Advice regarding Wonga

ImMeSoHi

I know, I know, it is my own silly fault but I did what I had to do as I was off work with a sickline for pregnancy reasons for a month or so and not intitled to full sick pay from the company.

I took a Wonga loan out, it is due to be repaid this Sunday and is about £800. I have already set up a new bank account with a different bank and about to request my work to put my wages into this new account.

I am going to email Wonga before the payment is due and request a payment plan. Would they be able to freeze the interest on the loan then?

Should I go to my bank that they have details for and tell them not to allow Wonga to take any payment? (have no idea if they can even do that..).

Any helpful advice would be great, I am a bit confused as to how to go about this as never not been able to pay. I have seen other sites/forums telling people to cancel their cards/report stolen and request a new card with new details but I have an overdraft with my bank and currently in the process of paying that off and couldn't afford to pay both Wonga and overdraft.

As I said it was a means to an end whilst off sick and all I'm looking to do is repay them over a few months without them clearing out my bank account as and when they want to. I know this will affect my credit history etc but not much I can do about that.

Thanks folks.

DCFC79

Well dont email, call instead to get it sorted. Don't cancel the card as it won't work, yes tell your bank not to let wonga take the money. I think its the CPA the bank can cancel.

gb12345

DCFC79 wrote: »

I think its the CPA the bank can cancel.

The bank have to cancel the CPA if they are told to, but will probably say that they can't (especially if you speak to a call centre chimp).

Just mention the Payment Services Regulations 2009 and the fact that they legally have to stop all future payments once they are told to.

Keep a note of the date and time you told them to cancel the CPA - any payments they allow to go through after that date (that aren't pending) they have to immediately refund.

matttye

gb12345 wrote: »

The bank have to cancel the CPA if they are told to, but will probably say that they can't (especially if you speak to a call centre chimp).

Just mention the Payment Services Regulations 2009 and the fact that they legally have to stop all future payments once they are told to.

Keep a note of the date and time you told them to cancel the CPA - any payments they allow to go through after that date (that aren't pending) they have to immediately refund.

dales rider, who I believe works for a bank and posts on this forum, says that even though the law says exactly that, the banks don't actually have the power to prevent payments going out, especially when it's taken for the first time by a new company.

Not saying its a bad idea to ask the bank and I'd certainly do it as a belt-and-braces exercise, but it'll still be a good idea to use a separate account for the time being.

gb12345

matttye wrote: »

dales rider, who I believe works for a bank and posts on this forum, says that even though the law says exactly that, the banks don't actually have the power to prevent payments going out, especially when it's taken for the first time by a new company.

Most (all?) banks do not have the systems in place to prevent a payment going out, which is why I said

any payments they allow to go through after that date (that aren't pending) they have to immediately refund.

The banks have no choice in the matter - the law says that the customer can cancel the CPA with the bank - so they have to do so. Not having the system in place to do so is not an excuse.

opinions4u

So you took a payday loan out when you had no idea when your next payday would be?

matttye

gb12345 wrote: »

Most (all?) banks do not have the systems in place to prevent a payment going out, which is why I said



The banks have no choice in the matter - the law says that the customer can cancel the CPA with the bank - so they have to do so. Not having the system in place to do so is not an excuse.

I'm not saying that they have an excuse, I'm saying that the banks are the ones who ultimately have control of the money we hold with them. If they choose not to refund, even though that's against the law, the only thing to do is start a lengthy complaints process with the ombudsman or take the bank to court - neither of which will be resolved quickly.

For someone who is in financial hardship, it's better to be safe than sorry and move funds away from the account in question entirely.

gb12345

matttye wrote: »

I'm not saying that they have an excuse, I'm saying that the banks are the ones who ultimately have control of the money we hold with them. If they choose not to refund, even though that's against the law, the only thing to do is start a lengthy complaints process with the ombudsman or take the bank to court - neither of which will be resolved quickly.

For someone who is in financial hardship, it's better to be safe than sorry and move funds away from the account in question entirely.

I'm not denying that moving the funds away from the bank in question is not a good idea, but the CPA has to be cancelled as well. The OP mentions having an overdraft - Wonga will take any money they can get, so she will find her overdraft increasing (or even end up with an unauthorised overdraft).

If money is taken out, there would be no need for a court case or a lengthy complaints procedure - The FOS is taking a very dim view of banks avoiding their obligations under the PSR and any complaint received by the disputes department would be quickly resolved in the cusotmers favour the minute CPA, Cancellation and PSR is mentioned (and any bank stupid enough to reject the complaint is going to be on the receiving end of the wrath of the FOS).

matttye

gb12345 wrote: »

I'm not denying that moving the funds away from the bank in question is not a good idea, but the CPA has to be cancelled as well. The OP mentions having an overdraft - Wonga will take any money they can get, so she will find her overdraft increasing (or even end up with an unauthorised overdraft).

If money is taken out, there would be no need for a court case or a lengthy complaints procedure - The FOS is taking a very dim view of banks avoiding their obligations under the PSR and any complaint received by the disputes department would be quickly resolved in the cusotmers favour the minute CPA, Cancellation and PSR is mentioned (and any bank stupid enough to reject the complaint is going to be on the receiving end of the wrath of the FOS).

We agree then.

I was just saying I wouldn't *only* cancel CPA, but also use a separate account as a precautionary measure I.e. do both, not one or the other!

fozmcfc

opinions4u wrote: »

So you took a payday loan out when you had no idea when your next payday would be?

This is exactly, why the payday loan industry needs a complete overhaul of how/who it lends to.

Stiffer penalties needed for people like the OP, who blantantly take out a loan they have no way of paying.

What would the OP have done if payday loans didn't exist, like not that long ago. No doubt they would have come through it by cutting back or borrowing from family etc...

John1993_2

fozmcfc wrote: »

This is exactly, why the payday loan industry needs a complete overhaul of how/who it lends to.

Stiffer penalties needed for people like the OP, who blantantly take out a loan they have no way of paying.

What would the OP have done if payday loans didn't exist, like not that long ago. No doubt they would have come through it by cutting back or borrowing from family etc...

In the original post it was telling that there wasn't even a "I may not be able to pay, can anyone suggest ways of getting the money together?" It reads as though he or she (presumably she) just takes it as read that if you take out a Wonga loan then the next step is trying to renege on the deal.

With customers like this, I'm surprised that Wonga can evver turn a profit, and not surpprised at all at the rates that they have to charge to try to.