bank acc overdrawn by payday loan

artanua

Hi everyone,

In June I obtained a payday loan for £500 and agreed to pay back £650 the following pay day and gave my bank account details. I defaulted for three months as I lost my job. Pay day loan company was chasing me for £925 as I had defaulted 3 times and I had no money in my bank. In fact my bank account was already overdrawn for about £400 (informal facility and I have no overdraft facility). But this month I realized that my bank acc. was overdrawn again for another £925 - money taken from the pay day loan company. I was surprised and went to the bank to ask about it and I was basically told that I owed the debt to the payday loan company. When I told the bank they cannot do that as I have no funds they wanted to see my agreement with the pay day company as I might have some sort of indemnity (?) with the pay day company.

Can the bank do that? Or they realized they made a mistake and perhaps it would now be difficult for the bank to get the money back from the pay day loan company and were trying to convince me that I owed the money that is why they overdrew my account?

Please advise me as to what shall I do? Honestly Id rather have the bank chasing me than the pdl company. With the bank I had (have still?) an agreement in place whereby I paid £10 pm to clear the £400 overdraft. But if the bank cannot recoup the money from the pdl com. and I tell the bank you should not have allowed the payment to go through? Am I right?

Thank you.

DCFC79

I got lost in that. So how many times has wonga taken money from your account ? and what amounts were they ?

CLAPTON

are you saying that wonga took money that you owed them?
but it made you overdrawn?

what sort of bank a/c do you have?

Janie4Now

You say that you would rather have the bank chasing you than the payday loan company...... that is exactly what is going to happen now. You've no longer got a loan with the payday company - it is all with the bank and probably at a lower interest rate!

You need to go and talk to your bank - don't tell them they shouldn't have done it! - and try to work something out with them.

What else do want to have happen?

Buzby

You provided the PDL company with permission to take funds from your account - the fact they were unsuccessful when you defaulted goes for nothing, their ultimately successful attempt and getting money from your bank shows that their technique of holding fire then fishing for funds later does indeed work.

This was due to your bank agreeing to meet the payment request (even though it would put you into debt with them) at the time the request was made. All you can complain about is that they (the bank) paid out on the PDL request - but they'll probably argue it is at their discretion, not yours.

artanua

DCFC79 wrote: »

I got lost in that. So how many times has wonga taken money from your account ? and what amounts were they ?

itsnt wonga but for the sake of it lets say wonga. only once £920. But with some haggling i would have probably paid back to wonga only £650 as initially agreed instead of £920 - amount they requested recently after the default

artanua

CLAPTON wrote: »

are you saying that wonga took money that you owed them?
but it made you overdrawn?

what sort of bank a/c do you have?

yes. basic bank ac. Does the bank have the authority to allow the payment go through by overdrawing my acc instead of declining the payment due to lack of funds as with other direct debits for example?

artanua

Janie4Now wrote: »

Y - don't tell them they shouldn't have done it! - and try to work something out with them.

What else do want to have happen?

but what if it is unlawful what the bank has done?

well on a brighter side now I may have to pay back £1300 for 11 years by £10 monthly installments :beer:

artanua

Buzby wrote: »

but they'll probably argue it is at their discretion, not yours.

well... im not sure whether that is a lawful practice. that s what I want to find out

Janie4Now

Why do you want it to be unlawful? What do you think you will gain from that?

opinions4u

It's not illegal for them to make a payment that you authorised.

You authorised the PDL company to collect what you owed them. Which is what they did.