Payday Express - Cancelling/Withdrawing Loan

JayD6

Hi All,

I took out a Loan with Payday Express on the 1st September in order to pay an urgent tax bill that i received last week. I have now been given the money from elsewhere and called to ask if I could cancel my loan for £735.
After speaking to a number of staff at PDE, i have been informed that I am unable to cancel the loan as this is an ongoing loan facility. Below I will supply a copy of the e-mail sent to them. The reply i received, along with a copy of the agreement that was signed in August 2011. Advice would be excellent.

Email To PDE:

Good Afternoon,

I am contacting you once again in regards to my recent loan that was taken out with you on the 1st September that i would wish to withdraw.

I have been informed by members of your staff that as I am not a first time customer of Payday Express, I am not permitted to withdraw from my Loan Agreement.

After contact the Consumer Action Group and consulting the Irresponsible lending
– OFT guidance for creditors, I can confirm that this is a breach of the OFT guidelines.

The Irresponsible lending – OFT guidance for creditors states the following.

"The right of withdrawal
The creditor should inform the borrower of the effect of the exercise of any right
of withdrawal from the agreement and how and when this right may be
exercised.
The right of withdrawal under section 66A of the Act applies to all
regulated consumer credit agreements except where the agreement is:
a) for credit which exceeds £60,260
b) a credit agreement secured on land
c) a restricted-use credit agreement to finance the purchase of land
d) an agreement for a bridging loan in connection with the purchase
of land or
e) an overdraft agreement (except for overdrafts for non-business
purposes where the credit is not repayable on demand or within
OFT1107 | 26
three months).

Borrowers have a period of 14 calendar days (from the date calculated in
accordance with section 66A(3) of the Act) in which to withdraw from a
credit agreement without giving any reason.17"

I requested to withdraw my loan yesterday and was informed that I was unable to. I would advise that you please contact me as soon as possible in order to resolve this issue. This incident WILL be passed to the appropriate authorities to investigate should this not be resolved urgently.

Kind Regards,

According to the agreement that I was sent by the team leader it does state that 'this is an ongoing loan account facility' therefore my right to withdraw was 14 days from when that was signed (About a year ago). The loan agreement is then 're-activated' when a new loan is taken out (is this allowed!) I did actually send PDE an email about a month ago, asking them to remove all of my details, so this 'ongoing agreement' should have been terminated at that point anyway, however I am unsure whether i am able to locate this email. Below is a copy of the email that i have recieved from the PDE Team Leader.

Dear Mr ****,
I write with regard to our telephone conversation a moment ago, please find attached as requested a copy of your credit agreement which was electronically signed on 19th August 2011.

To confirm, this is a “running account loan facility” and therefore you have only electronically signed this one agreement since 19th August 2011. You had the right to withdraw from this agreement at any time before the end of 14 days, beginning with the day after it was signed.
On every subsequent application you have made, this credit agreement has been reactivated.
The balance of £937.50 is currently due on 28th September 2012 however should you have any further queries on this matter please do not hesitate to call me on the number below. Alternatively you could respond to our Customer Care department via the email address above.
Kind regards

