Battling Wonga - Advice Needed

IainHL

GOT, I presume thay have a continuous card authority on your debit card? Since I guess you really don't want to wait however long it takes your bank to decide to refund you £1,400 what I would do is as follows:

I would send Wonga a cancellation of that authority (in the post by recorded delivery), and take into your bank a letter cancelling the authority, take 2 copies and get the bank to stamp one as received which you keep.

Then "lose" your card, and go through the normal process of reporting it and getting your bank to issue you a new card. Obviously you will need to choose carefully when to do this because you will be without the means to pay for anything for up to a week until you get your new card.

Those actions should stop Wonga getting their hands on any more of your money until a repayment plan is agreed. When one is agreed ensure they understand that you will make payments to their bank account by online banking from your bank account. Do not give them your new card details or any form of direct debit authority.

They are entitled to receive back from you the amount you borrowed, plus one months interest at the point you default, which in your case would seem to be around £1,400. I do know they accept payment plans over 12 months, whether you want to try and push them to 14-15 months at £100 per month or less is up to you. As you have notified them in advance that you will default I would hope they would not add lots of fees and charges, but it is difficult to tell. However Payday Loan companies are a bit under the OFT's cosh at the moment, so hopefully they will treat you fairly.

Oh and by the way you are not obliged to send them a financial statement, merely tell them that you are in financial difficulties and tell them how much you can afford to offer as a monthly payment in a repayment plan.

GrumpyOldTroll

Apples2 wrote: »

If you can change £20 to £100 per month at a whim as you have done here, it does how little you have prepared for this.

You should be taking this much more seriously than simply looking at them as bad guys out to take " your" money.

If you read my after situation, I related that my income could very well go up considerably in May. It may be extra difficult but I was just saying if I could somehow manage to do £100 a month until more income come in make that more comfrtable, they would be alot more agreeable.

Thanks for your biting comments anyway, they were greatly received.

gb12345

IainHL wrote: »

Then "lose" your card, and go through the normal process of reporting it and getting your bank to issue you a new card. Obviously you will need to choose carefully when to do this because you will be without the means to pay for anything for up to a week until you get your new card.

This will just inconvenience him and do nothing to stop Wonga from taking money if they decide to ignore the cancellation. They have a CPA and can transfer it to a replacement card.

Better action would be to open a new account with a unrelated bank/b. soc and transfer all money/DDs/income into that, so that Wonga have no way of touching it.

IainHL

gb12345 wrote: »

This will just inconvenience him and do nothing to stop Wonga from taking money if they decide to ignore the cancellation. They have a CPA and can transfer it to a replacement card.

I would contend that they cannot transfer it to a replacement card if you have "lost" your original card, since the bank will issue you with a new card with a new card number, rather than just a replacement card with the same number.

happy_bunny_2

If you cancel the CPA, then the bank are responsible to give your money back. See section on CPA in the link I posted earlier.

Best get a new account if you can, as its easier to not have to get your much needed cash back.

gb12345

IainHL wrote: »

I would contend that they cannot transfer it to a replacement card if you have "lost" your original card, since the bank will issue you with a new card with a new card number, rather than just a replacement card with the same number.

Well you contend wrong then don't you.

CPAs can be transferred to a new card with a new number.

The bank will automatically update the merchant with the new card details.

GrumpyOldTroll

IainHL wrote: »

GOT, I presume thay have a continuous card authority on your debit card? Since I guess you really don't want to wait however long it takes your bank to decide to refund you £1,400 what I would do is as follows:

I would send Wonga a cancellation of that authority (in the post by recorded delivery), and take into your bank a letter cancelling the authority, take 2 copies and get the bank to stamp one as received which you keep.

Then "lose" your card, and go through the normal process of reporting it and getting your bank to issue you a new card. Obviously you will need to choose carefully when to do this because you will be without the means to pay for anything for up to a week until you get your new card.

Those actions should stop Wonga getting their hands on any more of your money until a repayment plan is agreed. When one is agreed ensure they understand that you will make payments to their bank account by online banking from your bank account. Do not give them your new card details or any form of direct debit authority.

They are entitled to receive back from you the amount you borrowed, plus one months interest at the point you default, which in your case would seem to be around £1,400. I do know they accept payment plans over 12 months, whether you want to try and push them to 14-15 months at £100 per month or less is up to you. As you have notified them in advance that you will default I would hope they would not add lots of fees and charges, but it is difficult to tell. However Payday Loan companies are a bit under the OFT's cosh at the moment, so hopefully they will treat you fairly.

Oh and by the way you are not obliged to send them a financial statement, merely tell them that you are in financial difficulties and tell them how much you can afford to offer as a monthly payment in a repayment plan.

Thank you for your help. As said, I may be able to find a way to make £100 for the next couple of months until my income ups.

I will be sure to try and state all points of note from OFT to stop them trying to push me beyond what I can keep up.

Apples2

IainHL wrote: »

I would contend that they cannot transfer it to a replacement card if you have "lost" your original card, since the bank will issue you with a new card with a new card number, rather than just a replacement card with the same number.

Nothing ever actually gets transferred to a new card, the original agreement has a CPA set up, this acknowledges ALL future payments. It doesn't matter if the card is later "lost" as the payments were already authorised.

That CPA authorised on the original card used on the day of signing means they can take payments direct form that account forever, which is why we see so many posts about them.

GrumpyOldTroll

happy_bunny wrote: »

If you cancel the CPA, then the bank are responsible to give your money back. See section on CPA in the link I posted earlier.

Best get a new account if you can, as its easier to not have to get your much needed cash back.

Thank you all for some more helpful responses.

My bank, Barclays, confirmed they will send the cancelation and refund any money taken. They say they we charge it back to Wonga if they try and take it. But I have a feeling I'd do much better to get a new account with a different bank set up long before May 4th when they are due to try and claim money.

greenlightluke

It reads to me that the only reason your employment status has 'suddenly' changed is because you've decided to become self-employed and failed to really understand the consequence of debt.