DMP including payday loans - do I need to send cancel payment authority?

punto01

Hi all, any help please! I'm stressed and confused!! :mad:

I have 2 payday loans in my DMP which were paid into and from a bank account with Co op. In September I put them into my DMP and opened a new bank account with the same bank.

I now have had a big bust up with my bank, they are closing the new account and have cancelled all my direct debits with immediate effect (some less than a week away so was fuming)

After complaining to the bank they have said that the new account is the only one to be closed so they will transfer my direct debits over to my old bank account so I need to pay in the money to cover these. Unless I can get a new bank account I will need to go back to using my old account including having my wages paid in.

I have applied for a basic bank account elsewhere and waiting for the response - could be around a week to hear back they tell me. I am really worried about whether I will get this new bank account as I know banks don't really want us basic bank account folks as they can't make money off us etc. so am on tenterhooks waiting for this.

I cancelled the debit card on my old account (the one that had the payday loans) but I never sent a cancellation of payment authority. I have read a bit on this but am confused - do I need to send one to the bank? What are the chances that they are still trying to take money from this account 6+ months later?
I also read that you need to send one to the bank for any accounts you have with them as the payday loan people could still take money from other accounts with the same bank? Not sure if that is right?

I haven't seen a template for cancelling a payment authority does anyone have one I can use?


Thanks

fermi

Yes. Cancel the CPA with BOTH the payday lender and the bank

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

also useful info if the bank try to tel you the usual bull about CPAs.

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

Trajal

fermi wrote: »

Yes. Cancel the CPA with BOTH the payday lender and the bank

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

also useful info if the bank try to tel you the usual bull about CPAs.

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

This second link is something I wasn't aware of - Excellent find and I think should be added to stickies somewhere if it isn't already. Really informative and a must-read for anyone with problems with payday loans.

punto01

Thanks for the great links really useful!

Do I need to tell the payday lenders that I have cancelled the CPA? As it has been at least 6 months is it still worth me doing it or will they wonder why I am doing it?

If so do I just send them a letter along the lines of the bank one?


Thanks

punto01

Also, was I leaving myself exposed by opening a new account with the same bank? I thought that as long as it was a different account that it didn't matter but a few things I have read now indicate that they can take from the same bank even if a new bank account and card details...