Payday Loan Took My Benefit Money

thebailey

A few months back, I took out a couple payday loans as I was struggle with my money. I know it was stupid but I ended up doing it

Anyway, today 1 of the companies took £118 from me. I am on benefits now and £118 is almost all of my benefit money

I phoned the bank and asked why there was £118 missing and the man explained that, 1 of these companies had taken my money. He said that, if I did not authorize this that I could ask the bank to try and claim back the money after 10 days. I explained my situation to him and he said to call back in 10 days time

Do I have a leg to stand on here? I understand that I took out the loans but, I never authorized them to take £118 on the 15th of June. So, would I be able to fight this because of this reason?

P.S Please do not give me abuse for taking out payday loans. Thanks

CKhalvashi

If you didn't authorise it, you should be able to deal with it immediately, however you did authorise it, so no leg to stand on here.

My advice would be to speak to StepChange (08001381111) or National Debtline (08088084000), for help managing your money.

CK

Caz3121

When were you expecting payment to be taken? have you been in contact the payday loan company to agree payment arrangements?

thebailey

Ok thanks. I thought perhaps that, when I originally took out the loans that, we agreed on a certain date with a certain amount. But because out of the blue they have taken the £118, I might of had a case.

But thanks for your help

skylight

1. Get another bank account and get your benefits paid into that. This is the most URGENT thing so do that straightaway.
2. Yes - the payday loan can take the money. You agreed to it when you signed up, you owe them the money and they have taken it in accordance with your agreement with them.
3. How much more do you owe them? Contact them all to set up a repayment plan and ask to freeze the interest. DO NOT give any of them your new bank details for a direct debit - ensure YOU pay them, online banking or standing order where you are in control. Stick to the repayments or they will end up taking money out of your old account leaving you still in debt, just with someone else.

Get onto the Debt Free Board - take a good look at your SOA (income and outgoings) and see where you can make some savings. They have lots of advice in dealing with creditors too.

Your immediate issue is this weeks benefit payments. You are not going to get those back but you MUST change bank accounts to stop this from happening again and then tackle the debts. The debt free board can help with those priority ones - Rent, Council Tax, food etc.

thebailey

Caz3121 wrote: »

When were you expecting payment to be taken? have you been in contact the payday loan company to agree payment arrangements?

A couple month ago but I never had the money in the bank to pay them and I have been hiding ever since as I dont have the amount that we agreed on.

They have tried taking small amounts out the blue ever since and Ive had bank charges but, today was the biggest amount they had tried and today is the day I receive my benefit

pauletruth

sounds fair you messed them about and they have messed you up. what did you think they would do.

Caz3121

they will keep trying to take money. I imagine since the payment is late and you have not contacted them the amount will be increasing with additional fees so you may be surprised at how much you now owe. You need to come to an arrangement with them and not to hide from it.

As suggested you will probably be better contacting one of the debt charities as a priority

thebailey

pauletruth wrote: »

sounds fair you messed them about and they have messed you up. what did you think they would do.

Thank you for those kind words

Apples2

Did you ever have any intention of repaying?

From your posts it sounds like you simply took the loans and thought if you didn't repay they would simply go away.

Do you have any idea whatsoever how much you owe?

WantToBeSE

Thebailey- i think that they can do this, yes. Do you have a copy of the paperwork you signed? I think you'll find that they are perfectly entitled to take the money.

For future reference, i would pop over to the Debt Free Wannabe board and ask for advice on debt issues.