Payday UK cleared my bank account!

FurryLippedSquid

Hi there. I was in arrears with Payday UK and set up a 3 month repayment plan. That expired yesterday and it slipped my mind that I needed to contact them to extend it. Today they cleaned out my bank account of nearly £300. I now have no way of feeding myself for the next 4 weeks, let alone anything else.

I've been in touch with them and they said because the plan had expired and I failed to contact them they took as much as they could from my account and were not willing to refund it.

Do I have any recourse?

ILW

You broke the agreement, what do you expect?

Treadmill

ILW wrote: »

You broke the agreement, what do you expect?

That's an assumption given that you don't have details of the agreement.

ILW

Treadmill wrote: »

That's an assumption given that you don't have details of the agreement.

OP says that they forgot to renew the agreement.

Apples2

If £300 is less than is owed, they will be back for more as soon as more money drops into the account.

OP can expect to see some random attempts to withdraw more.

antrobus

Treadmill wrote: »

That's an assumption given that you don't have details of the agreement.

Yes, but an entirely reasonable assumption given the statement;

FurryLippedSquid wrote: »

... I was in arrears with Payday UK and set up a 3 month repayment plan. That expired yesterday and it slipped my mind that I needed to contact them to extend it....

Being "in arrears" normally constitutes a failure to adhere to the original loan agreement, and whilst the general objective of a "3 month repayment plan" would be that the original loan was repaid during the course of the three months in question, it appears that this was not the outcome in this particular case.

UsetheFORCE

Make sure you cancel the continuous payment authority (CPA), it should of been the first thing you did upon contacting them! Tell the company and your bank, follow it up in writing.

I would do that now to make sure they don't take further sums or if they do, the bank will have to refund you.

I think you are stuffed now regarding the £300, you owed the money, you gave them authority to take it and they did what you allowed them to do.

Treadmill

ILW wrote: »

OP says that they forgot to renew the agreement.

Not that I can see, there is however mention of a repayment plan ending though, I somehow don't think that the OP agreed to having their count emptied.

The PDLs action seems to be in direct contravention of OFT guidelines on Payday lending.

http://www.oft.gov.uk/news-and-updates/press/2012/110-12#.UOWb73wgGSM

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The guidance sets out the minimum standards expected of traders and includes clear examples of unfair/improper use of CPA including:

using CPA without the informed consent of the borrower or in ways that have not been agreed
failing to explain adequately how CPA works and how it can be cancelled
not taking steps to establish the reasons for the payment failure and whether the borrower may be in financial difficulties
trying to take payment where there is reason to believe that there are insufficient funds in the account
continuing to use CPA for an unreasonable period after a scheduled payment was due

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That's what the OFT has to say on the matter and any reputable PDL company should abide by it, PAYDAY UK have not.

antrobus

Treadmill wrote: »

Not that I can see, there is however mention of a repayment plan ending though, I somehow don't think that the OP agreed to having their count emptied.

The PDLs action seems to be in direct contravention of OFT guidelines on Payday lending....

I'm not sure how you can jump to that conclusion without being privy to the "details of the agreement". For all you (or any of us) know the fact that the OP's account has now been emptied was entirely inevitable given the details of the repayment plan.

OneLife_OneShot

Am I missing something here?

The REPAYMENT Plan of 3 months. This says to me that you paid them off what you owed over 3 month is it not?

I'm not judging, I owed Wonga money but set up a repayment plan, paid it as agreed and that was the end of that.

Treadmill

The OP did not agree to the this use of the CPA, and it wasn't fully explained, a direct contravention of OFT guidelines and grounds for a complaint to the OFT.

Looks like the PDL company where in breach of their agreement with the OP by taking an unauthorised deduction to me, we have established that the agreed payment plan had expired so any funds secured by the abuse of the CPA cannot have been made by prior arrangement.

I can't see the OP getting the funds back but I hope they make a complaint to go with the many hundreds against a variety of these amateur hour spiv PDLs.