Cancelling A Payday Loan

chalkie99

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.

Not to mention the extra £14.50 per £50 you borrowed on top of what you already owe for the extended period.

This is going to snowball like crazy.

You definitely need to close your bank account now - not just the card. Do you really think these lenders don't hear the "lost card" line a hundred times a day?

They are sharper than the people who borrow from them.

fwor

McKneff wrote: »

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

Exactly what I was thinking. The Payday loan industry makes much of its money out of people that can't make repayments, so I can't see how planning not to make an agreed payment is going to be a financially prudent thing to do.

Presumably when you calculate your £30 cost you've accounted for the additional interest charges that they will add to your debt?

mellonicoley

OP, check out this thread for dealing with payday loan companies: https://forums.moneysavingexpert.com/discussion/comment/36725197#Comment_36725197

PDL companies use a "recurring payment authority", which means they can keep taking money out of your account even if you 'lose' your debit card. The only way to stop the payments is to :

- ask your bank to stop them - but some banks (i.e. their customer service staff) don't realise they can do this (there's another thread on here somewhere where someone had problems with their bank saying they couldn't block the payments)

OR

- change bank accounts so they can't get at your money.

I think you should now post on the debt-free wannabe board for advice on why you've had to take out a payday loan and why you now can't pay it back.

opinions4u

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?

Ignore good advice at your peril.

My post merely answers your question - correctly.

The rest of the thread warns of the ridiculous situation you are heading in to. Stop spending now. Repay the debt on time. Never dabble in pay day loans again.

Wake up and smell the coffee.

Sil_2

chalkie99 wrote: »

Not to mention the extra £14.50 per £50 you borrowed on top of what you already owe for the extended period.

This is going to snowball like crazy.

You definitely need to close your bank account now - not just the card. Do you really think these lenders don't hear the "lost card" line a hundred times a day?

They are sharper than the people who borrow from them.

Where are you getting that from?

I'm still perplexed as to how they can debit my card without the relevant card details.

Sil_2

mellonicoley wrote: »

OP, check out this thread for dealing with payday loan companies: https://forums.moneysavingexpert.com/discussion/comment/36725197#Comment_36725197

PDL companies use a "recurring payment authority", which means they can keep taking money out of your account even if you 'lose' your debit card. The only way to stop the payments is to :

- ask your bank to stop them - but some banks (i.e. their customer service staff) don't realise they can do this (there's another thread on here somewhere where someone had problems with their bank saying they couldn't block the payments)

OR

- change bank accounts so they can't get at your money.

I think you should now post on the debt-free wannabe board for advice on why you've had to take out a payday loan and why you now can't pay it back.

I have the loan agreement here and there is no mention of this.

Sil_2

opinions4u wrote: »

Ignore good advice at your peril.

My post merely answers your question - correctly.

The rest of the thread warns of the ridiculous situation you are heading in to. Stop spending now. Repay the debt on time. Never dabble in pay day loans again.

Wake up and smell the coffee.

I'm certainly not ignoring advice I'm merely asking for clarification about the mechanics of what some people say will happen.

Apples2

Sil wrote: »

I'm certainly not ignoring advice I'm merely asking for clarification about the mechanics of what some people say will happen.

An example of selective hearing though.

Listen to posters like emweaver at your peril.

Lenders use different methods to ensure their "high risk" borrowers do not simply leg it with the money without repaying it.

The most common is the Recurring Payment Authority.
The day you took out your loan you repaid it, there and then, as soon as you gave them your card details.

They decided not to draw down that money but instead, agreed to defer it for the period of your loan. at the end of your loan period, they take it, it was authorised when you took the loan.

Cancelling your card has no effect as the payments to that Company was already authorised. Your new card is of no consequence as they authorised it against the card you had at the time.

Seriously Sil, do you think you are the first wizkid to think they can get one over on them??

Stop borrowing if you can't repay it. Heed the ADVICE you are getting and address your poor money management.

Sil_2

Apples2 wrote: »

An example of selective hearing though.

Listen to posters like emweaver at your peril.

Lenders use different methods to ensure their "high risk" borrowers do not simply leg it with the money without repaying it.

The most common is the Recurring Payment Authority.
The day you took out your loan you repaid it, there and then, as soon as you gave them your card details.

They decided not to draw down that money but instead, agreed to defer it for the period of your loan. at the end of your loan period, they take it, it was authorised when you took the loan.

Cancelling your card has no effect as the payments to that Company was already authorised. Your new card is of no consequence as they authorised it against the card you had at the time.

Seriously Sil, do you think you are the first wizkid to think they can get one over on them??

Stop borrowing if you can't repay it. Heed the ADVICE you are getting and address your poor money management.

I'm not trying to get one over on them, I fully intend to pay the full debt in what will still be a short space of time, it just makes more sense for me to do it over a longer period rather than at the end of this month.

I'm also not being selective, I'm taking everything on board but it's important for me to be 100% sure about what the actual situation is before I decide on my next course of action. For example, it would lend credence to the argument that the money will come out my account at the end of the month whatever I do if there were other examples of people who have taken out in-store payday loans with The Cheque Centre and the same thing happened.

If this is a recurring payment then it would help if there was some way I could verify this. At the moment the transactions appear on my statement as a debit card charge. There is no mention of recurring payments on any of my transactions. I'm also led to believe that recurring payments, if that's what this is, can be cancelled either with my bank or The Cheque Centre. If those are the avenues I have to go down I will.

pink_princess

Sil wrote: »

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.

You are choosing which term to read & interpret.
The box below the one with the £30 admin charge in is the one you need to pay particular attention to.
PG 2 of your agreement shows the card detail, 16 digits, & exp of the card that was validated by rolling authority at the time the loan was issued.
Subsequent cards can be garnished once the pack code is known. Normally 24-36 hrs after the new card is ordered.
The wording really means that they can add any fees they like.
This may include the costs to garnish your wage direct. ( Scotland only by law, but they will threaten this no matter where you are in the world. It is an international company).
From my reading this company focuses more on ringing you/work/family several times a day for months. Did you give these details?
Can you pay it & take less next time? Then take less the time after?
What ever you do about this, please visit the DFW board. I did and it was the best thing I ever did

The fees mentioned earlier by a poster are wrong.
This company like most high street PDL places are 25% per 100 borrowed no matter how long the term.
Good luck OP x