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IF loan policy - is this legal??
Some of you may have read my threads about payday loans. To cut a long story short, I was broke last week and wasn't going to be able to honour my direct debits, one of which was for my IF loan (Halifax).
So I cancelled my direct debits. I was advised by IF that I should do this, that after a few days they would try to take the payment again, and if that failed I would fall into arrears, be charged £25 and have a 'strike' on my credit rating.
Well, miracles happen, and my girlfriend's student loan cheque cleared much earlier than we thought. This weekend she transferred money to my account.
So I called IF today, the DAY my payment was due, to make the payment over the phone. This is when I heard their ridiculous policies ...
How is this possible? Is it really legal? Do I have any options open to me?
I am so mad right now - not really at the £25 it will cost me, but the record on my credit rating. Missed payment. When I had the means to pay, and tried to pay.
So I cancelled my direct debits. I was advised by IF that I should do this, that after a few days they would try to take the payment again, and if that failed I would fall into arrears, be charged £25 and have a 'strike' on my credit rating.
Well, miracles happen, and my girlfriend's student loan cheque cleared much earlier than we thought. This weekend she transferred money to my account.
So I called IF today, the DAY my payment was due, to make the payment over the phone. This is when I heard their ridiculous policies ...
- They can't take payments over the phone unless I am in arrears.
- I can't pay online.
- I can't pay at a branch.
- My only option is to wait until Wednesday/Thursday, until my loan goes into arrears, and then call to make a payment over the phone!!!
How is this possible? Is it really legal? Do I have any options open to me?
I am so mad right now - not really at the £25 it will cost me, but the record on my credit rating. Missed payment. When I had the means to pay, and tried to pay.
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Comments
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Of course its legal. I suggest you re read your loan terms and conditions to see the conditions for payment. In any case if you made the payment today it would not clear for 3-5 days so you would have been charged anyway.0
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You're right, I posted when annoyed. Reading back I realise it was stupid to question the legality.
I should have asked "is this fair?".0 -
Yes it is. You chose to cancel the direct debit.0
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Lenders don't like taking payments over the phone by debit card, because it costs them more to administer than taking payments by direct debit.
Lenders can choose the method by which they are prepared to accept payment. It's their choice, not yours.
As others have advised, if you choose to cancel your DD when that is your lender's required payment method, it's your fault that you go into arrears.
Sorry.
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