I received a payday loan from Cash Converters a couple of months ago. I set it up so that I would come into the store and repay the loan and interest when my DLA was paid into my bank account...
They said that they would need my card details to check that the bank account and card were indeed mine, by taking a couple of pounds out and then replacing it. They also said that they could also take the repayment as a debit card transaction, if I fail to pay, or I instruct them to.
I won't give all the ins and outs of what happened, as I don't want to bore everyone to death, but to cut a long story short, I forgot all about the loan and my debit card expired.
I assume they tried to make a debit card withdrawal, but the card information they had was "old".
I then woke up this morning, checked the bank to see if this months DLA went in, and am confronted with a £130 Direct Debit! I can't remember saying to Cash Converters that they could setup a Direct Debit to my bank account, which the bank said was setup this morning!
I telephoned my bank to ask what was going on, as I can't see what has gone where 'til the following day, and they cancelled the DD and said my money should return to my account by the morning.
What I am wanting to know, is if they, or any other company, can set up DD's without consent? or is there something in the small print saying they can?
True, I owe them the money, and my personnal circumstances is not of interest to them, but I now feel that they can wait for me to pay, as they "Burgaled" my account!
Can anyone tell me the legal side of what has happened, or is it well known they can dip into your account when they want?