Advice urgently needed on what to do with payday loan

gb12345

Nikkidylan wrote: »

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.

They will probaby take the payment under a Continuous Payment Authority, so cancelling your card will do no good as they already have authorisation to take the payment.

If you contact your bank and tell them that you want to cancel any CPA that is in place to cfo lending then they have to stop any future payments going out.

Your bank will probably tell you that they cant do it but tell them that you have a legal right to do so under the Payment Services Regulations 2009 (ask to speak to a manager - don't get fobbed off by a callcentre monkey).

If any money is taken after you have told your bank to cancel the CPA then your bank has to refund it.

[Deleted User]

Cancelling your card won't make a difference to the payments for either loan, as they are already authorised.

marathonic

I'd pay both loans to be honest (assuming I could afford it).

This will avoid any credit report issues. I'd expect to be refunded most of the money, together with some sort of compensation for the hassle.

I'd make sure to request compensation in addition to the refund of the second loan amount too - they're lending it to some other poor soul at massive interest rates at the moment.

Apples2

Nikkidylan wrote: »

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.

This is exactly what I would do but of course it is dependant upon you being able to afford it (don't take another payday loan to do this whetever you do).

If you don't pay, you will be hit with charges and even more damage to your credit file. It isn't impossible to resolve but it will take a long time and bring a whole world of stress. You will be fighting on two fronts, one for the fees/charges and another for your credit file.

If you do pay, the loan is done and dusted, all finished so no more charges, no adverse entries on your credit file.
You simply have a battle for a refund of the money.

Complain in writing, head it Formal Complaint which sadly gives them 8 weeks to respond. If it hasn't been resolved by the end of the 8 weeks, escalate it to the FOS.

Keep records of everything you do, including the calls you have already made. If you can't be exact, note the date and "called between 0900-1100" or something.
Put it all in your complaint letter and post it recorded delivery (no emails).

27col

It would appear that perhaps you did not really need the money in such a hurry as you thought, if you are managing to survive without it being in your account due to the !!!! up.

Nikkidylan

Thanks for the advice everyone.

I have written the formal complaint to them so will wait for the response.

I am going to pay the full amount and then hopefully try to reclaim it back. Extra compensation for the hassle would be nice but doubtful on that.

No I probably did not need the money, it's just too tempting when they are texting me every day offering up to £500 extra. It's also too easy to apply as all you need to do is reply to the text and enter a code online.