Hi There,

I took out a stupid pay-day loan and couldn't afford to pay it back. Now I cancelled my debit card and my bank manager cancelled the direct debit 2 months ago and all was fine and well.

A few days ago I noticed that they had set up a direct debit again and applied for payment of the balance.

Am I correct that this is a breach of the direct debit scheme regardless of their terms and conditions?

As far as I am aware with other companies if I or my bank cancel the direct debit, the recipient requires my authorisation to set up a new one?

Am I right? Are they in the wrong?

Cheers in advance!

Thread moved to correct forum

Yes, it is a breach of the DD guarantee. As you cancelled it and have given no instruction to restart it, your bank should refund the monies.

And as for the rogues at wageday advance? Surely they have breeched something too?

Hi Rickyatsea,

As far as I am aware WageDayAdvance has something in the contract that they can set up a direct debit until loan is repaid. Even if you are on a repayment plan they will set up a direct debit every month for the full amount 1-2 days before your income is due. So you would need to cancel set every time 1 day before your income is due.

Doesnt matter if its in the contract. You can revoke it and cancel the DD at any time. You can also put a full block on it at your bank.

Thats what im getting at. This company is regulated by some kind of body. Whether its in their contract or not they are breeching th DD scheme?

Can i not have them by the short and curlies for this behaviour?

You can try but going by the antics of all PDL's, and the very restricted nature of what the regulators can do, theres really not much you can do. The UK has some of the most relaxed regulations and laws surrounding interest rates and PDL's/creditors attempts to get money.

Im not going to mention any names but i have a good bank manager who is sympathetic towards my circumstances and has a degree of hate towards these type of companies. He is opening me a new account on friday and closing the old one down so i have new details and card details.

He believes they cannot offer direct debits if they do not adhere to the schemes rules.

I will see what he says on Friday but i hope i can get them on something.

Just be careful. Some banks will still allow the transactions to be processed. This is a system failure and something which a bank manager cant rectify.