Paying off payday loans with credit card.

Vintage82

My brother has got himself into all kinds of trouble with payday loans companies but fortunately I am in a position to help him.

I have just been told by one company that I cannot pay off his debt with my credit card. Does anyone know why this is?

I was advised you can't pay off credit with credit by the company, but she had no retort for my balance transfer reply.

I also do not trust any of these companies, so guaranteeing the payment with my credit card looks like the best move.

Thanks

[Deleted User]

They don't need to accept cards. And you can't BT a loan. You would need a money transfer option.

If you don't trust them though, do not pay by credit card. They will probably have the right to take payments from it the next time you brother takes out a loan with them.

fwor

Vintage82 wrote: »

I have just been told by one company that I cannot pay off his debt with my credit card. Does anyone know why this is?

Essentially, it's because credit card companies charge a transaction fee, and loan companies want all of their money back without any fees deducted.

sinizterguy

You cannot pay for one form of credit with another directly.

Balance transfers are effectively your new credit card provider paying off you old credit card provider and offering you a loan at a special rate.

It's an exception to the other rule if you want to look at it that way.

If you're so keen to do that, why don't you ask your credit card provider to a do a 'balance transfer' from the payday loan and see what they say.

Vintage82

Thanks All.

sinizterguy wrote: »

If you're so keen to do that, why don't you ask your credit card provider to a do a 'balance transfer' from the payday loan and see what they say.

Interesting you say that, they have proposed that option but with a nominal charge. Got that waived.

CHR15

Don't, under any crcumstances, let them know ANY of your bank details.

If you are going to do this, obtain the money by whatever means and transfer it into your Brothers account, then let him pay it.

Next time he borrows and doesn't repay, they will take it from your bank as your details will be linked to his loan account.