Payday Loans Advice

elainejappy

Hi,

My friend has taken out a few payday loans, one in particular from Pounds to Pocket.

She's struggling to pay them all back and has cancelled her bank card. My question is this: can these companies still take a payment from her account if she has cancelled her card and received a new one with a new 16 digit number?

I've read advice from some people who said you need to get a new bank account, surely this isn't correct as the account is your sort code and account number and debit card payments are taken through the 16 digit card number.

Any advice would be good as she is scared that they will still be able to take payments from her account even with a new card.

Thanks

Janie4Now

It depends on the nature of the payment - if it is a continuous payment authority then some banks will continue to pay out as requested.

Leaving aside the ethics of simply getting a new card in an effort to try to avoid paying back one's debts, your friend really needs to get her finances sorted out before everything escalates out of control.

I suggest she visits the Debt Free Wannabe forum on this site for some serious advice. Nobody will judge her and she will get lots of support and help.

SeanG79

Most PDL's have a CPA in place and can access funds even when you change debit cards...

PDL's dont go away, so I suggest contacting the lenders and attempting to set up a repayment plan. They are more likely to agree to this if she is open and honest with them rather than trying to evade them.

Tixy

They will have had her sort code and account number when she applied for the loan - to pay it in to her account.

She needs to do more than just cancel her card - she would need to instruct her bank not to pay out anything to that lender either by CPA or by direct debit (recent clarification should mean that they do this without an issue).

Then she needs to contact the lenders to arrange repayment plans - or speak to one of the debt advice charities for help on doing this.

skintandscared_2

What steps has your friend taken to try and come to payment arrangements with these companies? She can't just cancel her card and expect them to go away - they won't! If she has given them the long number along the front of her card, they can still take their payment even if she cancels the card. She would need to close the account completely to prevent them taking their money. She needs to contact them ASAP and set up an alternative payment arrangement.