Payday loan company have taken tax credits

Laurenbelle

Hello, I was wondering if anyone can confirm or deny whether or not payday loan companies have to refund payments if they were taken from Child Tax Credits and Housing Benefits? A friend has had this happen and although she has bigger issues and needs to sort out her debt she has been left short for her rent this month and I thought there was something I read that said they would have to refund it if the source was CTC or rent benefits.
Any help would be appreciated.
Lauren

poppasmurf_bewdley

If the payments taken were due and legal, then why should they be refunded? Surely the friend knew the payments were due and had made arrangements for the money to be in the bank to cover the payments?

Or is this just another ploy to attempt to avoid making payment on a due debt? Some people who take out Payday Loans only have this type of income, so how would they ever pay the loan back.

Laurenbelle

The loan was in arrears so she wasn't aware that they were going to take the money on that day but I hear what you are saying about some people are only on benefits so that would be the way the loan would be repaid regardless. I am not sure where I read this. I just feel for her because she is in a bad situation and felt she had to turn to these loans and didn;t want her landlord to know but now wont be able to pay her rent.
Thank you!

RAS

Lauren

I know that banks have to return certain benefits if they try to off-set them against debt.#

get your friend to ring CCCS or National Debtline.

And tell your fiend that she must get a new basic bank account with one that has not relationship with the current one, and move all her in-payments, immediately.

Laurenbelle

Thank you, I have pointed her in the CCCS direction.
Thank you