It's their "top up loan" that is sending people over the edge. If you accept their kind offer to increase your loan they will basically settle your current loan including one months interest then issue a new loan for that total including the top up. So if you get a loan of £200 you will have to repay £298 on your pay day. Sometime between receiving the loan and your pay day they will offer to increase your loan by £100. The day you accept they will settle your outstanding loan of £200 plus interest of £98 and issue a new loan of £398 of which you will recieve £100. On your pay day you will have to pay them the £398 you borrowed plus one months interest which would total £593. So that extra £100 will cost you £195. In effect they are offering you a £100 loan for a week or so as long as you pay them back £295. Clearly most people will not be in a position to pay off the loan and will either roll over the loan at a cost of £195 or default. They do not want you to repay the loan. They want to get you to roll over the loan. The stories of people rolling over loans for months are all over the internet. If you cannot pay off the loan and have no prospect of doing so tell them by letter and email and offer to pay them monthly payments at a reduced rate. They will turn you down so then just don't pay anything. Make sure your wages are paid into a different bank account and do not apply for any payday loans with anyone else. Pay down your other debts as much as possible. After a few months contact them and ask for a settlement. Get their account details and pay them by standing order or the faster payments system. Do not give them your new card details. They will want more than £593 but stick yo your guns and tell them you will pay it over 3 or 4 payments. Always back up everything you discuss on the phone with an email seeking confirmation of what you have told them and agreed to. Don't pay a penny unless you have replies. Forget about complaining to the OFT. Just pay them but don't roll over the loan and don't agree to pay them more than the loan plus a months interest.

Ask them to for a brief explanation of their interpretation of the guidelines in relation to their response to you.

Maybe they do and maybe they don't. Surely this thread is all about are they doing what they legally have to do at the moment.

My guess would be it's probably not fraudulent at all. They have been doing this for years and people have been complaining about them to the OFT for years. My guess would be the wording in the T&C's is what lets them do this. They have other trading names and they got your new card details so it seems logical you supplied your card details to them under one of their other trading names and as per their T&C's they took the money.

I got a settlement figure from them that although was more than 3 times the original loan amount I could pay over 3 months and be done with the sharks. I have made the first 2 payments and I am due to make the third in a couple of days. However they just won't give up. Today I received a text from one of their other trading names "paydayfirst" offering me a loan. In a way I am glad they used my stupidity to trick me into increasing my loan with them. Then stinging me with a months interest to increase the loan by 30% effectively more than doubling the amount I had to pay 2 weeks later. Had they not done that I may well have rolled over the loan 3 or 4 times before paying it off and been a repeat customer of theirs for years. However as soon as a saw they stung me I stopped paying cancelled my debit card and had my wages paid into a basic account at another bank. Not paying them for a few months has allowed me to pay off my other debts and get out of the PDL cycle.