MyFinanceClub Payday loan...HELP!

jinglebells355

Ok..so I have a few payday loans, usual story of me being silly, however I made payment plans with them last month and made my first payment to MyFinanceClub on Saturday which is showing and then last night they've gone and taken the whole remaining balance of the loan out of my bank account, nearly £300 which is now going to leave me not able pay essential bills, hence the arrangements, I've emailed them to ask why when I have the proof of payment plans by email, hoping they refund.. 

fatbelly

Did you give them a direct debit or continuous payment authority (recurring payment, debit card)?

Some useful info if the latter here

https://www.moneysavingexpert.com/banking/recurring-payments/

As a general principle the only way to safely pay a creditor is a standing order.

jinglebells355

Hi yes but when made an arrangement was only expecting them to take the arrangement amount which they did but then next day took remaining balance.

sourcrates

jinglebells355 said:

 made my first payment to MyFinanceClub on Saturday which is showing and then last night they've gone and taken the whole remaining balance of the loan out of my bank account, nearly £300 which is now going to leave me not able pay essential bills,

This was the sort of thing that first prompted the FCA investigation into payday loan companies, they would quite happily set up a DD, to take your payment, then empty your account overnight, by morning the company had done a midnight flit, you lost all your money, and they were never heard from again.

Granted that was the behaviour of the scam companies, and things have moved on from those dark days, this one appears to be FCA registered, it says in their FAQ`s that payments are taken by CPA (constant payment authority).

OP you should be able to get your money back, I would suggest talking to them in the first instance, explain what`s gone on, most likely a computer glitch will be responsible, make sure you push the "not been able to afford essentials" argument, they are not supposed to leave you without enough to afford essential payments, hopefully you should get a positive outcome on this.

If not, then go down the complaints route.

To avoid having to use the services of one of these sharks in future, might I suggest you have a good look around our site, particularly at the budgeting and debt sections of the forum, any advice you might need, you only have to ask, as you must realise using these type of loans to pay essential bills is a big no no, it may be time to reorganise your financial strategy somewhat, anyway, good luck with it.

jinglebells355

Thank you.
I got myself into a bit of a mess a few months ago with loans and credit cards but set up payment plans with them all which was going fine until this! Yeah I sent them a message as soon as it left my account as i was in a panick, that was my bills or food money, will have to have some bills bouncing tomorrow now but hopefully they will give me the money back seeing as there was a payment plan in place which was paid as agreed the day before! Can't risk not having food money just incase they say no or takes a while to sort. I thought I had sorted all my payment plans to stop the stress of this happening and now I'm more stressed than ever! Partner doesn't know about debts either as he has his own and not been in a good place recently so this really isn't good timing..let's hope can sort this week, preferably tomorrow!

fatbelly

Let us know what they say

gizmo111

jinglebells355 said:

Hi yes but when made an arrangement was only expecting them to take the arrangement amount which they did but then next day took remaining balance.

Contact your bank - tell them its an unauthorized payment and they will refund.  put it in writing to bank and loan company that the CPA is cancelled and set up a standing order so you are in control.

EssexHebridean

gizmo111 said:

Contact your bank - tell them its an unauthorized payment and they will refund.  put it in writing to bank and loan company that the CPA is cancelled and set up a standing order so you are in control.

The bit I have bolded is entirely vital - these CPA's are a pain in the proverbial and can be a real nightmare to cancel but a clear instruction in writing is the way forwards. 

OP - a suggestion once this initial panic is sorted is to put together your SOA and post it into here as it sounds like your household is struggling to make ends meet at the moment. Things like payday loans are truly only a sticking plaster at best - they don't actually heal anything, and in fact they can actually make the situation far worse. Your Statement of Affairs will show you whether you genuinely don't have enough money to make it through the month, or whether you are currently "losing" a surplus by odds and ends of frittering. If you post that here then we can take a look through - it's surprising how often someone on the outside can see far more clearly where savings can be made! 

Graham1982

Hello everyone:

Are payday loans still a thing? I thought they were banned.

A good few years ago, I reckon 2014, my friend got a payday loan and paid it back in-term and without issue (still not ideal as high interest etc). Anyway, he went from having shark lenders phoning saying they could lend him x, y, z to not being able to lend him anything - I presume because he cleared it without them being able to bang loads of interest on it.

Is it likely my cynicism is right here? 

Thanks

Graham