Advice urgently needed on what to do with payday loan

Nikkidylan

Hi,

I really need some advice on where I stand on this:

On Thursday 27 June I took out a loan for £75 with cfo lending and selected faster payments. This service guarantees the money to be in your account that same day if you bank accepts faster payments. The money did not reach my account until 11am the next day. I paid £15 for this service so was unhappy. I tried to call them but gave up after waiting almost 15 minutes.

After being absolutely bombarded with texts offering an increase in my loan over the weekend, I applied for a further £80 on Monday 1 July and once again selected faster payments.

I phoned cfo on Tuesday 2 July at 12pm to complain the money had not gone in. After confirming my bank account and sort code I was told the sort code you had was incorrect and the money had therefore been sent to the wrong account. I was blamed for this although at no point when applying for the second loan did I re enter my details. All other loans with you have gone into my account so I do not know how this one did not. To make matters worse I was told I am still liable to re pay this as they have issued money out. How can you justify this when I have not even received the loan? I did not enter any account details and my past loans with them have gone into my account.

I was told to wait 10 working days to see if the money bounces back to them. If not, I am liable.

This is totally unfair that I have to pay for a loan that was sent to the wrong account and that I have not received.

The repayment date is 15 July and I am due to repay a total of £210.80. I have only received £60 in total for this.

What do I do? Do I pay the whole amount and try to reclaim the money after? Or do I refuse to pay?

I have written to them last week but no reply!

I have really learnt my lesson here and will never take out another payday loan.

Nikkidylan

Sorry - I copied and pasted some of the letter I sent to them which is the reason for referring to them as 'you'

DCFC79

Welcome to MSE.

So let me get this straight you applied for a loan, entered the correct account details, received the first loan but on applying for loan #2 it was paid into another account which you didnt hand over any details for.

Nikkidylan

Yes. When I phoned cfo about why I had not receive the second loan, they said they had to wrong sort code for me and it therefore had been paid into a wrong account. I have no idea where they got this sort code from as I did not have to enter my account information again. They had the correct account number. I replied to one of their text messages requesting the second loan. They then sent a 4 digit code I had to enter via an email link and after that they said The loan had been authorised...

Nikkidylan

Hi can anyone help? I really need some advice on where I stand....

gb12345

Nikkidylan wrote: »

Hi can anyone help? I really need some advice on where I stand....

Send them a formal complaint stating that you never received the subsequent payments due to them sending it to the wrong sort code.

They will have 8 weeks to resolve the complaint to your satisfaction and if they don't then you can complain to the FOS.

As to the payment due on 15/07, that is a hard one - if you pay nothing then theoretically they can trash your credit history (although I suspect if you are having to borrow from a firm like this then that may not be a problem as it is likely already poor). If they do add late payments or defaults to your credit history then when the complaint is resolved (assuming in your favour) then they will have to correct them.

Nikkidylan

Ok thanks. I have emailed them a formal complaint but to be honest I don't expect a reply. They seem to have an awful reputation too.

I am happy to pay for the first loan but not the second as if I did pay I can't see them ever refunding it. I think I will give them a call on Friday and offer to pay for the first loan. I am worried that they are going to add lots of late payment fees and extra interest.

Yes my credit history isn't that great so probably wouldn't make too much of a difference!

I just feel like I have been completely ripped off to be honest.

Can the fso tell them to cancel any extra fees etc they might add?

Bobster64

Contact the CAB (Citizens Advice Bureau). There is one in most towns. They will be able to help and may even contact the lender on your behalf. It's free to use.

Good luck.

Nikkidylan

Thank you, I will do that today.

gb12345

Nikkidylan wrote: »

Ok thanks. I have emailed them a formal complaint but to be honest I don't expect a reply. They seem to have an awful reputation too.

I am happy to pay for the first loan but not the second as if I did pay I can't see them ever refunding it. I think I will give them a call on Friday and offer to pay for the first loan. I am worried that they are going to add lots of late payment fees and extra interest.

Yes my credit history isn't that great so probably wouldn't make too much of a difference!

I just feel like I have been completely ripped off to be honest.

Can the fso tell them to cancel any extra fees etc they might add?

EMail is not the best way of sending a formal complaint - a letter sent recorded delivery would be better as then they can't deny receiving it.

If it goes to the FOS and they find in your favour then you should be put back in the postion you were in if the second loan had never happened (i.e. any interest and fees relating to that should be cancelled/refunded).

Paying what you owe them for the first loan is probably the best bet - if you can find a way of paying it. How are you meant to pay them? Whatever you do do not give them any card details, they will just take the full amount.

Nikkidylan

Ok thank you, I will send them the letter today and do it via recorded delivery.

Good point, they already have my card details so are most likely going to take the full amount on the 15th. I may have to cancel my card so they can't take it but then I am not going to be able to repay the first loan.

Unless it would be better to repay the full amount and try to get it refunded from them at a later date... Although I am wary of doing this as can see them refusing to refund it.

And to make matters worse they are still sending me text messages every day offering more money!