Below is a copy of the original agreement

Type of Credit: This is a running account loan facility which enables you to draw down on
your Credit Limit until you have used up the entire Credit Limit shown
below.
Credit Limit: SUM £320.00 This amount may be varied to such a sum as may be
determined by us from time to time and notice of it will be given by us to
you.
Provision of
credit:
The initial advance will be credited to your bank account on the day this
agreement comes into force, up to the Credit Limit. You may during the
currency of your agreement take further advances if the total value not
yet repaid is less than the Credit Limit.
Duration of
Agreement:
The initial period is 42 days and we may extend it for a further 28 days.
APR: 596.3% (Variable) In calculating the APR we have assumed that we both
keep to the terms of this agreement, the interest rate does not vary and
that you have loaned the full amount up to your Credit Limit and repay it
on your Repayment Date.
Rate of Interest: Interest is charged on the amount borrowed at a rate of 25.00%
equivalent to an annual rate of 217.41% (variable)
The amount of interest is applied to the loan on the date this agreement
is made and at the time of the new advance for any subsequent
advances.
We may vary the rate of interest charged under your agreement. We will
only do this in respect of any further draw downs or where you request
an extension of the initial period. Notice of any change will be given to
you prior to the interest being applied to your account.
Number of
Repayments:
1
Repayment Date: Repayment will be taken on 30/09/2011
Amount of single
repayment:
£50.00
Total Amount
Repayable:
£50.00
Charges: If you fail to repay the loan on the Repayment Date we may charge you;
1. interest on any unpaid sums for such period as the payments are in
arrears at the rate set out above.
2. each missed repayment will incur a £15 default fee to cover
administrative costs we incur in assisting you in the management of
your account, notably letters, emails and telephone costs to you.
3. any reasonable costs we may incur in taking any other steps to
enforce, or attempt to enforce, our rights under this agreement. This
may include tracing you if you move address without notification;
returned payments, debt collection or court action.
MISSING PAYMENTS
Missing payments could have severe consequences and make obtaining credit more difficult.
If you fail to make the payments on the due date actions we may take include the following:
1. Refer the matter to our debt collection team
2. Send your account to external debt collection agency
3. Commence court action for recovery of the amount you owe
4. Seek payment(s) from your account on subsequent dates using the payment card you have
provided (see term 9 below).
RIGHT OF WITHDRAWAL
You have a right to withdraw from this agreement at any time before the end of 14 days
beginning with the day after the day on which the agreement is made. You must notify us of
your right to withdraw either orally (by telephoning us on 0800 0126 860) , in writing to us at
Express Finance (Bromley) Ltd, 4th Floor Northside House, 69 Tweedy Road, Bromley, Kent,
BR1 3WA or by email to
Once you have notified us that you wish to withdraw you must repay the amount of the credit
TERMS AND CONDITIONS OF THE AGREEMENT
without delay and in any event within 30 days after you have given us notice. You must also
pay us interest during this period (which amounts to £0.24 per day).
Early repayment
You have a right to repay the credit early at any time in full or partially. You should let us
know that you want to repay early either orally (by telephoning us on 0800 0126 860) or in
writing to us at Express Finance (Bromley) Ltd, 4th Floor Northside House, 69 Tweedy Road,
Bromley, Kent, BR1 3WA and we will let you know how much you will have to repay.
Termination by you
You have the right to terminate this agreement at any time. You will then be required to
repay the amount you owe us.
Schemes
We operate a complaints procedure in the event that you are dissatisfied with an aspect of
the service we provide. Full details are available upon request. If any complaint you make is
not resolved to your satisfaction then you may also be able to refer your complaint to the
Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR.
Supervisory authority
We are licensed under the Consumer Credit Act 1974 by the Office of Fair Trading of
Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX.

JayD6

Further Update: I have found an E-Mail from the 17th July to PDE requesting the removal of all of my details from their systems. Therefore i should have not had any ongoing agreement. Now been passed onto their customer care team to investigate. Will wait and see what happens.

Ben8282

You have a right to make repayment of any loan at any time. The company cannot refuse the payment.

But that's not what you want to do, is it? You want to cancel the loan agreement after receiving the funds presumably with the intention of avoiding interest.

Pay back what you owe. Pay the interest that you owe. Reduce the balance to zero. Then don't make any further applications to them for loans so that they won't be able to re-activate the loan.

Also, if you have been requesting the removal of your details from their system since July, why did you take out a (new) loan at the begining of September. Be grateful they were able to help you out

JayD6

Ben8282 wrote: »

You have a right to make repayment of any loan at any time. The company cannot refuse the payment.

But that's not what you want to do, is it? You want to cancel the loan agreement after receiving the funds presumably with the intention of avoiding interest.

Not correct. It is my right to be able to cancel the agreement. Which i wanted to do soon after receiving the funds. I am happy to pay interest for the 2 days incurred.

Ben8282 wrote: »

Also, if you have been requesting the removal of your details from their system since July, why did you take out a (new) loan at the begining of September. Be grateful they were able to help you out

As stated, i thought i needed the funds so made a NEW application. Turns out that the funds where not needed, so wished to cancel the loan.

Thank you for your opinion none the less.

Ben8282

Why is it so important to you to 'cancel the agreement' as you put it. WHY? When you pay the money back and the interest, the balance will be 0. If you don't request any more loans, that will be it.

You cannot cancel a credit agreement with a debit balance!

