Payday Loans

one2escape

Guys this is heads up. We are currently going bankrupt and are saving for the fees etc. The payday loan guys went to our account and took money out of the account. On purpose we left less than the amount which was required to pay them in the account but they came in and took smaller amounts out. This left us short for food etc. We are getting the mony back by disputing the payment. Advice is if you have payday loans change you bank card so they cant take the money out.

GD2_2

Watch for them remotely setting up a direct debit as well.

Sneaky blighters.

PippaGirl_2

payday loan companies routinely attempt to take money out every day for any money overdue - people rarely win any disputes as the agreements you tick when you apply for them give them cart blanche to do this so they have your permission

one2escape

They have.

chunx

Sorry to hear you've had trouble and hope you managed to get sorted soon.

tigerfeet2006

This is the reason why when you make the decision to go BR you should open a fresh account with the Co-op or Barclays and change all your banking over to them, then you have enough money to live on and can start budgetting properly as per your new SoA.

https://forums.moneysavingexpert.com/discussion/3582093

So make this a priority right now. Pick up the phone and get a shiney new Co-op Cashminder account set up and running.

sunflower_2

why dont you get a pay day loan to pay for the bankruptcy fees?

JOKE !!! before anyone jumps on me

debt_doctor

PippaGirl wrote: »

payday loan companies routinely attempt to take money out every day for any money overdue - people rarely win any disputes as the agreements you tick when you apply for them give them cart blanche to do this so they have your permission

That is not correct.
You can withdraw your permission for a payment set up on a debit card at any time you wish - you instruct your bank to stop payments and if payments are then made your bank MUST give you a full refund in accordance with the payment services regulations 2009.
Also, if you tell the pay day lender that you are in financial difficulty then they must stop using the contineous payment authority method as per the OFT guidance.
Banks in particular will say all sorts of nonesense to wriggle out of this legal requirement placed upon them but I find they allways pay up if you push the right buttons.

DD

PippaGirl_2

I know 2 people who had pay day loans, both of which had money taken out leaving them with not enough to live on. The scenario was there was not enough for the agreed amount on the agreed date so the paydays try to take money daily until they find enough to take so take benefits money before the people had a chance to remove it. As this left both people short of money to live they complained to the bank and the bank initially refunded them both, however the paydays complained and the money was then given back to the paydays and on both occasions the bank said there was nothing they could do. Both ended up opening new accounts and getting their income paid into there so the paydays could no longer access money they needed to live. Neither of those people were BR but both living on benefits.
The banks wouldn't help them.

I wrote a letter of appropriation for my dd to try and stop bank charges and the bank refused to do stop then too. I didn't have the strength to fight it and they took her benefits in charges. Banks are a law unto themselves. I am sure the banks should have taken my letter of appropriation seriously, however they didn't hence when saying above what will happen, that may not be correct in law but you can bet your bottom dollar it is what happens.

arcon5

Changing your card won't necessarily stop it. You need to contact your bank to cancel the continuous payment authority

fermi

debt_doctor wrote: »

That is not correct.
You can withdraw your permission for a payment set up on a debit card at any time you wish - you instruct your bank to stop payments and if payments are then made your bank MUST give you a full refund in accordance with the payment services regulations 2009.
Also, if you tell the pay day lender that you are in financial difficulty then they must stop using the contineous payment authority method as per the OFT guidance.
Banks in particular will say all sorts of nonesense to wriggle out of this legal requirement placed upon them but I find they allways pay up if you push the right buttons.

DD

Agreed DD.

The banks will use every excuse and lie in the book to deny you this right.

In the end people may have to go somewhere like the FOS and complain, as they can force the banks to repay the money.

Very useful info in this links on what is really the legal position.

http://www.paullewismoney.blogspot.co.uk/2012/04/the-continuous-payments-racket.html