Payday Loans - question???

LINKYPIE2009

Hi all

I have a number of payday loans (which I will very shortly be paying off in full.)- once this is done, how can I be sure they won't take any more money???

Thanks in advance

Linkypie

[Deleted User]

If you have paid it in full, they won't take any more money.

LINKYPIE2009

Thanks for that - just read some horror stories kine (although generally for non-payers)

Katzen

Phone the bank and tell them you remove authorisation for any payments from now on

Cycrow

most of the horror stories come because they didn't take into account the extra charges/interest they had to pay because they didn't pay back the money in time.

you generally get very few problems if you pay back as agreed

gb12345

Cycrow wrote: »

most of the horror stories come because they didn't take into account the extra charges/interest they had to pay because they didn't pay back the money in time.

you generally get very few problems if you pay back as agreed

The problem is that a lot of people who take out PDLs are the ones that can't afford to pay back as agreed.

Cycrow

gb12345 wrote: »

The problem is that a lot of people who take out PDLs are the ones that can't afford to pay back as agreed.

indeed, that is why there is so many horror stories.

it is amazing how many people take out these short term loans only to lose thier jobs as well

miss_renegade

Katzen wrote: »

Phone the bank and tell them you remove authorisation for any payments from now on

I work for a bank and would like to point out that the way these pay day loan companies take the money isn't by direct debit (as you'd imagine) but they use your card details and take it as a card payment each time, so when people come in to 'cancel' the direct debit, there is none there to cancel. Be very wary of using these companies as I see problems with them taking unauthorised payments day in day out.

dresdendave

miss_renegade wrote: »

I work for a bank and would like to point out that the way these pay day loan companies take the money isn't by direct debit (as you'd imagine) but they use your card details and take it as a card payment each time, so when people come in to 'cancel' the direct debit, there is none there to cancel. Be very wary of using these companies as I see problems with them taking unauthorised payments day in day out.

I agree with your advice to be wary of these companies, a PDL will usually exacerbate debt issues, not solve them.

However, what do you mean by an "unauthorised" payment? Are you saying PDL co's take money even after the borrower has repaid the loan in full and on time?

Or is it "unauthorised" as in borrower fails to pay, PDL Co takes the money owed as soon as funds are in the account? The second scenario would surely be "authorised" as the borrower would have agreed to this when they took out the loan.

matttye

dresdendave wrote: »

I agree with your advice to be wary of these companies, a PDL will usually exacerbate debt issues, not solve them.

However, what do you mean by an "unauthorised" payment? Are you saying PDL co's take money even after the borrower has repaid the loan in full and on time?

Or is it "unauthorised" as in borrower fails to pay, PDL Co takes the money owed as soon as funds are in the account? The second scenario would surely be "authorised" as the borrower would have agreed to this when they took out the loan.

There are lots of cases where the PDL Co takes the full amount even when people are trying to negotiate a payment plan due to financial hardship, leaving people with no money for the month.

If you've told a company (or your bank) that they can't take (or release, in the case of your bank) funds, even if you miss the agreed deadline, it is an unauthorised payment.

Regulation 55 of the Payment Services Regulations 2009 says that a payer can withdraw consent to a transaction up to a reasonable amount of time before the transaction is due to occur.

LINKYPIE2009

Thanks for the replies....they will all be paid off in full by the end of Ye day!

Am so glad to be out of the cycle!!!