JayD6

Ben8282 wrote: »

Why is it so important to you to 'cancel the agreement' as you put it. WHY? When you pay the money back and the interest, the balance will be 0. If you don't request any more loans, that will be it.

You cannot cancel a credit agreement with a debit balance!

Because they are requesting I pay the balance plus interest from the whole month when I do not want the loan. I am happy to pay the interest for the 1 day that the loan was active, but by cancelling the loan, you should only pay interest for the one day.

Please read my original post quoting the conditions stated by the OFT regarding cancellations.

Janie4Now

They are maintaining that this is a continuation of a line of credit and you are maintaining that it is a new loan. I don't think you can rely on the fact that you asked them to delete your account because you did, in fact, go back to them AND accept their money.

There is a cooling off period which you didn't want the first time round but now you do but, according to their T&Cs, it's expired. I think they're T&Cs are quite clear and you can hardly blame them if you didn't read them or if you now don't want to accept them. You must have known when you called that they still had your account details but I'd be willing to take a bet that you didn't query that at the time because at that point you wanted their money.

It is not their problem that you found a better deal afterwards. You are trying to use the OFT Guidelines to get out of what you owe and I think you need to pay up and then move on!

poppasmurf_bewdley

JayD6 wrote: »

Because they are requesting I pay the balance plus interest from the whole month when I do not want the loan. I am happy to pay the interest for the 1 day that the loan was active, but by cancelling the loan, you should only pay interest for the one day.

Please read my original post quoting the conditions stated by the OFT regarding cancellations.

If that's what you signed up to, then surely that's what you will have to pay. You say you don't want the loan but you've already got it.

And can I ask why it was so necessary to pay your income tax demand within a week of receiving it?

JayD6

Janie4Now wrote: »

They are maintaining that this is a continuation of a line of credit and you are maintaining that it is a new loan. I don't think you can rely on the fact that you asked them to delete your account because you did, in fact, go back to them AND accept their money.

Under the impression that this was a new loan.

Janie4Now wrote: »

There is a cooling off period which you didn't want the first time round but now you do but, according to their T&Cs, it's expired. I think they're T&Cs are quite clear and you can hardly blame them if you didn't read them or if you now don't want to accept them. You must have known when you called that they still had your account details but I'd be willing to take a bet that you didn't query that at the time because at that point you wanted their money.

Very judgmental of you to 'bet' I've done this and 'bet i've done that' ... iI bet you are a lot of things, but i won't put them here.

Janie4Now wrote: »

It is not their problem that you found a better deal afterwards. You are trying to use the OFT Guidelines to get out of what you owe and I think you need to pay up and then move on!

I am trying to cancel a loan which I do not need , nor want. It is my right to be able to do so. If you fancy giving me the £200 and paying up, then i would happily transfer you the details of an account you could pay it into.

This is a new loan. Plain and simple. It is. Whether you, or they, like it or not. Appreciate the responses. Regardless of how judgmental and arrogant they are.

Also, Janine, it made me chuckle what you signature says. Pretty much summed up my first impressions of what you may think of yourself.

JayD6

Also, guys, just a reminder. It doesn't matter what your opinions are, the fact is that the company are breaching OFT guidelines. I am guessing you have also not noted the statement regarding the duration of the agreement. Put opinions aside, read the facts. Have a think. Then come back and try and post something intelligent. Poppa Smurf, i said nothing about income tax, and no, you may not ask.

dfwsometimesoon

JayD6 wrote: »

.




I am trying to cancel a loan which I do not need , nor want. It is my right to be able to do so. If you fancy giving me the £200 and paying up, then i would happily transfer you the details of an account you could pay it into.

This is a new loan. Plain and simple. It is. Whether you, or they, like it or not. Appreciate the responses. Regardless of how judgmental and arrogant they are.

As i have already stated on the other thread u now have going regarding this they allow for early repayment and will calculate interest accordingly... ie u borrowed now for 5 days therefore ul pay 5 days interest ... approx £20-£30 .... and yes its a new loan which YOU initiated... therefore contact Payday Express advise you want to make payment in full TODAY and pay what u borrowed plus the 4/5days u have borrowed it for they will adjust the amount accordingly!! its not really that difficult and i dont understand all the fuss, by dragging it on and on u will only end up paying more in interest!!