Cancelling A Payday Loan

Sil_2

I currently have a payday loan with the Cheque Centre which is due to come out of my account at the end of the month. Am I correct in saying that if I lost my card and got a replacement it would stop them taking any money out at that time thus giving me the opportunity to agree a more suitable repayment plan?

opinions4u

No. You need to close the bank account completely.

McKneff

Havent you already agreed to a payment plan when yo took it out.
You must have thought it suitable then.

If you want to change it, it will most certainly cost you dearly.

emweaver

If the payments are due to go out by card and you cancel the card they wont go out but I suspect the payments go out by SO or DD?

Sil_2

opinions4u wrote: »

No. You need to close the bank account completely.

I don't follow. When I arrange a loan with them they take card details which is then put through a debit card payment at the end of the month. If those details change how can it possibly be put through?

Sil_2

emweaver wrote: »

If the payments are due to go out by card and you cancel the card they wont go out but I suspect the payments go out by SO or DD?

Nope they go through as a debit card payment. A direct debit would be even easier to cancel.

Sil_2

McKneff wrote: »

Havent you already agreed to a payment plan when yo took it out.
You must have thought it suitable then.

If you want to change it, it will most certainly cost you dearly.

Obviously I thought it suitable then but the payment plan is more along the lines of they take out whatever is owed at the end of the month.

My reading of their terms and conditions is that it will cost me an additional £30 for failing to adhere to the agreement. A price worthy paying in my opinion.

emweaver

Sil wrote: »

I don't follow. When I arrange a loan with them they take card details which is then put through a debit card payment at the end of the month. If those details change how can it possibly be put through?

They can't with debit cards if you report the card as lost I have card payments set up with a company I owe money too when I lost my card I had to reset the plan.

fwor

Sil wrote: »

My reading of their terms and conditions is that it will cost me an additional £30 for failing to adhere to the agreement. A price worthy paying in my opinion.

Why do you think that defaulting on a payment will put you in a stronger position to negotiate a better deal? If they say No, you already have one default against your name.

If you contact them now you get to find out what options they will offer ~before~ defaulting. Bear in mind that as you have already signed a contract, there is nothing you can do to ~force~ them to agree a deal that is better for you.

Sil_2

fwor wrote: »

Why do you think that defaulting on a payment will put you in a stronger position to negotiate a better deal? If they say No, you already have one default against your name.

If you contact them now you get to find out what options they will offer ~before~ defaulting. Bear in mind that as you have already signed a contract, there is nothing you can do to ~force~ them to agree a deal that is better for you.

It is an instore payday loan without a credit check so there won't be any default at this stage.

I intend to discuss repayment options with them prior to the end of the month but my first priority is avoiding paying for what is already scheduled to come out.

McKneff

Youre right at the top of a slippery slope, easy to get onto, very difficult to get off.