Payday Loans and DMP

HulaHoop90

Hi
Don't know if this is the right place but I am in a bit of a panic at the moment!!
I have just started the process of setting up a DMP with Stepchange and was advised to send letters to all my payday loan creditors telling them I was going on a DMP.
I haven't been able to take my money out of my account yet and whilst the payment due dates aren't until next week I am worried that once they know I am going on a DMP they will try to take the money before the due date!
Can they do this?
I am so worried because if they take that money I won't be able to pay rent and bills!!!
Does anyone know if they can do this??

OneLife_OneShot

Once you typed your name in that box you agreed to it. Legally.

Try contacting them but cancel the Continuous Payment Authority or they will just raid your bank account again and again.

See this article for help doing it :

http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

[Deleted User]

Was you not told to get a new bank account?

Had a friend look into DMP's and it was made crystal clear they should CLOSE the old bank account and get new one pref with an unconnected bank - don't know if that still is the advice today

With internet banking it has never been easier to move/transfer your money if your feeling that unsure

HulaHoop90

Thanks I understand that but what I am saying is can they take any funds BEFORE the payment due date if they know I am going on a dmp?
Or do they have to wait until the agreed payment date and then raid my accnt?

OneLife_OneShot

They would likely wait until the payment date as they might not get notifications from the DMP people until after it. Cancel the CPA that way they wont be able to take anything.

ch3101

HulaHoop90 wrote: »

Hi
Don't know if this is the right place but I am in a bit of a panic at the moment!!
I have just started the process of setting up a DMP with Stepchange and was advised to send letters to all my payday loan creditors telling them I was going on a DMP.
I haven't been able to take my money out of my account yet and whilst the payment due dates aren't until next week I am worried that once they know I am going on a DMP they will try to take the money before the due date!
Can they do this?
I am so worried because if they take that money I won't be able to pay rent and bills!!!
Does anyone know if they can do this??

Just be careful because if they try take the money when it's not there you may be charged.
£12 is a maximum for the creditors to charge you but your bank might charge you for going into an unplanned overdraft as well.

OneLife_OneShot

PDL charges do not work the same as credit card overlimit and late payment charges of £12.

National_Debtline

You must cancel the CPA as soon as you can. Send this letter to the payday loan firm:

(Your home address)
____________________________
____________________________
The Date

To: _________________________
____________________________

Dear Sir/Madam
Account / Reference No: ____________________________
I am/we are writing to advise that with immediate effect, I/we withdraw my/our authority for all future payments to be debited from card number (put your card number here) in respect of the above loan. This is in accordance with my/our rights under the Payment Services Regulations 2009, which state:
“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”
Please confirm in writing that this instruction has been received and actioned.
I/we look forward to hearing from you.
Yours faithfully
(Your signature)

And this one to your bank:

(Your home address)
____________________________
____________________________
The Date

To: _________________________
____________________________

Dear Sir/Madam
Card No: _________________________
I am/we are writing to advise that with immediate effect, I/we withdraw my/our authority for all future payments to be debited from the above card number by (name your payday lender here). This is in accordance with my/our rights under the Payment Services Regulations 2009, which state:
“The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 67.”
I/we also understand that should you not action my/our instruction, “any future payment transactions are not regarded as authorised for the purpose of this Part” and I/we shall seek an immediate and full refund.
Please confirm in writing that this instruction has been received and actioned.
I/we look forward to hearing from you.
Yours faithfully
(Your signature)

As Deleted User has mentioned you may also wish to open a completely new bank account elsewhere - just to be safe. It's important to open an account with bank you don't owe any money to.

Best wishes,

David @ NDL.