data Protection Act, etc, etc.