Payday loans - excessive fees

grayselegy

Hi Guys,

Please note that I have paid my Payday loan(s) up to date, so am not complaining about their interest charges. They are extortionate, but legal. However, due to my boss cocking up salary payments I was paid the day after, leaving my WDA payday loan unpaid for 12 hours.
Next morning I got a text saying they'd been unable to collect the cash and to call them immediately to avoid charges. I did so, and paid, carefully telling the woman to pay ONLY the £196 due.
You guessed it, they took £230, saying it cost them £34 as my payment yesterday wasn't honoured.
So I've cleared my loan OK, but I resent the high cost of their charge for a small delay (the interest even at their ridiculous rates would have been not much more at £44 for 28 days).
Q. Can I go to a County Court and reclaim the excess charge (just as one could when the banks did the same for bouncing a DD etc)?

I am thinking I can claim it is: 1. excessive (as it only costs them a couple of pounds to re-process a payment) 2. a penalty charge and therefore not legal 3. they took a payment of £230 when I had only authorised a payment of £196. 4. their text said to call to avoid further charges, I did, and they still charged them, so they broke their own promise! Maybe you can think of more?
Other posts lead me to an OFT ruling against ToothFairy Finance saying they shouldn't "levy charges which are disproporionate to the debt", which this clearly is.

It's not a big deal in the great scheme of things, but it does stick in the craw, and if a waiter had used your card to charge you £230 for dinner instead of the £196 you had authorised, you'd be calling the police before you left the restaurant, but these people say they can do it...

arbroath_lass

I've no idea if "they" can do this BUT if I incurred charges because of my employer's error I'd be asking my employer for the money.

AccountExec

essentially, no theres nothing you can do. There covered by the terms and conditions which you have agreed to in the contract. Try taking to it to the Ombudsman if you think you have a case.
Unfortunately Ive been there, done that, got an awful looking t shirt. Stay clear - there legal loan sharks and will do anything to make money and keep it.

meer53

I'd ask your boss to pay it, it was his mistake your salary was late.
How do you know it only costs a couple of pounds for them to process a payment ? You did call them to avoid FURTHER charges but a charge had already been applied so they were right really. I'm not defending the PDL companies, but if your moeny isn't there when they try to collect, then it's not their fault is it ? At least if it happens again you'll know to call them BEFORE they try to take your payment and not after.

AnxiousMum

the difference in your analagy is that at the end of the meal, you would pay the amount due right? You might want to check your user agreement as to late charges. Anything I have read on here, it is quite clear that if your payment is not there, you get dinged extortionate charges.

You mention they 'broke their promise', but it was you who broke your promise by not having the money in the account when the payment was due. You might want to take this up with your boss - as his 'promise' to pay you on a certain day was not upheld, and this has resulted in you being charged exhorbitant charges. Your complaint I believe, is with the boss - not the payday loan company who carried out a service you requested and agreed to.

jonesMUFCforever

It is an error by the employer but he is NOT liable for the extra cost unless the employee made him aware that late payment would incur charges.

Boris_Allen

Totally legitimate charge. What makes you think you can take out a loan under specific terms and conditions, yet complain when you fail to meet your end of the bargain?

Not the employer's fault either that you made the mistake of depending on them to pay you on time. What exactly did you so desperately spend the money on that couldn't have waited til after you had paid anyway?

grayselegy

I certainly won't be looking to my boss for £34 when I'm only too glad to have a job! That really wasn't my issue. How can the PDL company justify charging £34 for a bounced DD? The banks couldn't (and it was in their contracts too) so how can they? Perhaps if we all try to reclaim the unfair charges, they will have to do something about them, as the banks were forced into. To me, it's worth the £20 to file an online claim for the charge and see what happens. At least it'll cost 'em more than that to defend the claim.

A_nice_fellow

Boris_Allen wrote: »

Totally legitimate charge. What makes you think you can take out a loan under specific terms and conditions, yet complain when you fail to meet your end of the bargain?

Not the employer's fault either that you made the mistake of depending on them to pay you on time. What exactly did you so desperately spend the money on that couldn't have waited til after you had paid anyway?

I disagree Boris. This is a classic case where the OP can sue his or her employer under the minimum wage and low paid workers act for the charge and indeed the entire amount of the loan, as not only was the employer liable for not paying them on time, but the employer caused this situation by not paying a living wage in the first place.

grayselegy

Not the employer's fault either that you made the mistake of depending on them to pay you on time. What exactly did you so desperately spend the money on that couldn't have waited til after you had paid anyway?[/QUOTE]
That's none of your business Boris, but trust me, it was vital, urgent, and well spent. Anyway, like I said, I've repaid (albeit through gritted teeth) and that isn't the issue here.
As for depending on my employer to pay me on time, we don't all have the luxury of having some money to buffer us if these things don't happen, so yes, I do make the mistake of depending on being paid on time, and no, I don't have a choice about that.

Boris_Allen

I really don't get why everyone is so aggrieved by these "unfair" charges. When you borrow money before you've legitimately earned it, you abide by your lender's terms. You weren't forced to take out that loan were you? You weren't forced to use your overdraft?

It really isn't that hard to be responsible with money. Take this one on ther chin, and in future if you don't like these charge, then don't use PDLs. Simples